Baytex Energy Corp T.BTE

Free Cash Flow thoughts

[drifter699]

I believe they are paying around 8% interest on a total of around 2.5 billion dollars and if that's the case than I would prefer all FCF toward debt

1. Buy back shares
2. Pay down debt
3. Both (What percentage?)

[calebmar]

Debt was $1.6 b last qtr and will end 2021 around $1.4b if not below. 2022 they need to do more than just pay debt if oil price remains in its current range or higher.

[ManitobaCanuck]

If they hit 1billion from the previous 2 billion last year, their debt costs will also reduce accordingly by 80million a year which is again approx 16 cents yearly to the EPS .They can easily pay that out as dividend and tackle rest of debt with current cashflow. This is my opinion and my math . Please correct me if I am wrong here 

[Maxmoe]

There is plenty of accounting magic. That's why we love it. Yes, the interest payments will drop by 80 million @ if they pay down $1 billion in debt which not to quibble is 14 cents in eps on 560 million shares. BUT the BIG number is that $1 billion moves on the balance sheet from debt to equity if all they do is maintain production, reserves, ie no growth from Clearwater or anywhere else

[calebmar]

They stated in the recent presentation for Enercom? That they would target 1.2b debt next year and begin share buy backs and or dividends. That should mean early 2022 at current wti pricing. The 5 year plan will be updated in Dec 2021.

[BayStreetWolfTO]

I am still always surprised at the little amount of DD. In the August presentation you will see they paid off and additional $106M from the Q2 July close number.