Baytex Energy Corp T.BTE

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

[Snowballer]

- 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?!!

[JohnnyDoe]

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

[Snowballer]

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]

so direct me to where they made that commitment? If you're going to say they made this commitment, show me where?

[Snowballer]

I'll have to look back at the reports.  As I say, what was evident to me was not obviously evident to you.  I'm happy you are okay to wait another 1.5 years or maybe even 2.  Who knows.  As for me, they just removed a huge nugget of intrinsic value... CF to the investor.  When an asset pays a CF it is more solid and much more valuable than an asset that does not

[calebmar]

I have never heard or seen a commitment to dividends. Only increasing shareholders returns. Even that wasn't specified until today. Plenty of opportunities elsewhere for you to get a dividend if that's what you want.

[Konaboy]

Off you go, then. This is a slower play. Until it's not.

[calebmar]

I'm not looking for a dividend now. I was commenting on Snowball looking for one

[BayStreetWolfTO]

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

[masfortuna]

Snowy they stated many times including in their presenations that the priority was debt reduction until 800 million. That would be ed of fiscal 2022 at this pace.  So in 2023 they need 400 million more before anything goes back to divy. So sometime mid 2023'ish??? You made your own case against a divy by stating how volatile the markets are in your post. Better to pay down the debt and

[Snowballer]

Yeah thanks Mas, i agree with everyone making their points including you -  and they are fair points.  For me the unknowns in the market ahead make this issue that much more significant is all.  It literally is the same narrative being played out again for BTE... as always... just focus on all the debt they took on.  So it was a nice opportunity I think management has missed...