The following is a summary of the Baytex Energy Corp. (BTE) Q2 2024 Earnings Call Transcript:

Financial Performance:

• Baytex Energy reported Q2 2024 adjusted funds flow of CAD533 million or CAD0.65 per share, a 38% increase year-over-year.

• They generated a net income of CAD104 million or CAD0.13 per share during Q2.

• The free cash flow in Q2 amounted to CAD181 million, contributing to a total of CAD700 million expected for 2024.

• The company repurchased 16.4 million common shares for CAD79 million and paid a quarterly dividend of CAD18 million.

Business Progress:

• Baytex Energy increased production per share by 23% in Q2 2024 compared to Q2 2023, with an average production of more than 154,000 BOE per day, 85% of which was oil and NGLs.

• The company continues to execute its 2024 development plan targeting production of 153,000 BOE per day.

• Exploration and development expenditures for 2024 are guided at CAD1.2 billion to CAD1.3 billion.

• They have advanced their operations in the Eagle Ford and Duvernay regions, bringing several wells on stream, and plan further drilling activities.

Opportunities:

• Baytex is progressively allocating 50% of its free cash flow to shareholder returns, encompassing share buybacks and dividends.

• The renewal of the normal course issuer bid allows purchase up to 70 million common shares, enhancing shareholder value.

• The company focuses on high-return areas like the Eagle Ford and Duvernay, planning further development and leveraging operational efficiencies.

Risks:

• The company faces the risk of commodity price cycles impacting their business; however, they have strategically extended debt maturities and improved liquidity to manage through these cycles.

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