RE:Scotia new report today...27.50 Target sector outperformTheDude wrote:
Baytex announced second quarter financial and operating results.
Implications
Second quarter in line with estimates. Second quarter production
averaged 84,812 boe/d, in line with our estimate of 85,653 boe/d, while
cash flow per share of $0.75 was behind our estimate of $0.80, but
ahead of the consensus estimate of $0.72 per share.
Challenging environment causes an operational slowdown. Activity
continues to be scaled back as Baytex has reduced its Eagle Ford rig
count from 12 rigs in late 2014 to 5 rigs currently, while only two net
wells were drilled in Canada during the second quarter.
Stack and Frac pilot wells may create efficiencies. Baytex is
currently testing stack and frac wells that target up to three zones in the
Eagle Ford, including the overlying Austin Chalk formation. IP30 rates
on the nine wells have ranged from 900 - 1,600 boe/d, and should help
the company reduce operational costs in the future.
2015 guidance remains unchanged. 2015 guidance remains
unchanged with expected production of 84,000 - 88,000 boe/d based on
a capital budget of $500M - $575M. While production is expected to be
evenly split between Canada and the Eagle Ford, 80% of the capital
budget will be allocated to the development of the Eagle Ford asset.
Recommendation
We maintain our SO rating and maintain our target price of $27.50/sh.
Dude. Do you know what oil price these guys are using??? I sure hope it isn't $60 oil.