Baytex Energy sets $550-625 million capex for 2026, emphasizing core Canadian assets
Baytex Energy Corp., Calgary, will target 3-5% annual production growth in 2026 with a capital budget of $550-625 million (Can.), noting a sharpened focus on its core Canadian oil and gas portfolio.
"We are excited by the strength of our Canadian oil and gas portfolio, which positions us to deliver strong, consistent heavy oil performance and drive significant value creation in the Pembina Duvernay," said Eric T. Greager, chief executive officer, noting production growth “while investing in exploration and infrastructure for future development.”
2026 exploration, development
The 2026 exploration and development expenditures are “designed to generate average annual production of 67,000-69,000 boe/d,” based on a US$60/bbl WTI price, and expected to deliver 3-5% production growth from 2025 (Canada only), the company said in a release last week.
About 55% of the exploration and development expenditure will be directed to light oil assets, and 45% to heavy oil assets. To allow for flexibility in response to commodity price movements, about 45% of the spending is expected to occur in first-half 2026.
First-quarter 2026 production is forecast to average 68,000-69,000 boe/d, with production of about 70,000 boe/d exiting 2026. The production mix is expected to be 89% liquids (82% crude oil, 7% NGLs) and 11% natural gas.
Pembina Duvernay
In Pembina Duvernay, Baytex plans to bring 12 wells (three four-well pads) onstream in 2026, compared with 8 wells in 2025. Production is expected to increase 35% to average about 11,000 boe/d, with a target year-end exit rate of 14,000-15,000 boe/d.
Baytex expects to spend about 35% of the 2026 capital program in the area. Infrastructure investments include a build-out of the infield gathering system, anchor oil batteries, fluid handling, and water infrastructure.
Mannville heavy oil, Northeast Alberta
About 25% of the 2026 capital program will be directed to Lloydminster, largely targeting the Mannville stack in northeast Alberta through open-hole multi-lateral and circulation string wells across more than 100 sections of prospective lands, the company said.
Baytex plans to bring 91 wells onstream, with production for 2026 averaging 43,000-44,000 b/d.