Form 20-F o | Form 40-F x |
Yes o | No x |
Exhibit No. | Document | ||||
Condensed Interim Unaudited Consolidated Financial Statements for the three and six months ended June 30, 2023 and 2022 | |||||
Management's Discussion and Analysis for the three and six months ended June 30, 2023 and 2022 | |||||
Certification of Interim Filings (Form 52-109F2) – Chief Executive Officer | |||||
Certification of Interim Filings (Form 52-109F2) – Chief Financial Officer | |||||
Press Release dated July 27, 2023 (Baytex Announces Second Quarter Results) | |||||
Press Release dated July 27, 2023 (Baytex Confirms Quarterly Dividend) |
BAYTEX ENERGY CORP. | |||||||||||
/s/ Chad L. Kalmakoff | |||||||||||
Name: | Chad L. Kalmakoff | ||||||||||
Title: | Chief Financial Officer |
As at | |||||||||||
Notes | June 30, 2023 | December 31, 2022 | |||||||||
ASSETS | |||||||||||
Current assets | |||||||||||
Cash | $ | 19,637 | $ | 5,464 | |||||||
Trade and other receivables | 370,498 | 228,485 | |||||||||
Financial derivatives | 17 | 27,505 | 10,105 | ||||||||
417,640 | 244,054 | ||||||||||
Non-current assets | |||||||||||
Exploration and evaluation assets | 5 | 162,448 | 168,684 | ||||||||
Oil and gas properties | 6 | 7,759,725 | 4,620,766 | ||||||||
Other plant and equipment | 6,794 | 6,568 | |||||||||
Lease assets | 35,979 | 6,453 | |||||||||
Deferred income tax asset | 14 | 234,858 | 57,244 | ||||||||
$ | 8,617,444 | $ | 5,103,769 | ||||||||
LIABILITIES | |||||||||||
Current liabilities | |||||||||||
Trade and other payables | $ | 614,763 | $ | 272,195 | |||||||
Financial derivatives | 17 | 2,907 | — | ||||||||
Lease obligations | 24,289 | 3,521 | |||||||||
Asset retirement obligations | 9 | 12,965 | 12,813 | ||||||||
654,924 | 288,529 | ||||||||||
Non-current liabilities | |||||||||||
Trade and other payables | 1,845 | 9,209 | |||||||||
Credit facilities | 7 | 964,332 | 383,031 | ||||||||
Long-term notes | 8 | 1,563,897 | 547,598 | ||||||||
Lease obligations | 11,879 | 3,017 | |||||||||
Asset retirement obligations | 9 | 641,605 | 576,110 | ||||||||
Deferred income tax liability | 14 | 177,751 | 265,858 | ||||||||
4,016,233 | 2,073,352 | ||||||||||
SHAREHOLDERS’ EQUITY | |||||||||||
Shareholders' capital | 10 | 6,852,328 | 5,499,664 | ||||||||
Contributed surplus | 89,970 | 89,879 | |||||||||
Accumulated other comprehensive income | 709,190 | 756,195 | |||||||||
Deficit | (3,050,277) | (3,315,321) | |||||||||
4,601,211 | 3,030,417 | ||||||||||
$ | 8,617,444 | $ | 5,103,769 |
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||||
Notes | 2023 | 2022 | 2023 | 2022 | |||||||||||||
Revenue, net of royalties | |||||||||||||||||
Petroleum and natural gas sales | 13 | $ | 598,760 | $ | 854,169 | $ | 1,154,096 | $ | 1,527,994 | ||||||||
Royalties | (107,920) | (171,559) | (201,173) | (294,279) | |||||||||||||
490,840 | 682,610 | 952,923 | 1,233,715 | ||||||||||||||
Expenses | |||||||||||||||||
Operating | 119,438 | 107,426 | 231,846 | 208,192 | |||||||||||||
Transportation | 14,574 | 11,758 | 31,579 | 20,973 | |||||||||||||
Blending and other | 52,995 | 56,895 | 112,676 | 98,335 | |||||||||||||
General and administrative | 15,240 | 11,640 | 26,974 | 23,322 | |||||||||||||
Transaction costs | 3 | 32,832 | — | 41,703 | — | ||||||||||||
Exploration and evaluation | 5 | 369 | 7,210 | 532 | 10,780 | ||||||||||||
Depletion and depreciation | 176,144 | 142,286 | 342,143 | 283,077 | |||||||||||||
Share-based compensation | 11 | 16,918 | 2,942 | 26,741 | 6,887 | ||||||||||||
Financing and interest | 15 | 34,497 | 27,077 | 58,222 | 51,321 | ||||||||||||
Financial derivatives (gain) loss | 17 | 3,038 | 65,274 | (11,587) | 305,901 | ||||||||||||
Foreign exchange (gain) loss | 16 | (11,939) | 27,709 | (12,002) | 13,364 | ||||||||||||
(Gain) loss on dispositions | — | (207) | 336 | (441) | |||||||||||||
Other expense (income) | 141 | 568 | (917) | (464) | |||||||||||||
454,247 | 460,578 | 848,246 | 1,021,247 | ||||||||||||||
Net income before income taxes | 36,593 | 222,032 | 104,677 | 212,468 | |||||||||||||
Income tax expense (recovery) | 14 | ||||||||||||||||
Current income tax expense | 1,350 | 1,140 | 2,470 | 2,050 | |||||||||||||
Deferred income tax expense (recovery) | (178,360) | 39,920 | (162,837) | (27,412) | |||||||||||||
(177,010) | 41,060 | (160,367) | (25,362) | ||||||||||||||
Net income | $ | 213,603 | $ | 180,972 | $ | 265,044 | $ | 237,830 | |||||||||
Other comprehensive income (loss) | |||||||||||||||||
Foreign currency translation adjustment | (46,457) | 58,917 | (47,005) | 30,838 | |||||||||||||
Comprehensive income | $ | 167,146 | $ | 239,889 | $ | 218,039 | $ | 268,668 | |||||||||
Net income per common share | 12 | ||||||||||||||||
Basic | $ | 0.37 | $ | 0.32 | $ | 0.47 | $ | 0.42 | |||||||||
Diluted | $ | 0.36 | $ | 0.32 | $ | 0.47 | $ | 0.42 | |||||||||
Weighted average common shares (000's) | 12 | ||||||||||||||||
Basic | 583,365 | 566,997 | 564,319 | 566,262 | |||||||||||||
Diluted | 588,170 | 571,697 | 569,284 | 570,844 |
Notes | Shareholders’ capital | Contributed surplus | Accumulated other comprehensive income (loss) | Deficit | Total equity | |||||||||||||||
Balance at December 31, 2021 | $ | 5,736,593 | $ | 13,559 | $ | 632,103 | $ | (4,170,926) | $ | 2,211,329 | ||||||||||
Vesting of share awards | 8,429 | (8,429) | — | — | — | |||||||||||||||
Share-based compensation | — | 2,078 | — | — | 2,078 | |||||||||||||||
Repurchase of common shares for cancellation | (91,139) | 28,675 | — | — | (62,464) | |||||||||||||||
Comprehensive income | — | — | 30,838 | 237,830 | 268,668 | |||||||||||||||
Balance at June 30, 2022 | $ | 5,653,883 | $ | 35,883 | $ | 662,941 | $ | (3,933,096) | $ | 2,419,611 | ||||||||||
Balance at December 31, 2022 | $ | 5,499,664 | $ | 89,879 | $ | 756,195 | $ | (3,315,321) | $ | 3,030,417 | ||||||||||
Issued on corporate acquisition | 3 | 1,326,435 | 21,316 | — | — | 1,347,751 | ||||||||||||||
Vesting of share awards | 10 | 26,229 | (37,462) | — | — | (11,233) | ||||||||||||||
Share-based compensation | 11 | — | 16,237 | — | — | 16,237 | ||||||||||||||
Comprehensive (loss) income | — | — | (47,005) | 265,044 | 218,039 | |||||||||||||||
Balance at June 30, 2023 | $ | 6,852,328 | $ | 89,970 | $ | 709,190 | $ | (3,050,277) | $ | 4,601,211 |
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||||
Notes | 2023 | 2022 | 2023 | 2022 | |||||||||||||
CASH PROVIDED BY (USED IN): | |||||||||||||||||
Operating activities | |||||||||||||||||
Net income | $ | 213,603 | $ | 180,972 | $ | 265,044 | $ | 237,830 | |||||||||
Adjustments for: | |||||||||||||||||
Non-cash share-based compensation | 11 | 16,237 | 372 | 16,237 | 2,078 | ||||||||||||
Unrealized foreign exchange (gain) loss | 16 | (12,880) | 27,499 | (13,093) | 12,951 | ||||||||||||
Exploration and evaluation | 5 | 369 | 7,210 | 532 | 10,780 | ||||||||||||
Depletion and depreciation | 176,144 | 142,286 | 342,143 | 283,077 | |||||||||||||
Non-cash financing and accretion | 15 | 6,242 | 6,603 | 11,592 | 10,420 | ||||||||||||
Non-cash other income | 9 | — | (183) | (1,271) | (1,465) | ||||||||||||
Unrealized financial derivatives (gain) loss | 17 | 19,403 | (58,768) | 10,193 | 97,493 | ||||||||||||
Cash premiums on derivatives | (2,263) | — | (2,263) | — | |||||||||||||
(Gain) loss on dispositions | — | (207) | 336 | (441) | |||||||||||||
Deferred income tax expense (recovery) | 14 | (178,360) | 39,920 | (162,837) | (27,412) | ||||||||||||
Asset retirement obligations settled | 9 | (5,392) | (2,716) | (9,518) | (6,009) | ||||||||||||
Change in non-cash working capital | (40,795) | 17,046 | (79,849) | (60,294) | |||||||||||||
192,308 | 360,034 | 377,246 | 559,008 | ||||||||||||||
Financing activities | |||||||||||||||||
Increase (decrease) in credit facilities | 577,428 | 62,791 | 601,979 | (15,351) | |||||||||||||
Decrease in acquired credit facilities | 3 | (373,608) | — | (373,608) | — | ||||||||||||
Debt issuance costs | (39,925) | (1,832) | (39,925) | (1,832) | |||||||||||||
Payments on lease obligations | (1,181) | (1,039) | (2,336) | (2,213) | |||||||||||||
Net proceeds from issuance of long-term notes | 8 | 1,046,197 | — | 1,046,197 | — | ||||||||||||
Redemption of long-term notes | 8 | — | (252,830) | — | (252,830) | ||||||||||||
Redemption of acquired long-term notes | 3 | (569,256) | — | (569,256) | — | ||||||||||||
Repurchase of common shares | 10 | — | (62,464) | — | (62,464) | ||||||||||||
639,655 | (255,374) | 663,051 | (334,690) | ||||||||||||||
Investing activities | |||||||||||||||||
Additions to exploration and evaluation assets | 5 | (741) | (2,338) | (1,231) | (5,897) | ||||||||||||
Additions to oil and gas properties | 6 | (169,963) | (94,295) | (403,099) | (244,558) | ||||||||||||
Additions to other plant and equipment | (580) | (260) | (1,021) | (634) | |||||||||||||
Corporate acquisition, net of cash acquired | 3 | (662,579) | (662,579) | ||||||||||||||
Property acquisitions | 62 | (208) | (444) | (267) | |||||||||||||
Proceeds from dispositions | 50 | 14 | 285 | 41 | |||||||||||||
Change in non-cash working capital | 14,980 | (7,573) | 41,965 | 26,997 | |||||||||||||
(818,771) | (104,660) | (1,026,124) | (224,318) | ||||||||||||||
Change in cash | 13,192 | — | 14,173 | — | |||||||||||||
Cash, beginning of period | 6,445 | — | 5,464 | — | |||||||||||||
Cash, end of period | $ | 19,637 | $ | — | $ | 19,637 | $ | — | |||||||||
Supplementary information | |||||||||||||||||
Interest paid | $ | 7,535 | $ | 11,181 | $ | 38,004 | $ | 41,529 | |||||||||
Income taxes paid | $ | 3,603 | $ | 263 | $ | 3,603 | $ | 263 |
USD | CAD (1) | |||||||
Consideration | ||||||||
Cash | $ | 553,150 | $ | 732,840 | ||||
Common shares issued | 1,001,196 | 1,326,435 | ||||||
Share based compensation (2) | 20,107 | 26,638 | ||||||
Total consideration | $ | 1,574,453 | $ | 2,085,913 | ||||
Fair value of net assets acquired | ||||||||
Oil and gas properties | $ | 2,325,996 | $ | 3,081,596 | ||||
Working capital deficiency excluding bank debt and financial derivatives (3) | (108,147) | (143,278) | ||||||
Financial derivatives | 17,030 | 22,562 | ||||||
Lease assets | 15,708 | 20,811 | ||||||
Lease obligations | (15,708) | (20,811) | ||||||
Credit facilities | (282,000) | (373,608) | ||||||
