 CALGARY, Alberta, July 29, 2020 GLOBE NEWSWIRE -- Baytex Energy Corp. BaytexTSX, NYSE: BTE reports its operating and financial results for the three and six months ended June 30, 2020 all amounts are in Canadian dollars unless otherwise noted. During the second quarter we took decisive steps to adjust our business model in the face of extremely volatile crude oil markets. We are now starting to benefit from the actions we have taken as we generated positive free cash flow during the quarter and maintained approximately 300 million of financial liquidity. We restarted approximately 80 of the previously announced shut-in volumes, which we expect will positively impact our adjusted funds flow for the remainder of the year, commented Ed LaFehr, President and Chief Executive Officer.Q2 2020 Highlights Generated production of 72,508 boed 81 oil and NGL, consistent with our previously announced guidance range for the second quarter of 72,000 to 73,000 boed. Delivered adjusted funds flow of 18 million 0.03 per basic share. Realized an operating netback inclusive of realized financial derivatives gain of 8.02boe. Reduced net debt by 57 million as the Canadian dollar strengthened relative to the U.S. dollar and we generated positive free cash flow of 6 million. Maintained undrawn credit capacity of 363 million and liquidity, net of working capital, of approximately 300 million. Achieved a 15 reduction in our GHG emissions intensity in 2019 and remain committed to our 30 target by the end of 2021.2020 OutlookWe continue to forecast annual capital spending of 260 to 290 million, an approximate 50 reduction from our original plan of 500 to 575 million. With this revised capital program, we suspended drilling operations in Canada and moderated the pace of activity in the Eagle Ford.We previously announced voluntary production shut-ins of approximately 25,000 boed. These volumes remained off-line for April and May. As operating netbacks improved in June, we initiated plans to bring approximately 80 of these volumes back on-line. At current commodity prices, the resumption of production from these previously shut-in barrels is expected to have a positive impact on our adjusted funds flow and improve our financial liquidity. For the second half of 2020, we currently project about 5,000 boed of heavy oil production to remain shut-in.On June 25, we revised our production guidance range for 2020 to 78,000 to 82,000 boed, from 70,000 to 74,000 boed previously, taking into account the production brought back on-line. Should operating netbacks change, we have the ability to shut-in additional volumes or restart wells in short order.We remain intensely focused on driving further efficiencies to capture or sustain cost reductions identified during this downturn, while protecting the health and safety of our personnel. Three Months EndedSix Months Ended June 30, 2020 March 31, 2020 June 30, 2019 June 30, 2020 June 30, 2019 FINANCIAL thousands of Canadian dollars, except per common share amounts Petroleum and natural gas sales152,689 336,614 482,000 489,303 935,424 Adjusted funds flow 117,887 132,935 236,130 150,822 456,900 Per share - basic0.03 0.24 0.42 0.27 0.82 Per share - diluted0.03 0.24 0.42 0.27 0.82 Net income loss138,463 2,498,217 78,826 2,636,680 90,162 Per share - basic0.25 4.46 0.14 4.71 0.16 Per share - diluted0.25 4.46 0.14 4.71 0.16 Capital Expenditures Exploration and development expenditures 19,852 176,777 106,246 186,629 260,089 Acquisitions, net of divestitures11 40 1,647 51 1,647 Total oil and natural gas capital expenditures9,841 176,737 107,893 186,578 261,736 Net Debt Bank loan 2704,135 678,740 414,691 704,135 414,691 Long-term notes 21,225,395 1,270,800 1,543,645 1,225,395 1,543,645 Long-term debt1,929,530 1,949,540 1,958,336 1,929,530 1,958,336 Working capital deficiency65,423 102,077 70,350 65,423 70,350 Net debt 11,994,953 2,051,617 2,028,686 1,994,953 2,028,686 Shares Outstanding - basic thousands Weighted average560,512 559,804 556,599 560,158 556,022 End of period560,545 560,483 556,798 560,545 556,798 BENCHMARK PRICES Crude oil WTI USbbl27.85 46.17 59.81 37.01 57.36 MEH oil USbbl26.40 49.54 66.37 37.97 63.42 MEH oil differential to WTI USbbl1.45 3.37 6.56 0.96 6.06 Edmonton par bbl29.85 51.43 73.84 40.64 70.19 Edmonton par differential to WTI USbbl6.31 7.92 4.61 7.24 4.72 WCS heavy oil bbl22.70 34.48 65.73 28.68 61.17 WCS differential to WTI