Investor Relations

Baytex Energy Trust converted its legal structure from a trust structure to a corporate legal form operating under the name Baytex Energy Corp. pursuant to a plan of arrangement under the Business Corporations Act (Alberta) (the "Arrangement").

Baytex Energy Corp. adopted a monthly dividend policy whereby a dividend will be paid on or about the 15th day of the month that follows the end of each month to shareholders of record at the end of such month. The dividend policy is expected to follow the general corporate philosophy of financial self sufficiency whereby, over the long term, development capital expenditures and dividend payments are planned to be financed from internally generated funds from operations. As such, the amount of future cash dividends, if any, will be subject to the discretion of the Board of Directors of Baytex Energy Corp. and may vary depending on a variety of factors and conditions existing from time to time, including fluctuations in commodity prices, production levels, capital expenditure requirements, debt service requirements, operating costs, royalty burdens, foreign exchange rates and the satisfaction of solvency tests imposed by the Business Corporations Act (Alberta) for the declaration and payment of dividends.

Baytex's practice has been to review the level of the distribution at least annually as capital spending requirements are evaluated. This review has typically occurred in December in connection with the presentation of the annual budget for the ensuing year to the Board of Directors, with changes, if any, to the distribution level being announced following that meeting. Under current operating conditions and commodity prices, Baytex believes the current distribution level of $0.20 per trust unit per month can be maintained as a dividend.

At present, we have approximately Cdn$1.5 billion in Canadian tax pools and Cdn$0.2 billion in U.S. tax pools. Assuming a West Texas Intermediate oil price of US$80.00 per barrel and a 15% Western Canadian Select differential, we project that our cash income tax expenses, expressed as a percentage of funds from operations, will be nil for 2010 and 2011, and will average approximately 5% from 2012 to 2015.

Forward-Looking Statements

This webpage contains forward-looking statements relating to: our business strategies, plans and objectives; our ability to fund our capital expenditures and dividends from funds from operations; dividend policies and levels; and our effective cash tax expenses in years 2010 to 2015.

These forward-looking statements are based on certain key assumptions and are subject to numerous known and unknown risks and uncertainties and other factors. We refer you to our advisory regarding forward-looking statements which is contained on pages 24-25 of our Third Quarter Report 2010. To view this document, please click here.

Frequently Asked Questions

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