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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

Post by masfortunaon Mar 01, 2023 8:01am
1141 Views
Post# 35311818

I wouldn't count on it

I wouldn't count on itI think the deal should and will go through. On a metrics level with production staying flat they should be at 140 million barrels in June 2024. Assuming that from the FCF they could buy 50 million shares or about 275 million CDN, it will take 6 years to payout the shares given out. Any increase in production and any additional funds allocated to the buyback will accelerate the elimination of the 300 million shares. Add the remaining fcf (225 million) for the divy (85 million) and the debt and we are looking at 13 years AT TODAY's LEVELS OF PRODUCTION. Any increase in wti pricing OR increased production drastically reduces the timeline to our preset share structure and debt. I say good deal although it appears to be a calculated risk on the direction of oil.
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