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Summary

  • Seven insiders purchased Baytex Energy stock within one month.
  • The stock was sold by no insiders in the month of intensive purchasing.
  • All seven of these insiders increased their holdings by more than 10%.

Baytex Energy Corp. (NYSE:BTE) engages in the acquisition, development, and production of crude oil and natural gas in the Western Canadian Sedimentary Basin and the Williston Basin in the United States.

(click to enlarge)

Insider buying during the last 30 days

Here is a table of Baytex Energy's insider activity during the last 30 days.

NameTitleTrade DateShares PurchasedProspectusCurrent OwnershipIncrease In Shares
John BrussaDirectorFeb 2450,000Yes362,547 shares+16.0%
Edward ChwylDirectorFeb 2415,000Yes58,207 shares+34.7%
Geoffrey DarcyVPFeb 245,000Yes20,154 shares+33.0%
Naveen DarganDirectorFeb 2433,000Yes147,021 shares+28.9%
Ruston GoepelDirectorFeb 242,500Yes16,241 shares+18.2%
Cameron HercusVPFeb 2410,000Yes10,000 sharesfrom 0 to 10,000
Mary PetersDirectorFeb 242,500Yes2,500 sharesfrom 0 to 2,500

There have been 118,000 shares purchased by insiders during the last 30 days. All these shares were purchased pursuant to a public offering.

Insider buying by calendar month

Here is a table of Baytex Energy's insider activity by calendar month.

MonthInsider buying / sharesInsider selling / shares
February 2014118,0000
January 201402,310
December 20135,2980
November 2013067,800
October 201304,374
September 201300
August 201300
July 2013050,000
June 201386,5000
May 201300
April 201300
March 201300
February 20131,09125,000
January 2013066,337

There have been 210,889 shares purchased, and there have been 215,821 shares sold by insiders since January 2013. The month of February 2014 has seen the most insider buying.

Financials

Baytex Energy reported the full-year 2013 financial results on March 13 with the following highlights:

Revenue$1.4 billion
Funds from operations$604.4 million
Net income$164.8 million
Total debt$762.1 million
Production57,196 boe/d

Outlook

Baytex Energy's 2014 guidance is as follows:

Production60,000-62,000 boe/d
E&D capital expenditures$485 million

Competition

Baytex Energy's competitors include Canadian Natural Resources (NYSE:CNQ) and EnCana Corporation (NYSE:ECA). Here is a table comparing these companies.

CompanyBTECNQECA
Market Cap:4.88B39.62B15.24B
Employees:251N/A3,303
Qtrly Rev Growth (yoy):0.100.07-0.11
Revenue:1.14B16.45B5.86B
Gross Margin:0.610.540.50
EBITDA:578.62M8.27B2.60B
Operating Margin:0.220.190.17
Net Income:168.00M2.31B236.00M
EPS:1.352.120.32
P/E:29.0017.1564.19
PEG (5 yr expected):0.470.641.88
P/S:4.272.392.58

Baytex Energy has the fastest revenue growth among these three companies.

Here is a table of these competitors' insider activities this year.

CompanyInsider buying / sharesInsider selling / shares
CNQ400,810811,750
ECA10,0000

Only Baytex Energy has seen intensive insider buying during the last 30 days.

Conclusion

There have been seven different insiders buying Baytex Energy, and there have not been any insiders selling Baytex Energy during the last 30 days. All seven of these insiders increased their holdings by more than 10%. Baytex Energy has an insider ownership of 2%.

(click to enlarge)

(Source: Investor presentation)

The seven insiders purchased their shares at $35.05 (C$38.90). I believe Baytex Energy could be a good pick below $35 based on the intensive insider buying.

(click to enlarge)

(Source: Investor presentation)

Source: Baytex Energy: 7 Different Insiders Have Purchased Shares During The Last 30 Days