Ranger Acquisition Adds Quality Eagle Ford Scale
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 peakonly 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 H2/2023 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; our expectations regarding free cash flow
generation; our target of modest single digit organic production growth, expected reinvestment rate and the portion of our adjusted funds flow that exploration and development
expenditures are expected to will represent; the allocation of free cash flow, including with respect to debt repayment and shareholder returns; our debt target and its expected
total debt to EBITDA ratio at US$50WTI; that the Ranger assets have 12-15 years of sustaining development, attractive well economics that compete for capital, that 50-55 net
wells per year will generate modest production growth, provide increase capital allocation flexibility, improved margins and will lower corporate average GHG emissions intensity;
the number of net wells onstream and capital expenditures in H2/2023; expectations regarding the anticipated dividend, including the amount and the timing thereof; the expected
individual well payout and IRR for expected type wells in Eagle Ford Karnes Trough, Eagle For Operated, Duvernay, Viking, Peavine (Clearwater), Peace River (Bluesky) and
Lloydminster (Mannville) assets; our commitment to a strong balance sheet, expected liquidity position, allocation of free cash flow to debt repayment; our free cash flow allocation
policy with total debt above and below $1.5 billion; expectations at US$70/80/90bbl WTI as to annual free cash flow generation, the associated free cash flow yield and our
cumulative free cash flow generation from H2-2023 to year-end 2026; our hedging plans, including 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 for the next 12 months; 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 H2/2023 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 excepted production, percentage of
production that will be liquids and number of net wells to sales for our assets; the expected IP 365, liquids weighting, EUR, well cost, IRR and time to payout for expected type
wells in Eagle Ford Karnes Trough, Eagle For Operated, Duvemay, 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; 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; and our 2023 guidance for exploration and
development expenditures, production, royalty rate, operating, transportation, general and administration and interest expense and 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.
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