APPENDICES:

Capitalized terms in this document have the meanings set forth below:

Baytex or the Corporation means Baytex Energy Corp., a corporation incorporated under the ABCA.

Baytex Energy means Baytex Energy Ltd., a corporation amalgamated under the ABCA.

Baytex Partnership means Baytex Energy Limited Partnership, a limited partnership, the partners of which are Baytex Energy and Baytex Energy (LP) Ltd.

Baytex USA means Baytex Energy USA, Inc., a corporation organized under the laws of the State of Delaware.

Board or Board of Directors means the board of directors of Baytex.

CRA means the Canada Revenue Agency.

NYSE means New York Stock Exchange.

OPEC means the Organization of the Petroleum Exporting Countries.

OPEC+ means OPEC plus a number of other oil exporting countries, including Russia.

Ranger means Ranger Oil Corporation.

Ranger Merger means the acquisition of all of the issued and outstanding Class A common stock of Ranger by Baytex by way of merger of Ranger and Ranger Sub.

Ranger Sub means Nebula Merger Sub, LLC, being an indirect wholly owned subsidiary of Baytex.

SEC means the United States Securities and Exchange Commission.

Shareholders mean the holders from time to time of Common Shares.

subsidiary has the meaning ascribed thereto in the Securities Act (Ontario) and, for greater certainty, includes all corporations, partnerships and trusts owned, controlled or directed, directly or indirectly, by us.

TSX means the Toronto Stock Exchange.

we, us and our means Baytex and all its subsidiaries on a consolidated basis unless the context requires otherwise.

2014 Debt Indenture means the indenture, as amended, among Baytex, as issuer, certain of its subsidiaries, as guarantors, and Computershare Trust Company, N.A., as indenture trustee, dated June 6, 2014, which was terminated and discharged as of June 28, 2022.

2020 Debt Indenture means the indenture among Baytex, as issuer, certain of its subsidiaries, as guarantors, and Computershare Trust Company, N.A., as indenture trustee, dated February 5, 2020, which was terminated and discharged as of April 16, 2024.

2023 Debt Indenture means the indenture among Baytex, as issuer, certain of its subsidiaries, as guarantors, and Computershare Trust Company, N.A., as indenture trustee, dated April 27, 2023.

2024 Debt Indenture means the indenture among Baytex, as issuer, certain of its subsidiaries, as guarantors, and Computershare Trust Company, N.A., as indenture trustee, dated April 1, 2024.

2024 Notes means the 5.625% senior unsecured notes due June 1, 2024 issued by Baytex pursuant to the 2014 Debt Indenture which were redeemed as of June 2, 2022.

2027 Notes means the 8.750% senior unsecured notes due April 1, 2027 issued by Baytex pursuant to the 2020 Debt Indenture which were redeemed as of April 1, 2024.

2030 Notes means the 8.500% senior unsecured notes due April 30, 2030 issued by Baytex pursuant to the 2023 Debt Indenture.

2032 Notes means the 7.375% senior unsecured notes due March 15, 2032 issued by Baytex pursuant to the 2024 Debt Indenture.

ABCA means the Business Corporations Act (Alberta), R.S.A. 2000, c. B-9, as amended, including the regulations promulgated thereunder.

AIF means this annual information form of the Corporation dated March 4, 2025 for the year ended December 31, 2024.

Baytex Annual 2024 MD&A means Baytex's annual MD&A dated March 4, 2025 for the year ended December 31, 2024.

Canadian GAAP means generally accepted accounting principles in Canada, which are consistent with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board.

Common Shares means the common shares of Baytex.

Credit Facilities means our US$1.1 billion secured covenant-based revolving credit facilities with a syndicate of financial institutions.

CSS means cyclic steam stimulation.

GHG means greenhouse gas.

MD&A means management's discussion and analysis of operating and financial results.

NCIB means normal course issuer bid.

Preferred Shares means preferred shares of Baytex.

SAGD means steam-assisted gravity drainage.

Senior Notes means, collectively, the 2030 Notes and the 2032 Notes.

Tax Act means the Income Tax Act (Canada), R.S.C. 1985, c. 1 (5th Supp.), as amended, including the regulations promulgated thereunder, as amended from time to time.

Baytex Reserves Report means the report of McDaniel dated February 6, 2025 entitled ‘‘Baytex Energy Corp., Evaluation of Petroleum Reserves, Based on Forecast Prices and Costs, As of December 31, 2024’’.

COGE Handbook means the Canadian Oil and Gas Evaluation Handbook maintained by the Society of Petroleum Evaluation Engineers (Calgary Chapter), as amended from time to time.

McDaniel means McDaniel & Associates Consultants Ltd., independent petroleum consultants.

