Baytex Announces First Quarter 2024 Results
Baytex Energy Corp. announces its Q1 2024 results with strong financial and operating performance, increased adjusted funds flow and production, strategic drilling programs, and plans for substantial free cash flow and shareholder returns. The company maintains a strong financial position and disciplined capital allocation strategy. Baytex remains committed to delivering increased per-share returns and has significant growth potential in its key operational areas.
Increased adjusted funds flow per share by 21% to $424 million in Q1/2024 compared to Q1/2023.
Increased production per share by 15% in Q1/2024, averaging 150,620 boe/d.
Executed a $413 million exploration and development program, the largest in company history.
Completed successful drilling programs, including Eagle Ford wells and Clearwater play at Peavine.
Maintained balance sheet strength with total debt to Bank EBITDA ratio of 1.1x.
Reported a net loss of $14 million in Q1/2024.
Free cash flow was negative at $88 million in Q1/2024.
Net debt increased to $2.6 billion in Q1/2024.
Calgary, Alberta--(Newsfile Corp. - May 9, 2024) - Baytex Energy Corp. (TSX: BTE) (NYSE: BTE) ("Baytex") reports its operating and financial results for the three months ended March 31, 2024 (all amounts are in Canadian dollars unless otherwise noted).
"In the first quarter we safely and efficiently executed the largest exploration and development ("E&D") program in company history and delivered operating and financial results consistent with our full-year guidance. We expect to deliver substantial free cash flow and meaningful shareholder returns over the next three quarters. Our strong free cash flow profile reflects the efficiency of our E&D program, higher forecast production volumes for the remainder of the year and improved crude oil price realizations in Canada and the Eagle Ford. We are in a strong financial position supported by significant liquidity and a balanced debt maturity profile," commented Eric T. Greager, President and Chief Executive Officer.
Highlights
- Reported cash flows from operating activities of
$384 million ($0.47 per basic share) in Q1/2024. - Increased adjusted funds flow(1) per share by
21% to$424 million ($0.52 per basic share) in Q1/2024 compared to Q1/2023. - Increased production per share by
15% in Q1/2024, compared to Q1/2023. Production in Q1/2024 averaged 150,620 boe/d (84% oil and NGL), consistent with our full-year plan. - Executed a
$413 million E&D program, the largest in company history which, at its peak, had 13 rigs running. - Brought 19 operated Eagle Ford wells onstream in Q1/2024, including three Upper Eagle Ford wells and a successful Lower Eagle Ford refrac.
- Generated production from our Clearwater play at Peavine of 17,599 bbl/d in Q1/2024. Brought 12 wells onstream in Q1/2024 that generated an average 30-day initial production rate of 915 bbl/d per well.
- Completed the drilling of our seven-well Duvernay program with a
21% improvement in drilling days (spud to rig release) and a10% improvement in drilling costs, compared to 2023. - Continued development success at Morinville, Alberta (Clearwater equivalent) and the greater Cold Lake region (Waseca).
- Maintained balance sheet strength and with a total debt(2) to Bank EBITDA(2) ratio of 1.1x.
- Subsequent to quarter-end, completed a US
$575 million private placement offering of senior unsecured notes due 2032 that bear interest at a rate of7.375% per annum and extended the maturity of our credit facilities by two years to May 2028.
2024 Guidance
Our 2024 guidance remains unchanged with E&D expenditures of
Based on the forward strip(3), we expect to generate approximately
(1) Capital management measure. Refer to the Specified Financial Measures section in this press release for further information.
(2) Calculated in accordance with our amended credit facilities agreement which is available on SEDAR+ at www.sedarplus.ca.
(3) 2024 pricing assumptions: WTI - US
(4) Specified financial measure that does not have any standardized meaning prescribed by IFRS and may not be comparable with the calculation of similar measures presented by other entities. Refer to the Specified Financial Measures section in this press release for further information.
