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BAYTEX ENERGY CORP . BAYTEX ANNOUNCES THIRD QUARTER 2021 FINANCIAL AND OPERATING RESULTS , FREE CASH FLOW OF $ 101 MILLION AND REPURCHASE OF LONG - TERM NOTES CALGARY , ALBERTA ( November 4 , 2021 ) - Baytex Energy Corp. ( " Baytex " ) ( TSX : BTE ) reports its operating and financial results for the three and nine months ended September 30 , 2021 ( all amounts are in Canadian dollars unless otherwise noted ) . " During the third quarter , we remain focused on strong capital discipline , generating free cash flow and reducing debt . We have already repurchased and cancelled US $ 200 million of our 2024 bonds this year and at current commodity prices we now expect to generate record levels of free cash flow in excess of $ 400 million . Our operating results continue to build momentum as we appraise and develop our Clearwater oil play at Peace River . We have some of the best results in all of the Clearwater , and will now drill four additional wells during the fourth quarter , which will enable us to accelerate our development plans in 2022 , " commented Ed LaFehr , President and Chief Executive Officer . Q3 2021 Highlights • • • Generated production of 79,872 boe / d ( 82 % oil and NGL ) in Q3 / 2021 and 79,942 boe / d ( 81 % oil and NGL ) for the first nine months of 2021 . Delivered adjusted funds flow of $ 198 million ( $ 0.35 per basic share ) in Q3 / 2021 and $ 531 million ( $ 0.94 per basic share ) for the first nine months of 2021 . Generated free cash flow of $ 101 million ( $ 0.18 per basic share ) in Q3 / 2021 and $ 284 million ( $ 0.50 per basic share ) for the first nine months of 2021 . Reduced net debt by $ 65 million during the third quarter and by $ 283 million through the first nine months of 2021 . Subsequent to quarter - end , repurchased and cancelled US $ 85 million principal amount of 5.625 % long - term notes , bringing the total repurchased and cancelled to US $ 200 million ( 50 % of the original principal amount outstanding ) . 2021 Outlook As a result of our strong operating performance through the first nine months of 2021 , we are tightening our production guidance to 79,500 to 80,000 boe / d , up from 79,000 to 80,000 boe / d , previously . We are intensely focused on maintaining capital discipline . The Clearwater has emerged as one of the most profitable plays in Canada and our 2021 appraisal program has delivered exceptional results . As a result , we will drill four additional Clearwater wells during the fourth quarter which are expected to be on - stream in late 2021. Accordingly , we are tightening our forecast 2021 exploration and development expenditures range to $ 300 to $ 315 million , as compared to $ 285 to $ 315 million , previously . At current commodity prices , we expect to deliver over $ 400 million ( $ 0.71 per basic share ) of free cash flow this year , which has accelerated our debt reduction efforts . Five - Year Outlook Our five - year outlook ( 2021 to 2025 ) highlights our financial and operational sustainability and meaningful free cash flow generation . Through this plan period , we are committed to a disciplined , returns based capital allocation philosophy . Under constant US $ 65 / bbl and US $ 75 / bbl WTI pricing scenarios , we expect to generate cumulative free cash flow of approximately $ 2.0 billion and $ 2.6 billion , respectively . Based on the strong pricing environment and continued capital discipline , we now anticipate hitting our initial net debt target of $ 1.2 billion during Q2 / 2022 . Throughout the plan period we will monitor our leverage position and assess market conditions to determine the best methods or combination thereof to enhance shareholder returns . These could include share buy - backs , a dividend and / or reinvestment for organic growth . Our 2022 capital budget is expected to be released in early December following approval by our Board of Directors . We will also update our five - year plan to include drilling opportunities on our Clearwater lands .