RE:BAYTEX print money every day !!! Short term volatility in the oil market is normal for this time of year. The Thanksgiving day holiday is a major travel day in the U.S.; both driving and flying. Companies stock pile oil and gas before the holiday to get ready for this sudden demand. Significant usage will happen later this week. Use this annual volatility to buy some more shares like I did.
The debt needed to acquire Ranger was money well spent. More than half of BTE's massive cash flow is now being generated in Texas. Selling oil in U.S. dollars at a premium to WTI is more profitable than selling Canadian WCS at a $23 to $25 discount compared to WTI. November has not been good for WCS mostly due to plant turn arounds. A diversified company like BTE no longer has to worry when the WCS differential blows up.
No one bothers to thoroughly read the financial reports so time to repost just how well those new Ranger assets are doing.
Production in the Eagle Ford averaged 87,311 boe/d (85% oil and NGLs) during Q3/2023. During the third quarter, we brought 36 (21.3 net) wells onstream, including 13 (12.9 net) operated wells. The third quarter program reflects strong results across the black oil and condensate thermal maturity windows of the Lower Eagle Ford. The 13 operated wells generated an average 30- day initial production rate of 1,495 boe/d (78% oil and NGLs) per well (ranging from 769 boe/d to 2,355 boe/d). Seven wells from three pads (Bloodstone, Bubinga and Hickory) generated an average 30-day initial production rate of 2,000 boe/d (65% oil and NGLs) per well. Given the timing of on-streaming wells, production in the Eagle Ford increased to over 92,000 boe/d in September. In addition to delivering strong results, we remain focused on base optimization and continued strong drilling and completion performance.
The expanded TMX pipeline will be operational within a quarter. This will permanently boost the cash flow of Canadian oil companies. OPEC might also decide to tighten the screws some more at their meeting next weekend.
BTE has acquired more land in the Peavine area which is one of the most profitable plays in North America. Significant share buybacks have been in progress every day since the Ranger deal was finalized. Eric Greager has got BTE running like a well oiled cash flow generating machine. Ignore the noise and bashing. BTE is doing phenominal on both sides of the border.