RE:Bought in AgainWelcome back Manitoba.
Comparing this deal to Aurora and Raging River is Apples to Oranges to Bananas for sure.
They paid full dollar for Aurora at market peak only to watch resource prices crater shortly after. Bad timing, but not the worst idea if you thought oil prices were going to stay where they were.
Raging River was a godsend for BTE, not from an asset point of view, but for their balance sheet. They were in a lot of trouble with debt coming due in within 2-3 years. Bankruptcy was a real consideration if oil prices stayed low. The Raging River deal saved them, but they had to sell their soul a little bit.
This is a totally different animal as you mention. BTE is now in a position of strength and got an incredible accretive deal on light oil assets with high yoy growth - oil that is selling at a premium to WTI. This transforms the company from a risky junior to a much more stable midcap selling for deep value.
Like you identified in 2020, sometimes the market is irrational and puts things on sale for deep discounts. I believe this is one of those times.
Like in 2020, the price is staying in the deep value range for a prolonged period of time with millions of shares traded so there can be no excuse made when looking back at this nadir and telling oneself it was too brief to take advantage of.
ManitobaCanuck wrote: I initially bought into Baytex 250k shares at 40 cents in 2020s .
Maxmoe knows my posts .
I sold out half at 9$ and have bought back inagain now . I have always been woried about their inventory and the deal looks awesome to me . Lots of people have been stung by losses after Aurora and Raging River acquistions .
What people dont understand is that the current deal is much better as it helps the FCF at current price.
Just patience till Q3 2023 . I get paid a 9 cent divvy on my 40 cent purchase which is almost 25% divvy yield on purhase price. Freaking awesome.
250k shares x 0.09$ =22.5k dividend yearly.
Looking at double digits by year end and possibly earlier if Oil hits 100$ again with summer driving season