Post by
uwebb429 on Jul 29, 2024 12:55pm
Pembina Results
BTE brought two wells online during May. Both were drilled into the Duvernay formation from the same 07-05-045-02 W5 surface location. By the end of June these were Baytex's top two producing wells in western Canada. The top well produced 1019 boe/d of oil during June as well as 349 boe/d of gas.
Baytex's results are exceeding expectations and type curves eveywhere they drill. Pembina or Peavine or Eagle Ford does not seem to matter.
Before year end the debt ratio should be back under 1.0. BTE recently renegotiated their long term debt at a lower interest rate. Their bankers do not seem too concerned. BTE's debt level is a non issue.
The Eagle Ford is producing 90,000 boe/d (60% of total production) just a year after acquiring the Ranger assets. Unlike Canadian WCS oil that continues to sell at a $15 discount to WTI, Eagle Ford production sells at a premium to WTI. Lower transportation costs is another bonus.
If you bought a house and a year later the mortgage was not fully paid off would you be worrying about debt every night? Of course not. It takes time to pay down any major purchase. Corporate debt is not a bad thing if the debt was used to acquire undervalued assets that are generating gobs of cash flow.
Long term investors should ignore the noise. Eric Greager and his team are on the right track.
Comment by
ztransforms173 on Jul 29, 2024 1:41pm
- NOT ONLY is BTE FINALLY WELL-MANAGED (from AN EFFICIENT CAPITAL ALLOCATOR to a SHARPLY-FOCUSED EMPHASIS ON COST CONTROL) but the ENGINEERING and TECHNICAL TEAM is really FIRST CLASS - it 'appears' that the THIRD TIME AT BAT {after Aurora Oil and Gas and Raging River Exploration}, they are WELL ON THEIR WAY to REWARDING the LONG-SUFFERING BTE shareholders z173