RE:RE:RE:RE:RE:RE:More 12 months target for Baytex and others CDN stockrobert41 wrote: my 2 cents...debt repayment above all no divi increases not a fan of buy backs unless debt is low focus on debt over the next year or so...on the other hand if we see 80"s oil as the new normal the smart move is buy backs at these low prices but the divi can wait as noone knows where oil is over the next 2 or 3 years let alone 2 or 3 weeks
Robert41, the company has been explicit in how debt will be handled relative to debt reduction/direct investor return framework and it seems to me that the aggressive institutional uptick in holders of Baytex stock indicates that these bigger players are very comfortable with the levels of debt and debt payback and the indicated adjustment triggers to direct shareholder returns via buyback/dividend mix.
Debt doesn't have to get to zero for any of these energy companies considering balance sheets are becoming healthier than ever before in history and will be well positioned to handle a softening in the price of oil if/when that were to take place. Of course I'm not talking about some crazy event that would drop the price of a barrel in a blink of the eye. I'm talking about being well positioned for a more normal cyclical curve.
The super cycle is still on the up and a few more years are in the offing for sure. Maybe you start to see a balancing and then down trending from maybe 2027 on out but for the next few years it will be a steady uptrend and in that environment Baytex has a debt reduction plan that gives us the biggest bang for buck potential as investors seeking direct investor returns.
Just my opinion, I respect yours.
Gimme 10 cent divvy on a monthly basis for at least a few years and a double or triple in stock price from today. I beleive debt reduction is staged perfectly for the company to execute on that outlook.