Baytex Energy Corp. (“Baytex”)(TSX, NYSE: BTE) announces changes to
its board of directors and management team.
Board of Directors
Baytex has an ongoing board renewal process led
by its Nominating and Governance Committee. In the last year, we
have significantly restructured our board. Throughout this renewal
process, our intent has been to create an efficient, diverse and
independent board with complementary skill sets suited to our
business.
As previously highlighted, Baytex welcomed
Jennifer Maki as a director on September 9, 2019. As part of our
renewal process, Jennifer Maki has been appointed to the Audit and
Human Resources and Compensation committees while Kevin Olson has
stepped down from the board of directors to concentrate on his
other business ventures. Baytex would like to thank Mr. Olson for
his time and effort on the board.
Management
Baytex is committed to driving further
efficiencies in our business as we execute on our plan to deliver
profitable oil production and substantial free cash flow.
Following a thorough review of our
organizational capabilities, we are streamlining our management
team. Jason Jaskela, Executive Vice President and Chief Operating
Officer, and Jonathan Grimwood, Vice President, Exploration, are no
longer with the corporation. We wish to thank them both for their
efforts and achievements over the past year in assisting with the
seamless integration of Baytex and Raging River. Our operating
business units will now report directly to Ed LaFehr, President and
CEO.
2019 Guidance
Our operating performance remains strong.
Consistent with our September 9, 2019 press release, we continue to
forecast 2019 average production of approximately 97,000 boe/d
(83% oil and NGL) and expect to exit 2019 producing 95,000-97,000
boe/d. We are forecasting exploration and development expenditures
for 2019 of approximately $560 million.
Advisory Regarding Forward-Looking
Statements
In the interest of providing Baytex's
shareholders and potential investors with information regarding
Baytex, including management's assessment of Baytex's future plans
and operations, certain statements in this press release are
"forward-looking statements" within the meaning of the United
States Private Securities Litigation Reform Act of 1995 and
"forward-looking information" within the meaning of applicable
Canadian securities legislation (collectively, "forward-looking
statements"). In some cases, forward-looking statements can
be identified by terminology such as "anticipate", "believe",
"continue", "could", "estimate", "expect", "forecast", "intend",
"may", "objective", "ongoing", "outlook", "potential", "project",
"plan", "should", "target", "would", "will" or similar words
suggesting future outcomes, events or performance. The
forward-looking statements contained in this press release speak
only as of the date thereof and are expressly qualified by this
cautionary statement.
Specifically, this press release contains
forward-looking statements relating to but not limited to: our
business strategies, plans and objectives; driving further
efficiencies in our business; our plan to deliver profitable oil
production and substantial free cash flow; for 2019, our expected
average annual production rate, percentage of production that is
oil and NGL, exit production rate, and exploration and development
expenditures.
These forward-looking statements are based on
certain key assumptions regarding, among other things: petroleum
and natural gas prices and differentials between light, medium and
heavy oil prices; well production rates and reserve volumes; our
ability to add production and reserves through our exploration and
development activities; capital expenditure levels; our ability to
borrow under our credit agreements; the receipt, in a timely
manner, of regulatory and other required approvals for our
operating activities; the availability and cost of labour and other
industry services; interest and foreign exchange rates; the
continuance of existing and, in certain circumstances, proposed tax
and royalty regimes; our ability to develop our crude oil and
natural gas properties in the manner currently contemplated; and
current industry conditions, laws and regulations continuing in
effect (or, where changes are proposed, such changes being adopted
as anticipated). Readers are cautioned that such assumptions,
although considered reasonable by Baytex at the time of
preparation, may prove to be incorrect.