NI 51-101 means National Instrument 51-101 "Standards of Disclosure for Oil and Gas Activities" of the Canadian Securities Administrators.

Gross means:

(a)in relation to our interest in production and reserves, our interest (operating and non-operating) share before deduction of royalties and without including any of our royalty interests;

(b)in relation to wells, the total number of wells in which we have an interest; and

(c)in relation to properties, the total area of properties in which we have an interest.

Net means:

(a)in relation to our interest in production and reserves, our interest (operating and non-operating) share after deduction of royalty obligations, plus our royalty interest in production or reserves;

(b)in relation to wells, the number of wells obtained by aggregating our working interest in each of our gross wells; and

(c)in relation to our interest in a property, the total area in which we have an interest multiplied by our working interest.

Forecast Prices and Costs are prices and costs that are:

(a)generally acceptable as being a reasonable outlook of the future; and

(b)if, and only to the extent that, there are fixed or presently determinable future prices or costs to which Baytex is legally bound by a contractual or other obligation to supply a physical product, including those for an extension period of a contract that is likely to be extended, those prices or costs rather than the prices and costs referred to in paragraph (a).

Reserves are estimated remaining quantities of oil and natural gas and related substances anticipated to be recoverable from known accumulations, as of a given date, based on:

(a)analysis of drilling, geological, geophysical and engineering data;

(b)the use of established technology; and

(c)specified economic conditions, which are generally accepted as being reasonable (being the Forecast Prices and Costs used in the estimate).

Proved reserves are those reserves that can be estimated with a high degree of certainty to be recoverable. It is likely that the actual remaining quantities recovered will exceed the estimated proved reserves.

Probable reserves are those additional reserves that are less certain to be recovered than proved reserves. It is equally likely that the actual remaining quantities recovered will be greater or less than the sum of the estimated proved plus probable reserves.

The qualitative certainty levels referred to in the definitions above are applicable to individual reserves entities (which refers to the lowest level at which reserves calculations are performed) and to reported reserves (which refers to the highest level sum of individual entity estimates for which reserves are presented). Reported reserves should target the following levels of certainty under a specific set of economic conditions:

(a)at least a 90 percent probability that the quantities actually recovered will equal or exceed the estimated proved reserves; and

(b)at least a 50 percent probability that the quantities actually recovered will equal or exceed the sum of the estimated proved plus probable reserves.

A qualitative measure of the certainty levels pertaining to estimates prepared for the various reserves categories is desirable to provide a clearer understanding of the associated risks and uncertainties. However, the majority of reserves estimates will be prepared using deterministic methods that do not provide a mathematically derived quantitative measure of probability. In principle, there should be no difference between estimates prepared using probabilistic or deterministic methods.

Each of the reserves categories (proved and probable) may be divided into developed and undeveloped categories:

(a)Developed reserves are those reserves that are expected to be recovered from existing wells and installed facilities or, if facilities have not been installed, that would involve a low expenditure (for example, when compared to the cost of drilling a well) to put the reserves on production. The developed category may be subdivided into the following categories:

i.Developed producing reserves are those reserves that are expected to be recovered from completion intervals open at the time of the estimate. These reserves may be currently producing or, if shut-in, they must have previously been on production, and the date of resumption of production must be known with reasonable certainty.

ii.Developed non-producing reserves are those reserves that either have not been on production, or have previously been on production, but are shut-in, and the date of resumption of production is unknown.

(b)Undeveloped reserves are those reserves expected to be recovered from known accumulations where a significant expenditure (for example, when compared to the cost of drilling a well) is required to render them capable of production. They must fully meet the requirements of the reserves classification (proved or probable) to which they are assigned.

The following table sets forth certain conversions between Standard Imperial Units and the International System of Units (or metric units).

Certain terms used herein are defined in NI 51-101 and, unless the context otherwise requires, shall have the same meanings in this AIF as in NI 51-101. Unless otherwise indicated, references in this AIF to "$" or "dollars" are to Canadian dollars and references to "US$" are to United States dollars. All financial information contained in this AIF has been presented in Canadian dollars in accordance with Canadian GAAP. All operational information contained in this AIF relates to our consolidated operations unless the context otherwise requires.

In the interest of providing our Shareholders and potential investors with information about us, including management's assessment of our future plans and operations, certain statements in this AIF are "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and "forward-looking information" within the meaning of applicable Canadian securities legislation (collectively, "forward-looking statements"). In some cases, forward-looking statements can be identified by terminology such as "anticipate", "believe", "continue", "could", "estimate", "expect", "forecast", "intend", "may", "objective", "ongoing", "outlook", "potential", "project", "plan", "should", "target", "would", "will" or similar words suggesting future outcomes, events or performance. The forward-looking statements contained in this AIF speak only as of the date hereof and are expressly qualified by this cautionary statement.

