RE:Drill more Clearwater wells or buy backs? They could probably take two weeks of current FCF and triple the wells drilled in 2022 in Clearwater.
They did mention if Drilling accelerated debt and buybacks they would. So agree this would be a good idea
That said (yeah it seems always a but for this stuff)...I imagine the biggest issue they would encounter is actually getting the rigs. I have heard of massive challenges in lining up rigs. Not sure they could triple the wells drilled if they wanted to. They were lucky to secure the crews they have to drill through Q4 into Q1...so while I agree additional Clearwater Drilling would be amazing....just not sure the rig schedules have many openings for 2022 remaining outside of committed Capex.
I would bet right now there are NO idle crews...and supply chain and the labor market are still a mess.
It's tough to attract younger people into the industry as there has been such an anti oil agenda in schools. None of these kids wants to jump on a rig. I worry this ultimately will be our biggest challenge in the next 10-20 years...no one wants to do this stuff.
But I agree IF you could do it why not.
Wildfury wrote:
This is my opinion, not bashing since I'm holding a fair amount of Baytex shares. With the current world situation, the skyrocketing prices for commodity prices, would Baytex benefit more in increasing drilling programs instead of buying back shares? They can delay these buy backs but at the current state I feel that they should be increasing their Clearwater activities or any other positions that they have identified. I will get some opposition to my theory from this board, no worries, it's my opinion only. The Clearwater position as stated many times over by BTE'S management, at these oil prices the wells pay out in less than 6-9 months. At current prices they would payout in less, probably 3-6 months. Does anyone think that they should revise their strategy under the current market conditions? Let's face facts, if I never invested in BTE, I would certainly be less wealthy as an example, this would stand for any other oil stock, doesn't matter which one. What I'm saying is that Baytex has a golden opportunity here to increase production, a 3-4% increase in production is too small, too conservative for the current conditions. If they did this, their debt would be eliminated within 2 years or less. They could buy as many shares as they wish that are allowed, dividends could be in the 10-20 % range. We know that these prices will not be around forever, so take advantage while you can.