Baytex - Leadership ChangesAll humans, (bots or space aliens, not so much.)
If you are about to have a Thanksgiving feast soon, I hope it is an enjoyable time with the family and friends.
On to my post...
Wildfury asks a question that concerns me too.
“Looks like Baytex's new CEO has changed out a few positions , Rodney Gray out as CFO with a few others”
While this company could not be doing any better, there is always reason to pay close attention when leadership changes.
Outgoing Edward D. LaFehr stated retirement as a reason for stepping down. This is something I can relate to, and, am jealous of. This makes complete sense. Great job Ed, and thanks for your service to the company and it’s shareholders.
For the CFO to leave right after the CEO, does raise some questions and concerns. If you do not feel this way, then maybe consider it a second time. I am concerned more than I was for just Ed leaving.
REAL reasons why the CFO is leaving.
1. As stated, to pursue other opportunities.
2. Didn’t like what he is seeing from the new CEO. Call it personal.
3. Is anticipating a possible Baytex acquisition by a larger corporation, whereby the reduction of executives in the company being acquired, could result in his no longer being CFO. This is bad for his bottom line, and, if this is the reason, who could blame him for leaving. It would be a smart move.
4. A move to grow Baytex by taking on debt and making acquisitions. As someone who has followed Baytex for a long time, this sort of idea would cause me to leave his position too. The Incoming CEO did this in his past work. To his credit, he did it during the pandemic at what should be good prices, though using debt to do so, is bad for shareholders, and good for creditors. We as shareholders will not benefit from taking on debt to make acquisitions, though investment bankers would think it’s a wonderful idea. Once Glass-Stegal was repealed in the US, investment bankers could also be market makers, and research firms all under the same roof. This legislation was in place for a good reason.
(Make the market in the Senior Notes, and naked short the stock into oblivion)
5-8. Things I could not think of. Fill in the blanks here.
TO BE CLEAR: None of what I have mentioned here is fact. It’s is only speculation. Since we will be the last to know, and hence, unable to react as quickly as those who will know before we do (Politicians & Institutions), we need to consider all possibilities.
If we are acquired, I hope the board holds out for a good price. It is a seller’s market right now. We are a PREMIUM acquisition play, and we need to get a premium price to be acquired. If Baytex was baseball player, we would be Aaron Judge good!
A Gazillion Canadian Dollars right now! Just Kidding
Enjoy the holiday everyone,
RS