USbbl11.47 20.53 10.68 16.00 11.48 Natural gas NYMEX USmmbtu1.72 1.95 2.64 1.83 2.89 AECO mcf1.91 2.14 1.17 2.03 1.56 CADUSD average exchange rate1.3860 1.3445 1.3376 1.3653 1.3334 Three Months EndedSix Months Ended June 30, 2020 March 31, 2020 June 30, 2019 June 30, 2020 June 30, 2019 OPERATING Daily Production Light oil and condensate bbld38,951 45,717 42,585 42,333 43,809 Heavy oil bbld11,832 28,854 27,320 20,343 27,107 NGL bbld7,634 7,822 10,986 7,728 11,356 Total liquids bbld58,417 82,393 80,891 70,404 82,272 Natural gas mcfd84,546 96,356 105,065 90,451 104,874 Oil equivalent boed 6:1 372,508 98,452 98,402 85,479 99,751 Netback thousands of Canadian dollars Total sales, net of blending and other expense 4147,229 315,257 461,110 462,486 897,746 Royalties29,156 56,720 86,617 85,876 167,942 Operating expense73,680 104,470 100,474 178,150 200,766 Transportation expense5,031 10,342 11,869 15,373 25,199 Operating netback 139,362 143,725 262,150 183,087 503,839 General and administrative7,438 9,775 11,506 17,213 25,642 Cash financing and interest27,387 28,535 28,092 55,922 56,276 Realized financial derivatives gain13,624 26,850 12,993 40,474 31,807 Other 5274 670 585 396 3,172 Adjusted funds flow 117,887 132,935 236,130 150,822 456,900 Netback per boe Total sales, net of blending and other expense 422.31 35.19 51.49 29.73 49.72 Royalties4.42 6.33 9.67 5.52 9.30 Operating expense11.17 11.66 11.22 11.45 11.12 Transportation expense0.76 1.15 1.33 0.99 1.40 Operating netback 15.96 16.05 29.27 11.77 27.90 General and administrative1.13 1.09 1.28 1.11 1.42 Cash financing and interest4.15 3.19 3.14 3.59 3.12 Realized financial derivatives gain2.06 3.00 1.45 2.60 1.76 Other 50.03 0.07 0.07 0.02 0.19 Adjusted funds flow 12.71 14.84 26.37 9.69 25.31 Notes: 1. The terms adjusted funds flow, exploration and development expenditures, net debt and operating netback do not have any standardized meaning as prescribed by Canadian Generally Accepted Accounting Principles GAAP and therefore may not be comparable to similar measures presented by other companies where similar terminology is used. See the advisory on non-GAAP measures at the end of this press release. 2. Principal amount of instruments. The carrying amount of debt issue costs associated with the bank loan and long-term notes are excluded on the basis that these amounts have been paid by Baytex and do not represent an additional source of capital or repayment obligations. 3. Barrel of oil equivalent boe amounts have been calculated using a conversion rate of six thousand cubic feet of natural gas to one barrel of oil. The use of boe amounts may be misleading, particularly if used in isolation. A boe conversion ratio of six thousand cubic feet of natural gas to one barrel of oil is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. 4. Realized heavy oil prices are calculated based on sales dollars, net of blending and other expense. We include the cost of blending diluent in our realized heavy oil sales price in order to compare the realized pricing on our produced volumes to the WCS benchmark. 5. Other is comprised of realized foreign exchange gain or loss, other income or expense, and current income tax expense or recovery. Refer to the Q22020 MDA for further information on these amounts. Q22020 ResultsDuring the second quarter we took decisive steps to adjust our business plan in the face of extremely volatile crude oil markets. In addition to voluntarily shutting-in production, we suspended drilling operations in Canada and moderated our pace of activity in the Eagle Ford. As a result, exploration and development spending totaled a modest 10 million during the second quarter. Production during the second quarter averaged 72,508 boed 81 oil and NGL, as compared to 98,452 boed 83 oil and NGL in Q12020. Production in Canada averaged 37,691 boed 83 oil and NGL, as compared to 62,262 boed in Q12020, while production in the Eagle Ford averaged 34,817 boed 77 oil and NGL, as compared to 36,190 boed in Q12020. Our second quarter production was reduced by approximately 20,000 boed due to the voluntary shut-ins.We delivered adjusted funds flow of 18 million 0.03 per basic share in Q22020 and generated an operating netback of 5.96boe 8.02boe inclusive of realized financial derivatives gain. The Eagle Ford generated an operating netback of 10.05boe and our Canadian operations generated an operating netback of 2.19boe. 