Mr. Eric Greager reports

BAYTEX ANNOUNCES FIRST QUARTER 2023 RESULTS

Baytex Energy Corp. has released its operating and financial results for the three months ended March 31, 2023 (all amounts are in Canadian dollars unless otherwise noted).

"We continued to deliver on our operating and financial targets in the first quarter, which included strong results from our Peavine Clearwater development. We continue to make significant progress on the Ranger acquisition, which materially increases Eagle Ford scale in Texas, while building a quality operating capability in a premier basin. The combined company will deliver a powerful combination of substantial free cash flow and increased shareholder returns on a per-share basis. We are in a strong financial position that is supported by significant liquidity and a balanced note maturity profile and we are excited to increase direct shareholder returns to 50% of free cash flow on closing of the acquisition," commented Eric T. Greager, President and Chief Executive Officer.

Highlights

• Entered into an agreement to acquire Ranger Oil Corporation ("Ranger") for approximately US$2.5 billion.
• Generated production of 86,760 boe/d (84% oil and NGL) in Q1/2023, a 7% increase over Q1/2022.
• Delivered adjusted funds flow(1) of $237 million ($0.43 per basic share) in Q1/2023.
• Reported cash flows from operating activities of $185 million ($0.34 per basic share) in Q1/2023.
• Exploration and development expenditures totaled $234 million in Q1/2023, consistent with our full-year plan.
• Generated production from our Clearwater play at Peavine of 11,760 bbl/d in Q1/2023. The first 12 wells from our 2023 drilling program at Peavine generated an average 30-day initial production rate of 661 bbl/d per well.
• Subsequent to quarter-end, completed a US$800 million private offering of senior unsecured notes due 2030 that bear interest at a rate of 8.5% per annum.

Ranger Acquisition

On February 28, 2023, Baytex announced the acquisition of Ranger (the "Merger"), a pure play Eagle Ford operator. With this transaction, we are building a quality, scaled North American oil-weighted exploration and production company with a portfolio across the Western Canadian Sedimentary Basin and the Eagle Ford. The transaction enhances our inventory and creates a more resilient and sustainable business.

A key consideration of the Merger was our ability to accelerate the planned next phase of our shareholder return framework. On closing, we intend to increase direct shareholder returns to 50% of free cash flow, which includes the expected implementation of a quarterly dividend. The transaction is expected to close late in the second quarter of 2023.

2023 Guidance

Our 2023 production guidance range is unchanged at 86,000 to 89,000 boe/d with budgeted exploration and development expenditures of $575 to $650 million, and does not include the integration of Ranger. Based on the forward strip for 2023(2), we expect to generate approximately $115 million of free cash flow in Q2/2023 and on a stand-alone basis (excluding Ranger) generate approximately $325 million of free cash flow for the full-year 2023. Following closing of the Merger, we plan to provide revised guidance for the full-year 2023.

Return of Capital Framework

In 2022, we made a commitment to return 25% of free cash flow to shareholders through a share buyback program. We executed on this program in 2022, repurchasing 4.3% of our shares outstanding.

On closing of the Merger, we intend to increase direct shareholder returns to 50% of the free cash flow generated by the combined company, allowing us to increase the value of our share buyback program and introduce a dividend. Our share buyback program was placed on hold at the beginning of the year due to the pending Merger but will recommence following closing. To meet our shareholder return commitment, we intend to include 25% of the free cash flow generated from January 1, 2023 until closing in our 2023 share buyback program.

Our existing normal course issuer bid ("NCIB") is set to expire on May 8, 2023. Following closing of the Merger, we intend to file an updated NCIB application with the TSX for a share buyback program representing approximately 10% of our public float and recommend that Baytex pay a quarterly dividend of $0.0225 per share ($0.09 per share annualized). If declared by the Baytex Board of Directors, the initial dividend is expected to be paid in October 2023(1).

Q1/2023 Results

During the first quarter, we delivered strong operating and financial results, consistent with our full-year plan. Production averaged 86,760 boe/d (84% oil and NGLs) as compared to 80,867 boe/d (82% oil and NGLs) in Q1/2022. We delivered adjusted funds flow(2) of $237 million ($0.43 per basic share) and net income of $51 million ($0.09 per basic share).

Exploration and development expenditures totaled $234 million in Q1/2023 (38% of budgeted full-year expenditures) and we participated in the drilling of 118 (96.6 net) wells. Our 2023 exploration and development program is heavily weighted to the first quarter, which is expected to drive strong free cash flow over the balance of the year.

Light Oil - United States

Our light oil assets in the United States are located in the core of the liquids-rich Eagle Ford formation, in the Texas Gulf Coast Basin. Our existing Eagle Ford assets include non-operated working interests in four areas of mutual interest with an average working interest of approximately 25%.

Production in the Eagle Ford averaged 26,109 boe/d (79% oil and NGLs) during Q1/2023 and generated an operating netback(3) of $99 million. We invested $49 million on exploration and development in the Eagle Ford during the quarter and brought 24 (6.4 net) wells onstream. We expect to bring approximately 18 net wells onstream in 2023.

Light Oil - Canada

Our light oil production and development in Canada occurs within the Viking formation in west central Saskatchewan and east central Alberta, and the Duvernay formation in the Pembina area of central Alberta. The Viking assets are a shallow, light oil resource play with strong operating netbacks. The Pembina Duvernay development is an early stage, high operating netback light oil resource play.

