Baytex Energy: A Look At Its Outlook For 2025

(7min)

Summary

  • Baytex has met expectations for 2024, with production and capex at the midpoint of guidance.
  • It may be able to generate US$320 million in 2025 free cash flow at high-$60s WTI oil strip.
  • Baytex's value remains quite sensitive to oil prices, but I believe it is currently priced for a long-term price of slightly under $65 WTI oil.
  • Baytex's debt remains a risk. This appears manageable to me, but it needs to reduce debt by around 35% to reach its debt target.
  • Looking for more investing ideas like this one? Get them exclusively at Distressed Value Investing. Learn More »

Oil pump, oil industry equipment

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Baytex Energy (NYSE:BTE)(TSX:BTE:CA) has continued to perform in-line with expectations in terms of its operational results, with both its production and capex expected to hit the middle of its original guidance for the year.

At high-$60s WTI oil

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This article was written by

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Aaron Chow, aka Elephant Analytics has 15+ years of analytical experience and is a top rated analyst on TipRanks. Aaron previously co-founded a mobile gaming company (Absolute Games) that was acquired by PENN Entertainment. He used his analytical and modeling skills to design the in-game economic models for two mobile apps with over 30 million in combined installs. He is the author of the investing group Distressed Value Investing, which focuses on both value opportunities and distressed plays, with a significant focus on the energy sector. Learn more>>

Analyst’s Disclosure: I/we have a beneficial long position in the shares of BTE:CA, BTE either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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