CIBC Equity: 12mnth target: $3 - OutperformBAYTEX ENERGY CORP. Q4/19 First Look: Routine Quarter As Credit Facility Extension Removes Any Medium-term Liquidity Concerns Given that key numbers were largely disclosed with YE19 reserves on January 20, this looks like a pretty routine quarter for Baytex today. The stock has been under pressure to start the year, which we attribute to headwinds in the commodity market. However, updated disclosure on strip cash flows and an extension of the credit facility should alleviate any concerns about Baytex’s ability to fund its capital spending requirements for at least the medium term.
Extension Of Credit Facility Should Address Any Medium-term Liquidity Concerns:
The production guidance range of 93,000-97,000 Boe/d is supported by a capital spending budget of $500MM-$575MM. Q1/20 production is reportedly trending above 97,000 Boe/d on quarterly capex of $200MM, suggesting the company is off to a good start with the capital program this year