Earnings Call

Baytex Energy Corp. Q2 FY2026 Earnings Call

With Chad Lundberg (President and CEO), Chad Kalmakoff (CFO), Kendall Arthur (COO) and 1 more.

BTE

Fiscal Q2 2026

July 31, 2026

18 min read

3 questions

Baytex Energy Corp. is a Calgary-based energy company committed to driving shareholder value through disciplined execution. It operates a high-quality, high-return portfolio in the Western Canadian Sedimentary Basin, featuring the Pembina Duvernay and heavy oil plays in Alberta and Saskatchewan.

More about Baytex Energy Corp.

These core assets are backed by an extensive drilling inventory and consistently generate strong cash flow. Baytex’s common shares are traded on the New York Stock Exchange and the Toronto Stock Exchange under the symbol BTE.

1Prepared remarks4 speakers

Operator Thank you for standing by. This is the conference operator. Welcome to the Baytex Energy Corp second quarter 2026 financial and operating results conference call. As a reminder, all participants are in listen-only mode, and the conference is being recorded. After the presentation, there will be an opportunity for analysts to ask questions. To join the question queue, you may press star then one on your telephone keypad. You may also submit questions in writing at any time using the form in the lower section of the…

Chris LessowayVP of Finance and Treasurer

Thank you, operator. Good morning and welcome to Baytex's second quarter 2026 results conference call. Joining me today are Chad Lundberg, our President and Chief Executive Officer, Kendall Arthur, our Chief Operating Officer, and Chad Kalmakoff, our Chief Financial Officer. Before we begin, please note that our discussion today contains forward-looking statements within the meaning of applicable securities laws. I refer you to the advisories regarding forward-looking statements, oil and gas information, and…

Chad LundbergPresident and CEO

Good morning. Q2 was another strong quarter. Production averaged 71,200 BOE per day, above the high end of our guidance for the second straight quarter. We've continued outperformance across our heavy oil portfolio and first well results from our southern land block in the Duvernay that we call Gilby. We repurchased 22 million shares for CAD 139 million and exited the quarter with net cash of CAD 566 million. With strong well performance to date, full-year production guidance has been raised to 71,000 BOE per day…

Kendall ArthurCOO

Thanks, Chad. Production of 71,243 BOE per day exceeded the high end of guidance, representing 11% growth relative to Q2 2025. We invested CAD 122 million on exploration and development and brought 24.6 wells on stream, consistent with our full-year plan and weighted to deliver strong production in the back half. Heavy oil was strong across the board. At Peavine, six of the wells brought on stream during the quarter have established average IP30 rates of 478 barrels per day per well. Well results in Peavine…

Chad KalmakoffCFO

Thanks, Kendall. Our strong operating results translate into strong finance performance. We generated adjusted funds flow of CAD 254 million in the second quarter or CAD 0.35 per share. Our operating net back was CAD 55.33 per BOE, up from CAD 35.36 per BOE in Q1, reflecting strong realized pricing and continued cost discipline. As a…

Chad Lundberg I…