Topic: How To Invest

Pat, what are your current views on Baytex Energy Corp. (BTE)? Oil and gas is going to be needed well into the future. I think Baytex has a long runway. What is your view? Is Baytex a buy, hold or sell? Thank you.

Article Excerpt

A: Baytex Energy Corp., $6.08, symbol BTE on Toronto (Shares outstanding: 544.9 million; Market cap: $3.3 billion; Resources sector; TSINetwork Rating: Extra Risk;, explores for, develops and produces oil and gas in Western Canada and in the Eagle Ford, Texas region of the U.S. The company’s output is 16% gas and 84% oil. In the quarter ended September 30, 2022, Baytex’s production rose 4.2%, to 83,194 barrels of oil equivalent per day from 79,872 barrels a year earlier. Cash flow jumped 43.3%, to $284.3 million, or $0.51 a share, from $198.4 million, or $0.35 a share, a year earlier. That gain came from higher oil and gas prices, the higher output and reduced spending on exploration. The company has used its strong cash flow over the last couple of years to pay down its debt. Its long-term debt of $1.1 billion is now a manageable 33% of its market cap. That’s down from $1.8 billion at the start of 2021. Baytex plans…