Debt vs Equity debateWell IMO things are really begining to look up for Baytex...Compare it's cashflow to companies similar to twice the production and I think their relative numbers are pretty Rosey. :)
I think we all agree that the primary concern has been Baytex's debt, plain and simple. No one questions the quality of the assets, if anything they are firing on all cylinders and have the opportunity to grow dramitically as well as operations become more streamlined.
I think Eric hit the nail on the head for investors when it was noted that Baytex's breakeven is way down at the $40-45 level...I think all of us were unaware of this very point, hence the concern about getting that debt down ASAP. People were thinking...if we fall to $75 are we in trouble? Not a chance...I'm guessing a significant concern comes from investors not know how far oil can drop before Baytex runs into challenges, and based on what I heard...we have a lot of padding.
Bottom line...Eric's looking to grab back some more shares before analyst upgrades gain some more traction and recognition in the wider market, and perhaps aslo get a few more shares in the door before the petty buy-back tax kicks in...I saw at least 2 price target increases announced as a result of the Q3's.
and perhaps a little color for those who were not able to watch the play-by-play early friday with BTE to give some context...
Anyone watching the ticker friday would have noticed the positive reaction to Q3's as the share price of BTE spiked to $6.35 right of the chute, only to settle back with the rest of O&G companies as crude settled back...Over 35 million shares of Baytex traded hnads friday across all markets..
GLTA