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Baytex Energy Corp T.BTE

Alternate Symbol(s):  BTE

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

Comment by AvInvestoron Dec 18, 2024 1:06pm
159 Views
Post# 36368329

RE:RE:RE:RE:RE:RE:RE:Any risk of going under here?

RE:RE:RE:RE:RE:RE:RE:Any risk of going under here?

Most of the debt is fixed but the revolver is prime + ??%. I don't have an issue with the fixed term loan, it's the general path they took. Options were: A) they could have made a more significant asset disposition (heavy oil) and extinguished balance of the revolver while boosting liquidity on the balance sheet. OR B) rely on CF to pay down debt. 

Management went with Plan B (notwithstanding the small asset sale to WCP) which is risky and dangerous. This plan's downside is its vulnerability to low commodity prices. 

My Issue is the risky path they chose. Post ranger acquisition, they should have sold more non core assets aggressively. Net of the process, they would still be a 100-110k BOE producer! 

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