Baytex Energy Corp T.BTE

Alternate Symbol(s): BTE

Energy Oil & Gas E&P

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

Baytex Energy Corp

<< Previous

Bullboard Posts

Next >>

Post by retiredcfon Apr 05, 2023 11:41am

296 Views

Post# 35381138

TD Notes

Canadian Small-cap Model Portfolio

Energy

In today's report, we highlight the trends and the movements that we are witnessing in the energy sector.

After prices sold-off nearly 20% last month on the U.S. banking turmoil, we cited mid-US$60s as price support for WTI oil and added to our Baytex Energy Corp. (BTE-T, 4.6% portfolio weight). Prices have since recovered more than 20% to their highest levels since late-January on a more positive outlook on U.S. banking and OPEC+ production cuts. For us to get more bullish on oil, and the producers, we would want to see prices break above the 200-day moving average (resistance). Exhibit 1.
A collapse in financial demand (i.e. bearish positioning) following the U.S. banking crisis could support further price gains (mean reversion). Exhibit 2.
The spring (April-May) is the best seasonal period for oil and the energy producers. Increased travel and China's reopening could support the seasonal strength this year, in our view. Exhibit 3.
A bottom-up risk to energy, however, is if the current recovery in oil prices are not sustained. If prices begin to again rollover, we believe that the sector is susceptible to further downward revisions to commodity price assumptions and cashflow estimates for the producers. Exhibit 4.
Although inventories came in lower than expected last week, overall levels remain within the previous five-year band. However, low gasoline inventories (below previous five years) could lead to a drawdown in oil inventories (increased refining). An update to the Department of Energy inventory levels is expected today at 10:30am. Exhibits 5 and 6.