- Canadian oil and natural gas stock Baytex Energy (TSX:BTE) announced financial and operational results for its Q2 2024
- Baytex reported an average production of 154,194 barrels of oil equivalent per day (boe/d) for Q2 2024, a 4 per cent crude oil increase from the previous quarter
- The company posted total petroleum and natural gas sales of C$1.1 billion for Q2 2024, up from C$900 million in Q1 2024
- Shares of Baytex Energy Corp. opened trading at C$4.90
Canadian oil and natural gas stock Baytex Energy (TSX:BTE) announced financial and operational results for its Q2 2024.
The results cover the three and six months ended June 30, 2024.
Q2 2024 highlights
Operational performance
Baytex reported an average production of 154,194 barrels of oil equivalent per day (boe/d) for Q2 2024. This represents a 4 per cent crude oil increase from the previous quarter, driven by enhanced operational efficiencies and successful drilling programs in its core areas, particularly in the Eagle Ford and Viking plays.
Financial results
The company posted a strong financial performance with total petroleum and natural gas sales of C$1.1 billion for Q2 2024, up from C$900 million in Q1 2024. Net income for the quarter stood at C$104 million, translating to earnings of C$0.13 per share, compared with C$0.09 per share in the previous quarter. This improvement was attributed to higher production volumes and favourable commodity prices.
Six months ended June 30, 2024
Operational and financial metrics
For the six-month period ending June 30, 2024, Baytex achieved an average production of 93,000 boe/d, compared with 90,000 boe/d in the same period of 2023. The total sales for the first half of 2024 reached C$1.98 billion, a 60 per cent increase from the same period last year. Net income for the first half of 2024 was C$89.8 million, a drop from C$265 million in the first half of 2023.
Management commentary
“We delivered strong second quarter results with higher production, disciplined capital spending and meaningful free cash flow,” The company’s president and chief executive officer, Eric T. Greager, said in a release on these results. “Importantly and consistent with our full-year plan, we returned C$97 million to shareholders through our share buyback program and quarterly dividend. In the Eagle Ford, we brought onstream one of our strongest performing oil-weighted pads to date. As we continue to execute our plans for 2024, our free cash flow is expected to strengthen in the second half of the year allowing for increased shareholder returns and debt reduction.”
Dividend payout
In line with its commitment to delivering value to shareholders, Baytex declared a quarterly cash dividend of C$0.0225 per common share. The dividend is payable on Oct. 1, 2024, to shareholders of record at the close of business on Sept. 15, 2024. This is in-line with the same dividend it delivered this time last year.
Outlook
Looking ahead, Baytex remains focused on maximizing shareholder value through operational excellence and strategic capital deployment. The company plans to maintain its current production levels while exploring opportunities to further enhance its asset portfolio and achieve sustainable growth.
Baytex Energy is an energy company with headquarters in Calgary and offices in Houston, Texas. The company is focused on the acquisition, development and production of crude oil and natural gas in the Western Canadian Sedimentary Basin and in the Eagle Ford area of Texas.
Shares of Baytex Energy Corp. (TSX:BTE) opened trading more than 5 per cent lower at C$4.90. Baytex stock has risen 9.59 per cent since the beginning of the year.
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(Top photo: Baytex Energy Corp.)