Baytex Energy: Getting some love from Zacks
Posted: Mon Apr 15, 2024 6:41 pm
Read this: https://finance.yahoo.com/news/baytex-bte-incredible-growth-stock-164505593.html
Baytex year-over-year production growth:
> 4.2% in 2022
> 46.3% in 2023
> 25.3% in 2024 based on the midpoint of the Company's guidance.
I added Baytex to the Sweet 16 soon after they acquired Ranger Oil (a Sweet 16 Company) in a merger that closed on June 20, 2023. Ranger was one of my Top Picks in 2022 and at the beginning of 2023 because it had lots of high-quality "Running Room" in South Texas.
Baytex is heavily weighted to oil. I now expect their Q1 results to beat my forecast. My current valuation of $6.90US per share is based on just 3.75X operating cash flow per year. My valuation will be going up if their Q1 results and updated guidance confirm my forecast assumption.
Baytex pays a dividend, and it now generates a lot of free cash flow, so dividends should be going up.
Baytex year-over-year production growth:
> 4.2% in 2022
> 46.3% in 2023
> 25.3% in 2024 based on the midpoint of the Company's guidance.
I added Baytex to the Sweet 16 soon after they acquired Ranger Oil (a Sweet 16 Company) in a merger that closed on June 20, 2023. Ranger was one of my Top Picks in 2022 and at the beginning of 2023 because it had lots of high-quality "Running Room" in South Texas.
Baytex is heavily weighted to oil. I now expect their Q1 results to beat my forecast. My current valuation of $6.90US per share is based on just 3.75X operating cash flow per year. My valuation will be going up if their Q1 results and updated guidance confirm my forecast assumption.
Baytex pays a dividend, and it now generates a lot of free cash flow, so dividends should be going up.