Baytex Energy Corp T.BTE

$ 60 M INSURANCE Policy On Tax DISPUTE Shows HIGH RISK

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Tax Reassessment Update

On November 13, 2023 we provided an update with respect to certain tax reassessments received from the Canada Revenue Agency. While we remain confident in our position, we have purchased $272.5 million of insurance coverage to help manage the litigation risk associated with this matter. The policy premium (inclusive of applicable taxes) was approximately $60 million.

https://boereport.com/2023/12/06/baytex-announces-2024-budget-and-five-year-outlook-with-continued-focus-on-free-cash-flow-generation-and-shareholder-returns/

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- I HATE IT when companies DOUBLE TALK

- YEAH SURE, DISHING OUT $ 60 million and you are "CONFIDENT" in WINNING the TAX DISPUTE

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[WaterDPlants]

A person going to court never says they are going to lose. If losing is a high probability, a settlement is pursued.  Baytex settled the case and paid $60M. The $60M may even be a tax deduction, the $212M insurance proceed may be income (something for the next dispute with the tax authorities). However, this matter from a financial standpoint is complete. Baytex got a $160M tax deduction