Baytex Energy Corp T.BTE

Dividend Hike Coming? Let’s Speculate!

[FinancialOrb3]

Okay, hear me out: $BTE.TO's payout ratio is ridiculously conservative right now. With the free cash they’re throwing off, that CAD 0.0225/share dividend feels like peanuts. If Q4 numbers are solid, I’m betting we see a dividend hike in 2025. Even a slight bump would turn heads and get more institutions interested. Let’s see if they surprise us!Also, been watching $BOLT. Rumor has it there’s potential for a big move.

[Moemoney42]

Q4 should be a great quarter FCF wise.. and they should double that paultry dividend and put the rest to the balance sheet.. heck with the share buybacks until the debt is under control IMO

[1234bmth]

We can't change management decisions, but  the best strategy to boost the SP is 75% of FCF to debt and 25% to dividend and stop throwing cash to the garbage (buyback shares). 

[AvInvestor]

Buybacks are not garbage! They've supported the stock price and prevented mid to low 3s.  How about selling heavy oil assets?? 

[1234bmth]

Do you think if almost $400M spent on buyback was used to reduce debt to nearly $2b, the SP would have been in mid $3? No chance, it would have been close to $5 now.

[AvInvestor]

By your account, debt would be at $1.9B. Do you truly believe that this would incentivize the market enough to purchase the 70-80M shares that the company bought back? Very few investors are buying energy and that's the reality! If debt were to be below $1B, then I would agree. Don't forget that there are penalties to ending the term loan early, nowithdstanding the line of credit (Floating

[1234bmth]

Market always prioritise strong balance sheet over buybacks, I am not completely against buybacks, but once the debt is reduced in a level that market accepts it, in case of BTE let's say roughly $1.2B to $1.3B, because oil can't stay high forever, management should take in to account that oil could go down easily, then the cost of early debt reduction will be offset buy saving in interest

[AvInvestor]

For conventional companies, yes you are correct. Unfortunately, we live in an era whereby energy companies are left for dead! Better balance sheet would have been helfpful but not much. Nevertheless, energy prices are presently ok and therefore heavy oil assets should still have value.  The point is that Baytex should concentrate on being a light oil producer instead of a mish mash of sub