Long-term notes | (429,676) | (569,256) | ||||||
Asset retirement obligations | (23,632) | (31,310) | ||||||
Deferred income tax asset | 74,882 | 99,207 | ||||||
Net assets acquired | $ | 1,574,453 | $ | 2,085,913 |
Canada | U.S. | Corporate | Consolidated | |||||||||||||||||||||||
Three Months Ended June 30 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||
Revenue, net of royalties | ||||||||||||||||||||||||||
Petroleum and natural gas sales | $ | 390,292 | $ | 581,197 | $ | 208,468 | $ | 272,972 | $ | — | $ | — | $ | 598,760 | $ | 854,169 | ||||||||||
Royalties | (47,309) | (91,133) | (60,611) | (80,426) | — | — | (107,920) | (171,559) | ||||||||||||||||||
342,983 | 490,064 | 147,857 | 192,546 | — | — | 490,840 | 682,610 | |||||||||||||||||||
Expenses | ||||||||||||||||||||||||||
Operating | 91,354 | 82,471 | 28,084 | 24,955 | — | — | 119,438 | 107,426 | ||||||||||||||||||
Transportation | 13,240 | 11,758 | 1,334 | — | — | — | 14,574 | 11,758 | ||||||||||||||||||
Blending and other | 52,995 | 56,895 | — | — | — | — | 52,995 | 56,895 | ||||||||||||||||||
General and administrative | — | — | — | — | 15,240 | 11,640 | 15,240 | 11,640 | ||||||||||||||||||
Transaction costs | — | — | 7,298 | — | 25,534 | — | 32,832 | — | ||||||||||||||||||
Exploration and evaluation | 369 | 7,210 | — | — | — | — | 369 | 7,210 | ||||||||||||||||||
Depletion and depreciation | 112,262 | 100,712 | 62,211 | 40,097 | 1,671 | 1,477 | 176,144 | 142,286 | ||||||||||||||||||
Share-based compensation | — | — | — | — | 16,918 | 2,942 | 16,918 | 2,942 | ||||||||||||||||||
Financing and interest | — | — | — | — | 34,497 | 27,077 | 34,497 | 27,077 | ||||||||||||||||||
Financial derivatives (gain) loss | — | — | — | — | 3,038 | 65,274 | 3,038 | 65,274 | ||||||||||||||||||
Foreign exchange (gain) loss | — | — | — | — | (11,939) | 27,709 | (11,939) | 27,709 | ||||||||||||||||||
Gain on dispositions | — | (207) | — | — | — | — | — | (207) | ||||||||||||||||||
Other (income) expense | — | (183) | — | — | 141 | 751 | 141 | 568 | ||||||||||||||||||
270,220 | 258,656 | 98,927 | 65,052 | 85,100 | 136,870 | 454,247 | 460,578 | |||||||||||||||||||
Net income (loss) before income taxes | 72,763 | 231,408 | 48,930 | 127,494 | (85,100) | (136,870) | 36,593 | 222,032 | ||||||||||||||||||
Income tax (recovery) expense | ||||||||||||||||||||||||||
Current income tax expense | 1,350 | 1,140 | ||||||||||||||||||||||||
Deferred income tax (recovery) expense | (178,360) | 39,920 | ||||||||||||||||||||||||
(177,010) | 41,060 | |||||||||||||||||||||||||
Net income (loss) | $ | 72,763 | $ | 231,408 | $ | 48,930 | $ | 127,494 | $ | (85,100) | $ | (136,870) | $ | 213,603 | $ | 180,972 | ||||||||||
Additions to exploration and evaluation assets | 741 | 2,338 | — | — | — | — | 741 | 2,338 | ||||||||||||||||||
Additions to oil and gas properties | 95,662 | 49,543 | 74,301 | 44,752 | — | — | 169,963 | 94,295 | ||||||||||||||||||
Corporate acquisition, net of cash acquired | — | — | 662,439 | — | — | — | 662,439 | — |
Property acquisitions | (62) | 208 | — | — | — | — | (62) | 208 | ||||||||||||||||||
Proceeds from dispositions | (50) | (14) | — | — | — | — | (50) | (14) | ||||||||||||||||||
Canada | U.S. | Corporate | Consolidated | |||||||||||||||||||||||
Six Months Ended June 30 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||
Revenue, net of royalties | ||||||||||||||||||||||||||
Petroleum and natural gas sales | $ | 775,914 | $ | 1,034,901 | $ | 378,182 | $ | 493,093 | $ | — | $ | — | $ | 1,154,096 | $ | 1,527,994 | ||||||||||
Royalties | (91,164) | (148,809) | (110,009) | (145,470) | — | — | (201,173) | (294,279) | ||||||||||||||||||
684,750 | 886,092 | 268,173 | 347,623 | — | — | 952,923 | 1,233,715 | |||||||||||||||||||
Expenses | ||||||||||||||||||||||||||
Operating | 182,534 | 161,011 | 49,312 | 47,181 | — | — | 231,846 | 208,192 | ||||||||||||||||||
Transportation | 30,245 | 20,973 | 1,334 | — | — | — | 31,579 | 20,973 | ||||||||||||||||||
Blending and other | 112,676 | 98,335 | — | — | — | — | 112,676 | 98,335 | ||||||||||||||||||
General and administrative | — | — | — | — | 26,974 | 23,322 | 26,974 | 23,322 | ||||||||||||||||||
Transaction costs | — | — | 7,298 | — | 34,405 | — | 41,703 | — | ||||||||||||||||||
Exploration and evaluation | 532 | 10,780 | — | — | — | — | 532 | 10,780 | ||||||||||||||||||
Depletion and depreciation | 231,733 | 201,794 | 107,175 | 78,461 | 3,235 | 2,822 | 342,143 | 283,077 | ||||||||||||||||||
Share-based compensation | — | — | — | — | 26,741 | 6,887 | 26,741 | 6,887 | ||||||||||||||||||
Financing and interest | — | — | — | — | 58,222 | 51,321 | 58,222 | 51,321 | ||||||||||||||||||
Financial derivatives (gain) loss | — | — | — | — | (11,587) | 305,901 | (11,587) | 305,901 | ||||||||||||||||||
Foreign exchange (gain) loss | — | — | — | — | (12,002) | 13,364 | (12,002) | 13,364 | ||||||||||||||||||
Loss (gain) on dispositions | 336 | (441) | — | — | — | — | 336 | (441) | ||||||||||||||||||
Other (income) expense | (1,271) | (1,465) | — | — | 354 | 1,001 | (917) | (464) | ||||||||||||||||||
556,785 | 490,987 | 165,119 | 125,642 | 126,342 | 404,618 | 848,246 | 1,021,247 | |||||||||||||||||||
Net income (loss) before income taxes | 127,965 | 395,105 | 103,054 | 221,981 | (126,342) | (404,618) | 104,677 | 212,468 | ||||||||||||||||||
Income tax (recovery) expense | ||||||||||||||||||||||||||
Current income tax expense | 2,470 | 2,050 | ||||||||||||||||||||||||
Deferred income tax (recovery) expense | (162,837) | (27,412) | ||||||||||||||||||||||||
(160,367) | (25,362) | |||||||||||||||||||||||||
Net income (loss) | $ | 127,965 | $ | 395,105 | $ | 103,054 | $ | 221,981 | $ | (126,342) | $ | (404,618) | $ | 265,044 | $ | 237,830 | ||||||||||
Additions to exploration and evaluation assets | 1,231 | 5,897 | — | — | — | — | 1,231 | 5,897 | ||||||||||||||||||
Additions to oil and gas properties | 279,778 | 172,114 | 123,321 | 72,444 | — | — | 403,099 | 244,558 | ||||||||||||||||||
Corporate acquisition, net of cash acquired | — | — | 662,439 | — | — | — | 662,439 | — | ||||||||||||||||||
Property acquisitions | 444 | 267 | — | — | — | — | 444 | 267 | ||||||||||||||||||
Proceeds from dispositions | (285) | (41) | — | — | — | — | (285) | (41) |
June 30, 2023 | December 31, 2022 | |||||||
Canadian assets | $ | 2,791,516 | $ | 2,779,596 | ||||
U.S. assets | 5,755,650 | 2,301,047 | ||||||
Corporate assets | 70,278 | 23,126 | ||||||
Total consolidated assets | $ | 8,617,444 | $ | 5,103,769 |
June 30, 2023 | December 31, 2022 | |||||||
Balance, beginning of period | $ | 168,684 | $ | 172,824 | ||||
Capital expenditures | 1,231 | 6,359 | ||||||
Property acquisitions | 506 | 301 | ||||||
Divestitures | (788) | (498) | ||||||
Property swaps | 978 | 385 | ||||||
Impairment reversal | — | 22,503 | ||||||
Exploration and evaluation expense | (532) | (30,239) | ||||||
Transfer to oil and gas properties (note 6) | (5,887) | (8,496) | ||||||
Foreign currency translation | (1,744) | 5,545 | ||||||
Balance, end of period | $ | 162,448 | $ | 168,684 |
Cost | Accumulated depletion | Net book value | |||||||||
Balance, December 31, 2021 | $ | 11,633,517 | $ | (7,169,146) | $ | 4,464,371 | |||||
Capital expenditures | 515,183 | — | 515,183 | ||||||||
Property acquisitions | 1,173 | — | 1,173 | ||||||||
Transfers from exploration and evaluation assets (note 5) | 8,496 | — | 8,496 | ||||||||
Change in asset retirement obligations (note 9) | (147,020) | — | (147,020) | ||||||||
Divestitures | (265,166) | 241,892 | (23,274) | ||||||||
Property swaps | — | — | — | ||||||||
Impairment reversal | — | 245,241 | 245,241 | ||||||||
Foreign currency translation | 296,033 | (158,404) | 137,629 | ||||||||
Depletion | — | (581,033) | (581,033) | ||||||||
Balance, December 31, 2022 | $ | 12,042,216 | $ | (7,421,450) | $ | 4,620,766 | |||||
Capital expenditures | 403,099 | — | 403,099 | ||||||||
Corporate acquisition (note 3) | 3,081,596 | — | 3,081,596 | ||||||||
Transfers from exploration and evaluation assets (note 5) | 5,887 | — | 5,887 | ||||||||
Change in asset retirement obligations (note 9) | 37,017 | — | 37,017 | ||||||||
Divestitures | (1,997) | 1,511 | (486) | ||||||||
Property swaps | (4,733) | 3,756 | (977) | ||||||||
Foreign currency translation | (104,963) | 56,694 | (48,269) | ||||||||
Depletion | — | (338,908) | (338,908) | ||||||||
Balance, June 30, 2023 | $ | 15,458,122 | $ | (7,698,397) | $ | 7,759,725 |
June 30, 2023 | December 31, 2022 | |||||||
Credit facilities - U.S. dollar denominated (1) | $ | 413,785 | $ | 30,394 | ||||
Credit facilities - Canadian dollar denominated | 374,555 | 355,000 | ||||||
Term loan - U.S. dollar denominated (1) | 198,563 | — | ||||||
Credit facilities - principal (2) | 986,903 | 385,394 | ||||||
Unamortized debt issuance costs | (22,571) | (2,363) | ||||||
Credit facilities | $ | 964,332 | $ | 383,031 |
Covenant Description | Position as at June 30, 2023 | Covenant | ||||||
Senior Secured Debt (1) to Bank EBITDA (2) (Maximum Ratio) | 0.5:1.0 | 3.5:1.0 | ||||||
Interest Coverage (3) (Minimum Ratio) | 13.3:1.0 | 3.5:1.0 | ||||||
Total Debt (4) to Bank EBITDA (2) (Maximum Ratio) | 1.2:1.0 | 4:0:1.0 |
June 30, 2023 | December 31, 2022 | |||||||
8.75% notes due April 1, 2027 (1) | $ | 542,467 | $ | 554,597 | ||||
8.50% notes due April 1, 2030 (2) | 1,059,001 | — | ||||||
Total long-term notes - principal (3) | 1,601,468 | 554,597 | ||||||
Unamortized debt issuance costs | (37,571) | (6,999) | ||||||
Total long-term notes - net of discount and unamortized debt issuance costs | $ | 1,563,897 | $ | 547,598 |
June 30, 2023 | December 31, 2022 | |||||||
Balance, beginning of period | $ | 588,923 | $ | 743,683 | ||||
Liabilities incurred (1) | 11,302 | 19,942 | ||||||
Liabilities settled | (9,518) | (18,351) | ||||||
Liabilities assumed from corporate acquisition (note 3) | 31,310 | — | ||||||
Liabilities acquired from property acquisitions | — | 950 | ||||||
Liabilities divested | (590) | (3,464) | ||||||
Accretion (note 15) | 9,221 | 15,683 | ||||||
Government grants (2) | (1,271) | (4,009) | ||||||
Change in estimate (1) | 4,958 | 6,124 | ||||||
Changes in discount rates and inflation rates (1)(3) | 20,757 | (173,086) | ||||||
