Baytex Energy Corp T.BTE

RE:RE:RE:Baytex - New Beggining?

[BayStreetWolfTO]

You want the debt to EBITDA ratio to be 1x at a VERY low WTI rate.

At $400M debt to EBITDA is 1x at $45 WTI.....basically never any more worries about debt EVER.

Once we are there we are laughing and you do what you want

ceenalot wrote:

JohnnyDoe wrote:

ResearchSeeker wrote: Red, Leewardcape, BSW, and many other longs or momentum traders,

Glad to see BSW back in action. Here is my opinion on what we should all look into while Baytex confirms what they said they were going to do. Sure is nice isn't it? It's great to win whether the sare prices goes up, down, or sideways!

My one and only concern about Baytex currently, is our new CEO and his apparent past appetite for acquisitions. It also appears he views the banks as “pals”, rather than a monkey on the companies back. I hope this appeance is not a fact.

 

Maybe he left Civitas because he did not agree with those acquisitions, or maybe the job was done. Either way, it is my only concern regarding Baytex at this time. I’m not rushing to any conclusions, just doing my job of verifying.

 

The last thing I want to see now is a bunch of acquisitions, funded by share dilutions, or more long dated senior notes, that send the “spice” to the bank syndicate instead of shareholders.

 

As far as acquisitions go, the pandemic was the best time since the last real bust. While valuations are still reasonable, they are not worth doing if you do not have the cash to complete them. Using share dilution, or notes is just not smart, because it creates a higher oil price requirement, to prevent bankruptcy, in times when oil supplies are more than are being consumed, and the resulting lower oil prices that follow.

 

Here are some reference links for those with more time than I have, to do a more thorough examination.

 

https://finance.yahoo.com/news/civitas-ceo-eric-greager-steps-090500919.html

 

2018-2022 Duration

 

Greager has served as CEO of Civitas and its predecessor Bonanza Creek since 2018. During his tenure as CEO, Civitas acquired

 

HighPoint Resources Inc

 

Extraction Oil & Gas Inc.

 

Crestone Peak Resources LLC

 

Bison Oil & Gas II LLC, - marking its fourth takeover within the past year.

 

https://ir.civitasresources.com/investor-relations/news/news-details/2022/Civitas-Closes-Bison-Acquisition/default.aspx

 

https://ir.civitasresources.com/investor-relations/news/news-details/2021/Bonanza-Creek-Energy-Inc.-Announces-Offering-of-400-Million-of-New-Senior-Notes/default.aspx

 

https://ir.civitasresources.com/investor-relations/news/news-details/2021/Bonanza-Creek-and-HighPoint-Resources-Commence-Exchange-Offer-and-Consent-Solicitation-for-Senior-Notes-of-HighPoint-Operating-Corporation/default.aspx

 

https://ir.civitasresources.com/investor-relations/news/news-details/2019/Bonanza-Creek-Energy-Announces-Results-of-Borrowing-Base-Redetermination/default.aspx

 

I too hope Topdown 99 returns. The board is better, though still a lot of garbage at times. It’s highly predictable the motivation of some who attempt to get you to sell after a correction has already happened. They always telegraph their true motivation and agenda!

Though I am in the US, I welcome any bashing of our National Politicians. I only support about 10% of them, and wouldn't hire the rest for any position. They have earned their verbal beatings, regardless of who dishes them out!

 

RS

this is my biggest concern with baytex as well. With Ed, I knew exactly what was going to happen. They had a long term plan and stayed with it. Anytime I was unclear on something, IR provided the clarity. I want the debt driven to 400. And I'm good with fcf at higher than 50% beyond the 400 target with debt being driven to zero. I do not want acquisition that dilutes shares or increases debt. If either happens I am out the day it is announced

I agree with these concerns re dilution OR any increase to debt ..... but have a question re the debt level that the company has chosen to target 

Why is it necessary for a compnay with a market cap of apporx 4 Billion at current levels to reduce their debt from 800 Million( year end target)  all the way down to 400 Million before adding a dividend ?   Don't get me wrong lowering debt is never wrong ...just seems like debt at 20% of markt cap at 800 Million  seems reasonable