Highlights

  • Q3 2025 production averaged 150,950 boe/d, up 1% year-over-year per basic share.
  • Generated free cash flow of CAD 143 million and net income of CAD 32 million.
  • Achieved record Pembina Duvernay production of 10,185 boe/d, up 53% from Q2 2025.

Baytex Energy Corp. (TSX:BTE) announced its financial and operational results for the quarter ended September 30, 2025. The company reported average production of 150,950 barrels of oil equivalent per day (boe/d), with 86% oil and natural gas liquids (NGL), marking a 1% increase in production per basic share from Q3 2024.

Adjusted funds flow totaled CAD 422 million (CAD 0.55 per basic share), while free cash flow stood at CAD 143 million (CAD 0.19 per basic share). Net income for the quarter was CAD 32 million (CAD 0.04 per basic share).

President and Chief Executive Officer Eric T. Greager said, “Baytex delivered solid third-quarter results highlighted by record production in the Pembina Duvernay, strong free cash flow generation, and further progress on debt reduction. Our heavy oil business continues to generate reliable returns and, through targeted land acquisitions, we are expanding our long-term inventory.”

The company reported cash flows from operating activities of CAD 473 million and declared a quarterly dividend of CAD 0.0225 per share, payable on January 2, 2026.

Pembina Duvernay Drives Record Output

Production from the Pembina Duvernay reached a record 10,185 boe/d, representing a 53% increase from Q2 2025. The third pad from the 2025 drilling program was brought online in September, with two wells delivering 30-day average peak rates of 1,380 boe/d per well.

Baytex’s 2025 program of three pads and eight producing wells exceeded initial expectations and achieved an 11% improvement in drilling and completion costs compared to 2024. The company now holds 140 net sections of prospective Duvernay land, identifying around 200 potential drilling locations.

Heavy Oil and Eagle Ford Development

Heavy oil production averaged 47,280 boe/d, up 5% from the previous quarter, supported by operations at Peavine, Peace River, and Lloydminster. During the quarter, Baytex added 45 net sections of new land across Alberta, expanding its inventory to 1,100 heavy oil drilling locations.

In the Eagle Ford region, production averaged 82,765 boe/d, with crude oil output up 3% from Q2 2025. Baytex brought 15.6 net wells online and achieved a 12% reduction in drilling and completion costs per lateral foot compared to 2024.

Outlook

Baytex reaffirmed its commitment to disciplined capital allocation and debt reduction. For full-year 2025, the company expects average production of approximately 148,000 boe/d and exploration and development expenditures of about CAD 1.2 billion.

Based on current forecasts, Baytex anticipates generating around CAD 300 million in free cash flow for 2025, allocating all of it to debt repayment after dividend payments. The company targets net debt of approximately CAD 2.1 billion by year-end, with its 2026 capital budget expected in January 2026.