Baytex Energy Corp T.BTE

BTE Debt Reduction, Share Buybacks, Dividends

[AlwaysLong683]

In my opinion, BTE should focus solely on debt reduction until their targets are hit and they achieve inestment-grade credit ratings from Fitch, S&P Global, and Moody's. Was it Nuttall who pressured the BTE Board of Directors to offer a dividend...? I think Dividends and Share Buybacks should only be done with excess cash not needed for other purposes, and BTE needs to reduce debt, so I think it's a bad move to delay this effort by allocating cash to other areas before such debt reduction goals are achieved. Then I think share buybacks and one-time special dividends should be step #2 so the company can take advantage of low share prices when the opportunity presents itself and if not, issue a one-time special dividend with any excess cash. Does anyone think energy investors wanting yield are going to look to BTE to satisfy their desire for dividend income...? Stay in your lane.

[uwebb429]

BTE recently introduced a very modest dividend so Ranger shareholders would be on board with the take over. The dividend payout requires less than 7% of free cash flow.   30% of their $1.1B revolving line of credit is unsed. They do not need to renegotiate this debt until Apr 2026. A long term note for $0.5B comes due Apr 2027 and the other $1.1B is not due until Apr 2030. BTE is in a

[AlwaysLong683]

When BTE announced their $800M USD Senior Note Offering on April 13 to help fund the Ranger acquisition, the BOC Rate sat at 4.50%. The interest rate BTE will pay on the notes will be 8.50% (almost double). Reason? Too much debt / non-investment grade credit rating. BTE's Balance Sheet as at September 30 showed: Current Assets:       Cash + Receivables = $564M Current

[riski]

These numbers are embellsihed. The interest rate on debt is standard for all energy E & Ps.   

[dandu1924]

and they are expecting their earnings with the WTI  at $80 to $100, and we are around $70, so I dont know how they can respect the target numbers?

[robert41]

I think you might want to read the release again