Foreign currency translation | (522) | 1,451 | ||||||
Balance, end of period | $ | 654,570 | $ | 588,923 | ||||
Less current portion of asset retirement obligations | 12,965 | 12,813 | ||||||
Non-current portion of asset retirement obligations | $ | 641,605 | $ | 576,110 |
Number of Common Shares (000s) | Amount | |||||||
Balance, December 31, 2021 | 564,213 | $ | 5,736,593 | |||||
Vesting of share awards | 5,035 | 8,501 | ||||||
Common shares repurchased and cancelled | (24,318) | (245,430) | ||||||
Balance, December 31, 2022 | 544,930 | $ | 5,499,664 | |||||
Issued on corporate acquisition (note 3) | 311,370 | 1,326,435 | ||||||
Vesting of share awards | 5,892 | 26,229 | ||||||
Balance, June 30, 2023 | 862,192 | $ | 6,852,328 |
(000s) | Number of restricted awards | Number of performance awards | Total number of share awards | ||||||||
Balance, December 31, 2021 | 2,093 | 7,381 | 9,474 | ||||||||
Granted | 68 | 1,391 | 1,459 | ||||||||
Added by performance factor | — | — | — | ||||||||
Vested | (1,377) | (3,630) | (5,007) | ||||||||
Forfeited | (22) | (346) | (368) | ||||||||
Balance, December 31, 2022 | 762 | 4,796 | 5,558 | ||||||||
Granted | — | 2,599 | 2,599 | ||||||||
Assumed on corporate acquisition (1) | 10,789 | — | 10,789 | ||||||||
Vested | (9,302) | (3,767) | (13,069) | ||||||||
Forfeited | (10) | (234) | (244) | ||||||||
Balance, June 30, 2023 | 2,239 | 3,394 | 5,633 |
Three Months Ended June 30 | ||||||||||||||||||||
2023 | 2022 | |||||||||||||||||||
Net income | Weighted average common shares (000s) | Net income per share | Net income | Weighted average common shares (000s) | Net income per share | |||||||||||||||
Net income - basic | $ | 213,603 | 583,365 | $ | 0.37 | $ | 180,972 | 566,997 | $ | 0.32 | ||||||||||
Dilutive effect of share awards | — | 4,805 | — | — | 4,700 | — | ||||||||||||||
Net income - diluted | $ | 213,603 | 588,170 | $ | 0.36 | $ | 180,972 | 571,697 | $ | 0.32 | ||||||||||
Six Months Ended June 30 | ||||||||||||||||||||
2023 | 2022 | |||||||||||||||||||
Net income | Weighted average common shares (000s) | Net income per share | Net income | Weighted average common shares (000s) | Net income per share | |||||||||||||||
Net income - basic | $ | 265,044 | 564,319 | $ | 0.47 | $ | 237,830 | 566,262 | $ | 0.42 | ||||||||||
Dilutive effect of share awards | — | 4,965 | — | — | 4,582 | — | ||||||||||||||
Net income - diluted | $ | 265,044 | 569,284 | $ | 0.47 | $ | 237,830 | 570,844 | $ | 0.42 |
Three Months Ended June 30 | ||||||||||||||||||||
2023 | 2022 | |||||||||||||||||||
Canada | U.S. | Total | Canada | U.S. | Total | |||||||||||||||
Light oil and condensate | $ | 124,965 | $ | 183,845 | $ | 308,810 | $ | 192,986 | $ | 222,606 | $ | 415,592 | ||||||||
Heavy oil | 251,449 | — | 251,449 | 346,101 | — | 346,101 | ||||||||||||||
NGL | 3,772 | 16,391 | 20,163 | 8,288 | 24,895 | 33,183 | ||||||||||||||
Natural gas sales | 10,106 | 8,232 | 18,338 | 33,822 | 25,471 | 59,293 | ||||||||||||||
Total petroleum and natural gas sales | $ | 390,292 | $ | 208,468 | $ | 598,760 | $ | 581,197 | $ | 272,972 | $ | 854,169 | ||||||||
Six Months Ended June 30 | ||||||||||||||||||||
2023 | 2022 | |||||||||||||||||||
Canada | U.S. | Total | Canada | U.S. | Total | |||||||||||||||
Light oil and condensate | $ | 271,420 | $ | 325,855 | $ | 597,275 | $ | 373,141 | $ | 403,426 | $ | 776,567 | ||||||||
Heavy oil | 468,534 | — | 468,534 | 590,539 | — | 590,539 | ||||||||||||||
NGL | 9,832 | 32,165 | 41,997 | 15,772 | 46,902 | 62,674 | ||||||||||||||
Natural gas sales | 26,128 | 20,162 | 46,290 | 55,449 | 42,765 | 98,214 | ||||||||||||||
Total petroleum and natural gas sales | $ | 775,914 | $ | 378,182 | $ | 1,154,096 | $ | 1,034,901 | $ | 493,093 | $ | 1,527,994 |
Six Months Ended June 30 | ||||||||
2023 | 2022 | |||||||
Net income (loss) before income taxes | 104,677 | $ | 212,468 | |||||
Expected income taxes at the statutory rate of 24.80% (2022 – 25.12%) | 25,960 | 53,372 | ||||||
Change in income taxes resulting from: | ||||||||
Effect of foreign exchange | (1,612) | 984 | ||||||
Effect of rate adjustments for foreign jurisdictions | (2,883) | (18,357) | ||||||
Effect of change in deferred tax benefit not recognized (1) | (1,613) | (17,823) | ||||||
Effect of internal debt restructuring (2) | (186,460) | (45,182) | ||||||
Adjustments, assessments and other | 6,241 | 1,644 | ||||||
Income tax expense (recovery) | $ | (160,367) | $ | (25,362) |
Three Months Ended June 30 | Six Months Ended June 30 | |||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||
Interest on Credit Facilities | $ | 7,535 | $ | 4,070 | $ | 13,751 | $ | 7,109 | ||||||
Interest on long-term notes | 20,565 | 16,356 | 32,659 | 33,700 | ||||||||||
Interest on lease obligations | 155 | 48 | 220 | 92 | ||||||||||
Cash Interest | $ | 28,255 | $ | 20,474 | $ | 46,630 | $ | 40,901 | ||||||
Amortization of debt issue costs | 1,847 | 2,734 | 2,371 | 3,429 | ||||||||||
Accretion on asset retirement obligations (note 9) | 4,395 | 3,869 | 9,221 | 6,991 | ||||||||||
Financing and interest | $ | 34,497 | $ | 27,077 | $ | 58,222 | $ | 51,321 |
Three Months Ended June 30 | Six Months Ended June 30 | |||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||
Unrealized foreign exchange gain - intercompany notes (1) | $ | — | $ | — | $ | — | $ | (2,674) | ||||||
Unrealized foreign exchange (gain) loss - long-term notes & Credit Facilities | (12,880) | 27,499 | (13,093) | 15,625 | ||||||||||
Realized foreign exchange loss | 941 | 210 | 1,091 | 413 | ||||||||||
Foreign exchange (gain) loss | $ | (11,939) | $ | 27,709 | $ | (12,002) | $ | 13,364 |
June 30, 2023 | December 31, 2022 | ||||||||||||||||
Carrying value | Fair value | Carrying value | Fair value | Fair Value Measurement Hierarchy | |||||||||||||
Financial Assets | |||||||||||||||||
Fair value through profit and loss | |||||||||||||||||
Financial derivatives | $ | 27,505 | $ | 27,505 | $ | 10,105 | $ | 10,105 | Level 2 | ||||||||
Total | $ | 27,505 | $ | 27,505 | $ | 10,105 | $ | 10,105 | |||||||||
Amortized cost | |||||||||||||||||
Cash | $ | 19,637 | $ | 19,637 | $ | 5,464 | $ | 5,464 | — | ||||||||
Trade and other receivables | 370,498 | 370,498 | 228,485 | 228,485 | — | ||||||||||||
Total | $ | 390,135 | $ | 390,135 | $ | 233,949 | $ | 233,949 | |||||||||
Financial Liabilities | |||||||||||||||||
Fair value through profit and loss | |||||||||||||||||
Financial derivatives | $ | (2,907) | $ | (2,907) | $ | — | $ | — | Level 2 | ||||||||
Total | $ | (2,907) | $ | (2,907) | $ | — | $ | — | |||||||||
Amortized cost | |||||||||||||||||
Trade and other payables | $ | (616,608) | $ | (616,608) | $ | (281,404) | $ | (281,404) | — | ||||||||
Credit Facilities | (964,332) | (986,903) | (383,031) | (385,394) | — | ||||||||||||
Long-term notes | (1,563,897) | (1,585,368) | (547,598) | (563,292) | Level 1 | ||||||||||||
Total | $ | (3,144,837) | $ | (3,188,879) | $ | (1,212,033) | $ | (1,230,090) |
Assets | Liabilities | |||||||||||||
June 30, 2023 | December 31, 2022 | June 30, 2023 | December 31, 2022 | |||||||||||
U.S. dollar denominated | US$20,537 | US$6,980 | US$1,331,541 | US$430,171 |
Remaining Period | Volume | Price/Unit (1) | Index | |||||||||||
Oil | ||||||||||||||
Basis differential (2) | July 2023 to Dec 2023 | 1,500 bbl/d | WTI less US$2.50/bbl | MSW | ||||||||||
Basis differential (2)(3) | Jan 2024 to Dec 2024 | 1,500 bbl/d | WTI less US$2.65/bbl | MSW | ||||||||||
Basis differential (2) | July 2023 to Dec 2023 | 2,000 bbl/d | WTI less US$14.98/bbl | WCS | ||||||||||
Basis differential (2) | Aug 2023 to Dec 2023 | 6,000 bbl/d | WTI less US$13.62/bbl | WCS | ||||||||||
Basis differential (2) | July 2023 to Dec 2023 | 5,000 bbl/d | Baytex pays: WCS differential at Hardisty Baytex receives: WCS differential at Houston less US$8.10/bbl | WCS | ||||||||||
Basis differential (2) | Jan 2024 to Jun 2024 | 4,000 bbl/d | Baytex pays: WCS differential at Hardisty Baytex receives: WCS differential at Houston less US$8.10/bbl | WCS | ||||||||||
Put option | July 2023 to Dec 2023 | 5,000 bbl/d | US$60.00 | WTI | ||||||||||
Collar | July 2023 to Dec 2023 | 15,500 bbl/d | US$60.00/US$100.00 | WTI | ||||||||||
Collar | July 2023 to Sep 2023 | 19,862 bbl/d | US$60.00/US$100.00 | WTI | ||||||||||
Collar | Oct 2023 to Dec 2023 | 15,089 bbl/d | US$60.00/US$100.00 | WTI | ||||||||||
Collar | Jan 2024 to Mar 2024 | 8,400 bbl/d | US$60.00/US$100.00 | WTI | ||||||||||
Collar | Apr 2024 to Jun 2024 | 1,750 bbl/d | US$60.00/US$100.00 | WTI | ||||||||||
Collar | Jan 2024 to Jun 2024 | 14,500 bbl/d | US$60.00/US$100.00 | WTI | ||||||||||
Collar (3) | Jan 2024 to Jun 2024 | 2,500 bbl/d | US$60.00/US$90.00 | WTI | ||||||||||
Natural Gas | ||||||||||||||
Basis differential (2) | July 2023 to Dec 2023 | 11,413 mmbtu/d | Baytex pays: NYMEX Baytex receives: HSC less US$0.1525/mmbtu | HSC IFERC FOM | ||||||||||
Fixed Sell | Oct 2023 to Mar 2024 | 3,500 mmbtu/d | US$3.5025/mmbtu | NYMEX | ||||||||||
Collar | July 2023 to Dec 2023 | 11,413 mmbtu/d | US$2.50/US$2.68 | NYMEX | ||||||||||
Collar | Jan 2024 to Mar 2024 | 11,538 mmbtu/d | US$2.50/US$3.65 | NYMEX | ||||||||||
Collar | Apr 2024 to Jun 2024 | 11,538 mmbtu/d | US$2.33/US$3.00 | NYMEX | ||||||||||
Collar | Jan 2024 to Dec 2024 | 2,500 mmbtu/d | US$3.00/US$4.06 | NYMEX | ||||||||||
Collar | Jan 2024 to Dec 2024 | 2,500 mmbtu/d | US$3.00/US$4.09 | NYMEX | ||||||||||
Collar | Jan 2024 to Dec 2024 | 5,000 mmbtu/d | US$3.00/US$4.10 | NYMEX | ||||||||||
Collar | Jan 2024 to Dec 2024 | 8,500 mmbtu/d | US$3.00/US$4.15 | NYMEX | ||||||||||
Collar | Jan 2024 to Dec 2024 | 5,000 mmbtu/d | US$3.00/US$4.19 | NYMEX | ||||||||||
Natural Gas Liquids | ||||||||||||||
Fixed Sell | Jul 2023 to Mar 2024 | 34,364 gallon/d | US$0.2280/gallon | Mt. Belvieu Non-TET Ethane |
Three Months Ended June 30 | Six Months Ended June 30 | |||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||
Realized financial derivatives (gain) loss | $ | (16,365) | $ | 124,042 | $ | (21,780) | $ | 208,408 | ||||||
Unrealized financial derivatives (gain) loss | 19,403 | (58,768) | 10,193 | 97,493 | ||||||||||
Financial derivatives (gain) loss | $ | 3,038 | $ | 65,274 | $ | (11,587) | $ | 305,901 |
June 30, 2023 | December 31, 2022 | |||||||||||||
