Baytex Energy Corp T.BTE

My e-mail to Baytex

[markymark1]

My question to Baytex was why can't a share buyback program begin now on some level.


Response:

Hi Mark – I appreciate your feedback – and we do debate this. At this time, we feel we have laid out a plan that is very prudent.  We are in a very strong position here to accelerate our de-leveraging and should hit our initial $1.2 billion net debt target by mid-2022. At that time, we will continue to use a portion of the our free cash flow to reduce our net debt – ultimately we see ourselves running our business with net debt of less than $1 billion, perhaps in the $600 to $800 million range. But as we approach these initial targets, we feel we will be in a position to enhance shareholder returns. If we are trading as we are today, at historic low valuations and below our view of net asset value, then our priority initially would likely be share buybacks. I recognize your desire for that sooner than later, but our strong preference is to get our balance sheet in order first.

 

Another consideration will be our Clearwater development. We have not included the Clearwater in our original five-year plan that was introduced with our Q1 results. This is an asset that we believe can grow within its cash flow – so you might see incremental capital in 2022 beyond the base plan as we drill 12 to 18 net wells here. But that spending would enhance our free cash flow profile. Our updated October presentation available on our website highlights recent our recent well results in the play and our plans for the fourth quarter.

 

I hope this is helpful.

 

Regards,

Brian

[Wildfury]

</br /whoever replied to you mark is not telling us anything new. the only question is why are they not adding clearwater in their 5 year plan? what's the point of telling us about clearwater, the well numbers, the bopd from each site, eg, 2300 bopd with more coming soon. why are they not including those numbers? i did some math on one of their higher producing wells, 750 bopd x $80 x365

[1234bmth]

Clear Water is a self funded growth project, it doesn't consume cash from other operation segments of BTE's FCF, but at the same time for now it doesn't generate Extra FCF, that's the reason it is not included in BTE's 5 years plan. Once it starts to generate FCF then the management could have a better estimate of Clear Water's contribution to the FCF and profitability of

[Tommy007]

Clearwater project has not yet really priced in the current SP. Nobody knows how much oil under the ground. Expectation is only an expectation.

[red2000]

Hi Markymark1 ! Thank's for sharing the response. I am glad you received an answer ! I am still waiting for 3 answers of my email dated 14 days ago ! I think, I insisted a little too much to receive answers on their anticipated production for the next 9 months... ;) I think we will have a preview on november 4th ! Still LONGS !

[red2000]

Drilling often results in both oil and natural gas production Do you imagine if we have both products in Clearwater !!! I ask them, but no answer for the moment ! May be more with Q3 results ! Read this : https://www.eia.gov/todayinenergy/detail.php?id=13571 May be more good news also with Eagle Ford with more NGL !!! Eagle Ford Drilling highlight 10 years ago !!! I know i am dreaming