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2Q 2020 Earnings Presentation – Baytex Energy Corp.

Baytex Energy Corp. · Aug 1, 2020 · 33 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. 2Q 2020 Earnings Presentation – Baytex Energy Corp. – slide 1
    Investor Presentation August 2020
  2. 2Q 2020 Earnings Presentation – Baytex Energy Corp. – slide 2
    Investment Highlights High Quality and 10 or more years of projected drilling inventory in each of our Diversified Oil Portfolio core areas (Viking, Eagle Ford and Canadian heavy oil) Across Multiple Plays Strong capital efficiencies…
  3. 2Q 2020 Earnings Presentation – Baytex Energy Corp. – slide 3
    Corporate Profile Market Summary Ticker Symbol TSX / NYSE: BTE Average Daily Volume (1) CAN: 7 million / US: 2 million Shares Outstanding (2) 561 million Market Capitalization / Enterprise Value (2) 359 million / 2,354 million…
  4. 2Q 2020 Earnings Presentation – Baytex Energy Corp. – slide 4
    ESG Highlights GHG Emission Reduction Safety 15% reduction in GHG 41% reduction in lost time emissions intensity in 2019; incident frequency in 5 target 30% by 2021 years Gas Conservation Indigenous Relations 99.5% routine gas…
  5. 2Q 2020 Earnings Presentation – Baytex Energy Corp. – slide 5
    H1 2020 Highlights Generated production of 85,479 boe/d (82% oil and NGL) Delivered adjusted funds flow of 151 million (0.27 per basic share) Issued US500 million principal amount of 8.75% senior unsecured notes due April 2027…
  6. 2Q 2020 Earnings Presentation – Baytex Energy Corp. – slide 6
    Responding Decisively to COVID-19 The oil and gas industry is facing an unprecedented challenge due to significant degradation and volatility in global crude oil prices We are focused on protecting the health and safety of our…
  7. 2Q 2020 Earnings Presentation – Baytex Energy Corp. – slide 7
    Maintain Financial Liquidity Credit Facilities 35% Balance Sheet (1) millions Undrawn Bank loan 704 363 million of undrawn credit Long-term notes 1,226 capacity and liquidity, net of Long-term debt 1,930 working capital, of 300…
  8. 2Q 2020 Earnings Presentation – Baytex Energy Corp. – slide 8
    Minimize Capital Outlays 50% reduction in capital spending 2020 Guidance (1) 260 to 290 million, from 500 to E&D CapEx 260 - 290 million 575 million, previously Production 78,000 - 82,000 boe/d Drilling operations in Canada Oil…
  9. 2Q 2020 Earnings Presentation – Baytex Energy Corp. – slide 9
    Emphasize Cost Reductions Total Cost Reductions of 98 million Intensely focused on driving further efficiencies to capture or Discretionary spending eliminated; sustain cost reductions G&A reduced salaries and annual retainers paid…
  10. 2Q 2020 Earnings Presentation – Baytex Energy Corp. – slide 10
    Crude Oil Hedge Portfolio Q3/2020 Q4/2020 H2/2020 2021 WTI Fixed Hedges Volumes (bbl/d) 23,732 8,000 15,866 --- Fixed Price (US/bbl) 36.41 42.78 38.02 --- WTI 3-Way Option Volumes (bbl/d) 24,500 24,500 24,500 5,000 Average Sold…
  11. 2Q 2020 Earnings Presentation – Baytex Energy Corp. – slide 11
    2020E Adjusted Funds Flow Sensitivities Estimated Effect on Annual Adjusted Funds Flow (MM) (1) (2) Sensitivities Excluding Hedges Including Hedges (3) Change of US1.00/bbl WTI crude oil 24.3 15.9 Change of US1.00/bbl WCS heavy…
  12. 2Q 2020 Earnings Presentation – Baytex Energy Corp. – slide 12
    Asset Overview
  13. 2Q 2020 Earnings Presentation – Baytex Energy Corp. – slide 13
    Asset Highlights Geographic and play diversification with 10 or more years drilling inventory in each core area Eagle Ford Viking Heavy Oil Pembina Duvernay Production 35,504 boe/d 22,206 boe/d 22,147 boe/d 1,258 boe/d (Gross;…
  14. 2Q 2020 Earnings Presentation – Baytex Energy Corp. – slide 14
    Eagle Ford: Core of Karnes County 19,900 net acres in the core of the Eagle Ford shale in south Texas Wilson Four AMIs (Longhorn, Sugarloaf, Ipanema and Excelsior) with average 25% W.I. Karnes H1/2020 production of LONGHORN…
  15. 2Q 2020 Earnings Presentation – Baytex Energy Corp. – slide 15
    Eagle Ford: Strong Free Cash Flow and Deep Drilling Inventory Production Asset Level Free Cash Drilling Inventory (2) (mboe/d) Flow (1) (C millions) (net locations) Stable production and 749MM cumulative 10 year inventory at deep…
  16. 2Q 2020 Earnings Presentation – Baytex Energy Corp. – slide 16
    Enhanced Completions Drive Step Change in Well Performance 180 Day Cumulative Well Production Completion Activity 175 Stage Hz Length Proppant of 17% increase 2019 over 2017 2019 Spacing (ft) (lbs/ft) Stages 5% increase 2019…
