Baytex Energy Corp T.BTE

Worth the look...

[red2000]

Eric Nuttall tweets of the day ! Watch the FCF yield in 2024 between 70$WTI and 100$ !
A FREE CASHFLOW MACHINE !

#1 : Let's assume we are wrong. What do valuations and free cashflow look like at near-current prices? At $70WTI the average energy stock we model trades at 3.7x EV/CF and a 12% free cashflow yield, all with perhaps the strongest balance sheets in history.


What if the multi-year bull market for oil isn't over, but just delayed until macro panic subsides? Our favourite companies we believe are now trading at 30% free cashflow yields with over 30 years of stay-flat inventory and have pledged 75%+ of FCF to shareholder returns.



Do we remain bullish? Absolutely. Why? Even in a recession we believe demand grows, yet short-cycle US shale growth is radically falling and long-cycle investment remains too low. All while OPEC spare capacity is set to be exhausted. Falling inventories = higher price, eventually

[red2000]

What is interesting with those chart, is that we see most of the US producers reach a higher multiple way over 4X. Look a the chart at 70$WTI, lots of the us producers are on the right side of the 1st graph with multiple easily over 5X. Josh Young said a year ago in it's interview with Barron's, that's Baytex was well position with it's Eagle Ford production, to increase it's

[red2000]

Here is the charts

[YupnDump]

ah NUTS..wish l never heard this guy.