Are you looking for growth ? These words were spoken by Ed LaFehr during the conference call on November 5, 2021.
For new investors or longs one, listen again to this wonderful conference call :
https://www.baytexenergy.com/investor/events-and-presentations.cfm
https://services.choruscall.ca/links/baytex20211105.html
Pembina Area Duvernay Light Oil: Emerging Resource Play.
Ed said in the last 5 minutes :
Duvernay is the biggest potential growth, possible 20,000 boe/d !!!
Past news about the Basin area in Alberta in 2017 : https://sellsidehandbook.com/2017/10/25/major-oil-gas-basins-alberta-deep-basin/
Others majors producer are there too, like Cenovus, Tourmaline.
Words of Ed : Probably a commercial consolidation opportunity in the Basin !!!
Of course he also talk about Clearwater like the Promising Early Results with Strong Economics
So a lot of space to growth in different ways !!!
Partnership, or selling some claims why not, with royalties added to the production done by new owners !!! Part of the deal paid in cash + royalties for 20 years of reserve !!!!
On the other hand, if the reserves are proven, Enterprise Value may growth quickly, assets increase significantly !!!
They don't want to increase the debt again, so they are going to manage only very new strong economic play like Clearwater .
Rod Gray also mentionne, Baytex want to renegociate at a better rate, the initial US$500 million aggregate principal amount of senior unsecured notes due April 1, 2027 bearing interest at a rate of 8.75% per annum payable semi-annually (the "8.75% Senior Notes"). The 8.75% Senior Notes are redeemable at our option, in whole or in part, at specified redemption prices after April 1, 2023 and will be redeemable at par from April 1, 2026 to maturity. Transaction costs of $12.5 million were incurred in conjunction with the issuance which resulted in net proceeds of $652.2 million.
They are well position to do that during 2022 !!!
For example, a 2,75% less equal 13,75M$ yearly in US$, worth right now roughly 17,6M$ CDN, may buyback shares at 5$ for 3,5 M out. shares just like that !!!
I see growth in any direction, especially in my portfolio !
Please do your DD, it's your money !!!
Nice week-end all !