RE:Share buybacks...interesting note from HFI research It's debatable, I think HFI raises a legit point on buybacks vs reserves. However, I think there is a certain point where a little "financial engineering" makes sense, and that is when the market is severely under appreciating the stock.
Baytex is trading at a significant discount for various reasons, some legit, some are over exaggerated.
That coupled with the fact that companies oftentimes buy back shares aggressively after an acquisition makes me feel (I'm just a random retail) like it's justifiable. Baytex is still developing new fields (in Canada) to find their next long-term play so it's not like they aren't looking to improve their reserves. There just isn't much opportunities in their existing fields like the EF to do so, so they're looking elsewhere.