Nuttall's Comments Baytex recently announced an acquisition in the Eagleford that increases its free cash flow per share by 18 per cent while allowing it to modestly fast-track more meaningful shareholder returns. Upon deal completion, Baytex will initiate a dividend (two per cent yield) while increasing shareholder returns to 50 per cent of free cash flow. We believe that the merits of the deal and the quality of what it purchased are vastly misunderstood offering a profound opportunity with the stock trading at 1.7x/1.2x EV/’24 cash flow at US$80/US$100WTI and a 44 per cent-75 per cent free cash flow yield.
TOP PICK
Baytex Energy Corp(BTE-T)
24/03/2023
Ranger acquisition (Ranger Oil) misunderstood by the market.
Believes deal is accretive on a per-share basis.
CEO recently buying back stock himself.
$70 oil would equate to $700 million in free cash flow.
Bough 4mm shares last week.
Has ownership in Clearwater play - the most economic play in North America.
Oil / Gas
Eric Nuttall
$4.630
Owned