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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

Post by Alwayslongson Mar 10, 2021 12:09am
468 Views
Post# 32760095

BTE’s fair SP at WTI 60

BTE’s fair SP at WTI 60

BTE production is an intermediate producer with 100,000boe/day ( cutback to 75k due to COVID 19) and 85 percent oil and liquid production. It is one of very few producers whose assets can all be considered core assets, light oil-eagle Ford and Viking,  heavy oil-peace river and Lloy, Light oil- Duvernay. Unlike most other producers, which has first class assets and normal assets, BTE's assets are all first class, best viking, best heavy oil, best shale oil, and huge potential in Duvernay. in other words, BTE has the best oil assets in Canada. 

one easy and conservative way to evaluate market value for BTE, using 40k per following bbl at WTI 60 is very fair evaluation. So 4 billion minus 1.85 billion debt, 2.15 billion, divided by 580 million shares, you will get 3.7 dollars. If BTE can pay off 250 million this year, fair SP would be around 4.2 dollars. 35k per following bbl at WTI 55 and 30k per flowing bbl at WTI 50, you can do the math. 

plus, there won't be any concerns if debts. Debt is 400million by 2024, at WTI 45, BTE can pay off 70 million every year for next four years, that will be 280 million dollars, the rest 120 million, if you believe WTI will be 45 for next 4 years, then BTE can easily sell one heavy oil asset to pay off debt, any dollar between WTI and 45 and 52 will give BTE 22 million extra cash flow, you do the math.

To summarize, BTE is a cash machine in two years with top notch oil assets and so much flexibilitiea to leverage debts. All longs will get rewarded in near future.

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