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  5. BTE: Your analysis on the latest quarter, balance sheet strength and whether stock is a buy. [Baytex Energy Corp.]
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Q: Your analysis on the latest quarter, balance sheet strength and whether stock is a buy. Thank you!
Asked by Sandy on March 12, 2026
5i Research Answer:

Q4 production fell 10% to 137,000 b/d. Free cash flow was $76.5M. Loss was $1.12 per share vs $0.01 per share in the prior year period. The loss was non-cash accounting charges. Q4 revenue reached Cdn$760 million, beating estimates by 33% but down 25% year-over-year due to the asset sale. Adjusted funds flow was Cdn$262 million for the quarter and Cdn$1.5 billion annually, supporting $270-275 million in free cash flow despite non-cash charges. Net loss stood at $604 million for 2025, driven by Eagle Ford sale losses, a Cdn$148 million Viking impairment, and tax expenses. With the asset sale and a new CEO, we would not focus too much on this quarter. The company now has a pristine balance sheet, and of course commodity prices have moved very positively for the company. The stock is doing much better and decent growth is expected this year. We would consider it a BUY today for higher-risk sector investors.