Baytex Energy Corp. (TSX: BTE) (NYSE: BTE) reported first-quarter production of 69,478 barrels of oil equivalent per day, exceeding the high end of its guidance range, and raised its 2026 production outlook.

The Calgary-based energy company increased its 2026 production guidance to 69,000-71,000 boe/d from a previous range of 67,000-69,000 boe/d. The company now targets 7% annual production growth, up from its earlier forecast of 3%-5%.

Chad Lundberg assumed the role of president and chief executive officer, completing the company's leadership transition. Lundberg joined Baytex in 2018 and previously served as senior vice president.

During the first quarter, Baytex generated adjusted funds flow of $151 million and cash flows from operating activities of $122 million. The company repurchased 35.1 million shares for $174 million, representing 4.6% of outstanding shares.

Baytex ended the quarter with net cash of $591 million. Exploration and development expenditures totaled $145 million, with the company bringing 54 wells onstream.

The company updated its three-year outlook to target annual production growth of 6%-8% while maintaining a net cash position. Baytex raised its exploration and development spending guidance to approximately $625 million, at the high end of its previous range.

In heavy oil operations, Baytex plans to bring approximately 100 net wells onstream in 2026, up from 91 wells previously. The first six wells at Peavine generated an average 30-day initial production rate of 680 barrels per day per well.

The company declared a quarterly dividend of $0.0225 per share, payable July 2 to shareholders of record on June 15.