Massive Q3 Results CALGARY, Alberta, Nov. 02, 2020 (GLOBE NEWSWIRE) -- Baytex Energy Corp. ("Baytex")(TSX: BTE, NYSE: BTE.BC) reports its operating and financial results for the three and nine months ended September 30, 2020 (all amounts are in Canadian dollars unless otherwise noted).
“We have made tremendous progress to re-set our business in the face of extremely volatile crude oil markets. Our third quarter results demonstrate the success of our actions as we generated free cash flow of $60 million and increased financial liquidity to $344 million. I am also especially pleased with our response to the Covid pandemic with intensified efforts to improve all aspects of our cost structure and capital efficiencies, while protecting the health and safety of our personnel,” commented Ed LaFehr, President and Chief Executive Officer.
Q3 2020 Highlights
- Generated production of 77,814 boe/d (82% oil and NGL) in Q3/2020 and 82,907 boe/d (82% oil and NGL) for the first nine months of 2020.
- Delivered adjusted funds flow of $79 million ($0.14 per basic share) in Q3/2020 and $229 million ($0.41 per basic share) for the first nine months of 2020.
- Generated free cash flow of $60 million ($0.11 per basic share) in Q3/2020 and $16 million ($0.03 per basic share) for the first nine months of 2020.
- Realized an operating netback of $17.05/boe in Q3/2020, up from $5.96/boe in Q2/2020.
- Reduced net debt by $89 million during the third quarter through a combination of free cash flow and the Canadian dollar strengthening relative to the U.S. dollar.
- Maintained undrawn credit capacity of $426 million and liquidity, net of working capital, of $344 million.
2020 Outlook and Revised Guidance
We have responded aggressively to the downturn brought on by Covid-19 as we minimize capital spending, identify cost savings and maintain our liquidity.
We expect production to average approximately 80,000 boe/d, which represents the mid-point of our guidance range of 78,000 to 82,000 boe/d. Annual capital spending is forecast to be $260 to $290 million, an approximate 50% reduction from our original plan of $500 to $575 million.
We are also reducing our full-year 2020 operating expense guidance by 7% (at the mid-point) to $11.20 to $11.40/boe. We remain intensely focused on driving further efficiencies to capture and sustain cost reductions identified during this downturn, while protecting the health and safety of our personnel.
After two quarters of little to no capital spending in Canada, we have resumed drilling activity during the fourth quarter. We have mobilized two drilling rigs to execute a 30-well drilling program in the Viking and completed two Duvernay wells drilled earlier this year. In addition, with the increase in natural gas prices, we have identified opportunities in west-central Alberta at Pembina O’Chiese to drill natural gas wells with strong economics and capital efficiencies and have two wells planned for this winter.