Energy Prospectus

VERY smart move. Company can withstand the downturn with vigor and emerge stronger (can't be said of many of its' peers). Maybe some short-term selling, but given the asset base and balance sheet, any further stock price decline (assuming one believes oil isn't going to hit and stay at $20 bucks) has to be a buying opportunity???

Dan, comments???

Baytex capital budget is $500 million for 2015. Production drift lower, from 84,812 boepd in Q2 to ~80,000 boepd in Q4. This is still a solid base of production. They have a strong balance sheet and more than enough liquidity to survive a long period of low oil prices.

Cash flow from operations in the first half of this year was $306 million.

They only have ~18% of their second half production hedged at ~$79/bbl, so today's low oil prices will hurt cash flows.

This is a smart move by their board: https://finance.yahoo.com/news/baytex-a ... 53826.html

I will update my forecast model and it will be posted to the EPG website later today.

Baytex Energy (BTE) price target was lowered to $11 from $19 at BMO Capital, which reiterated its "market perform" rating.

The price decrease from BMO reflects a continued 'opinion' of low oil prices, not anything to do with the fundamentals of the company...at least, that's what I took away from the report.

Toronto, August 21, 2015 -- Moody's Investors Service, (Moody's) views Baytex Energy Corp.'s (Baytex) announced dividend suspension, and reduced 2015 and 2016 capital program as credit positive. This will keep production guidance (net of royalties) between 65,000 to 67,000 boe/d and allow Baytex to be in a largely breakeven free cash flow position in the second half of 2015 and full year 2016, maintaining balance sheet strength.

Baytex is a Calgary, Alberta-based exploration and production company that has net proved reserves of approximately 215 million barrels of oil equivalent and average daily production of approximately 65,000 boe/d (net of royalties), of which 85% is oil.