Baytex Energy Corp T.BTE

Highlights T.BTE

[Betteryear2]

• Generated production of 150,600 boe/d (85% oil and NGLs) in Q3/2023.
• Reported cash flows from operating activities of $444 million ($0.52 per basic share) in Q3/2023.
• Delivered adjusted funds flow(1) of $582 million ($0.68 per basic share) in Q3/2023.
• Generated free cash flow(2) of $158 million ($0.19 per basic share) in Q3/2023.
• Exploration and development expenditures totaled $409 million in Q3/2023, consistent with our full-year plan.
• Repurchased 16.8 million common shares in Q3/2023, representing 2.0% of our shares outstanding, at an average price of $5.29 per share.
• Paid a quarterly cash dividend of $0.0225 per share ($0.09 per share annualized) on October 2, 2023.
• Brought 13 operated Eagle Ford wells onstream in Q3/2023, of which seven wells from three pads generated average 30-day initial production rates of approximately 2,000 boe/d (65% oil and NGLs) per well.
• Executed a two-rig drilling program at Peavine and brought 14 Clearwater wells onstream. Production at Peavine averaged 13,821 bbl/d in Q3/2023, up 69% from Q3/2022. Production during September averaged 16,400 bbl/d.
• Continued commercialization program in our Pembina Duvernay with six-well program delivering strong results.
• Expanded our heavy oil development fairway through two land extensions, including a 10-section agreement with the Peavine Mtis settlement adjacent to our existing 80 section land position and a farm-in on 17.75 sections of land prospective for Mannville development near Cold Lake in northeast Alberta.

[riski]

This was the big wild card for Q3 for me. Would they be able to hit those big production targets outlined in the merger presentation with all the inefficiencies of a merger and potential lost production? They nailed it. They anticipated the Q3 production as an exit level production for 2023, so they are ahead of schedule.  This is excellent growth and incredible cash flow. The debt will be

[JohnnyDoe]

They are projecting an exit rate of 158-160. They also talked about modest single digit growth. Modest single digit growth probably puts them at 165 average next year. Idk, seems like their drilling activity is exceeding their expectations on every play. Maybe a 2024 exit rate of 170 is achievable  Iirc in their initial presentations post merger they were talking 1B fcf at 75 wti on 155 a

[masfortuna]

By all indications wti "should trade between $70 (the floor the US is willing to pay to purchase barrels) and $92 (the level we seem to tap-out at and drop). So an $80 avgerage would be terrific.

[masfortuna]

  And the fact that BTE hedged 40% in 2024 at $60-$100 is also an indication of where they expect to sell at ($80 avg.).

[Nextlegup]

Hey Mas I think that BTE is certainly on track to knock it out of the park... I think that companies have to be cognizant of some of these finer points in the market when setting up their hedge programs.... The US gov't has publically stated that they are looking for crude to replenish the SPR at $70..I believe for the next 6 months delivery..That should be setting a floor in for the market

[masfortuna]

 Agreed Nexy.