Baytex Energy Corp T.BTE

Total Debt and Notes

[jleer42]

I asked about the increase in long-term notes when the 2027's were rolled over. It's going against credit facilities. Between June presentation and March FS I do see ~75mm CAD decrease, but flipping currencies and different exchange rates muddies things. Regardless it will make Q2 look better. Actual response is below. I do wish he mentioned what the redemption fees totaled.

We issued US$575 million of notes due 2032 and repaid U$$410 million of notes due 2027. The remainder of the proceeds from the bond offering after taking out the 2027 notes (US$165 million less issuance and redemption fees) goes to reduce the outstanding bank debt on our credit facilities. You will see this reflected in our second quarter results.

 

Regarding our overall debt levels, we are targeting an approximate 10% reduction in our net debt by year-end 2024 as we generate significant free cash flow over the balance of the year and allocate 50% of the free cash flow to the balance sheet.

[JohnnyDoe]

IMO this is watered down again. 10% reduction in debt is roughly a 250M reduction. If that is half of FCF, then FCF is roughly 500M. When they bought ranger they said 1B at 75 WTI, then came 700M FCF at 75 wti, are we now at 500M? Why does FCF keep dropping? 

[Kelvin]

Maybe because break even costs per barrel at Eagle Ford are going up but I'm waiting for Q2 financials in order to confirm that. If their netbacks are shrinking because break even costs are increasing then they're losing the torque necessary to drive earnings power. So all eyes are on Eagle Ford break even costs to see if the refracs have improved their netbacks. 

[dllscwbysfn]

This is their guidance from Q1 on may 9th  "2024 Guidance Our 2024 guidance remains unchanged with E&D expenditures of $1.2 to $1.3 billion and production of 150,000 to 156,000 boe/d. Based on the forward strip(3), we expect to generate approximately $700 million of free cash flow(4) in 2024. We intend to allocate 50% of free cash flow to the balance sheet and 50% to shareholder

[jleer42]

Some addtional information on debt, cash flow, and NCIB. Note the buybacks at ~$1.4mm/day and the commentary regarding FX and its impact on USD debt when reported in CAD. Full year 2024 free cash flow is still anticipated to be $700mm. We have made a commitment to return 50% of our free cash flow to shareholders in the form of share buybacks and a modest dividend. The remainder of the 50% of

[dandu1924]

I think  one of those problems of BTE is:  the most of expenses are in USA dollars ( but of course the salaries of the management ) and their earnings are most canadian dollars, so around 40%  ??? issue. How can you survive with this problem.

[1234bmth]

They sell oil in USD as well, so this is +40% for the earnings, this is not the problem, but yes, BTE's exploration expense is higher than its peers.

[HeavyBanana]

Brian has given me similar information plus this ..."Our current NCIB program expires on June 28, 2024, at which point we intend to renew for another 12 month period. In the first year of the program, we expect to repurchase just under 7% of our shares outstanding."