Energy Prospectus

Good detailed article on Baytex on Seeking Alpha. Good balanced (and generally bullish) read.

https://seekingalpha.com/article/4639256-baytex-energy-offers-big-upside-and-a-growing-dividend-but-beware-of-the-risks#scroll_comments

Great article. I share the concern of the quality of the Ranger assets that originated from Lone Star with some having come from Sanchez both companies I previously incurred significant losses on after much hype. Sanchez always touted itself as the low cost operator but I recall Jeff Bracken speaking about the mess their operations were when Lone Star acquired them. Just because assets are in the Eagle ford or Permian doesn't automatically make them great assets. That said, on the Bloomberg call recently Eric Nuttall who is high on Baytex stated he had an geologist in Baytex Houston office going through the well data ie doing due diligence on the stocks he selects. Will continue to monitor but of the assets are good it certainly is a game changer for Baytex.

I used to own Sanchez. They went bankrupt, one of my many scars

Lonestar Resources had good assets in the Eagle Ford, but it also has too much debt. Frank Bracken missed an opportunity to avoid Chapter 11 when he failed to monetized the Company's oil hedges when the price of oil crashed in April, 2020. He may have been able to monetize them for enough cash to pay off the debt that eventually drove the company into bankruptcy.

Ranger Oil was the combination of Penn Virginia and Lonestar Resources.
Baytex + Ranger = ~153,000 Boepd of production and a lot of high-quality running room.

The assets that Baytex got with the Ranger Oil deal are good. The Company is going to report some very strong results in Q3 and Q4 with total 2H 2023 operating cash flow over $1 Billion Cdn. 2024 free cash flow could exceed $1Billion Cdn ($1.17/share)