Baytex Energy Corp. (NYSE:BTE) reported a fourth-quarter loss on Thursday that came in below analyst expectations, even though revenue exceeded forecasts, as the company finalized its shift toward a more focused Canadian oil production strategy.
Shares of the company dropped 3.77% in after-hours trading following the announcement.
Baytex posted a fourth-quarter loss of Cdn$1.12 per share, missing the analyst consensus estimate of break-even earnings.
Revenue, however, totaled Cdn$759.82 million, beating the consensus estimate of Cdn$570.17 million by roughly 33%, although it declined 25% from the same period a year earlier.
For the full year, the company reported a net loss of Cdn$604 million, largely due to non-cash charges linked to the divestiture of its Eagle Ford assets and an impairment related to Viking properties.
Baytex completed the sale of its U.S. Eagle Ford operations on December 19, 2025, generating net proceeds of $3.0 billion and boosting its financial position, with cash rising to $857 million.
Canadian production averaged 67,295 barrels of oil equivalent per day (boe/d) during the fourth quarter, with oil and natural gas liquids accounting for 88% of output. For the full year 2025, Canadian production averaged 65,528 boe/d, representing organic growth of 6% compared with 2024.
“2025 was a definitive year for Baytex, marked by the successful repositioning of our portfolio into a focused, high-return Canadian oil producer,” said Eric T. Greager, Chief Executive Officer. “With a sustaining breakeven of US$52/bbl WTI, Baytex is well-positioned to navigate market volatility and accelerate shareholder returns.”
Looking ahead, Baytex expects 2026 production to average between 67,000 and 69,000 boe/d, representing annual organic growth of about 3% to 5%, with exploration and development spending planned between $550 million and $625 million.
First-quarter 2026 output is projected at roughly 68,000 to 69,000 boe/d, with production expected to reach around 70,000 boe/d by the end of the year.
The company generated adjusted funds flow of Cdn$261.5 million in the fourth quarter and Cdn$1.5 billion for the full year. Since restarting its share repurchase program on December 24, 2025, Baytex has bought back 30 million shares for approximately $141 million.