#1. Wed Aug 11th - BTE looks to bank another $1.15M+ FCF today
2. With fully factored hedges FCF $67 = Liquid gold $425m
3. 9 WTI contract days remaining before Q3 is final
WTI average Q1 - $52.09.
WTI average Q2 - $62.71.
WTI average Q3 - $70.92
4. Q3 contracts ...90% done. Macro oil data continues to support BTE plan. 82 days (90%) into Q3 and it's nice to see WTI hovering over $67.
To BTE management. Keep doing what you're doing!
1. Focus on FCF (425+m per year at these prices)
2. Pay down debt (down to $1.4b this year wow!) Clear off the 2024 note on June 1st 2022 as soon as the agreement allows.
3. Buyback cheap shares complete a SIB not a NCIB (the cheaper the better $2 great, $1 awesome, $0.50 I will be competing on those buys!)
4. Issue a dividend
5. If Clearwater development can accelerate FCF, debt payment, share buybacks and dividends do it.
Preferably in that order and keep within 80-85k bpd
Ignore the share price focus on the enterprise strategy, operations and efficiency.
With this you will find 100% support
Reference: https://www.baytexenergy.com/files/pdf/corporate-handouts/2021/2021%20August%20Presentation.pdf