Baytex Energy Corp T.BTE

Share Buy Backs

[JohnnyDoe]

I realized today that I think I misinterpreted their share buy back statement. I was somehow thinking they'd hit a debt target and then start buying back. What they actually said was "For 2022, we expect to allocate approximately 25% of our annual free cash flow to direct shareholder returns and intend to implement a share buyback program commencing in Q2/2022.
They generated 137 fcf in q4. More than that in Q1. Strip pricing at this point is way ahead of forecast. All that fcf already generated but buybacks have not commenced. Yet. For them to hit their goal of 25% of annual 2022 fcf to go towards buybacks, when they start buying back, they're going to have to spend a fair bit more than 25% to get to the 25% target. Wolf's numbers say 3.7m fcf daily at 120 wti. Pretty damn soon they'll be buying back 1M worth of shares every day.

[BayStreetWolfTO]

You got it JD, the release say 25% of "annual FCF. I intrepreted this the same way. "For 2022, we expect to allocate approximately 25% of our annual free cash flow to direct shareholder returns and intend to implement a share buyback program commencing in Q2/2022." Now the Q1 average WTI was $80.15 (due to the dip in December from the Covid/SPR impact)...that said I have

[BayStreetWolfTO]

JD assuming the share price doesn't continue to climb as people figure this out...