Baytex Energy reported second-quarter production above the high end of its guidance range, marking the second consecutive quarter that production exceeded company guidance.
Baytex Energy President and CEO Chad Lundberg stated that production averaged 71,200 barrels of oil equivalent per day (BOE/d) during the second quarter.
Chief Operating Officer Kendall Arthur stated that second-quarter production totaled 71,243 BOE/d, an 11% increase from the same period in 2025.
Baytex Energy's raised full-year production guidance
The company raised its full-year production guidance to 71,000 BOE/d, representing an increase of 1,000 BOE/d from the midpoint of the previous outlook.
Baytex Energy is targeting an exit rate of 72,000 BOE/d.
Operational updates and drilling
During the second quarter, the company invested C$122 million in exploration and development and brought 24.6 wells on stream.
At Peavine, six wells brought online during the quarter recorded average 30-day initial production rates of 478 barrels per day per well.
At Lloydminster, Baytex Energy brought seven Mannville wells on stream.
In the southern Gilby Duvernay area, three of the four wells in the first pad delivered an average 30-day initial production of 1,630 BOE/d per well, consisting of 88% liquids. A fourth Gilby well recorded a 30-day initial production rate of 866 BOE/d.
The 2026 Duvernay program includes 17 wells drilled, with 13 expected to be online this year.
Baytex Energy budgeted Duvernay drilling, completion and equipping costs of C$1,000 per foot in 2026. Costs in 2024 were approximately C$1,150 per foot and C$1,050 per foot in 2025, with a longer-term target of C$900 per foot.
Financial performance and capital allocation
Chief Financial Officer Chad Kalmakoff stated the company generated C$254 million of adjusted funds flow, or C$0.35 per share, in the second quarter.
Q2 was another strong quarter,
