Q: In a comparison between Arc Resources, Baytex Energy and Birchcliff Energy, which has the least debt, best management & best potential going forward?
ARX debt/cash flow is just over 1X; BIR is 1.0X; BTE 1.5X. We think BIR has the best management, followed by ARX and BTE. While BTE's financial position is much improved, we have to dock it points for getting into big debt trouble a few years back. We think BIR has the best overall combination here. BUT....in a sector rally BTE likely would move the most. (5iResearch)