Baytex Energy Q1 Earnings Call Highlights

Baytex Energy (NYSE:BTE) reported a stronger-than-expected archetypal 4th and raised its 2026 accumulation outlook, citing outperformance crossed its dense lipid portfolio and continued improvement successful the Duvernay.

President and Chief Executive Officer Chad Lundberg, speaking connected his archetypal net telephone successful the role, said accumulation averaged 69,500 barrels of lipid equivalent per time successful the archetypal quarter, supra the precocious extremity of the company’s guidance. Oil and earthy state liquids represented 88% of the accumulation mix, according to Chief Operating Officer Kendall Arthur.

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“Q1 was a beardown commencement to the year,” Lundberg said. “Production averaged supra the precocious extremity of our guidance, driven by outperformance crossed our dense lipid portfolio.”

Baytex raised its 2026 accumulation guidance to 69,000 to 71,000 BOE per day, which Lundberg said represents 7% yearly maturation astatine the midpoint, up from the company’s erstwhile anticipation of 3% to 5% growth. The institution besides said it expects superior expenditures to determination to the precocious extremity of its guidance range, astatine CAD 625 million, including incremental projects successful the Duvernay and dense lipid assets.

Baytex Raises Three-Year Growth Outlook

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Alongside its updated 2026 guidance, Baytex revised its three-year outlook. Lundberg said the institution is present targeting 6% to 8% yearly accumulation maturation done 2028, up from a anterior midpoint of 4%, portion maintaining a nett currency presumption done the period.

Lundberg said the company’s strategy is to turn production, beforehand its Duvernay and dense lipid portfolio, put successful aboriginal optionality and instrumentality superior to shareholders. He said Baytex is targeting 15% yearly full shareholder instrumentality astatine a mid-cycle lipid terms of CAD 70, done a operation of accumulation growth, dividends and stock buybacks.