Baytex Energy Corp T.BTE

Hedges BTE

[andy604]

For the first half of 2024, we have entered into hedges on approximately 40% of our net crude oil exposure utilizing two way collars with a floor price of US$60/bbl and a ceiling price of US$100/bbl. For the second half of 2024, we have entered into hedges on approximately 25% of our net crude oil exposure utilizing two way collars with a floor price of US$60/bbl and a ceiling price of US$98/bbl.

 

[BeWary2]

My understanding is Baytex entered into two way collars for the next three years with a floor of $70 and a ceiling of $100. Perhaps that is one of the reasons the market is disenchanted with the stock.  Sp, effectively they are spending $1.2-$1,3 billion on E & D while making smaller than anticipated debt repayments and entering into a locked ceiling hedge of $100 for three years.

[1234bmth]

You think oil is going above $100 and that's why the hedge is hurting BTE? Let's get to $80 first and hold, then think about $100+, the SP decline is due to difference of FCF predictions right after Ranger oil acquisition ($1B at $75 WTI) and now the management is predicting $575M at $75 WTI which is almost 1/2 of the previous one. BTE needs at least 1 full year of $85+ WTI for a

[barneyj44]

  Comparing Crescent Points 2024 Fcf of $830 million and Baytex at  $575 million Fcf it's looking like Baytex is oversold and due to start heading the other way. Happy to hold both.