12 Best Oil and Gas Penny Stocks to Invest in Now

6. Baytex Energy Corp. (NYSE:BTE)

Number of Hedge Fund Holders: 16

Share Price as of April 16: $1.66

Baytex Energy Corp. (NYSE:BTE) operates a diverse business that acquires, develops, and produces oil and gas in Western Canada and Texas Eagle Ford. The company’s business includes light and heavy oil, condensate, natural gas liquids, and natural gas across Eagle Ford, Viking, Lloydminster, Peace River, and Duvernay regions. This diverse footprint gives Baytex flexibility in both the U.S. and Canadian markets.

For the year ended December 31, 2024, Baytex Energy Corp. (NYSE:BTE) reported $656 million in free cash flow, with over 70% coming in the H2. The company cut net debt by 13% and bought back 48 million shares (6% of outstanding float). Moreover, production per share grew 10% while cash costs dropped 5% per BOE. In Eagle Ford, Baytex improved drilling and completion costs by 8%, targeting another 7% gain for 2025.

Furthermore, the company replaced over 100% of production on both 1P and 2P reserve bases. Baytex Energy Corp. (NYSE:BTE) achieved strong PDP recycle ratios of 1.9x and 2.7x on 1P and 2P reserves, respectively. For 2025, it projects 150,000 BOE/day with exploration and development spending of $1.2–1.3 billion. Additionally, the company is expanding its Pembina Duvernay program while maintaining two rigs and one frac crew in Eagle Ford.

Despite falling oil prices and new U.S. tariffs on Canadian imports, Baytex remains adaptable and is ready to cut low-return capital if needed. Baytex Energy Corp. (NYSE:BTE)’s balanced approach to capital, cost control, and solid asset performance makes it stand out among the best penny stocks.