Five-Year Outlook 2024-2028 slide image

Five-Year Outlook 2024-2028

FORWARD LOOKING STATEMENTS ADVISORY In the interest of providing the shareholders of Baytex and potential investors with information regarding Baytex, including management's assessment of future plans and operations, certain statements in this presentation are "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and "forward-looking information" within the meaning of applicable Canadian securities legislation (collectively, "forward-looking statements"). In some cases, forward-looking statements can be identified by terminology such as "anticipate", "believe", "continue", "could", "estimate", "expect", "forecast", "intend", "may", "objective", "ongoing", "outlook", "potential", "project", "plan", "should", "target", "would", "will" or similar words suggesting future outcomes, events or performance. The forward-looking statements contained in this presentation peak only as of the date hereof and are expressly qualified by this cautionary statement. Specifically, this presentation contains forward-looking statements relating to but not limited to: expectations for 2024 as to Baytex's production on a boe/d basis, percentage of production that will be liquids, exploration and development expenditures and our expected production by area and commodity; that we have more than 10 years of drilling inventory; our target of modest single digit organic production growth and expected reinvestment rate; the allocation of free cash flow, induding with respect to debt repayment, share buybacks and dividends; our total debt target; that the Ranger assets have 12-15 years of sustaining development with attractive well economics; that our H2/2023 production and exploration and development expenditures are in line with guidance; our estimated daily production per thousand shares and estimated total debt to annualized EBITDA for Q4/2023; the expected individual well payout and IRR for expected type wells in Eagle Ford Karnes Trough, Eagle Ford Operated, Duvernay, Viking, Peavine (Clearwater), Peace River (Bluesky) and Lloydminster (Mannville) assets; for 2024 our expected: production, percentage of production that will be liquids, the number of net wells onstream, exploration and development expenditures, 2024 priorities, capital efficiency, production growth and number of stratigraphic test wells; expectations regarding the quarterly dividend and our expected free cash flow at specified prices for WTI; with respect to our five-year outlook, the expected: production growth, decrease in total debt, reinvestment rate, increase in production per share and free cash flow per share, decrease in total debt to EBITDA, free cash flow at specified prices for WTI, share buybacks and dividends at specified prices for WTI; our hedging plans, induding our target to hedge 40% of net crude volumes, that we intend to utilize wide 2-way collars to ensure a modest return on our highest breakeven assets and the percentage of our expected production that is hedged until the end of 2024; that we are committed to a strong balance sheet and that $1.5 billion total debt represented -1x total debt to EBITDA at US$50 WTI; the sensitivity of our annual adjusted funds flow to changes in WTI prices, WCS, NYMEX natural gas prices and the Canada-United States foreign exchange rate; for 2024 the expected production rate, percentage of production that will be liquids and percentage contribution to asset level free cash flow for our business units; the expected number of net wells to sales for our assets in 2024; the expected dosing date of our Forgan / Plato disposition; that we have 90 section prospective for Clearwater development at Peavine and ~100 sections prospective for Mannville development in NE Alberta; the expected IP 365, liquids weighting, EUR, well cost, IRR and time to payout for expected type wells in Eagle Ford Karnes Trough, Eagle Ford Operated, Duvernay, Viking, Peavine (Clearwater), Peace River (Bluesky) and Lloydminster (Mannville) assets; our values, visions and approach to ESG; that we are committed to corporate sustainability; the components of our GHG emissions reduction strategy; and our ESG targets: reducing our GHG emissions intensity by 65% by 2025 from our 2018 baseline, reducing our 2020 end of life well inventory of 4,500 wells to zero by 2040; our free cash flow allocation policy; and our 2024 guidance, including: our expected exploration and development expenditures, production, average royalty rate, expenses (operating, transportation, general and administrative, interest costs and current income taxes), leasing expenditures and asset retirement obligations. In addition, information and statements relating to reserves are deemed to be forward-looking statements, as they involve implied assessment, based on certain estimates and assumptions, that the reserves described exist in quantities predicted or estimated, and that they can be profitably produced in the future. BAYTEX ENERGY NYSE TSX BTE 32
View entire presentation