Production in the Viking averaged 16,770 boe/d (88% oil and NGL) during Q1/2023 and generated an operating netback(3) of $91 million. We invested $82 million on exploration and development in the Viking during the quarter and brought 64 (59.6 net) wells onstream. We expect to bring approximately 132 net wells onstream in 2023.

Production in the Pembina Duvernay averaged 2,444 boe/d (82% oil and NGL) during Q1/2023. We invested $21 million on exploration and development in the Duvernay during the quarter and drilled four wells of a planned six well program. The remaining two wells will be drilled during the second quarter. Completion activities for the two three-well pads are expected to commence late in the second quarter.

Heavy Oil - Canada

Our heavy oil production and development in Canada occurs within the Bluesky and Spirit River (Clearwater) formations in the Peace River area of northwest Alberta and the Mannville group of formations in the greater Lloydminster region of east central Alberta and west central Saskatchewan. Our heavy oil business includes low decline production with innovative multi-lateral (trident and fishbone) horizontal drilling with strong capital efficiencies. The core of our Clearwater play is located on the Peavine Metis settlement.

(1) Refer to the Dividend Advisory section in the press release for further information.(2) Capital management measure. Refer to the Specified Financial Measures section in this press release for further information.(3) Specified financial measure that does not have any standardized meaning prescribed by IFRS and may not be comparable with the calculation of similar measures presented by other entities. Refer to the Specified Financial Measures section in this press release for further information.

Our heavy oil assets at Peace River and Lloydminster (excluding Clearwater development) produced a combined 24,588 boe/d (92% oil and NGL) during Q1/2023 and generated an operating netback(1) of $37 million. We invested $52 million on exploration and development during the quarter and brought onstream 2 net Bluesky wells at Peace River and 10.8 net wells at Lloydminster. In addition, we drilled 3 steam assisted gravity drainage ("SAGD") well pairs at Kerrobert that are expected to be onstream during the fourth quarter. In 2023, we plan to drill 7 net Bluesky wells at Peace River and 30 net wells at Lloydminster.

Production in the Peavine Clearwater averaged 11,760 boe/d (100% oil) during Q1/2023 and generated an operating netback of $31 million. We invested $29 million on exploration and development during the quarter and brought 12 net Clearwater wells onstream. All 12 wells have now been onstream for over 30-days and have generated an average 30-day initial production rate of 661 bbl/d per well. In 2023, we plan to drill 31 net Clearwater wells at Peavine.

Across all of our core assets, inventory enhancement continues to be a priority. In Q4/2022 we successfully drilled a Clearwater equivalent test well at Morinville, Alberta, where we have aggregated approximately 30 sections of prospective land. The well was brought onstream in Q1/2023 and has achieved a 30-day initial production rate of 180 bbl/d of 15.5degree API crude oil. Notably, this six leg test well is about half the length of full planned development wells. We are encouraged by these initial results and are planning two additional follow-up wells in the second half of 2023.

Senior Notes Financing

On April 27, 2023, we announced the closing of a US$800 million private offering (the "offering") of senior unsecured notes due 2030 (the "Notes"). The Notes bear interest at a rate of 8.5% per annum and mature on April 30, 2030. The gross proceeds of the offering have been deposited into escrow pending satisfaction of certain escrow release conditions, including the consummation of the previously announced Merger with Ranger. Upon satisfaction of the escrow release conditions, Baytex intends to use the net proceeds from the offering, together with borrowings under its credit facilities and term loan, to fund the cash portion of the consideration for the acquisition, to repay certain outstanding indebtedness of Ranger and Baytex and to pay fees and expenses in connection with the Merger.

Risk Management

To manage commodity price movements, we utilize various financial derivative contracts to reduce the volatility of our adjusted funds flow.

For May to December 2023, we have entered into hedges on approximately 35% of our net crude oil exposure utilizing a combination of costless collars on 14,500 bbl/d with a floor price of US$60/bbl and a ceiling price of US$100/bbl and a 5,000 bbl/d purchased put at US$60/bbl.

We intend to hedge approximately 40% of our net crude oil exposure during the 12 months following the closing of the Merger.

A complete listing of our financial derivative contracts can be found in Note 17 to our Q1/2023 financial statements.

Board of Directors Update

On closing of the Merger, Baytex intends to appoint two independent directors from the Ranger Board of Directors to the Baytex Board of Directors. At the time of the Merger announcement, Baytex indicated its intent to appoint Jeffrey E. Wojahn to the Baytex Board of Directors. Baytex is pleased to announce that we also intend to appoint Tiffany ("T.J.") Thom Cepak to the Baytex Board of Directors.

Additional Information

Our condensed consolidated interim unaudited financial statements for the three months ended March 31, 2023 and the related Management's Discussion and Analysis of the operating and financial results can be accessed on the company's website and will be available shortly through SEDAR and EDGAR.

(1) Specified financial measure that does not have any standardized meaning prescribed by IFRS and may not be comparable with the calculation of similar measures presented by other entities. Refer to the Specified Financial Measures section in this press release for further information.

Conference Call Tomorrow 9:00 a.m. MT (11:00 a.m. ET)

Baytex will host a conference call tomorrow, May 5, 2023, starting at 9:00am MT (11:00am ET). To participate, please dial toll free in North America 1-800-319-4610 or international 1-416-915-3239. 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.

Baytex Energy Corp.

Baytex Energy Corp. is an energy company 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. Baytex's common shares trade on the Toronto Stock Exchange and the New York Stock Exchange under the symbol BTE.

We seek Safe Harbor.