What happened 

Shares of Baytex Energy (NYSE:BTE) were up 13% in trading Friday after the company announced first-quarter results.

So what

Revenue was up 58.5% in the quarter to $453.4 million, and the company swung from a net loss of $62.7 million to net income of $11.3 million, or $0.02 per share, year over year. Production of 101,115 barrels of oil equivalent per day (BOE/D) exceeded management's expectations and allowed adjusted funds flow to double to $221 million, or $0.40 per share. 

Drilling rigs at sunset.

Image source: Getty Images.

For the full year, management increased the bottom end of production guidance by 2,000 BOE/D to 95,000 and left the top end the same at 97,000. Management also expects adjusted funds flow to be $950 million for the year, outpacing capital guidance by $350 million and allowing for further deleveraging. 

Now what

Strong production combined with improving oil prices have helped Baytex increase funds flow over the past year. Given management's bullish comments about the future of the oil business, it looks like the trend will continue. I don't think results were so much better than expected that I would be a buyer after today's pop, but if some of the gains are given back in coming weeks, it could be a solid entry point for investors.