RE:BAYTEX SEPTEMBER PRESENTATION - ?? QI, the goal is not $0 debt.
Ed clarified that a solid capital structure included debt around $400m. At current prices we hit that in 2023.
After that my assumption is we go from FCF 50/50 debt/shareholder returns to 75/25
With only $400M in debt you can easily assign 75% of FCF to buybacks and dividends.
You can than slowly pay the remaining $400m with the 25% FCF.
No rush to Elim debt at $400m
Hope that clarifies/helps
Quietinvestor wrote: Understand that the presentations are macro representations of what could occur, but a close look at the new Baytex September presentation, in particular slide 12, reveals some interesting differences, from the Baytex August presentation in the area of FCF (afte tax).
It would seem that Baytex does not see itself now at 0 Net Debt to EBITDA until 2025, not 2024 with WTI at 75 or at a price of 85$.
Any thoughts as to why??