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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

Comment by riskion Oct 11, 2022 2:13pm
170 Views
Post# 35017722

RE:RE:RE:RE:RE:RE:$89 oil is a sweet spot

RE:RE:RE:RE:RE:RE:$89 oil is a sweet spotWhen Nuttall says "The price of oil does not have to go up for the stock prices to go up" this is what he is referring to.

He has been saying this since $70 WTI. 

riski wrote: That reply was to someone else. We are on the same page, I think.

The point I am making is that this is not a yo-yo investment that goes up and down exactly like the toy. While WTI sits above $70, BTE is making a LOT of money even with hedges and will make even more money in 2023. That cash has value independent of whether WTI drops to $70 next year at this time (which I doubt).

Consider if BTE decides to do nothing with its FCF and just puts it in the bank at standard interest rates. One year from today, they have $1 billion more dollars on the balance sheet and oil drops to $70. Do you think the stock will be worth less than today? 

If an investor doesn't understand this concept, I can understand why they are buying and selling all the time as WTI fluctuates. They think the two are married to each other. Instead of the WTI tracing, it's better to think about the area under the WTI curve. That's the bounty we are after. Where the price spikes to or fluctuates doesn't matter because each day that goes by above $70 adds to the area under the curve and increases the value of the company.

scienceguy36 wrote: I have read BTE financial statements in great detail.and in spite of what has been said on here to the contrary.  BTE  is getting $67.71 per boe on 40% of its crude production for the remainder of 2022 (if oil stays above that amount). So, the higher the price of oil the more they will make on the the unhedged barrels. Lets keep it real!
That being said, this is probably a good time to buy BTE is you plan on holding it for at least a year.




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