Baytex Energy Corp T.BTE

BTE US PRODN

[ManitobaCanuck]

If Trump cuts taxes and gives incentives to increase shale prodn, will BTE move HQ  to US and become a US company? 

60-70% of prodn is from US and hope they get US multiples for that .

[AvInvestor]

I strongly believe they should! Sell heavy oil assets while you're at it, and this company's balance sheet will be in excellent shape! 

[Stockhudson]

we already know that you believe     so stop posting it 

[AvInvestor]

Why not, the goal as investors is to demand maximum value from our investment. Something i'm missing here? 

[Marty47]

Management said they don't want to sell anything for now but if opportunity happen later it could change , following trump victory anything possible .... 

[AvInvestor]

Agreed, and only at the right price. There was a missed opportunity in the past, nothwistanding looking forward if we energy prices swing upwards, selling heavy oil assets should be prioritized.

[Bloomer]

I couldn't agree more. Do it and do it now! Really worked well for Encana who turned to Ovintiv after the change. 

[AvInvestor]

Yup! 

[AvInvestor]

Apologies, forgot to mention. Like in Marty's response, we should do it at the right moment and right price for Canadian asset sales (heavy oil to be more specific). 

[Bloomer]

Yes of course sell the Canadian assets in due time but this change can be made anytime. Do it before Trump is inaugurated! 

[AvInvestor]

Why the rush? I'm not so convinced the shale producers are in a rush towards $50 oil. I will believe the market has found a soft equilibrium at $70 wti. The Trump administration knows that nobody will drill at $50! 

[Bloomer]

The "rush" is cause he's going to give huge tax incentives and regulation breaks to US companies in oil business to keep them making money at 50/60/bbl. Get in now as not to waste time when the tax breaks / regulation easing begins. Better to be in from the start. Encana kept a few fully owned gems in Canada and sold off JVs. 

[1234bmth]

I don't understand why you guys are so pro selling assets, a company sells its assets for 2 main reasons. 1- if the assets are not core and economically not profitable (generating negative FCF). 2-the company is in financial distress and can't pay its interest and debt which are due in near term. BTE is not in any of these situations, BTE is able to pay its interest at $50 WTI. And if you

[Bloomer]

What I care about is share price increasing. If you're happy with $4 for ever than do nothing and nothing will happen. Make changes and make it attractive for new investors. For me don't sell any assets just change the headquarters for now. See how that changes the attractiveness. 

[AvInvestor]

You're wrong on those assumptions. 1) Heavy oil assets are non core. The debt situation can easily be resolved with the proceeds of such a sale. Diethrmore 2) a deal can be accretive and add to shareholder value in certain situations. Eric says to wait 3 years until they reach their debt targets. But what happens if oil goes to $50 in a sustained period. My point is to de risk the balance

[Bloomer]

Ovintiv still owns fields in Canada and it's not hurting them, just HQ'd out of the US. Murphy Oil has fields in Canada but headquarters have always been in the US. Their stock prices have remained strong all along. 

[AvInvestor]

Ecana strategically made the decision to sell assets incrementally in Canada and enter the US shake market. Baytex should adopt the same approach by disposing of heavy oil assets in Canada (which is a Liberal target!), which will effectively render the majority of their production in Texas .