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 > 3:2:1 Crack Spread

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Comment by 65F09Aon Dec 07, 2022 4:12pm

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Post# 35157375

RE:RE:3:2:1 Crack Spread

riski wrote: Biden was always going to get his price. He has too many tools at his disposal to not get what he wants.

But the takeaway here is the share prices of all these companies are holding strong. This is likely due to a combination of investors realizing that there is a floor on WTI and lots of upside potential. It's also due to the continued increase in value of these companies as they reduce debt and payback debt.

There was a guy here two weeks ago (DaveMTL) who was looking for an entry in the $3.00 range. This shows the naievity of a chart watcher. To assume BTE should be a $3 stock because it was before when it had way more debt and shares shows a gross misunderstanding in how to value businesses.

But I guess chart watchers/TA specialists haven't studied valuation. They just look for trends. It's a different discipline that, admittedly, I know nothing about.

But I do know that DaveMTL and all his chart friends are going to be waiting exactly one forever for BTE to trade at $3 again.

Maybe they can try catching the falling knife on TSLA instead.

65F09A wrote: I think just looking at CL inventory has been a bit of a red herring. Refining margins have been under extreme pressure since peaking in June. Margins have returned to normal levels (2018-2019). Product inventories are building which will send a further signal to refiners. The longer dated CL market never really acted concerned.

The supply/demand problem is not fixed. If the globe was firing on all cylinders we wouldn't be here. How long before the globe is firing on all or most of it's cylinders again? It sucks to admit it but Biden might have won this round.

3:2:1 Crack Spread is not technical analysis. It is the cost of 3 barrels of CL vs the value of 2 barrels of gasoline and 1 barrel of heating oil.

WRT DaveMTL, maybe he is of the opinion oil is going to $50.00? His entry in the continuation gap might not look so crazy? I am not of that opinion.

A technical analyst would argue his methodology includes valuation. It includes every market participant including bottom up, top down, algos, longs, shorts and insiders. He would argue that the price action and resulting chart records every single vote (buy/sell) every day and every week.