RE:RE:RE:"operating netback of $23.53/boe"...!!!!!!!!!!!!!!!!!!!!!!!!ChesterBurnett wrote:
...BTE still needs higher oil and a transaction that gets the debt/Ebitda ratio lower. If this would ever occur, then the shares could be a big winner.
ChesterBurnett, where do you get the information that the CEO wants to reduce the Debt to EBITDA to 2 in your most recent post? This previous post was Nov 2nd just after the CC.
I assume your predictions would be right but I prefer a steady approach. Baytex sells its US oil as Louisiana Light Sweet Crude which trades at over $60 USD per barrel and is closer to Brent crude. It's also positively affected by the WCS which is impacted by the pipeline shutdown between Canada and the US.
If I was to talk to the CEO, I would say, "stay the course" the share value will return to what they should be which is $8 minimum. Where we should be at today if it wasn't for those US short sellers borrowing shares to create selling pressure.
The debt is really a non-issue until 2021 and even with that look at what type of financing oil companies can get today. MRO renegociated its debt to pay off its maturing bonds and they now pay just 4.4%, significantly less that previously. It's new debt is over 10 years out.
It's not as if Baytex will blow up in 2021. If they were to blow up, it would happen in Q1 2016.
Others have mentioned there are "forces" here trying to buy Baytex assets on the cheap and there seems to be plenty of people supporting this speculation with what's being said.