RE:Baytex & it's future....mrmomo wrote: After the Tamarack/DelataStream deal, i think it would be a good idea & prudent for Baytex mgmt to review its own portfolio to see how Baytex can maxmize its own value. It wasn't too long ago, just a few short years ago in early 2020 that Baytex and many other O&G firms were on the brink of BK. I'm pretty sure Baytex & their s/h included don't want a repeat of that situation. Especially with the company having close to 1,5B still in debt as we speak. These high oil prices are only temporary, for as long as consumers & businesses can tolerate them before Gov't, economics of s&d or both step in to put things back into balance.
Personally, i'm not a s/h here and haven't been one for 2 years, buti still do follow the company have done so for many more. And i can tell you for a fact that we reaching a peak in the cycle for high O&G prices and they won't remain this high for much longer. Not unless you want the economies in Europe, Asia & South America to collapse. For this reason, is why Baytex should look to maybe divest some assets in this extremely conducive enviroment & take advantage of the situation. If not to sell the whole company but to atleast to enough to par down some debt to more manageable levels. Imo, it would be a mistake on Baytex's part not to take advantage of this opportunity like DeltaStream have done.
If the company & it's mgmt aren't to keen too sell the entire company off, they may want to seriously consider divesting some assets to make the company stronger & slimmer when oil prices do come down to earth to more reasonable levels. Just based on the DeltaStream/Tamarack deal for Clearwater, Baytex's assets there could be worth around $1,5B if they can find a willing buyer. Enough to get rid of nearly all their long term debt. Wouldn't that be worth it? I think so. And if not Clearwater, maybe divest itself of their American assets in Eagle Ford. Which has its own merits of doing so.
Anyway, that's my 2 cents worth after following this industry for over 3 decades. Take it for what it's worth!
GLTA
Where did you get the assertion that O&g is at the end of a high cycle? If you can't substantiate that, isn't the rest of your post based on a falsehood?
I don't know where all you white knights keep coming from. Riding in to save us long investors from ourselves.