Actual results achieved will vary from the
information provided herein as a result of numerous known and
unknown risks and uncertainties and other factors. Such factors
include, but are not limited to: the volatility of oil and natural
gas prices and price differentials; availability and cost of
gathering, processing and pipeline systems; failure to comply with
the covenants in our debt agreements; the availability and cost of
capital or borrowing; that our credit facilities may not provide
sufficient liquidity or may not be renewed; risks associated with a
third-party operating our Eagle Ford properties; the cost of
developing and operating our assets; depletion of our reserves;
risks associated with the exploitation of our properties and our
ability to acquire reserves; new regulations on hydraulic
fracturing; restrictions on or access to water or other fluids;
changes in government regulations that affect the oil and gas
industry; regulations regarding the disposal of fluids; changes in
environmental, health and safety regulations; public perception and
its influence on the regulatory regime; restrictions or costs
imposed by climate change initiatives; variations in interest rates
and foreign exchange rates; risks associated with our hedging
activities; changes in income tax or other laws or government
incentive programs; uncertainties associated with estimating oil
and natural gas reserves; our inability to fully insure against all
risks; risks of counterparty default; risks associated with
acquiring, developing and exploring for oil and natural gas and
other aspects of our operations; risks associated with large
projects; risks related to our thermal heavy oil projects;
alternatives to and changing demand for petroleum products; risks
associated with our use of information technology systems; risks
associated with the ownership of our securities, including changes
in market-based factors; risks for United States and other
non-resident shareholders, including the ability to enforce civil
remedies, differing practices for reporting reserves and
production, additional taxation applicable to non-residents and
foreign exchange risk; and other factors, many of which are beyond
our control. These and additional risk factors are discussed
in our Annual Information Form, Annual Report on Form 40-F and
Management's Discussion and Analysis for the year ended December
31, 2018, filed with Canadian securities regulatory authorities and
the U.S. Securities and Exchange Commission and in our other public
filings.
The above summary of assumptions and risks
related to forward-looking statements has been provided in order to
provide shareholders and potential investors with a more complete
perspective on Baytex’s current and future operations and such
information may not be appropriate for other purposes.
There is no representation by Baytex that actual
results achieved will be the same in whole or in part as those
referenced in the forward-looking statements and Baytex does not
undertake any obligation to update publicly or to revise any of the
included forward-looking statements, whether as a result of new
information, future events or otherwise, except as may be required
by applicable securities law.
All amounts in this press release are stated in
Canadian dollars unless otherwise specified.
Non-GAAP Financial and Capital
Management Measures
Free cash flow is not a measurement based on
GAAP in Canada. We define free cash flow as adjusted funds flow
less sustaining capital. Sustaining capital is an estimate of the
amount of exploration and development expenditures required to
offset production declines on an annual basis and maintain flat
production volumes.
Exploration and development expenditures is not
a measurement based on GAAP in Canada. We define exploration and
development expenditures as additions to exploration and evaluation
assets combined with additions to oil and gas properties. We use
exploration and development expenditures to measure and evaluate
the performance of our capital programs. The total amount of
exploration and development expenditures is managed as part of our
budgeting process and can vary from period to period depending on
the availability of adjusted funds flow and other sources of
liquidity.
Advisory Regarding Oil and Gas Information
Where applicable, oil equivalent amounts have
been calculated using a conversion rate of six thousand cubic feet
of natural gas to one barrel of oil. BOEs may be misleading,
particularly if used in isolation. A boe conversion ratio of
six thousand cubic feet of natural gas to one barrel of oil is
based on an energy equivalency conversion method primarily
applicable at the burner tip and does not represent a value
equivalency at the wellhead.
Baytex Energy Corp.
Baytex Energy Corp. is an oil and gas
corporation based in Calgary, Alberta. The company is engaged
in the acquisition, development and production of crude oil and
natural gas in the Western Canadian Sedimentary Basin and in the
Eagle Ford in the United States. Approximately 83% of Baytex’s
production is weighted toward crude oil and natural gas liquids.
Baytex's common shares trade on the Toronto Stock Exchange and the
New York Stock Exchange under the symbol BTE.
For further information about Baytex, please
visit our website at www.baytexenergy.com or contact:
Brian Ector, Vice President, Capital
Markets
Toll Free Number: 1-800-524-5521Email:
investor@baytexenergy.com
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