• Baytex Energy Corp.
  • BTE (TSX)
  • Baytex Energy Corp.
  • BTE (NYSE)
  • Baytex Energy Corp.
Baytex Energy Corp.

FAQs

  

General Frequently Asked Questions

How is Baytex different from other oil and gas companies?

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At Baytex, we offer sector-leading capital efficiencies and robust asset level returns across all three core resource plays. Approximately 83% of our production and 84% of our reserves are derived from crude oil and liquids. We have amassed a significant inventory of long-term, low cost development projects, most notably in the Eagle Ford in Texas, the Peace River area of northwest Alberta, the Viking light oil area, the East Duvernay shale light oil in Alberta and our Lloydminster heavy oil region. 

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What is Baytex's hedging policy?

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Baytex manages its exposure to a variety of risks arising directly or indirectly in the conduct of its business, including commodity prices, foreign exchange rates and interest rates. Pursuant to its Risk Management Policy, management of Baytex is authorized to enter into transactions covering, in aggregate, up to 60% of its exposure to the risk being managed. Transactions in excess of this level must be pre-authorized by the Board of Directors. In addition, Baytex actively employs risk mitigation strategies to maximize the profitability of its heavy oil production, including an expanded use of crude by rail which allows us to deliver our heavy oil to higher netback markets. 

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How can I receive regular investor information?

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To automatically receive news alerts, financial reports and other regulatory filings, click here to enter your name and email information.  Please note that you may remove yourself from our mailing list at any time. 

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Common Shares Frequently Asked Questions

What are the risk factors of holding Baytex's common shares?

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Baytex is subject to numerous risks including commodity prices, production levels, global energy production and policy, political conditions, currency fluctuations and weather conditions. For a more detailed description of these risks, see the section of our Annual Information Form (page 11) entitled "Risk Factors". Click here to access this document.

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Can I purchase common shares directly from Baytex?

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Common shares cannot be purchased directly from Baytex. You must contact your broker or other financial intermediary in order to purchase our common shares, which are traded on the Toronto Stock Exchange and the New York Stock Exchange (under the trading symbol BTE).

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What is Baytex's stock symbol and where do its common shares trade?

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Baytex’s common shares trade on the Toronto Stock Exchange and the New York Stock Exchange under the symbol BTE. 
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Tax Frequently Asked Questions

What are the tax implications of owning Baytex's common shares?

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The information contained herein is intended to be a general guideline and not an exhaustive discussion of all possible income tax consequences. It is not intended to constitute legal or tax advice to any holder or potential holder of common shares. Holders or potential holders of common shares should consult their own legal or tax advisors as to their particular tax consequences of holding common shares.

 

a. Canadian non-taxable accounts (registered accounts including RRSP accounts)
Investors holding Baytex common shares in TFSAs, RRSPs, RRIFs, RESPs or DPSPs should not need to report any amount for capital gains or income from dividends on their Canadian personal tax return.

 

b. Canadian taxable accounts (non-registered accounts)
Since conversion to a corporation on December 31, 2010, all dividends paid by Baytex Energy Corp. have been designated as “eligible dividends” for Canadian income tax purposes.  This designation will continue to apply until a notification of change is posted on this website..

 

c. US non-taxable accounts
No amounts are generally required to be reported as taxable income where Baytex common shares are held within a qualified retirement plan. For non-residents of Canada, dividends from Canadian corporations are generally subject to a 25% tax withheld at source. Under the terms of the Canada/US income tax treaty, US Shareholders that hold their common shares in tax-exempt accounts are eligible for 0% withholding tax on cash dividends paid on their common shares. For more information on applying for tax-exempt status, see the FAQ below titled "Is it possible for US Shareholders holding common shares in tax-exempt accounts to pay no Canadian withholding tax on their cash dividends?"

 

d. US taxable accounts

Baytex is of the view that its dividends meet the criteria for “qualified dividends”. There are certain individual circumstances where the dividends may not be qualified dividends, such as circumstances where the shareholder does not meet a holding period test.  Where these circumstances apply, the dividends are to be reported as “ordinary dividends.”
Information relating to dividends paid by Baytex is provided annually on Form 1099-DIV.  Registered U.S. resident shareholders will receive this form from our transfer agent, Valiant Trust Company, who can be reached directly at 1-866-313-1873.  Non-registered U.S. resident shareholders will receive their Form 1099-DIV from their broker and not from Baytex or our transfer agent.  We strongly recommend you obtain advice from your tax advisor about the tax treatment of the dividends you receive.
Under Canadian tax legislation, dividends paid by Baytex to non-residents of Canada are subject to a withholding tax.  The withholding rate is 25% and may be reduced to 15% under the Canada/US income tax treaty (“Treaty”).  The Canada Revenue Agency requires that brokers obtain certain information from shareholders in order to determine the appropriate rate of withholding.
Registered, non-resident shareholders whose names appear on the records of the registrar and transfer agent of Baytex are mailed a form by Baytex’s transfer agent requesting this information. Until such form is completed and returned to Baytex’s transfer agent, the reduced Treaty rate of 15% will not be applied when determining the amount of withholding tax.
Non-registered, non-resident shareholders’ eligibility for any applicable Treaty rate will be determined by each shareholder’s broker and not by Baytex or its transfer agent. Certain brokers may require additional information or certifications in order to determine a non-resident shareholder’s eligibility for the reduced Treaty rate. Non-resident, non-registered shareholders are encouraged to contact their brokers or other tax, legal or financial advisors in the event that they have any questions or concerns in this regard. The withholding tax may be recovered in whole or in part as a foreign tax credit or a foreign tax deduction.
At the end of the year, U.S. resident shareholders receive a Form 1099-DIV which includes information about withholding tax paid to Canada during the year.

