(Source: Baytex Energy Corp.)
  • Canadian oil and gas stock Baytex Energy dipped after reporting a Q4 loss following a profit in the same period last year
  • The Calgary-based company posted revenue of C$782.7 million amounting to a loss of C$459.7 million, shaving off 55 cents per share
  • For the year, the company reported a loss of C$172.9 million, or 24 cents per share. Revenue was reported as C$2.51 billion
  • Baytex Energy stock opened trading C$4.52 per share

Canadian oil and gas stock Baytex Energy (TSX:BTE) dipped after reporting a Q4 loss following a profit in the same period last year.

Financial performance

The Calgary-based company posted revenue of C$782.7 million amounting to a loss of C$459.7 million, shaving off 55 cents per share.

For the year, the company reported a loss of C$172.9 million, or 24 cents per share. Revenue was reported as C$2.51 billion.

Operational highlights

Baytex reported an increase in production per basic share by 16 per cent in 2023, compared with 2022. Production for the full-year 2023 averaged 122,154 barrels of oil equivalent per day (boe/d) (85 per cent oil and natural gas liquids (NGLs)), compared with 83,519 boe/d in 2022 (84 per cent oil and NGL).

Production in Q4/2023 averaged 160,373 boe/d (83 per cent oil and NGL), exceeding guidance of 158,000 to 160,000 boe/d, and up 6 per cent from Q3/2023 on exploration and development expenditures of $199 million, 10 per cent below guidance.

Proved developed producing reserves increased by 49 per cent, from 124 million barrels of oil equivalent (MMboe) to 185 MMboe. Proved reserves increased by 55 per cent, from 264 MMboe to 410 MMboe. Proved plus probable reserves increased by 51 per cent, from 438 MMboe to 663 MMboe.

Exploration and development expenditures totalled C$1.013 billion in 2023, compared with guidance of C$1.035 billion. The team drilled 303 wells in 2023. For the second half of the year, exploration and development expenditures totalled C$608 million, consistent with the company’s plan after the acquisition of Ranger Oil Corp. in June.

2024 outlook

The company noted that extremely cold temperatures across North America in January, followed by heavy rainfall in Texas, led to production disruptions. While production has been restored, Q1 production will be approximately 2,000 boe/d lower than the company’s budget expectation. Despite this, Baytex’s 2024 guidance remains unchanged with exploration and development expenditures of C$1.2 billion to C$1.3 billion and production of 150,000 to 156,000 boe/d.

Leadership’s take

“In 2023, we increased production per share by 16 per cent and fourth quarter production exceeded guidance with continued strong results in the Eagle Ford and Peavine,” Baytex’s president and chief executive officer, Eric Greager, said in a news release. “During 2023, we increased shareholder returns to 50 per cent of free cash flow, increased our share buyback program and introduced a quarterly dividend. We are well-capitalized and remain committed to creating long-term value and increasing shareholder returns.”

Baytex Energy Corp. acquires, develops and produces crude oil and natural gas in the Western Canadian Sedimentary Basin and in the Eagle Ford in the United States.

Baytex Energy stock opened more than 5 per cent lower trading at C$4.52 per share, down 0.42 per cent. The stock has lost 10.46 per cent year-over-year, but has managed a 94.63 per cent gain since 2018.

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