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Highlights

  • BTE's Q1 2024 revenue surged by 67.7% to CAD 775.0 million due to increased production volumes and higher product prices
  • Despite revenue growth, higher depreciation, and derivative losses led to a decline in earnings before taxes to CAD 3.4 million
  • In Q1 2024, BTE achieved a gross margin of 77.6% and an EBITDA margin of 60.7%, surpassing industry medians of 58.3% and 45.4%, respectively

Baytex Energy Corp. (TSX: BTE) is an oil and gas company that operates in Canada and the United States. It has a market capitalization of CAD 3.97 billion.

In Q1 2024, BTE experienced a significant increase in total revenue, rising by approximately 67.7% to CAD 775.0 million from CAD 462.0 million in pcp. This growth was primarily driven by higher production volumes and an increase in the average realized price of its products. However, higher depreciation expenses and losses from financial derivatives contributed to a decline in earnings before income taxes to CAD 3.4 million, compared to CAD 68.0 million in pcp.

The company reported a net loss of CAD 14.0 million for the quarter versus a net profit of CAD 51.4 million in pcp.

However, in Q1 2024, the company outperformed industry averages with a gross margin of 77.6% and an EBITDA margin of 60.7%, compared to industry medians of 58.3% and 45.4%, respectively.

Recent business update

On July 02, 2024, BTE distributed a quarterly cash dividend of CAD 0.0225 per share to shareholders of record on June 14, 2024.

Company outlook

For FY24, the company has provided production guidance ranging from 150k to 156k barrels of oil equivalent per day (boe/d), alongside exploration and development (E&D) expenditures estimated between CAD 1.2 billion and CAD 1.3 billion. Additionally, the group anticipates generating approximately CAD 700 million in free cash flow during the fiscal year.

Top 10 shareholders

The top 10 shareholders of BTE collectively hold approximately 27.15% of the total shares. Juniper Capital Advisors, L.P. holds the largest stake in the company at around 12.55%, followed by Ninepoint Partners LP with approximately 4.93%.

Stock performance

The stock price of BTE has risen by approximately 0.61% in the past week and 4.43% over the past month. Currently, it is trading below the midpoint of its 52-week trading range, which spans from a high of CAD 6.37 to a low of CAD 3.96.

Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is July 10, 2024. The reference data in this report has been partly sourced from EODHD/Others.