Key Points – Baytex beat Q1 expectations with production averaging 69,500 BOE/day, above guidance, and raised its 2026 outlook to 69,000-71,000 BOE/day.
The company also lifted its three-year growth target to 6%-8% annually through 2028 while aiming to stay in a net cash position. – Heavy oil and Duvernay are driving growth, with strong well results at Peavine and Lloydminster and 35% Duvernay production growth expected in 2026
Baytex is also reducing Duvernay well costs and plans more spending on facilities to support longer-term development. – Shareholder returns remain a priority, with Baytex repurchasing 35 million shares in Q1 and planning to return 75% of Eagle Ford sale proceeds via buybacks in 2026. The company ended the quarter with CAD 591 million in net cash and expects stronger free cash flow later in the year if oil prices hold up. Baytex Energy (NYSE:BTE) reported a stronger-than-expected first quarter and raised its 2026 production outlook, citing outperformance across its heavy oil portfolio and continued development in the Duvernay.
President and Chief Executive Officer Chad Lundberg, speaking on his first earnings call in the role, said production averaged 69,500 barrels of oil equivalent per day in the first quarter, above the high end of the company’s guidance. Oil and natural gas liquids represented 88% of the production mix, according to Chief Operating Officer Kendall Arthur. “Q1 was a strong start to the year,” Lundberg said. “Production averaged above the high end of our guidance, driven by outperformance across our heavy oil portfolio.” Baytex raised its 2026 production guidance to 69,000 to 71,000 BOE per day, which Lundberg said represents 7% annual growth at the midpoint, up from the company’s previous expectation of 3% to 5% growth. The company also said it expects capital expenditures to move to the high end of its guidance range, at CAD 625 million, including incremental projects in the Duvernay and heavy oil assets.