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2Q 2022 Earnings Presentation – Baytex Energy Corp.

Baytex Energy Corp. · Aug 4, 2022 · 37 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 2022 Earnings Presentation – Baytex Energy Corp. – slide 1
    Investor Presentation August 2022
  2. 2Q 2022 Earnings Presentation – Baytex Energy Corp. – slide 2
    Investment Highlights 10 or more years of projected drilling inventory in each of our High Quality and core areas (Viking, Eagle Ford and Canadian heavy oil) Diversified Oil Portfolio Strong capital efficiencies across portfolio…
  3. 2Q 2022 Earnings Presentation – Baytex Energy Corp. – slide 3
    Corporate Profile Market Summary Ticker Symbol TSX: BTE Average Daily Volume (1) 12 million Shares Outstanding (2) 560 million Market Capitalization / Enterprise Value (2) 3.6 billion / 4.7 billion Operating Statistics…
  4. 2Q 2022 Earnings Presentation – Baytex Energy Corp. – slide 4
    H1 2022 Highlights Strong Peavine Drilling Results, Increased Guidance and Share Buyback Program Initiated H1/2022 Highlights Generated production of 82,000 boe/d, a 3% increase over H1/2021 H1 2022 Highlights Generated free cash…
  5. 2Q 2022 Earnings Presentation – Baytex Energy Corp. – slide 5
    ESG Highlights GHG Emission Reduction Safety 52% reduction in GHG 25% reduction in total emissions intensity through recordable injury frequency in 2021, relative to 2018 5 years baseline; 65% target in place Gas Conservation…
  6. 2Q 2022 Earnings Presentation – Baytex Energy Corp. – slide 6
    Maintaining Capital Discipline and Driving Meaningful Free Cash Flow Production guidance of 83,000 to 85,000 2022 Guidance boe/d represents: E&D Expenditures 450 500 million 5% annual production growth at the Production 83,000 -…
  7. 2Q 2022 Earnings Presentation – Baytex Energy Corp. – slide 7
    Uses of Free Cash Flow Direct shareholder returns Current allocation of free cash flow Allocation of Free Cash Flow 25% to share buybacks 75% to debt repayment 100% Share buybacks commenced May 2022 Share Buybacks Repurchased…
  8. 2Q 2022 Earnings Presentation – Baytex Energy Corp. – slide 8
    2023 Free Cash Flow Generation and Shareholder Return Potential 2023 Free Cash Flow ( millions) (1)(2) Target 50% of Free Cash Flow (1)(2) 28% to Share Buybacks Yield 1,800 22% Yield 1,600 17% Yield 1,400 1,000 Buybacks 800…
  9. 2Q 2022 Earnings Presentation – Baytex Energy Corp. – slide 9
    Committed to Maintaining Strong Financial Flexibility Net Debt(1) (June 30, 2022) millions Strong liquidity Credit facilities (2) 497 Credit facilities extended to 2026 Long-term notes 644 and increased to US850 million Long-term…
  10. 2Q 2022 Earnings Presentation – Baytex Energy Corp. – slide 10
    5-Year Plan Generates 3.0 billion Cumulative Free Cash Flow Free Cash Flow(1) Profile (after-tax) Highlights of 5-Year Plan 3,500 Cumulative Free Cash Flow ( millions) 3,000 3.0 billion cumulative free cash flow(1) 2,500…
  11. 2Q 2022 Earnings Presentation – Baytex Energy Corp. – slide 11
    5-Year Plan Free Cash Flow Profile (after-tax) US75 WTI US85 WTI US95 WTI 3.0 Billion 3.8 Billion 4.4 Billion Cumulative FCF (1) Cumulative FCF (1) Cumulative FCF (1) 1,000 0.7x 900 0.6x 800 Net Debt to EBITDA ratio Free…
  12. 2Q 2022 Earnings Presentation – Baytex Energy Corp. – slide 12