Credit Facilities | $ | 964,332 | $ | 383,031 | ||||||||||
Unamortized debt issuance costs - Credit Facilities (note 7) | 22,571 | 2,363 | ||||||||||||
Long-term notes | 1,563,897 | 547,598 | ||||||||||||
Unamortized debt issuance costs - Long-term notes (note 8) | 37,571 | 6,999 | ||||||||||||
Trade and other payables | 616,608 | 281,404 | ||||||||||||
Cash | (19,637) | (5,464) | ||||||||||||
Trade and other receivables | (370,498) | (228,485) | ||||||||||||
Net Debt | $ | 2,814,844 | $ | 987,446 | ||||||||||
Three Months Ended June 30 | Six Months Ended June 30 | |||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||
Cash flows from operating activities | $ | 192,308 | $ | 360,034 | $ | 377,246 | $ | 559,008 | ||||||
Change in non-cash working capital | 40,795 | (17,046) | 79,849 | 60,294 | ||||||||||
Asset retirement obligations settled | 5,392 | 2,716 | 9,518 | 6,009 | ||||||||||
Transaction costs | 32,832 | — | 41,703 | — | ||||||||||
Cash premiums on derivatives | 2,263 | 2,263 | ||||||||||||
Adjusted Funds Flow | $ | 273,590 | $ | 345,704 | $ | 510,579 | $ | 625,311 |
H1/2023 Actual | H2/2023 Guidance | 2023 Guidance | |||||||||
Production (boe/d) | 88,269 | 153,000-157,000 | 120,500-122,500 | ||||||||
Exploration and development expenditures ($ millions) | $404 | $601-$641 | $1,005-$1,045 |
2023 Original Guidance (1) | 2023 Revised Guidance | |||||||
Expenses: | ||||||||
Average royalty rate (2) | 20.0 - 22.0% | 21.0 - 22.0% | ||||||
Operating (3) | $14.00 - $14.75/boe | $12.25 - $12.75/boe | ||||||
Transportation (3) | $1.90 - $2.10/boe | $2.00 - $2.10/boe | ||||||
General and administrative (3) | $52 million ($1.63/boe) | $80 million ($1.80/boe) | ||||||
Interest (3) | $65 million ($2.04/boe) | $150 million ($3.38/boe) | ||||||
Leasing expenditures | $4 million | $13 million | ||||||
Asset retirement obligations | $25 million | $25 million |
Three Months Ended June 30 | ||||||||||||||||||||
2023 | 2022 | |||||||||||||||||||
Canada | U.S. | Total | Canada | U.S. | Total | |||||||||||||||
Daily Production | ||||||||||||||||||||
Liquids (bbl/d) | ||||||||||||||||||||
Light oil and condensate | 14,612 | 20,710 | 35,322 | 15,675 | 17,332 | 33,007 | ||||||||||||||
Heavy oil | 32,821 | — | 32,821 | 28,586 | — | 28,586 | ||||||||||||||
Natural Gas Liquids (NGL) | 1,434 | 7,186 | 8,620 | 1,818 | 5,650 | 7,468 | ||||||||||||||
Total liquids (bbl/d) | 48,867 | 27,896 | 76,763 | 46,079 | 22,982 | 69,061 | ||||||||||||||
Natural gas (mcf/d) | 42,043 | 35,946 | 77,989 | 53,036 | 31,133 | 84,169 | ||||||||||||||
Total production (boe/d) | 55,874 | 33,887 | 89,761 | 54,919 | 28,170 | 83,090 | ||||||||||||||
Production Mix | ||||||||||||||||||||
Segment as a percent of total | 62 | % | 38 | % | 100 | % | 66 | % | 34 | % | 100 | % | ||||||||
Light oil and condensate | 26 | % | 61 | % | 39 | % | 29 | % | 62 | % | 40 | % | ||||||||
Heavy oil | 59 | % | — | % | 37 | % | 52 | % | — | % | 34 | % | ||||||||
NGL | 3 | % | 21 | % | 10 | % | 3 | % | 20 | % | 9 | % | ||||||||
Natural gas | 12 | % | 18 | % | 14 | % | 16 | % | 18 | % | 17 | % | ||||||||
Six Months Ended June 30 | ||||||||||||||||||||
2023 | 2022 | |||||||||||||||||||
Canada | U.S. | Total | Canada | U.S. | Total | |||||||||||||||
Daily Production | ||||||||||||||||||||
Liquids (bbl/d) | ||||||||||||||||||||
Light oil and condensate | 15,500 | 18,010 | 33,510 | 16,619 | 16,914 | 33,533 | ||||||||||||||
Heavy oil | 33,502 | — | 33,502 | 26,921 | — | 26,921 | ||||||||||||||
Natural Gas Liquids (NGL) | 1,653 | 6,267 | 7,920 | 1,877 | 5,675 | 7,552 | ||||||||||||||
Total liquids (bbl/d) | 50,655 | 24,277 | 74,932 | 45,417 | 22,589 | 68,006 | ||||||||||||||
Natural gas (mcf/d) | 45,562 | 34,455 | 80,017 | 52,443 | 31,430 | 83,873 | ||||||||||||||
Total production (boe/d) | 58,249 | 30,020 | 88,269 | 54,156 | 27,828 | 81,985 | ||||||||||||||
Production Mix | ||||||||||||||||||||
Segment as a percent of total | 66 | % | 34 | % | 100 | % | 66 | % | 34 | % | 100 | % | ||||||||
Light oil and condensate | 27 | % | 60 | % | 38 | % | 31 | % | 61 | % | 41 | % | ||||||||
Heavy oil | 58 | % | — | % | 38 | % | 50 | % | — | % | 33 | % | ||||||||
NGL | 3 | % | 21 | % | 9 | % | 3 | % | 20 | % | 9 | % | ||||||||
Natural gas | 12 | % | 19 | % | 15 | % | 16 | % | 19 | % | 17 | % |
Three Months Ended June 30 | Six Months Ended June 30 | |||||||||||||||||||
2023 | 2022 | Change | 2023 | 2022 | Change | |||||||||||||||
Benchmark Averages | ||||||||||||||||||||
WTI oil (US$/bbl) (1) | 73.78 | 108.41 | (34.63) | 74.96 | 101.35 | (26.39) | ||||||||||||||
MEH oil (US$/bbl) (2) | 75.01 | 112.41 | (37.40) | 76.22 | 104.56 | (28.34) | ||||||||||||||
MEH oil differential to WTI (US$/bbl) | 1.23 | 4.00 | (2.77) | 1.26 | 3.21 | (1.95) | ||||||||||||||
Edmonton par oil ($/bbl) (3) | 95.13 | 137.79 | (42.66) | 97.09 | 126.72 | (29.63) | ||||||||||||||
Edmonton par oil differential to WTI (US$/bbl) | (2.95) | (0.47) | (2.48) | (2.91) | (1.68) | (1.23) | ||||||||||||||
WCS heavy oil ($/bbl) (4) | 78.85 | 122.05 | (43.20) | 74.16 | 111.48 | (37.32) | ||||||||||||||
WCS heavy oil differential to WTI (US$/bbl) | (15.07) | (12.80) | (2.27) | (19.92) | (13.67) | (6.25) | ||||||||||||||
AECO natural gas ($/mcf) (5) | 2.35 | 6.27 | (3.92) | 3.34 | 5.43 | (2.09) | ||||||||||||||
NYMEX natural gas (US$/mmbtu) (6) | 2.10 | 7.17 | (5.07) | 2.76 | 6.06 | (3.30) | ||||||||||||||
CAD/USD average exchange rate | 1.3431 | 1.2766 | 0.0665 | 1.3475 | 1.2714 | 0.0761 |
Three Months Ended June 30 | ||||||||||||||||||||
2023 | 2022 | |||||||||||||||||||
Canada | U.S. | Total | Canada | U.S. | Total | |||||||||||||||
Average Realized Sales Prices | ||||||||||||||||||||
Light oil and condensate ($/bbl) (1) | $ | 93.98 | $ | 97.55 | $ | 96.07 | $ | 135.29 | $ | 141.14 | $ | 138.36 | ||||||||
Heavy oil, net of blending and other expense ($/bbl) (2) | 66.45 | — | 66.45 | 111.18 | — | 111.18 | ||||||||||||||
NGL ($/bbl) (1) | 28.92 | 25.07 | 25.71 | 50.09 | 48.42 | 48.83 | ||||||||||||||
Natural gas ($/mcf) (1) | 2.64 | 2.52 | 2.58 | 7.01 | 8.99 | 7.74 | ||||||||||||||
Total sales, net of blending and other expense ($/boe) (2) | $ | 66.34 | $ | 67.60 | $ | 66.82 | $ | 104.91 | $ | 106.48 | $ | 105.44 | ||||||||
Six Months Ended June 30 | ||||||||||||||||||||
2023 | 2022 | |||||||||||||||||||
Canada | U.S. | Total | Canada | U.S. | Total | |||||||||||||||
Average Realized Sales Prices | ||||||||||||||||||||
Light oil and condensate ($/bbl) (1) | $ | 96.74 | $ | 99.96 | $ | 98.47 | $ | 124.05 | $ | 131.77 | $ | 127.95 | ||||||||
Heavy oil, net of blending and other expense ($/bbl) (2) | 58.69 | — | 58.69 | 101.01 | — | 101.01 | ||||||||||||||
NGL ($/bbl) (1) | 32.86 | 28.35 | 29.29 | 46.43 | 45.66 | 45.85 | ||||||||||||||
Natural gas ($/mcf) (1) | 3.12 | 3.23 | 3.17 | 5.84 | 7.52 | 6.47 | ||||||||||||||
Total sales, net of blending and other expense ($/boe) (2) | $ | 62.91 | $ | 69.60 | $ | 65.18 | $ | 95.55 | $ | 97.90 | $ | 96.34 |
Three Months Ended June 30 | ||||||||||||||||||||
2023 | 2022 | |||||||||||||||||||
($ thousands) | Canada | U.S. | Total | Canada | U.S. | Total | ||||||||||||||
Oil sales | ||||||||||||||||||||
Light oil and condensate | $ | 124,965 | $ | 183,845 | $ | 308,810 | $ | 192,986 | $ | 222,606 | $ | 415,592 | ||||||||
Heavy oil | 251,449 | — | 251,449 | 346,101 | — | 346,101 | ||||||||||||||
NGL | 3,772 | 16,391 | 20,163 | 8,288 | 24,895 | 33,183 | ||||||||||||||
Total oil sales | 380,186 | 200,236 | 580,422 | 547,375 | 247,501 | 794,876 | ||||||||||||||
Natural gas sales | 10,106 | 8,232 | 18,338 | 33,822 | 25,471 | 59,293 | ||||||||||||||
Total petroleum and natural gas sales | 390,292 | 208,468 | 598,760 | 581,197 | 272,972 | 854,169 | ||||||||||||||
Blending and other expense | (52,995) | — | (52,995) | (56,895) | — | (56,895) | ||||||||||||||
Total sales, net of blending and other expense (1) | $ | 337,297 | $ | 208,468 | $ | 545,765 | $ | 524,302 | $ | 272,972 | $ | 797,274 | ||||||||
Six Months Ended June 30 | ||||||||||||||||||||
2023 | 2022 | |||||||||||||||||||
($ thousands) | Canada | U.S. | Total | Canada | U.S. | Total | ||||||||||||||
Oil sales | ||||||||||||||||||||
Light oil and condensate | $ | 271,420 | $ | 325,855 | $ | 597,275 | $ | 373,141 | $ | 403,426 | $ | 776,567 | ||||||||
Heavy oil | 468,534 | — | 468,534 | 590,539 | — | 590,539 | ||||||||||||||
NGL | 9,832 | 32,165 | 41,997 | 15,772 | 46,902 | 62,674 | ||||||||||||||
Total oil sales | 749,786 | 358,020 | 1,107,806 | 979,452 | 450,328 | 1,429,780 | ||||||||||||||
Natural gas sales | 26,128 | 20,162 | 46,290 | 55,449 | 42,765 | 98,214 | ||||||||||||||
Total petroleum and natural gas sales | 775,914 | 378,182 | 1,154,096 | 1,034,901 | 493,093 | 1,527,994 | ||||||||||||||
Blending and other expense | (112,676) | — | (112,676) | (98,335) | — | (98,335) | ||||||||||||||
Total sales, net of blending and other expense (1) | $ | 663,238 | $ | 378,182 | $ | 1,041,420 | $ | 936,566 | $ | 493,093 | $ | 1,429,659 |
Three Months Ended June 30 | ||||||||||||||||||||
2023 | 2022 | |||||||||||||||||||
($ thousands except for % and per boe) | Canada | U.S. | Total | Canada | U.S. | Total | ||||||||||||||
Royalties | $ | 47,309 | $ | 60,611 | $ | 107,920 | $ | 91,133 | $ | 80,426 | $ | 171,559 | ||||||||
Average royalty rate (1)(2) | 14.0 | % | 29.1 | % | 19.8 | % | 17.4 | % | 29.5 | % | 21.5 | % | ||||||||
Royalties per boe (3) | $ | 9.30 | $ | 19.66 | $ | 13.21 | $ | 18.24 | $ | 31.37 | $ | 22.69 | ||||||||
Six Months Ended June 30 | ||||||||||||||||||||
2023 | 2022 | |||||||||||||||||||
($ thousands except for % and per boe) | Canada | U.S. | Total | Canada | U.S. | Total | ||||||||||||||
Royalties | $ | 91,164 | $ | 110,009 | $ | 201,173 | $ | 148,809 | $ | 145,470 | $ | 294,279 | ||||||||
Average royalty rate (1)(2) | 13.7 | % | 29.1 | % | 19.3 | % | 15.9 | % | 29.5 | % | 20.6 | % | ||||||||
Royalties per boe (3) | $ | 8.65 | $ | 20.25 | $ | 12.59 | $ | 15.18 | $ | 28.88 | $ | 19.83 |
Three Months Ended June 30 | ||||||||||||||||||||
2023 | 2022 | |||||||||||||||||||
($ thousands except for per boe) | Canada | U.S. | Total | Canada | U.S. | Total | ||||||||||||||
Operating expense | $ | 91,354 | $ | 28,084 | $ | 119,438 | $ | 82,471 | $ | 24,955 | $ | 107,426 | ||||||||
