Baytex Energy Corp T.BTE

Hey Wildfury!

[masfortuna]

I took another look and broke down the numbers:

• Generated free cash flow(2) of $112 million ($0.20 per basic share) in Q3/2022, an 11% increase compared to $101 million ($0.18 per basic share) in Q3/2021.

So at 25% that gives us $28 million for share buybacks and $84 CDN million of fcf left. At the conversion rate given today, it's $62 million. Your question is "What did they do with that 75% fcf?". There answer was that they paid down the debt but with exchange rate differential, they ended up with the same debt level in CDN funds.  On 1.2 billion US that would equal to a 5% increase in the value of the US dollar vs the Cdn dollar.  Did the US dollar increase 5% between June an October? The answer is yes as it increased from the low of $1.24 to as high as $1.37 ( I don't have time to find the median).  So tha's where the $62 milllion US went.

FYI: I too was disappointed with the debt repayment as I gave a $992 million guess BUT I understand where the money went.  Incidentally that high capex in q3 brought the fcf down to under $120 million.  We should see a much healthier fcf in q4...

[Wildfury]

Hey Mas, as per the 3rd quarter capex numbers they spent more on drilling activities , October production was much higher . With the extra production entering the 4th quarter with less capex spending, the 4th quarter will be much better . They claim that the debt will be at 1 Billion , I say they're going to beat that with a debt under 1 Billion , say $9.6 - $9.9 . For Baytex to get to $800

[Investnowplease]

Good point.  Sell the treadmill properties even though they generate a decent ROR, ie Viking.  BTE needs longer life wells. Ie clearwater.