Baytex Energy Corp. (NYSE: BTE)

Baytex Energy Corp. is an oil and natural gas company engaged in the acquisition, development, and production of crude oil and natural gas in the Western Canadian Sedimentary Basin. The company's operations are primarily focused on heavy crude oil, light and medium crude oil, natural gas liquids (NGLs), and conventional natural gas, with approximately 85% of its production weighted toward crude oil and NGLs. Baytex Energy Corp. has been in business for over 30 years, with a track record of technical proficiency and operational success. The company aims to create value for its stakeholders through the development of its assets and the completion of selective acquisitions and divestitures.

Baytex Energy Corp. generates revenue through the production and sale of crude oil, NGLs, and natural gas. The company's primary products include heavy crude oil, light and medium crude oil, tight oil, bitumen, shale gas, and conventional natural gas. These products are sold to a diverse customer base, including refineries, marketing companies, and other industrial consumers. The company's revenue is significantly influenced by commodity prices, which are subject to market fluctuations and geopolitical factors.

• Peace River - Alberta: This segment focuses on the production of heavy gravity crude oil and natural gas from the Bluesky and Spirit River formations. The company employs primary and polymer flooding recovery methods in this area. In 2025, production averaged approximately 30,609 barrels of oil equivalent per day (boe/d), with proved plus probable reserves of 58 million boe. Baytex holds approximately 335,460 net undeveloped acres in this area.

• Lloydminster - Alberta and Saskatchewan: This segment consists of several geographically dispersed heavy crude oil operations targeting multiple Manville formations. The company uses multi-lateral horizontal drilling and circulation string horizontal drilling to develop its inventory. In 2025, production averaged approximately 12,928 boe/d, with proved plus probable reserves of 89 million boe. Baytex holds approximately 135,627 net undeveloped acres in this area.

• Duvernay - Alberta: This segment involves a large 100% working interest land position in the Pembina-Gilby area of the Duvernay resource play. Production occurs from the hydraulic fracturing of horizontal wells. In 2025, production averaged 8,328 boe/d, with proved plus probable reserves of 82 million boe. Baytex holds approximately 66,815 net undeveloped acres in this area.

• Viking - Alberta and Saskatchewan: This segment includes assets located in the greater Kindersley area in southwest Saskatchewan and the Esther area of southeastern Alberta. These assets produce light oil from the Viking formation, primarily through the hydraulic fracturing of horizontal wells. In 2025, production averaged 9,771 boe/d, with proved plus probable reserves of 38 million boe. Baytex holds approximately 66,092 net undeveloped acres in this area.

Baytex Energy Corp. operates in a highly competitive and capital-intensive industry, competing with other companies for development prospects, access to commodity markets, acquisition opportunities, available capital, and staffing. The company's competitive position is similar to that of other oil and natural gas producers of a similar size and production profile. Baytex's long-term commercial success depends on its ability to find, acquire, develop, and commercially produce oil and natural gas reserves. The company's operational results and financial condition are dependent on the prices received for its oil and natural gas production, which are influenced by supply and demand factors, weather conditions, and general economic conditions.

The company's customer base includes refineries, marketing companies, and other industrial consumers. Baytex Energy Corp. markets its operated oil and natural gas production with the objective of maximizing value and counterparty performance. The company has a portfolio of sales contracts with a variety of pricing mechanisms, term commitments, and customers, and it also has several committed transportation and processing contracts with volume and term commitments that enable it to transport its production to sales points.