Operating expense per boe (1) | $ | 17.97 | $ | 9.11 | $ | 14.62 | $ | 16.50 | $ | 9.73 | $ | 14.21 | ||||||||
Six Months Ended June 30 | ||||||||||||||||||||
2023 | 2022 | |||||||||||||||||||
($ thousands except for per boe) | Canada | U.S. | Total | Canada | U.S. | Total | ||||||||||||||
Operating expense | $ | 182,534 | $ | 49,312 | $ | 231,846 | $ | 161,011 | $ | 47,181 | $ | 208,192 | ||||||||
Operating expense per boe (1) | $ | 17.31 | $ | 9.08 | $ | 14.51 | $ | 16.43 | $ | 9.37 | $ | 14.03 |
Three Months Ended June 30 | ||||||||||||||||||||
2023 | 2022 | |||||||||||||||||||
($ thousands except for per boe) | Canada | U.S. | Total | Canada | U.S. | Total | ||||||||||||||
Transportation expense | $ | 13,240 | $ | 1,334 | $ | 14,574 | $ | 11,758 | $ | — | $ | 11,758 | ||||||||
Transportation expense per boe (1) | $ | 2.60 | $ | 0.43 | $ | 1.78 | $ | 2.35 | $ | — | $ | 1.56 | ||||||||
Six Months Ended June 30 | ||||||||||||||||||||
2023 | 2022 | |||||||||||||||||||
($ thousands except for per boe) | Canada | U.S. | Total | Canada | U.S. | Total | ||||||||||||||
Transportation expense | $ | 30,245 | $ | 1,334 | $ | 31,579 | $ | 20,973 | $ | — | $ | 20,973 | ||||||||
Transportation expense per boe (1) | $ | 2.87 | $ | 0.25 | $ | 1.98 | $ | 2.14 | $ | — | $ | 1.41 |
Three Months Ended June 30 | Six Months Ended June 30 | |||||||||||||||||||
($ thousands) | 2023 | 2022 | Change | 2023 | 2022 | Change | ||||||||||||||
Realized financial derivatives gain (loss) | ||||||||||||||||||||
Crude oil | $ | 16,363 | $ | (112,071) | $ | 128,434 | $ | 21,778 | $ | (191,597) | $ | 213,375 | ||||||||
Natural gas | 2 | (11,971) | 11,973 | 2 | (16,811) | 16,813 | ||||||||||||||
Total | $ | 16,365 | $ | (124,042) | $ | 140,407 | $ | 21,780 | $ | (208,408) | $ | 230,188 | ||||||||
Unrealized financial derivatives gain (loss) | ||||||||||||||||||||
Crude oil | $ | (17,124) | $ | 47,816 | $ | (64,940) | $ | (7,914) | $ | (91,502) | $ | 83,588 | ||||||||
Natural gas | (2,279) | 9,363 | (11,642) | (2,279) | (7,271) | 4,992 | ||||||||||||||
Equity total return swap ("Equity TRS") | — | 1,589 | (1,589) | — | 1,280 | (1,280) | ||||||||||||||
Total | $ | (19,403) | $ | 58,768 | $ | (78,171) | $ | (10,193) | $ | (97,493) | $ | 87,300 | ||||||||
Total financial derivatives gain (loss) | ||||||||||||||||||||
Crude oil | $ | (761) | $ | (64,255) | $ | 63,494 | $ | 13,864 | $ | (283,099) | $ | 296,963 | ||||||||
Natural gas | (2,277) | (2,608) | 331 | (2,277) | (24,082) | 21,805 | ||||||||||||||
Equity TRS | — | 1,589 | (1,589) | — | 1,280 | (1,280) | ||||||||||||||
Total | $ | (3,038) | $ | (65,274) | $ | 62,236 | $ | 11,587 | $ | (305,901) | $ | 317,488 |
Period | Volume | Price/Unit (1) | Index | |||||||||||
Oil | ||||||||||||||
Basis differential (2) | July 2023 to Dec 2023 | 1,500 bbl/d | WTI less US$2.50/bbl | MSW | ||||||||||
Basis differential (2)(3) | Jan 2024 to Dec 2024 | 1,500 bbl/d | WTI less US$2.65/bbl | MSW | ||||||||||
Basis differential (2) | July 2023 to Dec 2023 | 2,000 bbl/d | WTI less US$14.98/bbl | WCS | ||||||||||
Basis differential (2) | Aug 2023 to Dec 2023 | 6,000 bbl/d | WTI less US$13.62/bbl | WCS | ||||||||||
Basis differential (2) | July 2023 to Dec 2023 | 5,000 bbl/d | Baytex pays: WCS differential at Hardisty Baytex receives: WCS differential at Houston less US$8.10/bbl | WCS | ||||||||||
Basis differential (2) | Jan 2024 to Jun 2024 | 4,000 bbl/d | Baytex pays: WCS differential at Hardisty Baytex receives: WCS differential at Houston less US$8.10/bbl | WCS | ||||||||||
Put option | July 2023 to Dec 2023 | 5,000 bbl/d | US$60.00 | WTI | ||||||||||
Collar | July 2023 to Dec 2023 | 15,500 bbl/d | US$60.00/US$100.00 | WTI | ||||||||||
Collar | July 2023 to Sep 2023 | 19,862 bbl/d | US$60.00/US$100.00 | WTI | ||||||||||
Collar | Oct 2023 to Dec 2023 | 15,089 bbl/d | US$60.00/US$100.00 | WTI | ||||||||||
Collar | Jan 2024 to Mar 2024 | 8,400 bbl/d | US$60.00/US$100.00 | WTI | ||||||||||
Collar | Apr 2024 to Jun 2024 | 1,750 bbl/d | US$60.00/US$100.00 | WTI | ||||||||||
Collar | Jan 2024 to Jun 2024 | 14,500 bbl/d | US$60.00/US$100.00 | WTI | ||||||||||
Collar (3) | Jan 2024 to Jun 2024 | 2,500 bbl/d | US$60.00/US$90.00 | WTI | ||||||||||
Natural Gas | ||||||||||||||
Basis differential (2) | July 2023 to Dec 2023 | 11,413 mmbtu/d | Baytex pays: NYMEX Baytex receives: HSC less US$0.1525/mmbtu | HSC IFERC FOM | ||||||||||
Fixed Sell | Oct 2023 to Mar 2024 | 3,500 mmbtu/d | US$3.5025/mmbtu | NYMEX | ||||||||||
Collar | July 2023 to Dec 2023 | 11,413 mmbtu/d | US$2.50/US$2.68 | NYMEX | ||||||||||
Collar | Jan 2024 to Mar 2024 | 11,538 mmbtu/d | US$2.50/US$3.65 | NYMEX | ||||||||||
Collar | Apr 2024 to Jun 2024 | 11,538 mmbtu/d | US$2.33/US$3.00 | NYMEX | ||||||||||
Collar | Jan 2024 to Dec 2024 | 2,500 mmbtu/d | US$3.00/US$4.06 | NYMEX | ||||||||||
Collar | Jan 2024 to Dec 2024 | 2,500 mmbtu/d | US$3.00/US$4.09 | NYMEX | ||||||||||
Collar | Jan 2024 to Dec 2024 | 5,000 mmbtu/d | US$3.00/US$4.10 | NYMEX | ||||||||||
Collar | Jan 2024 to Dec 2024 | 8,500 mmbtu/d | US$3.00/US$4.15 | NYMEX | ||||||||||
Collar | Jan 2024 to Dec 2024 | 5,000 mmbtu/d | US$3.00/US$4.19 | NYMEX | ||||||||||
Natural Gas Liquids | ||||||||||||||
Fixed Sell | Jul 2023 to Mar 2024 | 34,364 gallon/d | US$0.2280/gallon | Mt. Belvieu Non-TET Ethane | ||||||||||
Three Months Ended June 30 | ||||||||||||||||||||
2023 | 2022 | |||||||||||||||||||
($ per boe except for volume) | Canada | U.S. | Total | Canada | U.S. | Total | ||||||||||||||
Total production (boe/d) | 55,874 | 33,887 | 89,761 | 54,919 | 28,170 | 83,090 | ||||||||||||||
Operating netback: | ||||||||||||||||||||
Total sales, net of blending and other expense (1) | $ | 66.34 | $ | 67.60 | $ | 66.82 | $ | 104.91 | $ | 106.48 | $ | 105.44 | ||||||||
Less: | ||||||||||||||||||||
Royalties (2) | (9.30) | (19.66) | (13.21) | (18.24) | (31.37) | (22.69) | ||||||||||||||
Operating expense (2) | (17.97) | (9.11) | (14.62) | (16.50) | (9.73) | (14.21) | ||||||||||||||
Transportation expense (2) | (2.60) | (0.43) | (1.78) | (2.35) | — | (1.56) | ||||||||||||||
Operating netback (1) | $ | 36.47 | $ | 38.40 | $ | 37.21 | $ | 67.82 | $ | 65.38 | $ | 66.98 | ||||||||
Realized financial derivatives gain (loss) (3) | — | — | 2.00 | — | — | (16.41) | ||||||||||||||
Operating netback after financial derivatives (1) | $ | 36.47 | $ | 38.40 | $ | 39.21 | $ | 67.82 | $ | 65.38 | $ | 50.57 | ||||||||
Six Months Ended June 30 | ||||||||||||||||||||
2023 | 2022 | |||||||||||||||||||
($ per boe except for volume) | Canada | U.S. | Total | Canada | U.S. | Total | ||||||||||||||
Total production (boe/d) | 58,249 | 30,020 | 88,269 | 54,156 | 27,828 | 81,985 | ||||||||||||||
Operating netback: | ||||||||||||||||||||
Total sales, net of blending and other expense (1) | $ | 62.91 | $ | 69.60 | $ | 65.18 | $ | 95.55 | $ | 97.90 | $ | 96.34 | ||||||||
Less: | ||||||||||||||||||||
Royalties (2) | (8.65) | (20.25) | (12.59) | (15.18) | (28.88) | (19.83) | ||||||||||||||
Operating expense (2) | (17.31) | (9.08) | (14.51) | (16.43) | (9.37) | (14.03) | ||||||||||||||
Transportation expense (2) | (2.87) | (0.25) | (1.98) | (2.14) | — | (1.41) | ||||||||||||||
Operating netback (1) | $ | 34.08 | $ | 40.02 | $ | 36.10 | $ | 61.80 | $ | 59.65 | $ | 61.07 | ||||||||
Realized financial derivatives gain (loss) (3) | — | — | 1.36 | — | — | (14.04) | ||||||||||||||
Operating netback after financial derivatives (1) | $ | 34.08 | $ | 40.02 | $ | 37.46 | $ | 61.80 | $ | 59.65 | $ | 47.03 |
Three Months Ended June 30 | Six Months Ended June 30 | |||||||||||||||||||
($ thousands except for per boe) | 2023 | 2022 | Change | 2023 | 2022 | Change | ||||||||||||||
Gross general and administrative expense | $ | 16,476 | $ | 12,223 | $ | 4,253 | $ | 30,893 | $ | 25,729 | $ | 5,164 | ||||||||
Overhead recoveries | (1,236) | (583) | (653) | (3,919) | (2,407) | (1,512) | ||||||||||||||
General and administrative expense | $ | 15,240 | $ | 11,640 | $ | 3,600 | $ | 26,974 | $ | 23,322 | $ | 3,652 | ||||||||
General and administrative expense per boe (1) | $ | 1.87 | $ | 1.54 | $ | 0.33 | $ | 1.69 | $ | 1.57 | $ | 0.12 |
Three Months Ended June 30 | Six Months Ended June 30 | |||||||||||||||||||
($ thousands except for per boe) | 2023 | 2022 | Change | 2023 | 2022 | Change | ||||||||||||||
Interest on credit facilities | $ | 7,535 | $ | 4,070 | $ | 3,465 | $ | 13,751 | $ | 7,109 | $ | 6,642 | ||||||||
Interest on long-term notes | 20,565 | 16,356 | 4,209 | 32,659 | 33,700 | (1,041) | ||||||||||||||
Interest on lease obligations | 155 | 48 | 107 | $ | 220 | $ | 92 | 128 | ||||||||||||
Cash interest | $ | 28,255 | $ | 20,474 | $ | 7,781 | $ | 46,630 | $ | 40,901 | $ | 5,729 | ||||||||
Accretion of debt issue costs | 1,847 | 2,734 | (887) | 2,371 | 3,429 | (1,058) | ||||||||||||||
Accretion of asset retirement obligations | 4,395 | 3,869 | 526 | 9,221 | 6,991 | 2,230 | ||||||||||||||
Financing and interest expense | $ | 34,497 | $ | 27,077 | $ | 7,420 | $ | 58,222 | $ | 51,321 | $ | 6,901 | ||||||||
Cash interest per boe (1) | $ | 3.46 | $ | 2.71 | $ | 0.75 | $ | 2.92 | $ | 2.76 | $ | 0.16 | ||||||||
Financing and interest expense per boe (1) | $ | 4.22 | $ | 3.58 | $ | 0.64 | $ | 3.64 | $ | 3.46 | $ | 0.18 |
Three Months Ended June 30 | Six Months Ended June 30 | |||||||||||||||||||
($ thousands except for per boe) | 2023 | 2022 | Change | 2023 | 2022 | Change | ||||||||||||||
Depletion | $ | 174,473 | $ | 140,809 | $ | 33,664 | $ | 338,908 | $ | 280,255 | $ | 58,653 | ||||||||
Depreciation | 1,671 | 1,477 | 194 | 3,235 | 2,822 | 413 | ||||||||||||||
Depletion and depreciation | $ | 176,144 | $ | 142,286 | $ | 33,858 | $ | 342,143 | $ | 283,077 | $ | 59,066 | ||||||||
Depletion and depreciation per boe (1) | $ | 21.56 | $ | 18.82 | $ | 2.74 | $ | 21.42 | $ | 19.08 | $ | 2.34 |
Three Months Ended June 30 | Six Months Ended June 30 | |||||||||||||||||||
($ thousands except for exchange rates) | 2023 | 2022 | Change | 2023 | 2022 | Change | ||||||||||||||
Unrealized foreign exchange (gain) loss | $ | (12,880) | $ | 27,499 | $ | (40,379) | $ | (13,093) | $ | 12,951 | $ | (26,044) | ||||||||
Realized foreign exchange loss | 941 | 210 | 731 | 1,091 | 413 | 678 | ||||||||||||||