  17. 2Q 2020 Earnings Presentation – Baytex Energy Corp. – slide 17
    Viking Light Oil: 460 Highly Prospective Sections Shallow (700 m), light oil (36 API) resource play with strong netbacks Produced 22,200 boe/d (91% oil) in H1/2020 Added 229 net unbooked drilling opportunities in 2019 through…
  18. 2Q 2020 Earnings Presentation – Baytex Energy Corp. – slide 18
    Technical Advancements Drive Productivity Improvement Shift to ERH(1) Wells Drives Productivity 95%+ of Viking Development now Improvements ERH Wells 400 100% Viking Wells by Vintage 350 90% 80 80% 300 70% 70 250 60% 60 200…
  19. 2Q 2020 Earnings Presentation – Baytex Energy Corp. – slide 19
    Peace River: Innovative Multi-Lateral Development Performance Drivers Produced 11,000 boe/d in H1/2020 (86% oil) Golden Dominant 560 net sections Strong capital efficiencies Seal Harmon Valley Peavine Lands Q1/2020…
  20. 2Q 2020 Earnings Presentation – Baytex Energy Corp. – slide 20
    Lloydminster: Significant Land Position and Drilling Inventory Performance Drivers Produced 11,200 boe/d in H1/2020 (98% oil) Ardmore/Cold Lake Strong capital efficiencies Applying multi-lateral horizontal drilling and…
  21. 2Q 2020 Earnings Presentation – Baytex Energy Corp. – slide 21
    Heavy Oil Innovation Lloydminster Peace River Horizontal Multi-Lateral Horizontal 24
  22. 2Q 2020 Earnings Presentation – Baytex Energy Corp. – slide 22
    Pembina Area Duvernay Light Oil: Emerging Resource Play Pembina Duvernay 275 sections of 100% WI lands Nine wells drilled to date have delineated a minimum of 100- 125 sections Produced 1,300 boe/d (82% liquids) in H1/2020…
  23. 2Q 2020 Earnings Presentation – Baytex Energy Corp. – slide 23
    High Quality Oil Development Eagle Ford Viking Peace River (1) Lloydminster (1) Pembina Duvernay Formation Lower Eagle Ford Viking Bluesky Mannville Group Duvernay Upper Eagle Ford Austin Chalk Depth (metres) 3,300-3,900 700 600…
  24. 2Q 2020 Earnings Presentation – Baytex Energy Corp. – slide 24
    Corporate Sustainability
  25. 2Q 2020 Earnings Presentation – Baytex Energy Corp. – slide 25
    Corporate Sustainability At Baytex, we believe that commitment to corporate responsibility is just as important as delivering financial and operational targets. We publish a biennial Corporate Sustainability Report which provides…
  26. 2Q 2020 Earnings Presentation – Baytex Energy Corp. – slide 26
    GHG Emissions Reduction Target to reduce GHG emission intensity (tonnes of CO2 per boe) by 30% by 2021. GHG Intensity Target 0.120 30% reduction Our emissions reduction strategy Tonnes of CO2 per boe from baseline includes:…
  27. 2Q 2020 Earnings Presentation – Baytex Energy Corp. – slide 27
    A Culture of Commitment How it contributes to Objective What weve done Result value creation Ensure our employees and 42% reduction in corporate spill Reduces costs and maintains ENVIRONMENT Responsibly develop contractors…
  28. 2Q 2020 Earnings Presentation – Baytex Energy Corp. – slide 28
    Supplementary Information
  29. 2Q 2020 Earnings Presentation – Baytex Energy Corp. – slide 29
    Summary of Operating and Financial Metrics Q1 2018 Q2 2018 Q3 2018 Q4 2018 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 2019 Q1 2020 Q2 2020 Benchmark Prices WTI crude oil (US/bbl) 62.87 67.88 69.50 58.81 64.77 54.90 59.81 56.45 56.96 57.03…
  30. 2Q 2020 Earnings Presentation – Baytex Energy Corp. – slide 30
    Reserves Summary (Gross) 2P Reserves Breakdown 2P Reserves by Asset 2P Reserves by Commodity Pembina Other Duvernay Natural Gas PDP Heavy Eagle Probable Ford Oil Light Oil Heavy + NGL Oil PDNP + PUD Viking Pembina…
  31. 2Q 2020 Earnings Presentation – Baytex Energy Corp. – slide 31
    2020 Guidance and Cost Assumptions Exploration and development expenditures ( millions) 260 - 290 Production (boe/d) 78,000 - 82,000 Expenses: Royalty rate (%) 18.5% Operating (/boe) 11.75 - 12.50 Transportation (/boe) 0.95 -…
  32. 2Q 2020 Earnings Presentation – Baytex Energy Corp. – slide 32
    Notes 35
  33. 2Q 2020 Earnings Presentation – Baytex Energy Corp. – slide 33
    Contact Information Baytex Energy Corp. Edward D. LaFehr President and Chief Executive Officer Suite 2800, Centennial Place 587.952.3000 520 3rd Avenue S.W. Calgary, Alberta T2P 0R3 Rodney D. Gray T 587.952.3000 Executive Vice…

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