Baytex Energy : Investor Presentation - June 2022

Investor

Presentation

June 2022

Advisory

In this presentation, we refer to certain specified financial and capital management measures which do not have any standardized meaning prescribed by International Financial Reporting Standards ("IFRS"). While these measures are commonly used in the oil and natural gas industry, our determination of these measures may not be comparable with calculations of similar measures presented by other reporting issuers. This presentation also contains oil and gas disclosures, various industry terms, and forward-looking statements, including various assumptions on which such forward-looking statements are based and related risk factors. Please see the Company's disclosures located at the end of this presentation for further details regarding these matters.

All slides in this presentation should be read in conjunction with "Forward Looking Statements Advisory", "Specified Financial Measures Advisory", "Capital Management Measures Advisory" and "Advisory Regarding Oil and Gas Information".

This presentation should be read in conjunction with the Company's consolidated interim unaudited financial statements and Management's Discussion and Analysis ("MD&A") for the period ended March 31, 2022.

There is no representation by Baytex that actual results achieved will be the same in whole or in part as those referenced in the forward-looking statements. The future oriented financial information and forward-looking statements are made as of June 1, 2022 and Baytex disclaims any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.

All amounts in this presentation are stated in Canadian dollars unless otherwise specified.

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Investment Highlights

High Quality and	 ~ 10 or more years of projected drilling inventory in each of our
	core areas (Viking, Eagle Ford and Canadian heavy oil)
Diversified Oil Portfolio
	Strong capital efficiencies across portfolio
Clearwater Development	 The Clearwater has emerged as one of the most profitable plays
	> 125 net prospective sections
and Exploration
	Scaling up development following recent exploration success

Meaningful Free Cash Flow

Generation

• Exploration and development expenditures targeted at less than 50% of adjusted funds flow at a US$75 WTI price
• Five-yearplan (2022-2026) generates ~ $3.0 billion of free cash flow(1)

 Intend to allocate ~ 25% of free cash flow to share buybacks

Shareholder Returns		commencing May 2022
	De-leveraging remains a priority; targeting a long-term net debt to
		EBITDA ratio(2) of 1x at US$55 WTI

Environmental

Stewardship

• Delivered 52% reduction in GHG emissions intensity through 2021, relative to 2018 baseline; target 65% reduction by 2025
• Committed to reducing end of life well inventory of ~4,500 wells to zero by 2040

1. Non-GAAPfinancial measure that is not a standardized financial measure under IFRS and may not be comparable to similar measures disclosed by other issuers. See "Specified Financial Measures" in the Q1/2022 MD&A for information related to this non-GAAP financial measure, which information is incorporated by reference into this presentation.
2. Capital management measure. See the "Specified Financial Measures" in this presentation for information related to this measure.

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Corporate Profile

PEACE RIVER

DUVERNAY LLOYDMINSTER

VIKING

	Market Summary
	Ticker Symbol			TSX: BTE
	Average Daily Volume (1)			12 million
	Shares Outstanding (2)			569 million
	Market Capitalization / Enterprise Value (2)	$4.0 billion / $5.3 billion
	Operating Statistics
	Production (Gross W.I.) (3)			83,000 - 85,000 boe/d
	Production Mix (3)			83% liquids
	E&D Expenditures (3)			$450 to $500 million
	Reserves - 2P Gross (4)			451 mmboe
	Production by		Production by			Revenue by
	Core Area (5)		Commodity (5)			Commodity (6)

	Other		Natural
		Eagle	Gas
		Ford	NGLs
	Heavy
	Oil
EAGLE FORD		Viking	Light
		Oil

1. Average daily trading volumes for May 2022. Volumes are a composite of all exchanges in Canada.
2. Enterprise value based on closing share price on the Toronto Stock Exchange on May 31, 2022 and shares outstanding and net debt as at March 31, 2022.
3. Production, production mix, and exploration and development ("E&D") expenditures represents 2022 guidance.
4. Baytex reserves as at December 31, 2021 as evaluated by McDaniel & Associates Consultants Ltd.
5. Production (Gross W.I.) composition based on 2022 guidance. Heavy oil includes Peace River, Lloydminster and Clearwater.
6. Revenue by commodity composition based on 2021 actuals.

Natural

NGLs Gas

Heavy

HeavyOil

Oil

Light

Oil

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Q1 2022 Highlights

Strong Peavine Drilling Results, Increased Guidance and Planned

Share Buyback Program

		Q1/2022 Highlights
Q1 2022 Highlights	 Generated production of 80,867 boe/d, a 3% increase over Q1/2021
	Generated free cash flow(1) of $121 million (0.21 per basic share)
	 Reduced net debt(2) by 10% to $1.28 billion, from $1.41 billion at YE 2021
	 10 wells drilled in Q1/2022 onstream in March/April
Materially Advanced Clearwater	 Production has increased from zero at the beginning of 2021 to ~ 8,000 bbl/d
	Successfully executed our first extended reach horizontal ("ERH") wells
Development at Peavine
 First three wells established 30-day initial production rates of ~ 1,100 bbl/d per
		well and are the strongest Clearwater wells drilled to date in the play
	 Increased production guidance to 83,000 to 85,000 boe/d on the back of strong
		operating momentum and production growth on our Clearwater lands,
2022 Guidance	 Expect to exit 2022 producing ~ 87,000 to 88,000 boe/d
	Increased exploration and development expenditures to $450 million to $500
		million to reflect incremental Clearwater and Eagle Ford activity ($30 million)
		and inflationary pressures being experienced in the industry ($33 million)
	 Board of Directors has approved the filing of a Normal Course Issuer Bid
Share Buyback Program		("NCIB") with the TSX for a share buyback program for up to 56 million
		common shares, representing ~ 10% of our public float

1. Non-GAAPfinancial measure that is not a standardized financial measure under IFRS and may not be comparable to similar measures disclosed by other issuers. See "Specified Financial Measures" in the Q1/2022 MD&A for information related to this non-GAAP financial measure, which information is incorporated by reference into this presentation.
2. Information related to this capital management measure is available in the Q1/2022 MD&A under the heading "Specified Financial Measures" and is incorporated by reference into this presentation.

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