The raise is 1,000 barrels of guidance. The budget did not move
Baytex (TSX: BTE, NYSE: BTE) reported second-quarter 2026 results on July 30. Production averaged 71,243 boe/d, 88 percent oil and NGLs: 12,236 barrels of light oil and condensate, 46,349 barrels of heavy, 4,409 barrels of NGLs, and 49.5 MMcf/d of gas. That beat the old 69,000 to 71,000 annual range. Full-year guidance is now about 71,000 boe/d, an 8 percent growth print and a fourth-quarter exit talk of about 72,000. Exploration and development spend is still about $625 million. Second-quarter E&D was $122 million. Adjusted funds flow was $254 million, or $0.35 a share, after $85 million of realized oil-hedge losses left over from the U.S. sale. The company says it has no WTI hedges after the second quarter. Free cash flow was $128 million. Net income was $175 million, or $0.24 a share. Operating cash was $231 million.
They bought back 22 million shares for $136 million, 3.0 percent of the stock. Net cash at June 30 was $566 million. A year earlier net debt was $2.29 billion. The U.S. book is discontinued. Last year's second quarter still showed 83,928 boe/d of discontinued volumes. Do not stack those barrels onto 71,243.
Gilby IP30s are four wells, one of them half length
The first 2026 Duvernay pad, four wells on the new Gilby acreage south of Pembina, came on in June. Three wells posted 30-day rates of 1,630 boe/d each: 1,112 barrels of oil, 319 barrels of NGLs, 1,195 Mcf/d of gas. The fourth well was completed at half the planned lateral after the bottom-hole assembly stuck. That well did 866 boe/d IP30. A second Duvernay pad on northern Pembina was drilling-complete, completions underway, onstream aimed at September. The 2026 Duvernay program is 17 wells drilled and 13 onstream, with 4 slipping into 2027. At Peavine, six new Clearwater wells averaged 478 barrels a day IP30. Four rigs were running heavy oil. A fifth was aimed at Morinville in August. The year is 99.3 net heavy-oil wells, 58 of them in the second half. Two Peavine waterflood pilots are on injection. That is a test, not a flood type curve.
Neutral read
BTE is on the listed producer list. Banks were skipped. 71,243 boe/d, about 71,000 for the year, and $625 million of capex are the facts. Write Gilby as three full-length IP30s and one short well, not as a Duvernay type curve. Watch whether the September Pembina pad actually comes on, whether $85 million of leftover hedges are truly the last, and whether $566 million net cash is a run-rate or a post-sale stub.