The company announced a capital budget of up to $625 million for 2026, with 55% allocated to light oil assets and 45% to heavy oil assets.
- Baytex Energy announced a target of 3% to 5% annual production growth, targeted to reach about 75,000 boe/d in 2028.
- The company said it plans to return a significant portion of Eagle Ford’s $2.14 billion in sale proceeds to shareholders.
- It appointed Chad E. Lundberg as the President and Chief Operating Officer from Dec. 22, 2025.
Baytex Energy Corp. (BTE) is setting the stage for growth in 2026 with a $625 million capital budget and plans to return a significant part of its Eagle Ford sale proceeds to shareholders. Additionally, the announcement of a new leadership signals a shift in priorities for the year ahead.
Shares of BTE climbed over 2% in Monday’s pre-market trade.
Capital Budget Usage
Baytex Energy announced a capital budget of $550 to $625 million for 2026, a target of 3% to 5% production growth reaching about 75,000 barrels of oil equivalent per day (boe/d) in 2028.
The company’s 2026 exploration and development budget aims to generate an average annual production of 67,000 to 69,000 boe/d and is expected to deliver 3% to 5% production growth from 2025 levels.
Of this, about 55% of the budget will be allocated to light oil assets, and the remaining 45% to heavy oil assets, the company said. Production in the first quarter (Q1) of 2026 is expected to average 68,000 to 69,000 boe/d, with plans to scale to 70,000 boe/d at the end of the year. The company also plans to bring 91 heavy-oil wells onstream, with 2026 production averaging 43,000 to 44,000 bbl/d.
Of the total capital expenses, $50 to $75 million growth capital will be focused on the Pembina Duvernay and northeast Alberta Mannville, $50 million will be directed towards infrastructure investment that will include anchor oil batteries and water infrastructure in the Pembina Duvernay, and gas conservation in Peace River, and another $50 million will go towards exploration and land investments, the company said.
“Looking ahead, we are targeting 3% to 5% annual production growth while investing in exploration and infrastructure for future development. Supported by our industry-leading net cash balance sheet, we are prioritizing shareholder returns in 2026,” Eric T. Greager, Chief Executive Officer of Baytex Energy, said.
Sale Proceeds And Executive Charges
Baytex Energy completed the sale of its U.S. Eagle Ford Assets for $2.14 billion on December 19, and plans to return a significant portion of the proceeds to shareholders.
The company also reaffirmed its annual dividend guidance of $0.09 per share, subject to Board of Directors approval.
Additionally, the energy company announced that Chad E. Lundberg will take over as President and Chief Operating Officer from Dec. 22, 2025.
How Did Stocktwits Users React?
On Stocktwits, retail sentiment around BTE stock remained in the ‘neutral’ territory over the past 24 hours, while message volume stayed at ‘normal’ levels at the time of writing.
Shares of BTE have gained over 25% in the past one year.
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