Foreign exchange (gain) loss | $ | (11,939) | $ | 27,709 | $ | (39,648) | $ | (12,002) | $ | 13,364 | $ | (25,366) | ||||||||
CAD/USD exchange rates: | ||||||||||||||||||||
At beginning of period | 1.3528 | 1.2484 | 1.3534 | 1.2656 | ||||||||||||||||
At end of period | 1.3238 | 1.2872 | 1.3238 | 1.2872 |
Three Months Ended June 30 | Six Months Ended June 30 | |||||||||||||||||||
($ thousands) | 2023 | 2022 | Change | 2023 | 2022 | Change | ||||||||||||||
Current income tax expense | $ | 1,350 | $ | 1,140 | $ | 210 | $ | 2,470 | $ | 2,050 | $ | 420 | ||||||||
Deferred income tax (recovery) expense | (178,360) | 39,920 | (218,280) | (162,837) | (27,412) | (135,425) | ||||||||||||||
Total income tax (recovery) expense | $ | (177,010) | $ | 41,060 | $ | (218,070) | $ | (160,367) | $ | (25,362) | $ | (135,005) |
Three Months Ended June 30 | Six Months Ended June 30 | |||||||||||||||||||
($ thousands) | 2023 | 2022 | Change | 2023 | 2022 | Change | ||||||||||||||
Petroleum and natural gas sales | $ | 598,760 | $ | 854,169 | $ | (255,409) | $ | 1,154,096 | $ | 1,527,994 | $ | (373,898) | ||||||||
Royalties | (107,920) | (171,559) | 63,639 | (201,173) | (294,279) | 93,106 | ||||||||||||||
Revenue, net of royalties | 490,840 | 682,610 | (191,770) | 952,923 | 1,233,715 | (280,792) | ||||||||||||||
Expenses | ||||||||||||||||||||
Operating | (119,438) | (107,426) | (12,012) | (231,846) | (208,192) | (23,654) | ||||||||||||||
Transportation | (14,574) | (11,758) | (2,816) | (31,579) | (20,973) | (10,606) | ||||||||||||||
Blending and other | (52,995) | (56,895) | 3,900 | (112,676) | (98,335) | (14,341) | ||||||||||||||
Operating netback (1) | $ | 303,833 | $ | 506,531 | $ | (202,698) | $ | 576,822 | $ | 906,215 | $ | (329,393) | ||||||||
General and administrative | (15,240) | (11,640) | (3,600) | (26,974) | (23,322) | (3,652) | ||||||||||||||
Cash interest | (28,255) | (20,474) | (7,781) | (46,630) | (40,901) | (5,729) | ||||||||||||||
Realized financial derivatives loss (gain) | 16,365 | (124,042) | 140,407 | 21,780 | (208,408) | 230,188 | ||||||||||||||
Realized foreign exchange loss | (941) | (210) | (731) | (1,091) | (413) | (678) | ||||||||||||||
Other expense | (141) | (751) | 610 | (354) | (1,001) | 647 | ||||||||||||||
Current income tax expense | (1,350) | (1,140) | (210) | (2,470) | (2,050) | (420) | ||||||||||||||
Cash share-based compensation | (681) | (2,570) | 1,889 | (10,504) | (4,809) | (5,695) | ||||||||||||||
Adjusted funds flow (2) | $ | 273,590 | $ | 345,704 | $ | (72,114) | $ | 510,579 | $ | 625,311 | $ | (114,732) | ||||||||
Transaction costs | (32,832) | — | (32,832) | (41,703) | — | (41,703) | ||||||||||||||
Exploration and evaluation | (369) | (7,210) | 6,841 | (532) | (10,780) | 10,248 | ||||||||||||||
Depletion and depreciation | (176,144) | (142,286) | (33,858) | (342,143) | (283,077) | (59,066) | ||||||||||||||
Non-cash share-based compensation | (16,237) | (372) | (15,865) | (16,237) | (2,078) | (14,159) | ||||||||||||||
Non-cash financing and accretion | (6,242) | (6,603) | 361 | (11,592) | (10,420) | (1,172) | ||||||||||||||
Non-cash other income | — | 183 | (183) | 1,271 | 1,465 | (194) | ||||||||||||||
Unrealized financial derivatives (loss) gain | (19,403) | 58,768 | (78,171) | (10,193) | (97,493) | 87,300 | ||||||||||||||
Unrealized foreign exchange gain (loss) | 12,880 | (27,499) | 40,379 | 13,093 | (12,951) | 26,044 | ||||||||||||||
Gain (loss) on dispositions | — | 207 | (207) | (336) | 441 | (777) | ||||||||||||||
Deferred income tax recovery (expense) | 178,360 | (39,920) | 218,280 | 162,837 | 27,412 | 135,425 | ||||||||||||||
Net income for the period | $ | 213,603 | $ | 180,972 | $ | 32,631 | $ | 265,044 | $ | 237,830 | $ | 27,214 |
Three Months Ended June 30 | ||||||||||||||||||||
2023 | 2022 | |||||||||||||||||||
($ thousands) | Canada | U.S. | Total | Canada | U.S. | Total | ||||||||||||||
Drilling, completion and equipping | $ | 77,518 | $ | 69,309 | $ | 146,827 | $ | 37,265 | $ | 43,167 | $ | 80,432 | ||||||||
Facilities | 11,324 | 857 | 12,181 | 6,912 | 1,414 | 8,326 | ||||||||||||||
Land, seismic and other | 7,561 | 4,135 | 11,696 | 7,704 | 171 | 7,875 | ||||||||||||||
Exploration and development expenditures | $ | 96,403 | $ | 74,301 | $ | 170,704 | $ | 51,881 | $ | 44,752 | $ | 96,633 | ||||||||
Property acquisitions | $ | (62) | $ | — | $ | (62) | $ | 208 | $ | — | $ | 208 | ||||||||
Proceeds from dispositions | $ | (50) | $ | — | $ | (50) | $ | (14) | $ | (14) | ||||||||||
Six Months Ended June 30 | ||||||||||||||||||||
2023 | 2022 | |||||||||||||||||||
($ thousands) | Canada | U.S. | Total | Canada | U.S. | Total | ||||||||||||||
Drilling, completion and equipping | $ | 232,471 | $ | 118,145 | $ | 350,616 | $ | 144,263 | $ | 70,305 | $ | 214,568 | ||||||||
Facilities | 28,309 | 857 | 29,166 | 14,678 | 1,800 | 16,478 | ||||||||||||||
Land, seismic and other | 20,229 | 4,319 | 24,548 | 19,070 | 339 | 19,409 | ||||||||||||||
Exploration and development expenditures | $ | 281,009 | $ | 123,321 | $ | 404,330 | $ | 178,011 | $ | 72,444 | $ | 250,455 | ||||||||
Property acquisitions | $ | 444 | $ | — | $ | 444 | $ | 267 | $ | — | $ | 267 | ||||||||
Proceeds from dispositions | $ | (285) | $ | — | $ | (285) | $ | (41) | $ | — | $ | (41) |
Covenant Description | Position as at June 30, 2023 | Covenant | ||||||
Senior Secured Debt (1) to Bank EBITDA (2) (Maximum Ratio) | 0.5:1.0 | 3.5:1.0 | ||||||
Interest Coverage (3) (Minimum Ratio) | 13.3:1.0 | 3.5:1.0 | ||||||
Total Debt (4) to Bank EBITDA (2) (Maximum Ratio) | 1.2:1.0 | 4:0:1.0 |
($ thousands) | Total | Less than 1 year | 1-3 years | 3-5 years | Beyond 5 years | ||||||||||||
Trade and other payables | $ | 616,608 | $ | 614,763 | $ | 1,845 | $ | — | $ | — | |||||||
Financial derivatives | 2,907 | 2,907 | — | — | — | ||||||||||||
Credit facilities – principal (1) | 986,903 | — | 986,903 | — | — | ||||||||||||
Long-term notes – principal (1) | 1,601,468 | — | — | 542,467 | 1,059,001 | ||||||||||||
Interest on long-term notes (2) | 793,845 | 137,481 | 274,962 | 215,922 | 165,480 | ||||||||||||
Lease obligations – principal | 42,191 | 20,297 | 8,722 | 7,095 | 6,077 | ||||||||||||
Processing agreements | 5,812 | 810 | 1,022 | 640 | 3,340 | ||||||||||||
Transportation agreements | 256,920 | 60,462 | 108,994 | 66,937 | 20,527 | ||||||||||||
Total | $ | 4,306,654 | $ | 836,720 | $ | 1,382,448 | $ | 833,061 | $ | 1,254,425 |
2023 | 2022 | 2021 | ||||||||||||||||||||||||
($ thousands, except per common share amounts) | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | ||||||||||||||||||
Petroleum and natural gas sales | 598,760 | 555,336 | 648,986 | 712,065 | 854,169 | 673,825 | 552,403 | 488,736 | ||||||||||||||||||
Net income (loss) | 213,603 | 51,441 | 352,807 | 264,968 | 180,972 | 56,858 | 563,239 | 32,713 | ||||||||||||||||||
Per common share – basic | 0.37 | 0.09 | 0.65 | 0.48 | 0.32 | 0.10 | 1.00 | 0.06 | ||||||||||||||||||
Per common share – diluted | 0.36 | 0.09 | 0.64 | 0.47 | 0.32 | 0.10 | 0.98 | 0.06 | ||||||||||||||||||
Adjusted funds flow (1) | 273,590 | 236,989 | 255,552 | 284,288 | 345,704 | 279,607 | 214,766 | 198,397 | ||||||||||||||||||
Per common share – basic | 0.47 | 0.43 | 0.47 | 0.51 | 0.61 | 0.49 | 0.38 | 0.35 | ||||||||||||||||||
Per common share – diluted | 0.47 | 0.43 | 0.46 | 0.51 | 0.60 | 0.49 | 0.37 | 0.35 | ||||||||||||||||||
Free cash flow (2) | 96,313 | (1,918) | 143,324 | 111,568 | 245,316 | 121,318 | 137,133 | 101,215 | ||||||||||||||||||
Per common share – basic | 0.17 | — | 0.26 | 0.20 | 0.43 | 0.21 | 0.24 | 0.18 | ||||||||||||||||||
Per common share – diluted | 0.16 | — | 0.26 | 0.20 | 0.43 | 0.21 | 0.24 | 0.18 | ||||||||||||||||||
Cash flows from operating activities | 192,308 | 184,938 | 303,441 | 310,423 | 360,034 | 198,974 | 240,567 | 178,961 | ||||||||||||||||||
Per common share – basic | 0.33 | 0.34 | 0.56 | 0.56 | 0.63 | 0.35 | 0.43 | 0.32 | ||||||||||||||||||
Per common share – diluted | 0.33 | 0.34 | 0.55 | 0.56 | 0.63 | 0.35 | 0.42 | 0.31 | ||||||||||||||||||
Exploration and development | 170,704 | 233,626 | 103,634 | 167,453 | 96,633 | 153,822 | 73,995 | 94,235 | ||||||||||||||||||
Canada | 96,403 | 184,606 | 85,641 | 117,150 | 51,881 | 126,130 | 59,821 | 75,499 | ||||||||||||||||||
U.S. | 74,301 | 49,020 | 17,993 | 50,303 | 44,752 | 27,692 | 14,174 | 18,736 | ||||||||||||||||||
Property acquisitions | (62) | 506 | 1,085 | — | 208 | 59 | 1,443 | 89 | ||||||||||||||||||
Proceeds from dispositions | (50) | (235) | (148) | (25,460) | (14) | (27) | (6,857) | (701) | ||||||||||||||||||
Net debt (1) | 2,814,844 | 995,170 | 987,446 | 1,113,559 | 1,123,297 | 1,275,680 | 1,409,717 | 1,564,658 | ||||||||||||||||||
Total assets (3) | 8,617,444 | 5,180,059 | 5,103,769 | 4,923,617 | 4,870,432 | 4,917,811 | 4,834,643 | 4,453,971 | ||||||||||||||||||
Common shares outstanding | 862,192 | 545,553 | 544,930 | 547,615 | 560,139 | 569,214 | 564,213 | 564,213 | ||||||||||||||||||
Daily production | ||||||||||||||||||||||||||
Total production (boe/d) | 89,761 | 86,760 | 86,864 | 83,194 | 83,090 | 80,867 | 80,789 | 79,872 | ||||||||||||||||||
Canada (boe/d) | 55,874 | 60,651 | 56,946 | 55,803 | 54,919 | 53,385 | 50,362 | 48,124 | ||||||||||||||||||
U.S. (boe/d) | 33,887 | 26,109 | 29,918 | 27,391 | 28,170 | 27,482 | 30,428 | 31,748 | ||||||||||||||||||
Benchmark prices | ||||||||||||||||||||||||||
WTI oil (US$/bbl) | 73.78 | 76.13 | 82.64 | 91.56 | 108.41 | 94.29 | 77.19 | 70.56 | ||||||||||||||||||
WCS heavy oil ($/bbl) | 78.85 | 69.44 | 77.37 | 93.62 | 122.05 | 100.99 | 78.82 | 71.81 | ||||||||||||||||||
Edmonton par oil ($/bbl) | 95.13 | 99.04 | 109.57 | 116.79 | 137.79 | 115.66 | 93.29 | 83.78 | ||||||||||||||||||
CAD/USD avg exchange rate | 1.3431 | 1.3520 | 1.3577 | 1.3059 | 1.2766 | 1.2661 | 1.2600 | 1.2601 | ||||||||||||||||||
AECO natural gas ($/mcf) | 2.35 | 4.34 | 5.58 | 5.81 | 6.27 | 4.59 | 4.94 | 3.54 | ||||||||||||||||||
NYMEX natural gas (US$/mmbtu) | 2.10 | 3.42 | 6.26 | 8.20 | 7.17 | 4.95 | 5.83 | 4.01 | ||||||||||||||||||
Total sales, net of blending and other expense ($/boe) (2) | 66.82 | 63.48 | 74.93 | 87.68 | 105.44 | 86.89 | 70.42 | 63.85 | ||||||||||||||||||
