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.

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Baytex Energy Corp > Eric's Top Pic....

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Comment by Possibleidiot01on Jul 10, 2024 3:49pm

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RE:RE:Eric's Top Pic....

Only one of the three Top picks to be owned personally, by family and in fund .
I think that says something.

BAYTEX ENERGY (BTE TSX)

At US$80WTI Baytex is set to return 95 per cent of its current market cap back to investors in the form of share buybacks and dividends over the next five years despite having an estimated 13 years of stay-flat inventory. Generating $765 million of free cash flow and returning half of it back to shareholders in the second half of this year, the company is set to retire 10 per cent of its shares outstanding in the next six months. Despite poor performance over the past year, we are sticking with the stock, believing that a 29 per cent free cash flow yield and 2.4 times trading multiple are sharply disconnected from fair value

NUVISTA ENERGY (NVA TSX)

Over the next several years Nuvista will grow production from 85,000 barrels of oil equivalent per day (boe/d) to 120,000 boe/d, and then keep production flat for 20-25 years. Returning 75 per cent of its free cash flow now we see this increasing to 100 per cent in a few years time, thereby increasing annual shareholder returns from 11 per cent currently to over 20 per cent. Trading at three times EV/CF despite having decades worth of inventory, we think fair value today should be five times EV/CF = 10 per cent FCF yield = $22.50 target price = > 60 per cent potential upside.

PRECISION DRILLING (PD TSX)

Despite sluggish oilfield service activity levels currently Precision is rapidly harvesting free cash flow, paying down debt, and returning over 30 per cent of its free cash flow back to shareholders. We are bullish on an increase in natural gas and oil activity in 2025 and have the stock trading at a 23 per cent / 26 per cent 2024/2025 free cash flow yield. Given non-depleting assets we think a 13% free cash flow yield approximates fair value = five times EBITDA = $191 target price = 107 per cent potential upside.