Baytex Energy Corp T.BTE

Alternate Symbol(s): BTE

Energy Oil & Gas E&P

Baytex Energy Corp. is a Canada-based energy company. The Company is engaged in the acquisition, development and production of crude oil and natural gas in the Western Canadian Sedimentary Basin and in the Eagle Ford in the United States. Its crude oil and natural gas operations are organized into three main operating areas: Light Oil USA (Eagle Ford), Light Oil Canada (Pembina Duvernay / Viking) and Heavy Oil Canada (Peace River / Peavine / Lloydminster). Its Eagle Ford assets are located in the core of the liquids-rich Eagle Ford shale in South Texas. The Eagle Ford shale covers approximately 162,000 net acres of crude oil operations. Its Viking assets are located in the Dodsland area in southwest Saskatchewan and in the Esther area of southeastern Alberta. It also holds 100% working interest land position in the East Duvernay resource play in central Alberta.

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Baytex Energy Corp > New SA article

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Comment by Drifter133on Jul 08, 2022 12:21am

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Post# 34810280

RE:New SA article

Some very positive comments on article that most longs on this board have already known. It's nice to hear from posters outside this forum though

killoranf

Yesterday, 9:57 PM

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Comments (190)

Today’s BTE bears almost no resemblance to the BTE of 2012-2020. 7357851 below is correct in pointing out the impact of Clearwater and the payback of new holes measured in weeks. Clearwater is a company-changer and BTE, HWX, NVA, TVE, CVX, CNRL are just a few of the lucky beneficiaries of this heavy oil play. The article could begin and end with this information and that’s all that’s needed. BTE is trading at about 2x CF and is producing about a 35% FCF yield. The company is producing sufficient cash flow to retire debt next year, but that’s not necessary. A capital return program for shareholders has been articulated and is well underway. BTE is an easy double. Check back here in 9 months.

Long Player

Yesterday, 9:45 PM

Marketplace Contributor Premium

Comments (33.95K)

A couple of things would help. First Baytex Energy acquired Raging River which provided important light oil production during the last downturn when heavy oil became unprofitable. Furthermore, since Raging River was a very low debt company, the debt ratios improved tremendously for the combined company.
The second thing is that the company has a brand new Heavy Oil Find that has far lower costs than anything in the company except possibly their Eagle Ford properties. That new heavy oil find is profit game changer as they replace the declining legacy heavy oil production with something far more profitable.

MtMath

Yesterday, 8:20 PM

Comments (992)

This article was so simplistic, it was all I could do to keep reading it. I could have saved time by just zooming down to the Comments, which are all more knowledgeable that the ink wasted by the author. I knew the author was out of his depth when he compared Baytex to Suncor and Cenovus. Apples and Oranges would be an understatement. The only thing they have in common as all 3 are Canadian companies and produce oil (and a little gas). Baytex is the only pure E&P amongst the 3, for a start. I could go on; however, I'll just say this article was 'click bait' and very disappointing, to be charitable.

7357851

Yesterday, 6:56 PM

Comments (784)

BTE will have likely paid down roughly $200M in additional debt just in this last quarter ending June 30. BTE also was fortunate enough to discover a highly profitable and prolific find in ClearWater (Peace River), which according to Eric Nuttall, are perhaps the best wells in North America, with paybacks in a matter of weeks. In short, the debt picture is rapidly changing, and the new production in ClearWater is unhedged.

In the event oil were to precipitously drop in the near term, every energy name is in trouble. But that would likely be due to a severe recession, which would kill the overall stock market. However even in that scenario, don't confuse this period with 2008, since CapEx in North American E&P today (when adjusted for inflation) is literally 25% of what it was in the "drill-baby-drill" era. And OPEC+ now has more control over the market than they did in 2008. In short, BTE is way too cheap if you believe that WTI is > $50 bbl.

InvestorTool

Yesterday, 7:25 PM

Comments (39)

@7357851 Indeed OPEC+ has total and complete control - hence Biden eating crow and groveling to Saudis. No way Saudis will let oil drop below 80. Only way that happens is if US energy policy becomes sensible. Bets, anyone?

JohnVB

Yesterday, 6:46 PM

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Comments (50)

Q2 is in the books already. Average WTI was 108.8 for the quarter. So the $1.28 billion by the end of Q1 is bound to be significantly lower (I am guessing they are below a billion by now). I would say they need another quarter or 2 similar to Q1 (average WTI $93.59) or Q2 and they should get the debt question out of the way for this company. If they weren't hedged they would have dug out of debt by now. I do like the company though except the hedging department.

Who is the idiot who wrote calls? If you want to hedge the downside then just buy puts. No need for a put spread. That only incurs more premiums. Just buy puts. When they wrote the calls they gave away all the upside. If you want to guard downside then own more puts and hope they expire worthless. The CEO could do more for shareholders if they fired that entire risk management department. The hedging losses exceed the free cash flow. $240 million (realized and unrealized losses) in Q1 vs $134 million in cash flow. No excuse for that. They should have bought the calls back as soon as they saw them come into the money.