Baytex Energy Corp. has unveiled its 2026 capital spending plans, approving a budget in the range of $550 million to $625 million to support exploration, development and infrastructure activities aimed at increasing output and strengthening its operations. The company says this level of investment is designed to generate production growth of roughly 3 per cent to 5 per cent compared with 2025, reflecting a focus on disciplined growth and operational flexibility.

Under the 2026 plan, Baytex expects average annual production of around 67,000 to 69,000 barrels of oil equivalent per day (boe/d), with output targeted to reach about 70,000 boe/d by year-end. The planned capital program is split broadly between light oil and heavy oil assets, with approximately 55 per cent of exploration and development expenditures directed to light oil and 45 per cent going to heavy oil operations.

Baytex’s strategic priorities for the year include advancing key projects in established resource plays such as the Pembina Duvernay, where infrastructure build-outs and well development are expected to support longer-term production growth. The company also plans significant activity in northeast Alberta’s Mannville heavy oil region, with infrastructure investments and a large program of planned wells aimed at unlocking value from its extensive land position.

Part of the capital budget is allocated to infrastructure and support systems, including investment in gathering systems, oil battery facilities and fluid-handling capacity, which are intended to improve operational efficiency and help facilitate expansion in targeted resource areas. Growth-oriented portions of the plan include drilling activity and land acquisitions that position Baytex to sustain development into later years.

The company also announced a leadership update, with Chad Lundberg being elevated to the role of president while retaining his duties as chief operating officer, working alongside CEO Eric Greager to execute the 2026 strategy and broader growth objectives.

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Baytex’s capital budgeting reflects its transition to a more focused Canadian energy producer after recent asset sales, with efforts to balance production growth, financial discipline, and shareholder returns. The flexible nature of the spending plan — including staging about 45 per cent of expenditures in the first half of the year — allows the company to adjust activity based on commodity prices and market conditions.

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Overall, Baytex’s 2026 budget underscores a commitment to steady production increases and portfolio optimization, supporting its position in the Canadian oil and gas sector as it moves into the next phase of growth.