| Three Months Ended | |||||||||||
| March 31, 2024 | December 31, 2023 | March 31, 2023 | |||||||||
| FINANCIAL (thousands of Canadian dollars, except per common share amounts) | |||||||||||
| Petroleum and natural gas sales | $ | 984,192 | $ | 1,065,515 | $ | 555,336 | |||||
| Adjusted funds flow (1) | 423,846 | 502,148 | 236,989 | ||||||||
| Per share - basic | 0.52 | 0.60 | 0.43 | ||||||||
| Per share - diluted | 0.52 | 0.60 | 0.43 | ||||||||
| Free cash flow (2) | (88 | ) | 290,785 | (1,918 | ) | ||||||
| Per share - basic | - | 0.35 | - | ||||||||
| Per share - diluted | - | 0.35 | - | ||||||||
| Cash flows from operating activities | 383,773 | 474,452 | 184,938 | ||||||||
| Per share - basic | 0.47 | 0.57 | 0.34 | ||||||||
| Per share - diluted | 0.47 | 0.57 | 0.34 | ||||||||
| Net (loss) income | (14,043 | ) | (625,830 | ) | 51,441 | ||||||
| Per share - basic | (0.02 | ) | (0.75 | ) | 0.09 | ||||||
| Per share - diluted | (0.02 | ) | (0.75 | ) | 0.09 | ||||||
| Dividends declared | 18,494 | 18,381 | - | ||||||||
| Per share | 0.0225 | 0.0225 | - | ||||||||
| Capital Expenditures | |||||||||||
| Exploration and development expenditures | $ | 412,551 | $ | 199,214 | $ | 233,626 | |||||
| Acquisitions and divestitures | 35,378 | (125,822 | ) | 271 | |||||||
| Total oil and natural gas capital expenditures | $ | 447,929 | $ | 73,392 | $ | 233,897 | |||||
| Net Debt | |||||||||||
| Credit facilities | $ | 849,926 | $ | 864,736 | $ | 409,653 | |||||
| Long-term notes | 1,637,155 | 1,597,475 | 554,351 | ||||||||
| Total debt (3) | 2,487,081 | 2,462,211 | 964,004 | ||||||||
| Working capital deficiency (2) | 152,760 | 72,076 | 31,166 | ||||||||
| Net debt(1) | $ | 2,639,841 | $ | 2,534,287 | $ | 995,170 | |||||
| Shares Outstanding - basic (thousands) | |||||||||||
| Weighted average | 821,710 | 831,063 | 545,062 | ||||||||
| End of period | 821,322 | 821,681 | 545,553 | ||||||||
| BENCHMARK PRICES | |||||||||||
| Crude oil | |||||||||||
| WTI (US$/bbl) | $ | 76.96 | $ | 78.32 | $ | 76.13 | |||||
| MEH oil (US$/bbl) | 78.95 | 80.62 | 77.42 | ||||||||
| MEH oil differential to WTI (US$/bbl) | 1.99 | 2.30 | 1.29 | ||||||||
| Edmonton par ($/bbl) | 92.16 | 99.72 | 99.04 | ||||||||
| Edmonton par differential to WTI (US$/bbl) | (8.63 | ) | (5.10 | ) | (2.88 | ) | |||||
| WCS heavy oil ($/bbl) | 77.73 | 76.86 | 69.44 | ||||||||
| WCS differential to WTI (US$/bbl) | (19.33 | ) | (21.88 | ) | (24.77 | ) | |||||
| Natural gas | |||||||||||
| NYMEX (US$/mmbtu) | $ | 2.24 | $ | 2.88 | $ | 3.42 | |||||
| AECO ($/mcf) | 2.05 | 2.66 | 4.34 | ||||||||
| CAD/USD average exchange rate | 1.3488 | 1.3619 | 1.3520 | ||||||||
Notes:
(1) Capital management measure. Refer to the Specified Financial Measures section in this press release for further information.
(2) Specified financial measure that does not have any standardized meaning prescribed by IFRS and may not be comparable with the calculation of similar measures presented by other entities. Refer to the Specified Financial Measures section in this press release for further information.
(3) Calculated in accordance with our amended credit facilities agreement which is available on SEDAR+ at www.sedarplus.ca.
| Three Months Ended | |||||||||
| March 31, 2024 | December 31, 2023 | March 31, 2023 | |||||||
| OPERATING | |||||||||
| Daily Production | |||||||||
| Light oil and condensate (bbl/d) | 66,036 | 70,124 | 31,678 | ||||||
| Heavy oil (bbl/d) | 40,560 | 39,569 | 34,191 | ||||||
| NGL (bbl/d) | 19,299 | 23,160 | 7,213 | ||||||
| Total liquids (bbl/d) | 125,895 | 132,853 | 73,082 | ||||||
| Natural gas (mcf/d) | 148,353 | 165,121 | 82,066 | ||||||
| Oil equivalent (boe/d @ 6:1) (1) | 150,620 | 160,373 | 86,760 | ||||||
| Netback (thousands of Canadian dollars) | |||||||||
| Total sales, net of blending and other expense (2) | $ | 919,984 | $ | 1,003,219 | $ | 495,655 | |||
| Royalties | (209,171 | ) | (228,570 | ) | (93,253 | ) | |||
| Operating expense | (173,435 | ) | (164,873 | ) | (112,408 | ) | |||
| Transportation expense | (29,835 | ) | (29,744 | ) | (17,005 | ) | |||
| Operating netback (2) | $ | 507,543 | $ | 580,032 | $ | 272,989 | |||
| General and administrative | (22,412 | ) | (22,280 | ) | (11,734 | ) | |||
| Cash financing and interest | (53,280 | ) | (56,698 | ) | (18,375 | ) | |||
| Realized financial derivatives gain | 5,488 | 12,377 | 5,415 | ||||||
| Other (3) | (13,493 | ) | (11,283 | ) | (11,306 | ) | |||
| Adjusted funds flow (4) | $ | 423,846 | $ | 502,148 | $ | 236,989 | |||
| Netback (per boe) (2) | |||||||||
| Total sales, net of blending and other expense (2) | $ | 67.12 | $ | 68.00 | $ | 63.48 | |||
| Royalties (5) | (15.26 | ) | (15.49 | ) | (11.94 | ) | |||
| Operating expense (5)< | |||||||||
FAQ
<p>What were Baytex Energy Corp.'s adjusted funds flow in Q1 2024?</p>
Baytex Energy Corp. reported adjusted funds flow of $424 million in Q1 2024.
<p>What was the production per share in Q1 2024 for Baytex Energy Corp.?</p>
Baytex Energy Corp. increased production per share by 15% in Q1 2024, averaging 150,620 boe/d.
<p>What was the total debt to Bank EBITDA ratio in Q1 2024 for Baytex Energy Corp.?</p>
Baytex Energy Corp. maintained a total debt to Bank EBITDA ratio of 1.1x in Q1 2024.
