BTE
BTE
Dan: how solid do you feel about BTE here with current commodity pricing? is their distribution pretty solid here? from what I've read on your profiles of BTE, their move into the Eagle Ford should be positive here even with lower oil pricing. I just looked at the 3 year chart for BTE and this morning it is retesting it's lows in range of $31-$32.
Re: BTE
Baytex now holds some of the best acreage in the Eagle Ford. Take some time to look at their October presentation on the BTE website.
43% of Q4 oil production is hedged at $95.45.bbl.
My adjusted valuation (assuming $80 WTI for all of 2015) is $50.80, compared to First Call's Price Target of $51.41. See my updated forecast model on the EPG website under the Watch List Tab.
Dividend looks safe.
BTE is a prime candidate to move into the Sweet 16 for 2015. Production growth should be more than 25% YOY in 2015.
43% of Q4 oil production is hedged at $95.45.bbl.
My adjusted valuation (assuming $80 WTI for all of 2015) is $50.80, compared to First Call's Price Target of $51.41. See my updated forecast model on the EPG website under the Watch List Tab.
Dividend looks safe.
BTE is a prime candidate to move into the Sweet 16 for 2015. Production growth should be more than 25% YOY in 2015.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group