    Crude Oil Hedge Portfolio Q3/2022 Q4/2022 H2/2022 2023 WTI Fixed Hedges Volumes (bbl/d) 10,000 10,000 10,000 --- Fixed Price (US/bbl) 53.50 53.50 53.50 --- WTI 3-Way Option (1) Volumes (bbl/d) 10,500 10,500 10,500 9,500 Average…
  13. 2Q 2022 Earnings Presentation – Baytex Energy Corp. – slide 13
    2022E Adjusted Funds Flow Sensitivities Estimated Effect on Annual Adjusted Funds Flow(1) (MM) Sensitivities Excluding Hedges Including Hedges Change of US1.00/bbl WTI crude oil 24.1 15.1 Change of US1.00/bbl WCS heavy oil…
  14. 2Q 2022 Earnings Presentation – Baytex Energy Corp. – slide 14
    Asset Overview
  15. 2Q 2022 Earnings Presentation – Baytex Energy Corp. – slide 15
    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 27,800 boe/d 17,200 boe/d 29,200 boe/d 2,000 boe/d (Gross;…
  16. 2Q 2022 Earnings Presentation – Baytex Energy Corp. – slide 16
    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 an average 25% W.I. Karnes Produced 27,800 boe/d LONGHORN…
  17. 2Q 2022 Earnings Presentation – Baytex Energy Corp. – slide 17
    Eagle Ford: Strong Free Cash Flow and Deep Drilling Inventory 10 year drilling inventory (2) Free Cash Flow (1) (C millions) 224 net 250 locations 1.4 billion cumulative asset level free cash flow since 2016 200 150 100 18 228…
  18. 2Q 2022 Earnings Presentation – Baytex Energy Corp. – slide 18
    Viking Light Oil: 460 Highly Prospective Sections Shallow (700 m), light oil (36 API) resource play Produced 17,200 boe/d (88% oil) in H1/2022 Strong operating netback(1) 68/boe at US85 WTI Kerrobert Plenty 211 million of…
  19. 2Q 2022 Earnings Presentation – Baytex Energy Corp. – slide 19
    Viking: High Netback Light Oil High Operating Netback (1) Light Oil (/boe) 10 year drilling inventory (3) Strong price realizations, low cost structure and high free cash flow (1) 1,650 net 1,800 locations 1,600 1,400 1,200 1,000…
  20. 2Q 2022 Earnings Presentation – Baytex Energy Corp. – slide 20
    Peace River: Innovative Multi-Lateral Development Produced 12,900 boe/d in H1/2022 (85% oil) Dominant 560 net sections 9 net Bluesky multi-lateral wells planned for 2022 Long life polymer flood at Seal Clearwater Seal Produced…
  21. 2Q 2022 Earnings Presentation – Baytex Energy Corp. – slide 21
    Clearwater: Superior Well Performance and Economics Clearwater Lands Top 15 Clearwater Wells (1) 500 net sections in the NW Clearwater fairway with 125 prospective for Spirit River No. UWI Current Operator Peak Calendar Rate…
  22. 2Q 2022 Earnings Presentation – Baytex Energy Corp. – slide 22
    Clearwater: H1/2022 Program Accelerates Development Peavine 5-33 Pad 14-36 Pad 5-33 Pad 13-25 Pad Q1/2022 4 new wells onstream in March/April, with IP30s of 300-450 bbl/d per well June production 2,200 bbl/d with 8 4-25 Pad…
  23. 2Q 2022 Earnings Presentation – Baytex Energy Corp. – slide 23
    Lloydminster: Significant Land Position and Drilling Inventory Produced 11,100 boe/d in H1/2022 (97% oil) Strong capital efficiencies Ardmore/Cold Lake Applying multi-lateral horizontal drilling and production techniques…
  24. 2Q 2022 Earnings Presentation – Baytex Energy Corp. – slide 24
    Heavy Oil Innovation Peace River Lloydminster Multi-Lateral Horizontal Horizontal Well Economics (1) WTI Oil Price 75/bbl 85/bbl WTI Oil Price 75/bbl 85/bbl Payout: 1.0 year 9 months Payout: 9 months 7 months IRR: 110% 170% IRR:…
  25. 2Q 2022 Earnings Presentation – Baytex Energy Corp. – slide 25