Specifically, this AIF contains forward-looking statements relating to, but not limited to: our business strategies, plans and objectives; our 2025 guidance for exploration and development expenditures and production; our intentions to continue allocating our annual free cash flow to shareholder returns through share buybacks and debt reduction; our dividend policy and our intentions to continue paying dividends on a consistent basis and the timing thereof; our goal of building value by developing our assets and completing selective acquisitions; our belief that our asset base is somewhat unique; our ability to mitigate and adapt to changes in oil and gas prices; that we are competitive with similarly situated companies; that we do not expect to be materially affected by the renegotiation or termination of contracts in 2025; development plans for our properties; the expected benefits and continued performance of our increased Eagle Ford scale as a result of the Merger; undeveloped lease expiries; when we expect to pay material income taxes; our working interest production volume for 2025 based on the future net revenue disclosed in our reserves; our risk management policy's ability to manage our exposure to fluctuations in commodity prices, foreign exchange and interest rates; that we market our production with attention to maximizing value and counterparty performance; the development plans for our undeveloped reserves; our future abandonment and reclamation liabilities; our funding sources for development capital expenditures and our expectations that interest or other funding costs would not make development of any of our properties uneconomic; the impact of existing and proposed governmental and environmental regulation; our assessment of our tax filing position for the years 2011 through 2015; our expectations regarding the timing of receiving a judgement with respect to our notices of appeal with the Tax Court of Canada; and our expectations regarding timing should we be unsuccessful at the Tax of Court of Canada with respect to the aforementioned notices of appeal.

In addition, there are forward-looking statements in this AIF under the headings "General Description of Our Business" and "Statement of Reserves Data" as to our reserves, including with respect thereto, the future net revenues from our reserves, pricing and inflation rates, future development costs, the development of our proved undeveloped reserves and probable undeveloped reserves, future development costs, reclamation and abandonment obligations, tax horizon, exploration and development activities and production estimates.

These forward-looking statements are based on certain key assumptions regarding, among other things: oil and natural gas prices and differentials between light, medium and heavy crude oil prices; well production rates and reserve volumes; our ability to add production and reserves through our exploration and development activities; capital expenditure levels; our ability to borrow under our credit agreements; the receipt, in a timely manner, of regulatory and other required approvals for our operating activities; the availability and cost of labour and other industry services; interest and foreign exchange rates; the continuance of existing and, in certain circumstances, proposed tax and royalty regimes; our ability to develop our crude oil and natural gas properties in the manner currently contemplated; that we will have sufficient financial resources in the future to provide shareholder returns; and current industry conditions, laws and regulations continuing in effect (or, where changes are proposed, such changes being adopted

as anticipated). Readers are cautioned that such assumptions, although considered reasonable by Baytex at the time of preparation, may prove to be incorrect.

Actual results achieved will vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors. Such factors include, but are not limited to: the risk of an extended period of low oil and natural gas prices (including as a result of tariffs); risks associated with our ability to develop our properties and add reserves; that we may not achieve the expected benefits of acquisitions and we may sell assets below their carrying value; the availability and cost of capital or borrowing; restrictions or costs imposed by climate change initiatives and the physical risks of climate change; the impact of an energy transition on demand for petroleum productions; availability and cost of gathering, processing and pipeline systems; retaining or replacing our leadership and key personnel; changes in income tax or other laws or government incentive programs; risks associated with large projects; risks associated with higher a higher concentration of activity and tighter drilling spacing; costs to develop and operate our properties; current or future controls, legislation or regulations; restrictions on or access to water or other fluids; public perception and its influence on the regulatory regime; new regulations on hydraulic fracturing; regulations regarding the disposal of fluids; risks associated with our hedging activities; variations in interest rates and foreign exchange rates; uncertainties associated with estimating oil and natural gas reserves; our inability to fully insure against all risks; risks associated with a third-party operating our Eagle Ford properties; additional risks associated with our thermal heavy crude oil projects; our ability to compete with other organizations in the oil and gas industry; risks associated with our use of information technology systems; adverse results of litigation; that our Credit Facilities may not provide sufficient liquidity or may not be renewed; failure to comply with the covenants in our debt agreements; risks associated with expansion into new activities; the impact of Indigenous claims; risks of counterparty default; impact of geopolitical risk and conflicts; loss of foreign private issuer status; conflicts of interest between the Corporation and its directors and officers; variability of share buybacks and dividends; risks associated with the ownership of our securities, including changes in market-based factors; risks for United States and other non-resident shareholders, including the ability to enforce civil remedies, differing practices for reporting reserves and production, additional taxation applicable to non-residents and foreign exchange risk; and other factors, many of which are beyond our control. Readers are cautioned that the foregoing list of risk factors is not exhaustive. New risk factors emerge from time to time, and it is not possible for management to predict all of such factors and to assess in advance the impact of each such factor on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Readers should also carefully consider the matters discussed under the heading "Risk Factors" in this AIF.

