RE:Buybacks/FCF Yes you can see the value and torque. It's going to take the market time to churn as those doing these calculations take shares from those who are still thinking about the numbers in terms of old baytex. These are big numbers - both share count and debt, but very manageable for a company producing 1B fcf at $75 WTI and lots of torque upside optionality.
There is a reason we suddenly have a bunch of traders hammering the board on Thursday and Friday. They smell money and know this is going to rally once the sellers are exhausted. The market doesn't walk by $100 bills lying on the road for very long. From a traders perspective, thr lower it goes, the more it rallies when it turns, so panic is good for creating a better entry. Which is why they are filling thr board with doom and gloom, but when the first big green day comes, they will suddenly be talking long about a stock they claimed they were never going to touch.
To those investors lurking and waiting: Don't try to wait for a bottom. Hitting bottoms is nearly impossible. Getting somewhere near the bottom still does well. Missing the first big swing up can leave you missing out on a lot of gains.
And to my fellow investors: Patience my friends! Don't let the savvy institutions rob you of your shares unless you are sure you don't want to be in oil and gas anymore.
ManitobaCanuck wrote: Just doing fun math .
At current strip .
Baytex+Ranger will produce 1bill combined FCF with total share count of 840 million.
Remember WTI >75 still .
25% is to share buybacks currently and 50% once merger closes in q2 end.
So thats approx 375mill to share buybacks ,so at 5 bucks thats 75 million bought back which is share count down to 775 million . In 2 yrs they will can reduce debt to 1.5 bill and sharecount to 690 million (if share price remains 5$) .
If stock price ramins 5$ and its 1 bill to buybacks then its 200 million of sharecount wiped out further and count drops to 490million.