Baytex Energy Corp. reports its operating results for the fourth quarter of 2021. The company also includes the year-end 2021 results, as well as reserves and return of capital framework. All amounts are in Canadian dollars.
Firstly, the company’s production exceeded the high end of guidance at 80,789 boe/d, 82% oil and NGL, in Q4/2021. Also, 80,156 boe/d, 82% oil and NGL, for the full-year 2021.
Secondly, exploration and development expenditures totaled $74 million, bringing aggregate spending for 2021 to $313 million, in line with guidance. Delivered adjusted funds flow of $215 million, $0.38 per basic share, in Q4/2021; and $746 million-$1.32 per basic share-for 2021.
Thirdly, Baytex generated a record level of free cash flow of $137 million, $0.24 per basic share; and $421 million, $0.75 per basic share, for 2021. For the whole year, cash flows from operating activities were $241 million, $0.43 per basic share; and $712 million, $1.26 per basic share. Moreover, the company reduced net debt by 24% to $1.4 billion at year-end 2021, from $1.8 billion at year-end 2020.
In addition, Baytex drilled four of the top five wells to date in the Clearwater play, with their two most recent wells at Peavine, generating 30-day initial production rates of 921 bbl/d and 815 bbl/d, respectively. Also, they reduced their GHG emissions intensity, tonnes of CO2e per boe, by 11% over 2020 levels and have now achieved a 52% reduction relative to the company’s 2018 baseline.
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Baytex Energy Corp. CEO statement
“In 2021, we made a commitment to maintain capital discipline, maximize free cash flow and reduce our net debt. I am very pleased to say we delivered on all fronts with strong operational execution, record-free cash flow and a significantly improved balance sheet. With continued operating momentum and current commodity prices, we expect to generate over $550 million of free cash flow in 2022 and reach our initial $1.2 billion net debt target during the second quarter. As a result, we are announcing the next phase of our return of capital framework, which includes allocating approximately 25% of our free cash flow to share buybacks commencing in the second quarter. We are also following up our success in the Clearwater where we now have four of the top five initial rate wells drilled to date in the play,” commented Ed LaFehr, President and Chief Executive Officer.
Reserves Highlights
Baytex reports that proved developed producing reserves increased by 7%, from 120 mmboe to 129 mmboe. Proved reserves total 278 mmboe, 271 mmboe at year-end 2020; proved plus probable reserves total 451 mmboe, 462 mmboe at year-end 2020.