The above summary of assumptions and risks related to forward-looking statements in this AIF has been provided in order to provide Shareholders and potential investors with a more complete perspective on our current and future operations and such information may not be appropriate for other purposes. There is no representation by us that actual results achieved will be the same in whole or in part as those referenced in the forward-looking statements and we do not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities law. The forward-looking statements contained in this AIF are expressly qualified by this cautionary statement.

The Corporation's future shareholder distributions, including but not limited to the payment of dividends and the future acquisition by the Corporation of Common Shares pursuant to a share buyback (including through its NCIB), if any, and the level thereof is uncertain. Any decision to pay dividends on the Common Shares (including the actual amount, the declaration date, the record date and the payment date in connection therewith) or acquire Common Shares pursuant to a share buyback will be subject to the discretion of the Board and may depend on a variety of factors, including, without limitation, the Corporation's business performance, financial condition, financial requirements, growth plans, expected capital requirements and other conditions existing at such future time including, without limitation, contractual restrictions (including covenants contained in the agreements governing any indebtedness

that the Corporation has incurred or may incur in the future, including the terms of the Credit Facilities) and satisfaction of the solvency tests imposed on the Corporation under applicable corporate law. There can be no assurance of the number of Common Shares that the Corporation will acquire pursuant to a share buyback, if any, in the future. Further, the payment of dividends to shareholders is not assured or guaranteed and dividends may be reduced or suspended entirely.

This AIF contains information that may be considered a financial outlook under applicable securities laws about the Corporation's potential financial position, including, but not limited to, our 2025 guidance for development expenditures; our intentions of continuing to allocate our annual free cash flow to shareholder returns through a share buyback and debt reduction; our intentions to continue paying dividends; and when we expect to pay material income taxes, all of which are subject to numerous assumptions, risk factors, limitations and qualifications, including those set forth in the above paragraphs. The actual results of operations of the Corporation and the resulting financial results will vary from the amounts set forth in this AIF and such variations may be material. This information has been provided for illustration only and with respect to future periods are based on budgets and forecasts that are speculative and are subject to a variety of contingencies and may not be appropriate for other purposes. Accordingly, these estimates are not to be relied upon as indicative of future results. Except as required by applicable securities laws, the Corporation undertakes no obligation to update such financial outlook, whether as a result of new information, future events or otherwise. The financial outlook contained in this AIF was made as of the date of this AIF and was provided for the purpose of providing further information about the Corporation's potential future business operations. Readers are cautioned that the financial outlook contained in this AIF is not conclusive and is subject to change.

As a Canadian corporation listed on the NYSE, we are not required to comply with most of the NYSE's corporate governance standards and, instead, may comply with Canadian corporate governance practices. We are, however, required to disclose the significant differences between our corporate governance practices and the requirements applicable to U.S. domestic companies listed on the NYSE. Except as summarized on our website at www.baytexenergy.com, we are in compliance with the NYSE corporate governance standards.

The Corporation continues to qualify as a foreign private issuer for the purposes of its U.S. securities filings based on the most recent assessment performed as at June 30, 2024. The Corporation is required to reassess this conclusion annually, at the end of the second quarter. See "Risk Factors – The Corporation could lose its status as a "foreign private issuer" in the United States, which may result in additional compliance costs and restricted access to capital markets.

Any document referred to in this AIF and described as being accessible on the SEDAR+ website at www.sedarplus.ca or on EDGAR at www.sec.gov (including those documents referred to as being incorporated by reference in this AIF) may be obtained free of charge from us at Suite 2800, Centennial Place, East Tower, 520 - 3rd Avenue S.W., Calgary, Alberta, Canada, T2P 0R3.

Baytex Energy Corp. was incorporated on October 22, 2010 pursuant to the provisions of the ABCA. Baytex is the successor to the business of Baytex Energy Trust, which was transitioned to Baytex on December 31, 2010.

Our head and principal office is located at Suite 2800, Centennial Place, East Tower, 520 – 3rd Avenue S.W., Calgary, Alberta, Canada, T2P 0R3. Our registered office is located at 2400, 525 – 8th Avenue

S.W., Calgary, Alberta, Canada, T2P 1G1. The Common Shares are currently traded on the TSX and the NYSE under the symbol "BTE".

