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 > I'm actually pretty annoyed - Yeah great quarter but...

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Comment by BayStreetWolfTOon Jul 27, 2022 8:31pm

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Post# 34855563

RE:RE:RE:I'm actually pretty annoyed - Yeah great quarter but...

Snow, they didn't say that. If you do find such a document please post. They have been clear.

Snowballer wrote: I agree, performance was killer. I disagree on messaging. They commited to a combination of buybacks and dividends at $800. The extension is bullshiiiiite It just adds risk and more unknowns. Back to your points - yes BTE is killing it with high oil prices... as they should.

JohnnyDoe wrote:

Snowballer wrote: - Over $1B still in debt

- Deferred dividend program beyond previous guidance (this makes me very dissapointed)

- With recession pain ahead, basically the waiting game continues for meaningful returns. 2023 and 2024 could be absolute hell for the global economy... we just don't know yet. And worse, by that time management could just as easily reduce a dividened and move back into acquisition mode. Essentially, and this is the first time I feel this way about BTE management, I don't trust their guidance on meangingful returns.

Like why such a massive pivot from the previous benchmark?!!! Probably because they may also see massive economic pain ahead. So while I agree that reducing the balance sheet preserves the "going conern" in hard times, how many oil and economic cycles do SHAREHOLDERS HAVE TO WAIT TO GET PAID?!!

Annoyed about what exactly? Fcf was a beat so debt is actually lower than expected. They didn't defer a dividend program. Their July presentation states "once we hit our 800m debt target, we'll consider steps to enhance shareholder returns" What they did today is state what those steps are. 50% fcf to buybacks. When debt gets to 400, they'll consider how to adjust the mix. So when do they hit 400? Next year at 95 wti, they deliver 1b fcf. Debt is currently 1.14. They've got another 400 fcf to go this year, that's conservative so they exit the year with low 700s. Sometime in q3 they hit a debt target of 400. That's 1*EBITDA at 45. That's very healthy. And the float count will be well under 500m.
Nowhere have I read they'd be implementing a dividend at 800. Not in public documentation nor in my personal correspondence with the company. As far as I can tell, they significantly beat expectations and provided clear guidance.