Baytex Energy Corp T.BTE

Capex worriers

[gareez47]

Budgeting 30 million on new drilling is OK in my book. Clearwater is too new to BTE to not drill more. All their wells are new and flowing. What they do not have a handle on yet is the decline rate for these wells.
Keep the drilling budget that is set. This is a great time to do this when oil prices are up and they payouts are in weeks. All these wells will decline and no one knows at what rate so far.

[fortunefavorsus]

If Clearwater 1000 BOE wells are paying back in weeks decline rate is just something to enhance even more profit from them.  From what I understand these are the most profitable wells in Canada by far particularly with the new well results.  So with oil prices above $100 these are the wells to focus on now.   I first became aware of the economics of Clearwater from the Surge

[bbwibone]

CAPEX growth is a problem and the point is the message it sends. Those actually truly capital disciplined companies would have found that $30M from the bottom part of their capital program, not growing it on the top line. Or absolutely worst case they would have waited for their debt target to be reached. But no, BTE management is testing the market. Next quarter will be a little more capex, then

[masfortuna]

Ok great.  You made your point. One day oil will drop hard as is the case for all commodities. Oil is projected to trade above $100 for all of 2023. If you prefer ssomething less risky then be my guest. Sell and move on, BUT if Bte is drilling, then they get sell during an oil bull which means that what they spent as capex on Q1 will be on the positive ledger very soon. I'm not in a rush.