The following table provides the name, the percentage of voting securities owned by us and the jurisdiction of incorporation, continuance, formation or organization of our material subsidiaries either, direct or indirect, as at the date hereof.

The following simplified diagram shows the inter-corporate relationships among us and our material subsidiaries as of the date hereof.

Commodity prices were strong throughout the year; they increased during the first half of the year due to uncertainty surrounding global energy security and then retreated as a result of concerns over high inflation and slowing economic activity. The price for WTI averaged US$94.23/bbl for the year.

In February 2022, as a result of Baytex's significantly improved financial position, we announced an intent to allocate approximately 25% of annual free cash flow to direct shareholder returns through a share buyback with the remainder of free cash flow continuing to be allocated to debt reduction.

On April 1, 2022 we amended our Credit Facilities to, among other things, extend the term by two years to April 2026 and increase the aggregate principal amount available thereunder to US$850 million.

On May 2, 2022 we announced the approval of an NCIB allowing us to purchase up to 56,300,143 Common Shares during the 12-month period commencing May 9, 2022 and ending May 8, 2023. During the year ended December 31, 2022 we repurchased 24.3 million Common Shares at an average price of $6.54 per Common Share. In connection with the NCIB, we entered into an automatic share purchase plan with RBC Dominion Securities Inc. ("RBC") allowing RBC to purchase Common Shares under the

NCIB when the Corporation would ordinarily not be permitted to purchase Common Shares due to regulatory restrictions and customary self-imposed blackout periods.

On June 1, 2022 we redeemed and canceled our remaining US$200 million of 2024 Notes. During the year we also made open market repurchases of US$90 million of 2027 Notes.

Effective November 4, 2022 the Board of Directors appointed Mr. Eric Greager to the position of President and Chief Executive Officer and as a Director, replacing Mr. LaFehr. Mr. LaFehr concurrently resigned as a Director, but remained as an advisor to the Board and to the President and Chief Executive Officer until February of 2023.

On November 17, 2022 we announced that Mr. Chad Kalmakoff was promoted to Chief Financial Officer of the Corporation from his previous position of Vice President, Finance, replacing Mr. Rodney Gray. Mr. Rodney Gray concurrently resigned as Executive Vice President and Chief Financial Officer.

On December 7, 2022 we announced our anticipated 2023 exploration and development expenditures range of $575-650 million designed to generate average annual production of 86,000-89,000 boe/d. We also announced that once the Corporation's net debt(1) decreased to $800 million we would increase direct shareholder returns to 50% of free cash flow and an ultimate debt target.

Oil prices were lower in 2023 as a result of global supply growth which resulted in a balanced crude market relative to 2022 when prices were elevated as the global supply shortfall was exacerbated by uncertainty related to Russian supply. The price for WTI averaged US$77.62/bbl for the year.

On February 8, 2023 the Board of Directors appointed Ms. Angela S. Lekatsas as a Director and announced that Mr. Gregory Melchin did not intend to stand for election at the next annual meeting of shareholders.

On February 23, 2023 the Common Shares commenced trading on the NYSE.

On February 28, 2023 Baytex announced its intention to acquire Ranger by way of the Merger. The Merger was completed on June 20, 2023 pursuant to the agreement and plan of merger dated February 27, 2023, as amended from time to time, between Baytex, Ranger and Ranger Sub. As consideration under the Merger, Baytex issued approximately 311.4 million Common Shares and paid $732.8 million in cash to the former security holders of Ranger. Additionally, Baytex assumed CAD $1.1 billion of Ranger's net debt. The cash portion of the Merger was funded with the Corporation's expanded US$1.1 billion revolving Credit Facility, a US$150 million two-year term loan facility and the net proceeds from the issuance of US$800 million 2030 Notes. The term loan facility was fully repaid and cancelled in August of 2023.

The Merger increased our Eagle Ford scale and provided an operating platform to effectively allocate capital across the Western Canadian Sedimentary Basin and the Eagle Ford. Production from the Ranger assets is approximately 80% weighted towards high netback light oil and liquids.

(1)Capital management measure. See "Specified Financial Measures" in the Baytex Annual 2024 MD&A for information related to this measure, which section has been incorporated by reference herein. The Baytex Annual 2024 MD&A is available on SEDAR+ at www.sedarplus.ca.

In conjunction with closing of the Merger, we increased direct shareholder returns to 50% of free cash flow, which allowed us to increase the value of our share buyback program and introduce a dividend. The remainder of our free cash flow was allocated to debt reduction. On June 23, 2023 we announced the renewal of our NCIB allowing us to purchase up to 68,417,028 Common Shares during the 12-month period commencing June 29, 2023 and ending June 28, 2024. In 2023, we returned approximately $260 million to shareholders through our share buyback program and dividends. As at December 31, 2023, we had repurchased 40.5 million Common Shares under the NCIB for approximately $222 million, representing 4.7% of our issued and outstanding Common Shares, at an average price of $5.48 per Common Share. In addition, during 2023, we declared two quarterly dividends of $0.0225 per Common Share, totaling approximately $38 million.

