BTEGF - Baytex Continues To Be The Best Leveraged Producer To Play The Oil Bull Cycle
- Baytex is the best leveraged oil producer to play the oil bull cycle.
- Baytex's recent execution on Clearwater is set to add material value for shareholders. We conservatively estimate it could add C$360 million or ~27% of its current market cap.
- Baytex is expected to remain disciplined with more debt paydown going forward. We see Baytex reaching sub-C$1 billion debt by the end of Q3 2022.
- At our assumption of $75/bbl WTI for 2022, Baytex is trading at 2.7x EV/FFO and 2x free cash flow, which highlights how undervalued it remains today.
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Baytex Continues To Be The Best Leveraged Producer To Play The Oil Bull Cycle