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CALGARY, ALBERTA -- (Marketwire) -- 03/07/13 -- Baytex Energy Corp. ("Baytex") (TSX: BTE) (NYSE: BTE) reports its operating and financial results for the three months and year ended December 31, 2012 (all amounts are in Canadian dollars unless otherwise noted).
Commenting on the results, James Bowzer, President and Chief Executive Officer of Baytex, said, "2012 was another very successful year for Baytex. In an environment which was especially challenging for heavy oil producers, Baytex was able to grow production by 8%, grow its reserve base by 16%, return over $215 million to its shareholders as dividends and reduce its total debt by over $50 million."
"This year also saw the successful execution of several strategic objectives, including the acquisition of 46 sections of undeveloped oil sands leases and an approved SAGD project at Cold Lake, the expansion of the land base at Peace River and the disposition of non-operated assets in North Dakota at attractive metrics."
James Bowzer said, "We continue to believe that transportation solutions to allow Canadian crude oil to access additional markets will proceed and that over time price discounts for Canadian production will narrow. Baytex is well positioned to benefit from an improving market, with quality assets and experienced staff."
Summary
-- Produced record quarterly production of 55,046 boe/d (87% oil and natural gas liquids ("NGL")) in Q4/2012, an increase of 4% over Q4/2011 and 1% over Q3/2012, and record annual production of 53,986 boe/d (87% oil and NGL), an increase of 8% over 2011;-- Generated funds from operations ("FFO") of $127.3 million ($1.05 per basic share) in Q4/2012, a decrease of 22% from Q4/2011 and 8% from Q3/2012, and $532.7 million ($4.44 per basic share) in full-year 2012, a decrease of 4% from 2011;-- Generated net income of $31.6 million ($0.26 per basic share) in Q4/2012, and $258.6 million ($2.16 per basic share) in full-year 2012, the highest level of annual net income in the company's history;-- Increased total proved plus probable reserves by 16% to 292 million boe, replacing 300% of 2012 production and extending our proved plus probable reserve life index to 14 years;-- Increased economic best estimate contingent resource by 2% to 795 million barrels of oil equivalent and bitumen, including a 4% increase at Peace River to 551 million barrels of bitumen;-- Recorded finding, development, and acquisitions ("FD&A") costs in 2012 of $11.61/boe for proved plus probable reserves including changes in future development costs ("FDC"). Three-year average (2010 - 2012) FD&A costs are $14.06/boe for proved plus probable reserves including changes in FDC;-- Realized a recycle ratio (operating netback divided by FD&A costs) based on proved plus probable reserves (including changes in FDC) of 2.7x for 2012, and 2.3x for the three-year average;-- Maintained a conservative payout ratio, net of dividend reinvestment plan ("DRIP") participation, of 43% (63% before DRIP)in Q4/2012 and 40% (60% before DRIP) in full-year 2012;-- Reduced total debt to $600 million at year-end 2012, 8% below that of one year ago; and-- Subsequent to year end, completed the sale of non-core Viking rights in the Kerrobert area, which included production of approximately 100 bbl/d, for total proceeds of $43 million. Three Months Ended Years Ended---------------------------------------------------------------------------- December September December December December 31, 2012 30, 2012 31, 2011 31, 2012 31, 2011----------------------------------------------------------------------------FINANCIAL(thousands of Canadian dollars, except per common share amounts)Petroleum and natural gas sales 292,095 299,786 367,813 1,219,484 1,308,814Funds from operations (1) 127,253 139,044 162,973 532,725 555,483 Per share - basic 1.05 1.15 1.39 4.44 4.79 Per share - diluted 1.04 1.14 1.36 4.37 4.67Cash dividends declared (2) 55,043 52,640 50,925 215,184 205,960Cash dividends declared per share 0.66 0.66 0.62 2.64 2.42Net income 31,620 26,773 57,780 258,631 217,432 Per share - basic 0.26 0.22 0.49 2.16 1.88 Per share - diluted 0.26 0.22 0.48 2.12 1.83Exploration and development 66,686 113,126 72,013 418,625 367,848Property acquisitions 130,575 958 10,329 144,042 76,164Corporate acquisition - - 1,313 - 120,006Proceeds from divestitures 1,222 1,202 (47,396) (314,978) (47,396)----------------------------------------------------------------------------Total oil and natural gas 198,483 115,286 36,259 247,689 516,622 capital expendituresBank loan 116,394 181,785 311,960 116,394 311,960Long-term debt 449,235 447,555 302,550 449,235 302,550Working capital (surplus) deficiency 34,197 (149,329) 36,071 34,197 36,071----------------------------------------------------------------------------Total monetary debt (3) 599,826 480,011 650,581 599,826 650,581OPERATINGDaily production Light oil and NGL (bbl/d) 7,739 7,047 7,232 7,360 6,769 Heavy oil (bbl/d) 40,257 40,580 38,006 39,447 35,252 Total oil and NGL (bbl/d) 47,996 47,627 45,238 46,807 42,021 Natural gas (mmcf/d) 42.3 40.5 46.9 43.1 48.7 Oil equivalent (boe/d @ 6:1) (4) 55,046 54,381 53,054 53,986 50,132Average prices (before hedging) WTI oil (US$/bbl) 88.18 92.22 94.06 94.19 95.12 Edmonton par oil ($/bbl) 84.28 84.79 97.87 86.53 95.56 BTE light oil and NGL ($/bbl) 72.02 70.34 85.09 74.07 82.49 BTE heavy oil ($/bbl)(5) 54.58 60.11 70.85 59.44 65.53 BTE total oil and NGL ($/bbl) 57.39 61.63 73.13 61.74 68.26 BTE natural gas ($/mcf) 3.03 2.34 3.91 2.45 4.17 BTE oil equivalent ($/boe) 52.37 55.70 65.81 55.48 61.26 CAD/USD noon rate at period end 0.9949 0.9837 1.0170 0.9949 1.0170 CAD/USD average rate for period 0.9913 0.9953 1.0231 0.9991 0.9887---------------------------------------------------------------------------- Three Months Ended Years Ended---------------------------------------------------------------------------- December September December December December 31, 2012 30, 2012 31, 2011 31, 2012 31, 2011----------------------------------------------------------------------------COMMON SHARE INFORMATIONTSXShare price (Cdn$) High 48.35 50.37 57.26 59.40 58.76 Low 41.91 39.91 39.18 38.54 39.18 Close 42.87 46.72 56.97 42.87 56.97Volume traded (thousands) 25,108 25,679 26,471 108,327 111,236NYSEShare price (US$) High 49.25 51.73 56.33 59.50 61.95 Low 42.20 39.50 36.39 37.40 36.89 Close 43.24 47.44 55.89 43.24 55.89Volume traded (thousands) 3,567 5,823 7,579 22,135 37,384Common shares outstanding (thousands) 121,868 120,962 117,893 121,868 117,893----------------------------------------------------------------------------