On closing of the Merger, Jeffrey E. Wojahn and Tiffany ("T.J.") Thom Cepak were appointed to the Board of Directors, providing continuity and experience with the Ranger business and expertise in U.S. regulatory and operating matters.

On November 27, 2023, we announced that we had entered into a definitive agreement to sell certain of our Viking assets located at Forgan and Plato in southwest Saskatchewan (the "Sold Viking Assets"), effective October 1, 2023. On December 11, 2023, we completed the divestiture of the Sold Viking Assets for proceeds of $159.7 million, including closing adjustments. Proceeds from the sale were applied against our Credit Facilities. Production from the Sold Viking Assets at the time of the sale was approximately 4,000 boe/d (100% light and medium crude oil).

On December 6, 2023 we announced our anticipated 2024 exploration and development expenditures range of $1.2 to $1.3 billion, which was designed to generate average annual production of 150,000-156,000 boe/d.

On April 1, 2024, we closed a private offering of the 2032 Notes having an aggregated principal amount of US$575 million due 2032. Proceeds from the 2032 Notes were used to redeem the remaining US$409.8 million aggregate principal amount of the outstanding 2027 Notes, pay fees and expenses associated with the offering, and repay a portion of the debt outstanding on our Credit Facilities.

On April 22, 2024 we received an exemption order allowing Baytex to purchase up to ten percent (increased from five percent) of its public float of common shares through the NYSE and other U.S.-based trading systems as a part of an approved NCIB. The exemption is in place until August 1, 2025. On June 26, 2024 we announced the renewal of our NCIB allowing us to purchase up to 70,112,570 Common Shares during the 12-month period commencing July 2, 2024 and ending July 1, 2025.

On May 9, 2024 we amended our Credit Facilities to, among other things, extend the term by two years to May 2028 and maintained the aggregate principal amount available thereunder of US$1.1 billion.

In 2024, we returned approximately $290 million to shareholders through our share buyback program and dividends. During 2024, we repurchased 48.4 million common shares under our NCIB at an average price of $4.50 per share for total consideration of $217.9 million. In addition, we declared four quarterly dividends of $0.0225 per Common Share, totaling approximately $72 million.

On December 3, 2024 we announced our anticipated 2025 exploration and development expenditure range of $1.2 to $1.3 billion, which is designed to generate average annual production of 150,000-154,000 boe/d.

On December 20, 2024 we announced the sale of our Kerrobert thermal asset located in southwest Saskatchewan (the "Sold Kerrobert Asset") for net proceeds of approximately $42 million, including closing adjustments. Proceeds from the sale were applied against our Credit Facilities. Production from the Sold Kerrobert Assets at the time of the sale was approximately 2,000 boe/d (100% heavy oil). To reflect the disposition, we updated our 2025 production guidance to 148,000 to 152,000 boe/d.

We are engaged in the acquisition, development and production of crude oil and natural gas in the Western Canadian Sedimentary Basin and the Eagle Ford in the United States. Approximately 85% of our production is weighted toward crude oil and NGLs. The Corporation and its predecessors have been in business for more than 30 years and our operating teams are well established with a track record of technical proficiency and operational success. Throughout our history we have endeavoured to create value for our stakeholders by developing our assets and completing selective acquisitions and divestitures.

Baytex is in the oil and natural gas industry, which is highly competitive and capital intensive, and many competitors have financial resources which exceed our own. Baytex competes with other companies for all of its business inputs, including development prospects, access to commodity markets, acquisition opportunities, available capital and staffing. Our asset base is somewhat unique in that we have significant oil and gas assets in both Canada and the United States; however, on the whole, our competitive position is similar to that of other oil and natural gas producers of a similar size and production profile. See Industry Conditions and Risk Factors.

We have an active program to monitor and comply with all environmental laws, rules and regulations applicable to our operations. Our policies require that all employees and contractors report all breaches or potential breaches of environmental laws, rules and regulations to our senior management and all applicable governmental authorities. Any material breaches of environmental law, rules and regulations must be reported to the Board of Directors. Our Health, Safety and Environment Policy is available on our website at www.baytexenergy.com.

In recognition of the importance of our Health, Safety and Environment Policy and targets, including our GHG and methane emission intensity reduction targets, the mandate of the reserves and sustainability committee of the Board of Directors includes specific responsibility for the "oversight and monitoring of the Corporation’s performance related to health, safety, environment, climate and other sustainability matters."