 


Is it possible for US shareholders holding common shares in tax-exempt accounts to pay no Canadian withholding tax on their cash dividends?

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US shareholders that hold their common shares in tax-exempt accounts are eligible for 0% withholding tax on cash dividends paid on their common shares. The process for qualifying for 0% withholding tax is dependent on whether you are a beneficial or registered shareholder.


Beneficial Shareholders

  • A shareholder who holds their common shares through a broker, investment dealer, financial institution or other nominee is a beneficial shareholder.
  • For US beneficial shareholders holding common shares in a tax-exempt account, Baytex is required to withhold tax and remit such amount to the Canada Revenue Agency. The US shareholder can subsequently apply to the Canada Revenue Agency for a refund of the Canadian withholding tax paid. See the next FAQ for information on how to apply for a refund of Canadian withholding tax.

Registered Shareholders

  • A shareholder who holds a physical share certificate to evidence their ownership of common shares is a registered shareholder. 
  • To qualify for 0% Canadian withholding tax, a registered shareholder in the US must apply to the Canada Revenue Agency for a tax-exempt status letter. For information on how to obtain a tax-exempt status letter, please contact the International Tax Services Office at Canada Revenue Agency by telephone at 1-800-267-3395, by fax at 613-941-6905 or by clicking the following link to their website: https://www.canada.ca/en/revenue-agency.html
  • Once obtained, the tax-exempt status letter should be delivered to our transfer agent at the following address:
    Computershare Trust Company of Canada
    Attention: Tax Department
    100 University Ave, 8th Floor
    Toronto, ON M5J 2Y1
  • Should the registered shareholder have their tax-exempt status withdrawn by Canada Revenue Agency, they are required to immediately advise our transfer agent, Valiant Trust Company.
The information contained herein is intended to be a general guideline and not an exhaustive discussion of all possible income tax consequences. It is not intended to constitute legal or tax advice to any holder or potential holder of common shares. Holders or potential holders of common shares should consult their own legal or tax advisors as to their particular tax consequences of holding common shares.

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Is it possible for US shareholders holding common shares in a tax-exempt account to get a refund of Canadian withholding tax previously paid?

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Beneficial Shareholders

  • For US beneficial shareholders holding common shares in a tax-exempt account, Baytex is required to withhold tax and remit such amount to the Canada Revenue Agency.
  • To obtain a refund of the Canadian withholding tax (i.e., Part XIII tax) paid, the US beneficial shareholder should complete Form NR7-R “Application for Refund of Part XIII Tax Withheld” and file the form with Copy 3 of the NR4 supplementary (provided by your broker or other intermediary) with the Canada Revenue Agency at each calendar year end. Click the following link to access the Form NR7-R: http://www.cra-arc.gc.ca/E/pbg/tf/nr7-r/README.html
  • The Form NR7-R has to be filed with the Canada Revenue Agency no later than two years from the end of the calendar year in which the withholding tax was remitted.

Registered Shareholders

  • For US registered shareholders holding common shares in a tax-exempt account, Baytex is required to withhold tax and remit such amount to the Canada Revenue Agency until such time as such shareholder has submitted a copy of their tax-exempt status letter obtained from Canada Revenue Agency.
  • To obtain a refund of the Canadian withholding tax (i.e., Part XIII tax) paid, the US registered shareholder should complete Form NR7-R “Application for Refund of Part XIII Tax Withheld” and file the form with Copy 3 of the NR4 supplementary (to be provided by Valiant Trust Company) with the Canada Revenue Agency at each calendar year end. Click the following link to access the Form NR7-R: http://www.cra-arc.gc.ca/E/pbg/tf/nr7-r/README.html
  • The Form NR7-R has to be filed with the Canada Revenue Agency no later than two years from the end of the calendar year in which the withholding tax was remitted.
The information contained herein is intended to be a general guideline and not an exhaustive discussion of all possible income tax consequences. It is not intended to constitute legal or tax advice to any holder or potential holder of common shares. Holders or potential holders of common shares should consult their own legal or tax advisors as to their particular tax consequences of holding common shares.

