Baytex Energy Corp T.BTE

Not a fan of the Ranger Acquisition

[MyHoneyPot]

Canadians should be aware that producing 11 million boe of oil in the USA, the size of the convential oil and gas industry in the USA, is 10-15 times the size of the convential oil industry in Canada. (oilsands, thermal oil excluded) 

The EaglesFord I am familar with the early movers in this play were Pioneer and I was  part of the initial activity. 

With oil business being that much larger in the states, do you really believe a Canadian company is going to buy Tier#1 acerage for Tier #2 pricing, and show Americans how it is done? 

On market call i heard about Eric's expert resource going to Texas so he could provide Eric his accessment of the play, good luck! a Canadian with go down to Texas providing an opinion on a complex play 20 years in the making. 

This is Tier#2 acerage otherwise it would not exist, the US enviroment is much more competative than Canada, and they have a much more agressive posture. 

Now you have spread sheet jockies like Eric making assessment where he is going to tell the world that Baytex buying thes assets has turned it into a Tier1 play and the stock deserves a rerating, and they need to pay him 75% of the FCF so his expert trading team, (Which is the only thing he is good at) can trade out of the stock and leave shareholder holding the bag. 

The only issue here is this, with the ranger acquisiton of approximately 3 billion, with more than a billion in senior notes to finance it, with 860 million shares outstanding, 2.8 billion in share holder liability, a 1.5% dividend, and share buyback in place, this is another TVE in my opinion. 

The assets may be reasonable, but the balance sheet is a mess. 

Good luck, with almost 900 million share how can they do anything that is meaninful for the shareholders, and with to much stock there will be to many sellers.

This looks like another Eric Nuttal Pump and Dump. 

IMHO

[masfortuna]

Ok thx for showing up with your "opinions" 4 months after the deal closed. I disagree with your opinion which is why I hold shares.  You obviously believe what you posted so you won't hold shares. Fair enough. 

[Kelvin]

Not only that MyHoneyPot but Baker Hughes rig count is dropping because of Tier 2 production dissapointments. Also oil field service costs in Texas up over 20% and rising. Break even cost per barrel keeps on rising cause they aren't proving enough new barrels. Plus a lot of these guys haven't got a clue as to how bte defines cash flow yield. Yet bte published it. Mentally lazy yard apes

[masfortuna]

  And Kelvin this is why most here think you are a complete waste of time. Besides your bipolar rants and your bromance with another poster, most have no idea what you are trying to say. That's what happens to people when parents don't spend anytime with their children. They hate society in general and because they haven't surrounded themselves with regular humans, never had

[Retiredgeo]

They say Ranger messed up.  You say they messed up.  We will discover the truth soon enough.  In the mean time the analysts love this stock. Balance sheets are always heavily leveraged after a major aquisition.  What's important is what the balance sheet is going to look like 1,2,3 4 years down the road.  They and Eric say the debt will dissapear in good season. 

[masfortuna]

Agreed. Pretty much what I posted but you expressed it more clearly than I did. Not sure what the purpose of his post was besides to highlight his disdain for BTE in general and the acquisition in particular.  At least he made his position clear.  The other "guy" just babbled away and basically insulted all Canadians and agreed with the initial poster generally BUT earlier this

[Nextlegup]

MyHoneyPot... Sounds like you have one heck of a chip on your shoulders....the arrogance! Who cares if the properties are in Canada or the US...If the economics work...they work...Similarly, in Canada the benefits of paying your employees in Canadian dollars at a 30% discount and generating revenue in US$...all sorts of considerations. Cashflow is cashflow... You sound more like a Rig Hand

[JohnnyDoe]

Have you looked at any of the recent corp presentations? Have you seen the improvements in cumulative oil produced in the Eagle Ford? Did you see the 6B in cumulative fcf in 3.5 years at 90 dollar oil?  Yes, there's 2.6 B in debt. There's a debt target target of 1.5B with 50% of fcf returned to shareholders until it gets there. So, 2.2B in fcf later, the shareholder returns jump to

[WaterDPlants]

I will admit I was not a fan of the Ranger Acquisition. I was more in tune with Jeremy McCrea’s analysis. I was fearful because I was holding a lot of BTE before the announcement. I had a feeling the stock would not react well. But I prepared for the storm by buying more. Now I own an irresponsible amount of BTE (just like Eric). What you missed is that oil is remaining high and unless we get a

[jack4567]

Exactly.  BTE will give investors very good returns at $80+ WTI, regardless of how much improvement BTE makes in drilling technique.  And MyHoneyPot offers no specifics as to why significant improvements cannot be made.

[riski]

Classic regret post from a guy watching on the sidelines waiting for his price. It took off from $3.80and he's been watching and waiting since, disappointed with the latest share price action, which took it $.60 higher in three days. OR he has just discovered baytex and can't believe he missed out on an opportunity to buy it at $3.80. Now he greedily wants that price so he can cash in

[Nothingmatters]

Lol sometimes your posts are funny...when I am a bull I look forward to them...