We published our first Corporate Responsibility Report in 2012 and published our seventh report in July of 2023. These reports detailed our efforts and performance regarding people, the environment, our community and stakeholders, and responsible business practices. Following the enactment of Bill C-59 which amended Canada's Competition Act we ceased the publication of our sustainability results and are limiting our public statements with respect to our sustainability objectives and performance.

See "Industry Conditions" and "Risk Factors".

Our operational results and financial condition are dependent on the prices received for our oil and natural gas production. Oil and natural gas prices have fluctuated widely during recent years. Such prices are determined by supply and demand factors, including weather and general economic conditions, as well as conditions in other oil and natural gas regions. Any decline in oil and natural gas prices could have an adverse effect on our financial condition. We mitigate such price risk by closely monitoring commodity markets, implementing our risk management programs and by maintaining financial liquidity. Additionally, we continually review our capital program and implement initiatives to adapt to such price changes. See "Industry Conditions" and "Risk Factors".

The level of activity in the oil and gas industry is dependent on access to areas where operations are conducted. In Canada, seasonal weather variations, including spring break-up which occurs annually, affects access in certain circumstances. In Canada and the United States, unexpected adverse weather conditions, such as flooding, extreme cold weather, heavy snowfall, heavy rainfall, hurricanes, and forest fires may restrict the Corporation's ability to access its properties and/or operate its wells. See "Industry Conditions" and "Risk Factors".

As at the date hereof, we do not anticipate that any aspects of our business will be materially affected during the remainder of 2025 by the renegotiation or termination of any contracts to which we are a party.

As at December 31, 2024, Baytex had 370 employees, comprised of 168 employees in our Calgary office, 67 employees in our Houston office, 58 employees in our Canadian field operations and 77 employees in our US field operations.

The following is a description of our principal oil and natural gas properties on production or under development as at December 31, 2024. Unless otherwise specified, gross and net acres and well count information are as at December 31, 2024 and production information represents average working interest production for the year ended December 31, 2024. All of our properties are located onshore.

Our Eagle Ford assets are located in the Eagle Ford shale of South Texas and are comprised of operated assets and non-operated assets. Our operated assets were acquired through the Ranger Merger and are comprised of operated working interests in approximately 190,939 (166,192 net) acres located principally in the Gonzales, Lavaca, Fayette and Dewitt counties with an average working interest of approximately 88%. Our non-operated assets include working interests in approximately 78,212 (19,931 net) acres, comprised of four areas of mutual interest principally located in Karnes County (Sugarloaf, Longhorn, Ipanema and Excelsior) with an average working interest of approximately 25%. Our non-operated position is operated by an operating subsidiary of ConocoPhillips Company (NYSE: COP), pursuant to the terms of industry-standard joint operating agreements, joint venture agreements with non-AMI working interest holders where wells produce from AMI and non-AMI lands as well as negotiated agreements with ConocoPhillips and other working interest owners related to facilities, marketing and supplemental development. Production from our Eagle Ford assets occurs from the hydraulic fracturing of horizontal wells.

During 2024, production from the Eagle Ford assets averaged approximately 89,100 boe/d, comprised of 72,291 bbl/d of light and medium crude oil (including condensate and NGL) and 100,850 Mcf/d of shale gas. During this period, Baytex participated in the completion of 111 (63.7 net) wells, resulting in 89 (49.7 net) oil wells and 22 (14.0 net) natural gas wells. As at December 31, 2024, our proved plus probable reserves were 401 million boe (277 million proved; 124 million probable).

As at December 31, 2024, the undeveloped land base associated with the Eagle Ford assets consisted of 24,244 net acres.

In the Peace River area of northwest Alberta we produce heavy gravity crude oil and natural gas from the Bluesky formation and heavy gravity crude oil from the Spirit River (a Clearwater equivalent) formation. The core of our developing Clearwater play is located on the Peavine Métis settlement. Production in the area occurs through primary and polymer flooding recovery methods. During 2024, production from the area averaged approximately 30,320 boe/d, comprised of 28,491 bbl/d of heavy crude oil, 47 bbl/d of NGL and 10,691 Mcf/d of conventional natural gas. In 2024, Baytex drilled 42 (42.0 net) horizontal multi-lateral wells in this area. As at December 31, 2024, we had proved plus probable reserves of 56 million boe (34 million proved; 22 million probable).

Baytex held approximately 287,660 net undeveloped acres in this area as at December 31, 2024.

