RE:RE:RE:WCS @ USD 33.84 @ End Of Day: 12/28/2017: ~ USD -26.00... Eigen, please call Baytex and ask them to clarifications. You post very valuable information but the focus on WCS versus WTI when discussing Baytex is an area of concern since we should include the percentage that is WCS versus WTI/LSS.
The reality is the majority of the production is in the US both in number of barrel and revenues. The US production is based on Louisiana Light Sweet Crude which trades at a premium to WTI. Baytex gets close to $65 per barrel from Eagle Ford.
https://www.theglobeandmail.com/investing/markets/stocks/BTE-T/.../5247676/
Nov 2, 2017 - In the Eagle Ford, our assets are proximal to Gulf Coast markets with light oil and condensate production priced off the Louisiana Light Sweet ("LLS") crude oil benchmark, which is a function of the Brent price. And LLS trades at over $65 per barrel now. https://www.eia.gov/todayinenergy/prices.php
It's also close to the export terminals on the Gulf Coast. So unlike most Canadian producers heavy impacted by pipeline and rail issues which temporarity creates a WCS oil price crash, BTE is well leveraged with it's light US oil and benefits greatly from the increasing US exports.
As for the heavy oil produced in Canada, 80% of its heavy oil production is priced on WCS but compare to total production, that's about only more that one third of all it's oil. And that 36% or so is fully priced in at these Baytex lows. So yes, I agree that heavy is mostly based on WCS, that's only a minority of the overall Baytex production.
https://www.baytexenergy.com/operations/marketing/benchmark-heavy-oil-prices.cfm