Baytex Energy Raises Production Guidance After Strong First Quarter
The oil and natural gas producer reported production of 69,478 boe/d, exceeding the high end of its quarterly guidance
Baytex Energy Corp. (BTE), an oil and natural gas company operating in the Western Canadian Sedimentary Basin, reported that first-quarter production reached 69,478 boe/d. This figure exceeded the company's quarterly guidance range of 68,000 to 69,000 boe/d and represented an 11% increase compared to the 62,380 boe/d produced in the first quarter of 2025.
Strong performance across the heavy oil portfolio drove the results. The company brought 25.7 net wells on production during the quarter, including six Clearwater wells at Peavine, three wells at Peace River, and 16.7 net wells at Lloydminster.
Following these results, the company raised its 2026 production guidance to 69,000 to 71,000 boe/d, up from 67,000 to 69,000 boe/d. Baytex also increased its targeted exit production rate to 71,000 to 72,000 boe/d and now targets 7% annual production growth, an increase from the previous target of 3% to 5%.
Financial results for the three months ended March 31, 2026, included adjusted funds flow of $151 million, or 0.20 a basic share. The company generated cash flows from operating activities of $122.2 million. However, Baytex reported a net loss of $67 million, or 0.09 a basic share, which the company attributed largely to unrealized financial derivatives losses.
Capital expenditures for exploration and development totaled $145 million during the quarter. This spending focused on heavy oil and Duvernay development programs. The company maintained a net cash position of $591.2 million at the end of the period.
Baytex accelerated shareholder returns by repurchasing 35.1 million common shares for $174 million in the first quarter, representing 4.6% of shares outstanding. Through May 6, 2026, the company repurchased a total of 45.1 million common shares for $229 million.
Looking forward, the company updated its three-year outlook to target annual production growth of 6% to 8%. Baytex intends to advance planning for the Gemini thermal SAGD project in northeast Alberta, with a potential final investment decision expected in 2027.