Summary:

• Asset Location: Forgan and Plato, southwest Saskatchewan.
• Effective Date: October 1, 2023.
• Sale Price: $153.8 million CAD (~US$113 million).
• Production: 4,000 boe/d, all light and medium crude oil.
• Q3 2023 Production: Over 155,000 boe/d.
• 2023 Production Forecast: 121,500 - 122,000 boe/d.

'Our third-quarter results represent the first full quarter of combined operations following the Ranger acquisition and demonstrate the strength of our diversified North American oil-weighted portfolio'.

• Baytex President and CEO Eric Greager

Baytex Energy Corp., a prominent oil and gas company, has struck a deal to sell part of its Viking assets located in Forgan and Plato, southwest Saskatchewan. The transaction sealed at CAD 153.8 million (approximately US$113.23 million).

Closing and Financial Implications
Expected to close by the year's end, Baytex aims to direct the proceeds from this sale towards reducing its bank debts. The assets in question currently yield around 4,000 barrels of light and medium crude oil equivalent per day (boepd). The identity of the purchasing party remains undisclosed.

Third-Quarter Financials
Baytex reported a net income of CAD 127.4 million (US$93.8 million) for the third quarter, a decrease from CAD 167.4 million (US$123.24 million) in the same quarter last year. Its petroleum and natural gas sales escalated to CAD 1.16 billion (US$0.85 billion), a significant jump from CAD 712.1 million (US$524.27 million) in 2022.

• Baytex Energy has seen progress in its integration with good results in Western Canada and the Eagle Ford region in Texas.
• The company's current production has surpassed 155,000 boepd, with a significant 84% composition of oil and NGLs.
• Baytex is on track to generate approximately CAD 400 million in free cash flow in Q4/2023, with a total of CAD 650 million expected for the year.
• Owing to the strong free cash flow, Baytex has accelerated its share buyback program in the fourth quarter.
• Baytex is expanding with two new land extensions at Peavine and Cold Lake, capitalizing on its expertise in heavy oil and recent exploratory achievements.

Following recent transactions, Baytex has become a well-capitalized, diversified exploration and production company in North America, holding high-quality oil-weighted assets in Western Canada and the Eagle Ford shale.

The company's transactions have improved its inventory, leading to a more resilient and sustainable business model with an attractive free cash flow profile.

Baytex plans to increase direct shareholder returns to 50% of its free cash flow and to introduce a dividend.

Operational Achievements and Future Outlook
The Calgary-headquartered firm recorded a production of 150,600 boepd, predominantly oil and natural gas liquids (NGLs), in the third quarter. Notably, 13 operated Eagle Ford wells were brought online, with seven wells demonstrating impressive initial production rates of around 2,000 boepd each, mainly oil and NGLs.

Baytex's activities in Peavine and Clearwater have been fruitful. The Peavine operation saw a 69% year-over-year surge in production, averaging 13,821 barrels per day. The company also reported reliable performance from its six-well Pembina Duvernay program and expanded its heavy oil development through strategic land acquisitions.

For 2023, Baytex anticipates an increase in its annual production to 121,500 - 122,000 boepd. The fourth quarter's production is expected to average between 158,000 and 160,000 boepd, with a substantial portion from oil and NGLs.

Expansion through Ranger Oil Acquisition

”We are excited to close the Ranger acquisition, which materially increases our scale in the Eagle Ford while building quality operating capability in a premier basin”, Greager said.
Baytex completed the acquisition of Ranger Oil Corporation in June 2023 for around CAD 2.9 billion (US$2.2 billion), assuming Ranger's net debt. This acquisition boosts Baytex's presence in the Eagle Ford shale, adding significant acreage and drilling locations. The deal enhances Baytex's access to premium U.S. Gulf Coast pricing.

About Baytex Energy

Baytex Energy Corp. is a Calgary-based energy company with operations in both Canada and the United States. The company's primary activities involve the acquisition, development, and production of crude oil and natural gas. Baytex's operations are spread across the Western Canadian Sedimentary Basin and the Eagle Ford region in the United States, with its shares traded on both the New York Stock Exchange and the Toronto Stock Exchange under the symbol BTE

About Ranger Oil Corporation

Ranger Oil Corporation, formerly known as Penn Virginia Corporation, is an independent oil and gas company primarily engaged in the exploration, development, and production of oil, natural gas liquids (NGLs), and natural gas. Ranger Oil's operations are concentrated in the Eagle Ford Shale, a prolific oil and gas-producing area in South Texas. This region is known for its high-quality, light crude oil and favorable economics.