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Operational Frequently Asked Questions

What is Baytex's production mix?

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For 2020, Baytex's production is expected to be 30% heavy oil, 54% light oil and natural gas liquids and 16% natural gas.

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What is Baytex's reserves life index?

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Baytex has an estimated reserves life index of 15.1 years for proved plus probable reserves based on our estimated reserves at December 31, 2019 and Q4 2019 actual production rate of 96,360 boe/d.

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Who evaluates Baytex's reserves?

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Baytex's year-end 2019 proved and probable reserves were evaluated by McDaniel & Associates Consultants Ltd. (“McDaniel”), an independent qualified reserves evaluator. All of our oil and gas properties were evaluated in accordance with National Instrument 51-101 “Standards of Disclosure for Oil and Gas Activities” (“NI 51-101”) and the Canadian Oil and Gas Evaluation Handbook (the “COGE Handbook”) using the average commodity price forecasts and inflation rates of McDaniel, GLJ Petroleum Consultants (“GLJ”) and Sproule Associates Limited (“Sproule”) as of January 1, 2020. Reserves associated with our thermal heavy oil projects at Peace River, Gemini (Cold Lake) and Kerrobert have been classified as bitumen. 

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Advisory Regarding Forward-Looking Statements

In the interest of providing Baytex's shareholders and potential investors with information regarding Baytex, including management's assessment of Baytex's future plans and operations, certain statements in this press release 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 press release speak only as of the date thereof and are expressly qualified by this cautionary statement.

Specifically, this press release contains forward-looking statements relating to but not limited to: our business strategies, plans and objectives; timing of the release 2019 fourth quarter and year-end audited financial and operating results and Annual Information Form and the contents thereof; preliminary unaudited financial and operating results; our risk management strategies; that we have strong drilling inventory of approximately ten years or more of in each of our core assets; our commitment to stable production, generation of free cash flow and further strengthening our balance sheet; that adjusted funds flow in excess of capital expenditures, lease payments and asset retirement obligations will be allocated to debt repayment; our 2020 capital program will be fully funded from adjusted funds flow at a WTI price of US$50/bbl; target production and exploration and development expenditures; corporate objectives; future development costs, F&D and FD&A; estimated net asset value; our reserves life index; the net present value before income taxes of the future net revenue attributable to our reserves; forecast prices for petroleum and natural gas; forecast inflation and exchange rates; the value of our undeveloped land holdings and our estimated net asset value. In addition, information and statements relating to reserves and contingent resources are deemed to be forward-looking statements, as they involve implied assessment, based on certain estimates and assumptions, that the reserves described exist in quantities predicted or estimated, and that they can be profitably produced in the future.

These forward-looking statements are based on certain key assumptions regarding, among other things: petroleum and natural gas prices and differentials between light, medium and heavy 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; estimated values for undeveloped acreage; 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 volatility of oil and natural gas prices and price differentials; availability and cost of gathering, processing and pipeline systems; failure to comply with the covenants in our debt agreements; the availability and cost of capital or borrowing; that our credit facilities may not provide sufficient liquidity or may not be renewed; risks associated with a third-party operating our Eagle Ford properties; the cost of developing and operating our assets; depletion of our reserves; risks associated with the exploitation of our properties and our ability to acquire reserves; new regulations on hydraulic fracturing; restrictions on or access to water or other fluids; changes in government regulations that affect the oil and gas industry; regulations regarding the disposal of fluids; changes in environmental, health and safety regulations; public perception and its influence on the regulatory regime; restrictions or costs imposed by climate change initiatives; variations in interest rates and foreign exchange rates; risks associated with our hedging activities; changes in income tax or other laws or government incentive programs; uncertainties associated with estimating oil and natural gas reserves; our inability to fully insure against all risks; risks of counterparty default; risks associated with acquiring, developing and exploring for oil and natural gas and other aspects of our operations; risks associated with large projects; risks related to our thermal heavy oil projects; alternatives to and changing demand for petroleum products; risks associated with our use of information technology systems; 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. These and additional risk factors are discussed in our Annual Information Form, Annual Report on Form 40-F and Management's Discussion and Analysis for the year ended December 31, 2018, filed with Canadian securities regulatory authorities and the U.S. Securities and Exchange Commission, our Annual Information Form, Annual Report on Form 40-F and Management's Discussion and Analysis for the year ended December 31, 2019 to be filed not later than March 30, 2020 and in our other public filings.

The above summary of assumptions and risks related to forward-looking statements has been provided in order to provide shareholders and potential investors with a more complete perspective on Baytex’s current and future operations and such information may not be appropriate for other purposes.

There is no representation by Baytex that actual results achieved will be the same in whole or in part as those referenced in the forward-looking statements. The forward-looking statements contained in this document are made as of the date hereof and Baytex does 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.