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 > Asked Brian Ector a simple question.

<< Previous

Bullboard Posts

Next >>

Comment by dllscwbysfnon Sep 14, 2024 9:45am

186 Views

Post# 36223692

RE:RE:Asked Brian Ector a simple question.

This reads if WTI averages $70 in H2 then they make 500M in FCF for the whole year. Leaves them 170M for buybacks for the whole year. They have bought back 141M through August. This leads me to believe they will only buyback 29M more shares through the rest of the year.
On the debt side what have they done? Should be 250M paid off this year and yet I think it is likely to be more like 29M(buybacks) plus 40M(dividend) plus whatever was paid so far in Q3( maybe 31M just guessing). So that would be 100M total for the year in debt payments.So where exactly did the other 150M go to?

InvestSmarter wrote: Will probably spend ~$50M on buybacks from here, or around 100,000 shares a day if H2 = $70 WTI Average.

That would be a modestly higher % allocated to buybacks.

HeavyBanana wrote: "Hi Brian

Quick question. At todays depressed WTI price of USD $69.00 what is the impact to the dollar figure committed to daily share repurchases in the amount of $1.4 million?

I would like to understand the percentage decline in share repurchasing power relative to WTI pricing and in relation to the commitment that has been expressed at the given price.

Thanks for your guidance as always,

xxxxxxxx"

"Hi xxxxxxx I would refer you to Slide 8 in our September IR deck – it provides a FCF sensitivity for 2024 based on actual H1/2024 results and H2/2024 WTI prices of US$70, US$75 and US$80 WTI. The chart is consistent with the cash flow sensitivities highlighted on Slide 14.

To illustrate, at US$70 WTI for H2/2024, we generate ~ $500 million of free cash flow in 2024, comprised of $181 million in H1/2024 and $319 million in H2/2024. Applying 50% of the free cash flow to shareholder returns leaves us with $250 million – split ~ $80 million to the dividend and $170 million to buybacks. Through August, our buybacks have totaled ~ $141 million so this gives you a sense of the remaining balance available for 2024 buybacks. Given our higher cost of equity relative to our debt (i.e. our common shares are inexpensive today), we believe share repurchases are an attractive return for investors today and while we are committed to our 50/50 framework, in the short-term, you could see a modestly higher percentage of free cash flow allocated to share buybacks."