Our Lloydminster assets consist of several geographically dispersed heavy crude oil operations that include primary and thermal production. In some cases, Baytex's heavy crude oil reservoirs are water flooded and polymer flooded. In 2024, production averaged approximately 13,383 boe/d, which was comprised of 10,819 bbl/d of heavy crude oil, 2,301 bbl/d of bitumen, 15 bbl/d of light and medium crude oil, and 1,491 Mcf/d of conventional natural gas. In 2024, Baytex drilled 41 (40.2 net) oil wells in this area. As at December 31, 2024, we had proved plus probable reserves of 81 million boe (23 million proved; 58 million probable).

We held approximately 181,450 net undeveloped acres in this area at December 31, 2024.

Baytex holds a large 100% working interest land position in the East Duvernay resource play in central Alberta. Production in the area occurs from the hydraulic fracturing of horizontal wells. In 2024, production averaged 6,113 boe/d, comprised of 4,996 bbl/d of light crude oil and NGL and 6,700 Mcf/d of conventional natural gas. During 2024, Baytex drilled 7 (7.0 net) oil wells. As at December 31, 2024, we had proved plus probable reserves of 66 million boe (38 million proved; 28 million probable) and net undeveloped lands of approximately 55,039 net acres.

Our Viking assets are located in the greater Dodsland area in southwest Saskatchewan and in the Esther area of southeastern Alberta. These assets were acquired through a business combination with Raging River Exploration Inc. in 2018 and produce light oil from the Viking formation. Production in the area occurs primarily from the hydraulic fracturing of horizontal wells. In some areas, reservoirs are placed under waterflood. In 2024, the Viking assets produced 10,589 boe/d, comprised of 8,904 bbl/d of light and medium crude oil and NGL, 10,075 Mcf/d of conventional natural gas, and 6 bbl/d of heavy crude oil. These assets are characterized by shallow wells with short cycle times and a manufacturing approach to development. In 2024, Baytex completed 95 (94.9 net) oil wells. As at December 31, 2024 we had proved plus probable reserves of 43 million boe (27 million proved; 16 million probable).

The undeveloped land base associated with the retained Viking assets consisted of 70,226 net acres at December 31, 2024.

The following table indicates our average daily production from our principal properties for the year ended December 31, 2024.

Note:

(1)Includes condensate.

The following table summarizes the property acquisition, exploration and development costs by country for the year ended December 31, 2024.

Notes:

(1)Development and facilities expenditures.

The following table sets forth the number and status of wells in which we have a working interest as at December 31, 2024.

The following table sets forth our undeveloped land holdings as at December 31, 2024.

Undeveloped land holdings are lands that have not been assigned reserves as at December 31, 2024. None of these undeveloped properties have high expected development or operating costs or contractual sales obligations to produce and sell at substantially lower prices than could be realized under normal market conditions.

We estimate the value of our net undeveloped land holdings at December 31, 2024 to be approximately $251 million, as compared to $248 million as at December 31, 2023. This internal evaluation generally represents the estimated replacement cost of our undeveloped land and excludes approximately 12,171 net acres of our undeveloped land that we expect to expire on or before December 31, 2025. In determining replacement cost, we analyzed land sale prices paid at provincial crown land sales for properties in the vicinity of our undeveloped land holdings over the preceding three years.

Baytex does not expect to pay material cash income taxes prior to 2026 in both the U.S. and Canada when forecasted using the commodity price forecasts and inflation rates as of January 1, 2025 used to prepare the Reserves Report.

Despite this tax horizon, Baytex is subject to other taxes, such as taxes related to the repatriation of foreign earnings, certain U.S. state taxes, global minimum taxes, capital taxes and taxes on share buy backs (together, the “Other Taxes”).

Other Taxes amounted to $26 million in 2024 or 1% of EBITDA(1). Baytex forecasts that Other Taxes will amount to 1% of EBITDA during 2025 and that income and Other Taxes combined will rise as a percentage of EBITDA from 2026 onwards, averaging 10 - 15% once available non-capital loss pools are fully utilized, and the full tax horizon is reached.

(1)Calculated in accordance with our amended credit facilities agreement which is available on SEDAR+ at www.sedarplus.ca.

The following table sets forth the gross and net exploratory and development wells in which we participated during the year ended December 31, 2024.

The following table sets out the volumes of our working interest production estimated for the year ending December 31, 2025, which is reflected in the estimate of future net revenue disclosed in the forecast price tables contained under "Statement of Reserves Data - Disclosure of Reserves Data".

Note:

(1)Includes condensate.

The Eagle Ford property is the only property that accounts for 20% or more of the estimated 2025 production volumes. Estimated 2025 production volumes for the Eagle Ford property is 78,635 boe/d on a total proved basis and 83,692 boe/d on a total proved plus probable basis.

The following table summarizes certain information in respect of the production, product prices received, royalties paid, production costs and resulting netback associated with our reserves data for the periods indicated below.