Royalties ($/boe) (4) | (13.21) | (11.94) | (15.23) | (19.21) | (22.69) | (16.86) | (13.47) | (12.32) | ||||||||||||||||||
Operating expense ($/boe) (4) | (14.62) | (14.40) | (13.06) | (14.39) | (14.21) | (13.85) | (12.83) | (11.46) | ||||||||||||||||||
Transportation expense ($/boe) (4) | (1.78) | (2.18) | (1.85) | (1.67) | (1.56) | (1.27) | (1.10) | (1.06) | ||||||||||||||||||
Operating netback ($/boe) (2) | 37.21 | 34.96 | 44.79 | 52.41 | 66.98 | 54.91 | 43.02 | 39.01 | ||||||||||||||||||
Financial derivatives (loss) gain ($/boe) (4) | 2.00 | 0.69 | (6.21) | (9.98) | (16.41) | (11.59) | (9.49) | (7.34) | ||||||||||||||||||
Operating netback after financial derivatives ($/boe) (2) | 39.21 | 35.65 | 38.58 | 42.43 | 50.57 | 43.32 | 33.53 | 31.67 |
Three Months Ended June 30 | Six Months Ended June 30 | |||||||||||||
($ thousands) | 2023 | 2022 | 2023 | 2022 | ||||||||||
Petroleum and natural gas sales | $ | 598,760 | $ | 854,169 | $ | 1,154,096 | $ | 1,527,994 | ||||||
Light oil and condensate (1) | (308,810) | (415,592) | (597,275) | (776,567) | ||||||||||
NGL (1) | (20,163) | (33,183) | (41,997) | (62,674) | ||||||||||
Natural gas sales (1) | (18,338) | (59,293) | (46,290) | (98,214) | ||||||||||
Heavy oil sales | $ | 251,449 | $ | 346,101 | $ | 468,534 | $ | 590,539 | ||||||
Blending and other expense (2) | (52,995) | (56,895) | (112,676) | (98,335) | ||||||||||
Heavy oil, net of blending and other expense | $ | 198,454 | $ | 289,206 | $ | 355,858 | $ | 492,204 |
Three Months Ended June 30 | Six Months Ended June 30 | |||||||||||||
($ thousands) | 2023 | 2022 | 2023 | 2022 | ||||||||||
Petroleum and natural gas sales | $ | 598,760 | $ | 854,169 | $ | 1,154,096 | $ | 1,527,994 | ||||||
Blending and other expense | (52,995) | (56,895) | (112,676) | (98,335) | ||||||||||
Total sales, net of blending and other expense | 545,765 | 797,274 | 1,041,420 | 1,429,659 | ||||||||||
Royalties | (107,920) | (171,559) | (201,173) | (294,279) | ||||||||||
Operating expense | (119,438) | (107,426) | (231,846) | (208,192) | ||||||||||
Transportation expense | (14,574) | (11,758) | (31,579) | (20,973) | ||||||||||
Operating netback | 303,833 | 506,531 | 576,822 | 906,215 | ||||||||||
Realized financial derivatives gain (loss) (1) | 16,365 | (124,042) | 21,780 | (208,408) | ||||||||||
Operating netback after realized financial derivatives | $ | 320,198 | $ | 382,489 | $ | 598,602 | $ | 697,807 |
Three Months Ended June 30 | Six Months Ended June 30 | |||||||||||||
($ thousands) | 2023 | 2022 | 2023 | 2022 | ||||||||||
Cash flows from operating activities | $ | 192,308 | $ | 360,034 | $ | 377,246 | $ | 559,008 | ||||||
Change in non-cash working capital | 40,795 | (17,046) | 79,849 | $ | 60,294 | |||||||||
Additions to exploration and evaluation assets | (741) | (2,338) | (1,231) | (5,897) | ||||||||||
Additions to oil and gas properties | (169,963) | (94,295) | (403,099) | (244,558) | ||||||||||
Payments on lease obligations | (1,181) | (1,039) | (2,336) | (2,213) | ||||||||||
Transaction costs | 32,832 | — | 41,703 | — | ||||||||||
Cash premiums on derivatives | 2,263 | — | 2,263 | — | ||||||||||
Free cash flow | $ | 96,313 | $ | 245,316 | $ | 94,395 | $ | 366,634 |
($ thousands) | June 30, 2023 | December 31, 2022 | ||||||
Credit facilities | $ | 964,332 | $ | 383,031 | ||||
Unamortized debt issuance costs - Credit facilities (1) | 22,571 | 2,363 | ||||||
Long-term notes | 1,563,897 | 547,598 | ||||||
Unamortized debt issuance costs - Long-term notes (1) | 37,571 | 6,999 | ||||||
Trade and other payables | 616,608 | 281,404 | ||||||
Cash | (19,637) | (5,464) | ||||||
Trade and other receivables | (370,498) | (228,485) | ||||||
Net debt | $ | 2,814,844 | $ | 987,446 | ||||
Three Months Ended June 30 | Six Months Ended June 30 | |||||||||||||
($ thousands) | 2023 | 2022 | 2023 | 2022 | ||||||||||
Cash flow from operating activities | $ | 192,308 | $ | 360,034 | $ | 377,246 | $ | 559,008 | ||||||
Change in non-cash working capital | 40,795 | (17,046) | 79,849 | 60,294 | ||||||||||
Asset retirement obligations settled | 5,392 | 2,716 | 9,518 | 6,009 | ||||||||||
Transaction costs | 32,832 | — | 41,703 | — | ||||||||||
Cash premiums on derivatives | 2,263 | — | 2,263 | — | ||||||||||
Adjusted funds flow | $ | 273,590 | $ | 345,704 | $ | 510,579 | $ | 625,311 |
H1/2023 Actual | H2/2023 Guidance | 2023 Guidance | |||||||||
Production (boe/d) | 88,269 (3) | 153,000-157,000 | 120,500-122,500 | ||||||||
Exploration and development expenditures ($ millions) | $404 | $601-$641 | $1,005-$1,045 |
2023 Original Guidance (4) | 2023 Revised Guidance (5) | |||||||
Expenses: | ||||||||
Average royalty rate (2) | 20.0 - 22.0% | 21.0 - 22.0% | ||||||
Operating (6) | $14.00 - $14.75/boe | $12.25 - $12.75/boe | ||||||
Transportation (6) | $1.90 - $2.10/boe | $2.00 - $2.10/boe | ||||||
General and administrative (6) | $52 million ($1.63/boe) | $80 million ($1.80/boe) | ||||||
Interest (6) | $65 million ($2.04/boe) | $150 million ($3.38/boe) | ||||||
Leasing expenditures | $4 million | $13 million | ||||||
Asset retirement obligations | $25 million | $25 million |
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, 2023 | March 31, 2023 | June 30, 2022 | June 30, 2023 | June 30, 2022 | |||||||||||||
FINANCIAL (thousands of Canadian dollars, except per common share amounts) | |||||||||||||||||
Petroleum and natural gas sales | $ | 598,760 | $ | 555,336 | $ | 854,169 | $ | 1,154,096 | $ | 1,527,994 | |||||||
Adjusted funds flow (1) | 273,590 | 236,989 | 345,704 | 510,579 | 625,311 | ||||||||||||
Per share – basic | 0.47 | 0.43 | 0.61 | 0.90 | 1.10 | ||||||||||||
Per share – diluted | 0.47 | 0.43 | 0.60 | 0.90 | 1.10 | ||||||||||||
Free cash flow (2) | 96,313 | (1,918) | 245,316 | 94,395 | 366,634 | ||||||||||||
Per share – basic | 0.17 | — | 0.43 | 0.17 | 0.65 | ||||||||||||
Per share – diluted | 0.16 | — | 0.43 | 0.17 | 0.64 | ||||||||||||
Cash flows from operating activities | 192,308 | 184,938 | 360,034 | 377,246 | 559,008 | ||||||||||||
Per share – basic | 0.33 | 0.34 | 0.63 | 0.67 | 0.99 | ||||||||||||
Per share – diluted | 0.33 | 0.34 | 0.63 | 0.66 | 0.98 | ||||||||||||
Net income | 213,603 | 51,441 | 180,972 | 265,044 | 237,830 | ||||||||||||
Per share – basic | 0.37 | 0.09 | 0.32 | 0.47 | 0.42 | ||||||||||||
Per share – diluted | 0.36 | 0.09 | 0.32 | 0.47 | 0.42 | ||||||||||||
Capital Expenditures | |||||||||||||||||
Exploration and development expenditures | $ | 170,704 | $ | 233,626 | $ | 96,633 | $ | 404,330 | $ | 250,455 | |||||||
Acquisitions and divestitures | (112) | 271 | 194 | 159 | 226 | ||||||||||||
Total oil and natural gas capital expenditures | $ | 170,592 | $ | 233,897 | $ | 96,827 | $ | 404,489 | $ | 250,681 | |||||||
Net Debt | |||||||||||||||||
Credit facilities | $ | 986,903 | $ | 409,653 | $ | 496,917 | $ | 986,903 | $ | 496,917 | |||||||
Long-term notes | 1,601,468 | 554,351 | 643,600 | 1,601,468 | 643,600 | ||||||||||||
Long-term debt | 2,588,371 | 964,004 | 1,140,517 | 2,588,371 | 1,140,517 | ||||||||||||
Working capital | 226,473 | 31,166 | (17,220) | 226,473 | (17,220) | ||||||||||||
Net debt (1) | $ | 2,814,844 | $ | 995,170 | $ | 1,123,297 | $ | 2,814,844 | $ | 1,123,297 | |||||||
Shares Outstanding - basic (thousands) | |||||||||||||||||
Weighted average | 583,365 | 545,062 | 566,997 | 564,319 | 566,262 | ||||||||||||
End of period | 862,192 | 545,553 | 560,139 | 862,192 | 560,139 | ||||||||||||
BENCHMARK PRICES | |||||||||||||||||
Crude oil | |||||||||||||||||
WTI (US$/bbl) | $ | 73.78 | $ | 76.13 | $ | 108.41 | $ | 74.96 | $ | 101.35 | |||||||
MEH oil (US$/bbl) | 75.01 | 77.42 | 112.41 | 76.22 | 104.56 | ||||||||||||
MEH oil differential to WTI (US$/bbl) | 1.23 | 1.29 | 4.00 | 1.26 | 3.21 | ||||||||||||
Edmonton par ($/bbl) | 95.13 | 99.04 | 137.79 | 97.09 | 126.72 | ||||||||||||
Edmonton par differential to WTI (US$/bbl) | (2.95) | (2.88) | (0.47) | (2.91) | (1.68) | ||||||||||||
WCS heavy oil ($/bbl) | 78.85 | 69.44 | 122.05 | 74.16 | 111.48 | ||||||||||||
WCS differential to WTI (US$/bbl) | (15.07) | (24.77) | (12.80) | (19.92) | (13.67) | ||||||||||||
Natural gas | |||||||||||||||||
NYMEX (US$/mmbtu) | $ | 2.10 | $ | 3.42 | $ | 7.17 | $ | 2.76 | $ | 6.06 | |||||||
AECO ($/mcf) | 2.35 | 4.34 | 6.27 | 3.34 | 5.43 | ||||||||||||
CAD/USD average exchange rate | 1.3431 | 1.3520 | 1.2766 | 1.3475 | 1.2714 |
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, 2023 | March 31, 2023 | June 30, 2022 | June 30, 2023 | June 30, 2022 | |||||||||||||
OPERATING | |||||||||||||||||
Daily Production | |||||||||||||||||
Light oil and condensate (bbl/d) | 35,322 | 31,678 | 33,007 | 33,510 | 33,533 | ||||||||||||
Heavy oil (bbl/d) | 32,821 | 34,191 | 28,586 | 33,502 | 26,921 | ||||||||||||
NGL (bbl/d) | 8,620 | 7,213 | 7,468 | 7,920 | 7,552 | ||||||||||||
Total liquids (bbl/d) | 76,763 | 73,082 | 69,061 | 74,932 | 68,006 | ||||||||||||
Natural gas (mcf/d) | 77,989 | 82,066 | 84,169 | 80,017 | 83,873 | ||||||||||||
Oil equivalent (boe/d @ 6:1) (3) | 89,761 | 86,760 | 83,090 | 88,269 | 81,985 | ||||||||||||
Netback (thousands of Canadian dollars) | |||||||||||||||||
Total sales, net of blending and other expense (2) | $ | 545,765 | $ | 495,655 | $ | 797,274 | $ | 1,041,420 | $ | 1,429,659 | |||||||
Royalties | (107,920) | (93,253) | (171,559) | (201,173) | (294,279) | ||||||||||||
Operating expense | (119,438) | (112,408) | (107,426) | (231,846) | (208,192) | ||||||||||||
Transportation expense | (14,574) | (17,005) | (11,758) | (31,579) | (20,973) | ||||||||||||
Operating netback (2) | $ | 303,833 | $ | 272,989 | $ | 506,531 | $ | 576,822 | $ | 906,215 | |||||||
General and administrative | (15,240) | (11,734) | (11,640) | (26,974) | (23,322) | ||||||||||||
Cash financing and interest | (28,255) | (18,375) | (20,474) | (46,630) | (40,901) | ||||||||||||
Realized financial derivatives gain (loss) | 16,365 | 5,415 | (124,042) | 21,780 | (208,408) | ||||||||||||
Other (4) | (3,113) | (11,306) | (4,671) | (14,419) | (8,273) | ||||||||||||
Adjusted funds flow (1) | $ | 273,590 | $ | 236,989 | $ | 345,704 | $ | 510,579 | $ | 625,311 | |||||||
Netback (per boe) (5) | |||||||||||||||||
Total sales, net of blending and other expense (2) | $ | 66.82 | $ | 63.48 | $ | 105.44 | $ | 65.18 | $ | 96.34 | |||||||
