Baytex Energy Corp T.BTE

Debt to 1.5 Billion, but still shows base dividend/buybacks

[jdmecomber]

I was looking over the September report.  Baytex used to be one of the best dividend players around.  

I am curious once we hit 1.5 billion if its still a base dividend and buybacks.  The report shows that.    I would hope we would get a better dividend at that point?

[JohnnyDoe]

I believe we had 2.6 in debt at June 30. With 50% of fcf going to shareholders it will take 2.2B in fcf to hit the debt target. Within the 1.1B going to shareholders, the current dividend accounts for roughly 80 a year. If it takes 2 years to hit the debt target, that@s 900 M to share buybacks. I think it@s safe to think they@ll buyback at least 100 M shares, leaving outstanding shares between 750

[jack4567]

JohhnyDoe, thanks for this insightful analysis. My own preference would be that cash in excess of planned buybacks and dividends be applied to debt, until debt targets are met.  I'm not counting on special dividends, but in a way, I am counting on debt targets being met.

[OLIVIER1951]

oui  la  dette  a  quel  taux   je  ne  sais  pas  mais  au  moins  8%

[JohnnyDoe]

I agree with you Jack. I'd like to see debt cleared up asap.  The problem is they've published a shareholders return framework that says 50 to shareholders and 50 to debt above the debt target increasing to 75/25 once the target is hit.  If they don't stick to that, then you get the "mgmt untrustworthy" narrative  Either way, there's a ton of fcf at

[jdmecomber]

Thanks JD.