    Pembina Area Duvernay Light Oil: Emerging Resource Play Pembina Duvernay Continue to advance the delineation of the Pembina Duvernay Shale 200 sections of 100% WI lands Eleven wells drilled to date have delineated a minimum of…
  26. 2Q 2022 Earnings Presentation – Baytex Energy Corp. – slide 26
    High Quality Oil Development Eagle Ford Viking Peace River Lloydminster Pembina Duvernay Formation Lower Eagle Ford Viking Bluesky Mannville Group Duvernay Upper Eagle Ford Clearwater Austin Chalk 550-800 (Bluesky) Depth (metres)…
  27. 2Q 2022 Earnings Presentation – Baytex Energy Corp. – slide 27
    Environment, Social and Governance (ESG)
  28. 2Q 2022 Earnings Presentation – Baytex Energy Corp. – slide 28
    ESG at Baytex As a responsible energy company, we take a sustainable approach to managing and developing our business into the future. We aspire to create an organization that future generations will be proud to be a part of. 29
  29. 2Q 2022 Earnings Presentation – Baytex Energy Corp. – slide 29
    How Focusing on ESG Creates Value By incorporating environmental, social and governance factors into our business and reporting on our performance, we create value for shareholders and remain focused on advancing a responsible energy…
  30. 2Q 2022 Earnings Presentation – Baytex Energy Corp. – slide 30
    Our ESG Scorecard Continual improvement is an important element of our culture. We set short and long- term targets to address our impact on air, water, land and people. Each year, we report on our progress towards those targets. 31
  31. 2Q 2022 Earnings Presentation – Baytex Energy Corp. – slide 31
    Supplementary Information
  32. 2Q 2022 Earnings Presentation – Baytex Energy Corp. – slide 32
    2022 Guidance and Cost Assumptions Exploration and development expenditures ( millions) 450 - 500 Production (boe/d) 83,000 85,000 Expenses: Average royalty rate (%) (1) 21.0% - 22.0% Operating (/boe) (2) 13.75 - 14.25…
  33. 2Q 2022 Earnings Presentation – Baytex Energy Corp. – slide 33
    Summary of Operating and Financial Metrics Q1 2021 Q2 2021 Q3 2021 Q4 2021 2021 Q1 2022 Q2 2022 Benchmark Prices WTI crude oil (US/bbl) 57.84 66.07 70.56 77.19 67.92 94.29 108.41 NYMEX natural gas (US/mcf) 2.69 2.83 4.01 5.83 3.84…
  34. 2Q 2022 Earnings Presentation – Baytex Energy Corp. – slide 34
    Specified Financial Measures Advisory In this presentation, we refer to certain specified financial measures (such as free cash flow, operating netback, total sales, net of blending and other expense, heavy oil sales, net of blending and…
  35. 2Q 2022 Earnings Presentation – Baytex Energy Corp. – slide 35
    Capital Management Measures Advisory This presentation contains the terms adjusted funds flow, net debt, net debt to adjusted funds flow ratio and net debt to EBITDA which are capital management measures. We believe that inclusion of…
  36. 2Q 2022 Earnings Presentation – Baytex Energy Corp. – slide 36
    Advisory Regarding Oil and Gas Information The reserves information contained in this presentation has been prepared in accordance with National Instrument 51-101 -Standards of Disclosure for Oil and Gas Activities of the Canadian…
  37. 2Q 2022 Earnings Presentation – Baytex Energy Corp. – slide 37
    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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