Royalties | (13.21) | (11.94) | (22.69) | (12.59) | (19.83) | ||||||||||||
Operating expense | (14.62) | (14.40) | (14.21) | (14.51) | (14.03) | ||||||||||||
Transportation expense | (1.78) | (2.18) | (1.56) | (1.98) | (1.41) | ||||||||||||
Operating netback (2) | $ | 37.21 | $ | 34.96 | $ | 66.98 | $ | 36.10 | $ | 61.07 | |||||||
General and administrative | (1.87) | (1.50) | (1.54) | (1.69) | (1.57) | ||||||||||||
Cash financing and interest | (3.46) | (2.35) | (2.71) | (2.92) | (2.76) | ||||||||||||
Realized financial derivatives gain (loss) | 2.00 | 0.69 | (16.41) | 1.36 | (14.04) | ||||||||||||
Other (4) | (0.39) | (1.45) | (0.60) | (0.89) | (0.56) | ||||||||||||
Adjusted funds flow (1) | $ | 33.49 | $ | 30.35 | $ | 45.72 | $ | 31.96 | $ | 42.14 |
Conference Call Tomorrow 9:00 a.m. MDT (11:00 a.m. EDT) | ||
Baytex will host a conference call tomorrow, July 28, 2023, starting at 9:00am MDT (11:00am EDT). To participate, please dial toll free in North America 1-800-319-4610 or international 1-416-915-3239. Alternatively, to listen to the conference call online, please enter https://services.choruscall.ca/links/baytex2023q2.html in your web browser. An archived recording of the conference call will be available shortly after the event by accessing the webcast link above. The conference call will also be archived on the Baytex website at www.baytexenergy.com. |
Three Months Ended June 30 | Six Months Ended June 30 | |||||||||||||
($ thousands) | 2023 | 2022 | 2023 | 2022 | ||||||||||
Petroleum and natural gas sales | $ | 598,760 | $ | 854,169 | $ | 1,154,096 | $ | 1,527,994 | ||||||
Blending and other expense | (52,995) | (56,895) | (112,676) | (98,335) | ||||||||||
Total sales, net of blending and other expense | 545,765 | 797,274 | 1,041,420 | 1,429,659 | ||||||||||
Royalties | (107,920) | (171,559) | (201,173) | (294,279) | ||||||||||
Operating expense | (119,438) | (107,426) | (231,846) | (208,192) | ||||||||||
Transportation expense | (14,574) | (11,758) | (31,579) | (20,973) | ||||||||||
Operating netback | $ | 303,833 | $ | 506,531 | $ | 576,822 | $ | 906,215 |
Three Months Ended June 30 | Six Months Ended June 30 | |||||||||||||
($ thousands) | 2023 | 2022 | 2023 | 2022 | ||||||||||
Cash flows from operating activities | $ | 192,308 | $ | 360,034 | $ | 377,246 | $ | 559,008 | ||||||
Change in non-cash working capital | 40,795 | (17,046) | 79,849 | 60,294 | ||||||||||
Additions to exploration and evaluation assets | (741) | (2,338) | (1,231) | (5,897) | ||||||||||
Additions to oil and gas properties | (169,963) | (94,295) | (403,099) | (244,558) | ||||||||||
Payments on lease obligations | (1,181) | (1,039) | (2,336) | (2,213) | ||||||||||
Transaction costs | 32,832 | — | 41,703 | — | ||||||||||
Cash premiums on derivatives | 2,263 | — | 2,263 | — | ||||||||||
Free cash flow | $ | 96,313 | $ | 245,316 | $ | 94,395 | $ | 366,634 |
($ thousands) | June 30, 2023 | December 31, 2022 | ||||||
Credit facilities | $ | 964,332 | $ | 383,031 | ||||
Unamortized debt issuance costs - Credit facilities (1) | 22,571 | 2,363 | ||||||
Long-term notes | 1,563,897 | 547,598 | ||||||
Unamortized debt issuance costs - Long-term notes (1) | 37,571 | 6,999 | ||||||
Trade and other payables | 616,608 | 281,404 | ||||||
Cash | (19,637) | (5,464) | ||||||
Trade and other receivables | (370,498) | (228,485) | ||||||
Net debt | $ | 2,814,844 | $ | 987,446 |
Three Months Ended June 30 | Six Months Ended June 30 | |||||||||||||
($ thousands) | 2023 | 2022 | 2023 | 2022 | ||||||||||
Cash flow from operating activities | $ | 192,308 | $ | 360,034 | $ | 377,246 | $ | 559,008 | ||||||
Change in non-cash working capital | 40,795 | (17,046) | 79,849 | 60,294 | ||||||||||
Asset retirement obligations settled | 5,392 | 2,716 | 9,518 | 6,009 | ||||||||||
Transaction costs | 32,832 | — | 41,703 | — | ||||||||||
Cash premiums on derivatives | 2,263 | — | 2,263 | — | ||||||||||
Adjusted funds flow | $ | 273,590 | $ | 345,704 | $ | 510,579 | $ | 625,311 |
Three Months Ended June 30, 2023 | Three Months Ended June 30, 2022 | ||||||||||||||||||||||||||||||||||
Heavy Crude Oil (bbl/d) | Light and Medium Crude Oil (bbl/d) | NGL (bbl/d) | Natural Gas (Mcf/d) | Oil Equivalent (boe/d) | Heavy Crude Oil (bbl/d) | Light and Medium Crude Oil (bbl/d) | NGL (bbl/d) | Natural Gas (Mcf/d) | Oil Equivalent (boe/d) | ||||||||||||||||||||||||||
Canada – Heavy | |||||||||||||||||||||||||||||||||||
Peace River | 9,801 | 6 | 49 | 11,117 | 11,708 | 10,216 | 10 | 31 | 12,471 | 12,336 | |||||||||||||||||||||||||
Lloydminster | 11,398 | 23 | — | 1,228 | 11,625 | 11,051 | 8 | — | 1,729 | 11,347 | |||||||||||||||||||||||||
Peavine | 11,622 | — | — | — | 11,622 | 7,319 | — | — | — | 7,319 | |||||||||||||||||||||||||
Canada - Light | |||||||||||||||||||||||||||||||||||
Viking | — | 13,265 | 181 | 12,105 | 15,464 | — | 14,103 | 184 | 13,202 | 16,487 | |||||||||||||||||||||||||
Duvernay | — | 675 | 566 | 1,946 | 1,565 | — | 801 | 620 | 2,007 | 1,756 | |||||||||||||||||||||||||
Remaining Properties | — | 643 | 638 | 15,647 | 3,890 | — | 753 | 983 | 23,627 | 5,674 | |||||||||||||||||||||||||
United States | |||||||||||||||||||||||||||||||||||
Eagle Ford | — | 20,710 | 7,186 | 35,946 | 33,887 | — | 17,332 | 5,650 | 31,133 | 28,170 | |||||||||||||||||||||||||
Total | 32,821 | 35,322 | 8,620 | 77,989 | 89,761 | 28,586 | 33,007 | 7,468 | 84,169 | 83,090 |
Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | ||||||||||||||||||||||||||||||||||
Heavy Crude Oil (bbl/d) | Light and Medium Crude Oil (bbl/d) | NGL (bbl/d) | Natural Gas (Mcf/d) | Oil Equivalent (boe/d) | Heavy Crude Oil (bbl/d) | Light and Medium Crude Oil (bbl/d) | NGL (bbl/d) | Natural Gas (Mcf/d) | Oil Equivalent (boe/d) | ||||||||||||||||||||||||||
Canada – Heavy | |||||||||||||||||||||||||||||||||||
Peace River | 10,289 | 9 | 51 | 11,191 | 12,215 | 10,898 | 8 | 30 | 11,801 | 12,902 | |||||||||||||||||||||||||
Lloydminster | 11,522 | 17 | — | 1,223 | 11,743 | 10,775 | 11 | — | 1,758 | 11,079 | |||||||||||||||||||||||||
Peavine | 11,691 | — | — | — | 11,691 | 5,248 | — | — | — | 5,248 | |||||||||||||||||||||||||
Canada - Light | |||||||||||||||||||||||||||||||||||
Viking | — | 13,948 | 187 | 11,864 | 16,113 | — | 14,894 | 186 | 12,552 | 17,172 | |||||||||||||||||||||||||
Duvernay | — | 868 | 754 | 2,283 | 2,002 | — | 896 | 705 | 2,174 | 1,963 | |||||||||||||||||||||||||
Remaining Properties | — | 658 | 661 | 19,001 | 4,485 | — | 810 | 956 | 24,158 | 5,792 | |||||||||||||||||||||||||
United States | |||||||||||||||||||||||||||||||||||
Eagle Ford | — | 18,010 | 6,267 | 34,455 | 30,020 | — | 16,914 | 5,675 | 31,430 | 27,828 | |||||||||||||||||||||||||
Total | 33,502 | 33,510 | 7,920 | 80,017 | 88,269 | 26,921 | 33,533 | 7,552 | 83,873 | 81,985 |
'!A8VME="!B96=I;CTB[[N_(B!I9#TB5S5-,$UP0V5H:4AZ /-YZBE*2;EFCD
M&F3&8&I0K2\$2UR%[@4]I,^ON=^PO[]OK?W8YLLJ[-:R']WQ.,3SH:&Y(/&.
M!A2+^*<%J@0T?"S[TWO/^YK.?VUY9NZ;M0!YJ'I0>OA[I'Q,?/A]I'Y0?OQ_J(!4@02!L()@@Q"#P(1PA2"%U(:$A
MSB'[(BJ.*/Z>UC
M^HEX,VI(%<1Q>95AJD[:T212/.3[SF'=2]_N-\3MZU"KHC&MO,U" Z5^1%6Q
MY$=65>\H.A]U[W[KW7O?NO=>]^Z]U[W[KW7O?NO=>]^Z]U[W[KW7O?NO=>]^
MZ]U[W[KW7O?NO=>]^Z]U[W[KW7O?NO=>]^Z]U[W[KW7O?NO=>]^Z]U[W[KW7
MO?NO=>]^Z]U[W[KW7__0W^/?NO=>]^Z]U[W[KW7O?NO=>]^Z]U[W[KW7O?NO
M=>]^Z]U[W[KW7O?NO=>]^Z]U[W[KW7O?NO=>]^Z]U[W[KW7O?NO=>]^Z]U[W
M[KW7O?NO=>]^Z]U[W[KW7O?NO=>]^Z]U[W[KW7O?NO=>]^Z]U[W[KW7O?NO=
M>]^Z]U[W[KW7O?NO=>]^Z]U[W[KW7O?NO=>]^Z]U[W[KW7O?NO=>]^Z]U[W[
MKW7O?NO=>]^Z]U[W[KW7O?NO=>]^Z]U[W[KW7O?NO=>]^Z]U[W[KW7O?NO=>
M]^Z]U[W[KW7O?NO=>]^Z]U[W[KW7O?NO=>]^Z]U[W[KW7O?NO=>]^Z]U[W[K
MW7O?NO=>]^Z]U[W[KW7O?NO=>]^Z]U[W[KW7O?NO=>]^Z]U[W[KW7O?NO=>]
M^Z]U[W[KW7O?NO=>]^Z]U[W[KW7O?NO=>]^Z]U[W[KW7O?NO=>]^Z]U[W[KW
M7O?NO=>]^Z]U[W[KW7O?NO=>]^Z]U[W[KW7O?NO=>]^Z]U[W[KW7O?NO=>]^
MZ]U[W[KW7O?NO=>]^Z]U[W[KW7O?NO=57?S#OE)_=3$5'1&Q_=>Z][]U[KWOW7NO>_=>Z][]U[KWO
MW7NO>_=>Z][]U[KWOW7NO>_=>Z][]U[KWOW7NO>_=>Z][]U[JP;X'?%T]Q[P
M'8>\\<9.M-D5\3+2U,=Z?=VZ(/'4TV&T.-$^*Q@9)ZZ]UDO' 0RRR%,C?N_>
MU']==Z_K)O=M7E>PD':P[;B<498_0QIAY?(U6.A#MI&_)O+O[UNOKKN/_=?"
MW \'<9"_8.+>N!YFFP* !8 < ?0 ?T]]%>'4V==^_=>Z][]U[KWOW7
MNO>_=>Z][]U[KWOW7NO>_=>Z][]U[KWOW7NO>_=>Z][]U[KWOW7NO>_=>Z][
M]U[KWOW7NO>_=>Z][]U[KWOW7NO>_=>Z][]U[KWOW7NO>_=>Z][]U[KWOW7N
MO>_=>Z__U-_CW[KW7O?NO=>]^Z]U[W[KW7O?NO=>]^Z]U[W[KW7O?NO=>]^Z
M]U[W[KW7O?NO=>]^Z]U[W[KW7O?NO=>]^Z]U[W[KW7O?NO=>]^Z]U[W[KW7O
M?NO=>]^Z]U[W[KW7O?NO=>]^Z]U[W[KW7O?NO=>]^Z]U[W[KW7O?NO=>]^Z]
MU[W[KW7O?NO=>]^Z]U[W[KW7O?NO=>]^Z]U[W[KW7O?NO=>]^Z]U[W[KW7O?
MNO=>]^Z]U[W[KW7O?NO=>]^Z]U[W[KW7O?NO=>]^Z]U[W[KW7O?NO=>]^Z]U
M[W[KW7O?NO=>]^Z]U[W[KW7O?NO=>]^Z]U[W[KW7O?NO=>]^Z]U[W[KW7O?N
MO=>]^Z]U[W[KW7O?NO=>]^Z]U[W[KW7O?NO=>]^Z]U[W[KW7O?NO=>]^Z]U[
MW[KW7O?NO=>]^Z]U[W[KW7O?NO=>]^Z]U[W[KW7O?NO=>]^Z]U[W[KW7O?NO
M=>]^Z]U[W[KW7O?NO=>]^Z]U[W[KW7O?NO=>]^Z]U[W[KW7O?NO=>]^Z]U[W
M[KW5;'\P#Y1_Z--LR=0[(R/CW]O#'-_>#(4
WVT99O
M5CP5$&*N[$*@\V(J0*GI'?WUOMMI/>W3TA05/J?0#U).!\^M87N[N+<_>G8N
M;[ W/(8Y:^3[7#XE)6DI-OX"F>3^&86BU!08Z:.0M(X5?/4/)*0&<^^5?/?.
MFZ\_\9^@)U[W[KW7O?NO=>]^Z]U[W[KW7O?NO=>]
M^Z]U[W[KW7O?NO=>]^Z]U[W[KW7O?NO=>]^Z]U[W[KW7O?NO=>]^Z]T=OX3?
M&*;OK?G\=W+1R_Z+]DU5/4[BD=72+<64&FHH=ITTHMK6H6TM<4.J*DLMT>>)
MO<[>Q?M6_N%S!^\-TA/]5+%U:8\!-)Q2W4_/#2D96/%5:1#T+N4N7CO5[XUP
MO^ZZ$@M_2/$(/MXMZ+Z$CK8MAAAIX8J>GBC@@@C2&""%%BAAAB4)'%%&@5(X
MXT4!5 %A[Z5(B1(D<:!8U % , # & !U.@ 4!5%%'63W;K?7O?NO=
M>]^Z]U[W[KW7O?NO=>]^Z]U[W[KW4#*93'83&9#,YBMIL;BL515.1R60K)4@
MI*&AHH7J*NKJ9Y"$B@IX(V9F)L%'M)?W]EM=C>;EN-TD&WV\3222.0J)&@+.
M[,M;3Y=_)3(
M_(CL.2HH):FEZ[VO)4X_9.)EUQ&:%G"U>Y,A ;:
H9Z][]U[KWOW7NO>_=>Z][]U[KWOW7NO>_=>Z][]U[KWOW7NO
M>_=>Z][]U[KWOW7NO>_=>Z][]U[KWOW7NO>_=>Z$OJ'JK='=&_\ ]>[2@UY
M',U%ZJMD1VHL+B8"KY+-Y%DMXZ+'TY+$7#2N5B2\CHI%/)O*6Z\\
PV-L/U'.3Y*OFQ^0'[> R1UL
M^]4]8[7Z>V'@.OMHTO@Q."I!&]1(J?>97(2_N9',Y*1 !-7Y*J+2.?TH"$0+
M&JJ.JO*/*NU
XMP5,<8R.8JP"Q7RM&L<,99O!31QQ@G1<]S?:KVTV/VGY,VWE+9%#&,:
MYYB*/<7# >),_&E:!46IT1JB5.FIX\^Y'N!O'N5S7?\ ,V[L5#G1#%6JP0*3
MX<2\.%2SM0:Y&9Z#50##[D?H!]>]^Z]U[W[KW7O?NO=>]^Z]U[W[KW7O?NO=
M>]^Z]U[W[KW7O?NO=>]^Z]U[W[KW7O?NO=>]^Z]U_]'?X]^Z]U[W[KW7O?NO
M=>]^Z]U[W[KW7O?NO=>]^Z]U[W[KW7O?NO=>]^Z]U[W[KW7O?NO=>]^Z]U[W
M[KW7O?NO=>]^Z]U[W[KW7O?NO=>]^Z]U[W[KW7O?NO=>]^Z]U[W[KW7O?NO=
M>]^Z]U[W[KW7O?NO=>]^Z]U[W[KW7O?NO=>]^Z]U[W[KW7O?NO=>]^Z]U[W[
MKW7O?NO=>]^Z]U[W[KW7O?NO=>]^Z]U[W[KW7O?NO=>]^Z]U[W[KW7O?NO=>
M]^Z]U[W[KW7O?NO=>]^Z]U[W[KW7O?NO=>]^Z]U5?_-H[O\ EEUG\