Baytex Energy Corp T.BTE

Shares buybacks 101

[Marty47]

A share buyback is when companies buy back their own shares from the market, cancel them and, ultimately, reduce share capital. With fewer shares in circulation, each shareholder gets both a larger stake in the company and a higher return on future dividends.

this is the basic of share buybacks , now for Baytex its even more effective because there is too many shares out and the share price is really low and oil is at close to 82$ ..... so bottom line the stock price appreciation should improve with years as long oil stay above 80$ buybacks is a smart move .....

[1234bmth]

In 2 cases the shares buyback is a smart move. 1- if the debt level is in reasonable level in relation to FCF, which for BTE is not the case, no one knows what will be the oil price in the future, could go to $120 or $50, so a company should reduce the risk by reducing debt while oil price is up, reducing debt should be first. 2- Buyback is good if a company keeps its promise and put existing

[Marty47]

Keep in mind interest from debt are tax deductible for a corporation , while stock buyback are not , so when a stock price is really low it's positive and paying Less tax is money kept to shareholder than Trudeau or Biden lol