BTEGF - Baytex Energy sets 2023 exploration spending up to C$650M

Baytex Energy ( OTCPK:BTEGF ) said Wednesday its board approved FY 2023 exploration and development spending of C$575M-C$650M , which is designed to generate average annual production of 86K-89K boe/day, a 4% increase at the midpoint from forecast 2022 production guidance.

The company plans to direct 65% of exploration and development spending to light oil assets and 35% to heavy oil assets, which includes ~15% of the 2023 capital program directed to its Peavine Clearwater assets.

After generating record free cash flow in 2022 of C$650M, the company expects to generate ~C$450M of free cash flow in 2023 based on the forward strip.

Baytex ( OTCPK:BTEGF ) currently allocates 25% of free cash flow to share buybacks and 75% of free cash flow to debt reduction; the company expects to reach net debt of $800M by mid-2023, at which point it plans to increase direct shareholder returns to 50% of free cash flow and accelerating its stock buyback program.

Under its current five-year plan and based on a constant US$80/bbl WTI price, Baytex ( OTCPK:BTEGF ) expects to generate ~C$3.1B of cumulative free cash flow.

Baytex Energy ( OTCPK:BTEGF ) may be able to generate US$575M in free cash flow over the next five quarters, Elephant Analytics writes in an analysis published on Seeking Alpha .

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