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Baytex Puts 80% of Curtailments Online; Canada Heavy Oil Remains Shut-In

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   |    Friday,June 26,2020

Baytex Energy Corp. has initiated the resumption of previously shut-in crude oil production as well as reiterated its 2020 plans.

Curtailments - Bringing 80% Back Online

Earlier this year, Baytex had voluntarily shut-in approximately 25,000 BOEPD of production in April and May 2020. The company has since initiated plans to bring approximately 80% (~20,000 BOEPD) of these volumes back on-line.

For the second half of 2020, Baytex estimates about 5,000 boe/d of heavy oil production to remain shut-in.

Raises Full Year Production Guidance

Baytex is revising our production guidance range for 2020 to 78,000 to 82,000 boe/d, from 70,000 to 74,000 boe/d previously.

Ed LaFehr, President and Chief Executive Officer, said: "As the global supply and demand picture continues to unfold, crude oil prices have strengthened from their lows in April and we are now starting to benefit from the steps we have taken. We have restarted approximately 80% of the previously announced shut-in volumes, which will have a positive impact on our adjusted funds flow. At current commodity prices, we expect to generate positive free cash flow over the remainder of 2020 and maintain over $300 million of financial liquidity."

2020 Outlook - Suspended Canada Ops

Baytex's capital spending for this year remains at $260 to $290 million, which represents an approximate 50% reduction from the original plan of $500 to $575 million.

With this revised capital program, we suspended drilling operations in Canada and expect to see a moderated pace of activity in the Eagle Ford.

Credit Facilities

Baytex's credit facilities total approximately $1.1 billion and have a maturity date of April 2, 2024.

As of March 31, 2020, there is $417 million of undrawn capacity on the credit facilities resulting in approximately $315 million of liquidity net of working capital.

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