- For all practical uses, the industry is not going to have free cash flow after fiscal year 2020 despite calculations to the contrary.
- Free cash flow is not a measure of company health.
- Repayment of debt will tie up any free cash for the foreseeable future.
- Management is lowering debt levels ahead of what are likely to be more formal debt market requirements going forward (if those requirements are not already in place).
- Free cash flow is non-GAAP because it is largely a management opinion due to the capital part of the calculation.
For further details see:
Baytex Energy: Let Us Talk About Free Cash Flow