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Baytex Energy Corp T.BTE

Alternate Symbol(s):  BTE

Baytex Energy Corp. is a Canada-based energy company. The Company is engaged in the acquisition, development and production of crude oil and natural gas in the Western Canadian Sedimentary Basin and in the Eagle Ford in the United States. Its crude oil and natural gas operations are organized into three main operating areas: Light Oil USA (Eagle Ford), Light Oil Canada (Pembina Duvernay / Viking) and Heavy Oil Canada (Peace River / Peavine / Lloydminster). Its Eagle Ford assets are located in the core of the liquids-rich Eagle Ford shale in South Texas. The Eagle Ford shale covers approximately 269,000 gross acres of crude oil operations. Its Viking assets are located in the Dodsland area in southwest Saskatchewan and in the Esther area of southeastern Alberta. It also holds 100% working interest land position in the East Duvernay resource play in central Alberta.


TSX:BTE - Post by User

Bullboard Posts
Comment by d_trumpon May 03, 2016 3:07pm
153 Views
Post# 24837940

RE:with the good earnings report

RE:with the good earnings reportThe earnings were ok not great.  Everyone here seems to think it was great that they posted a small profit.  If you look at the income statement, you'll see that earnings were aided by a 50M deferred tax credit and an 87M foreign exchange gain, if you exclude those two items, they lost $140M.  Regardless, the analysts could care less about EPS, they are more focussed on cash flow and whether they are generating enough cash flow to grow (or at least sustain production).  BTE needs to spend about $500M in capex to sustain or modestly grow their production - this year they are spending half that, hence why their production is falling.  So they need to generate $500 in annual cash flow - in Q1 they generated about $45M.  As Norman pointed out earlier, the worst quarter is behind us and if prices stablize at $45 for Q2, BTE's cash flow will jump up by about $50M ($8 x 70,000 x 90 days).  So that would get them to about $100M or $400M annualized.
Bullboard Posts