Image source: Shutterstock

Highlights

  • Baytex Energy’s 3Q2024 net revenues decreased by 7.8% YoY to CAD 850.8 million
  • Earnings before income taxes rose by 22.0%, reaching CAD 215.0 million in 3Q2024
  • Net earnings jumped 45.4% YoY to CAD 185.2 million in 3Q2024
  • The company sold its Kerrobert thermal asset for CAD 42 million in December 2024

Baytex Energy Corp. (TSX:BTE) is an oil and gas producer with operations in both Canada and the United States. BTE generates most of its revenue from Canada.

In the third quarter of 2024 (3Q2024), the company reported net revenues of CAD 850.8 million, a 7.8% YoY decrease from CAD 922.9 million in Q32023, mainly due to lower average realization prices. Total expenses also fell by 14.9% YoY, reaching CAD 635.7 million in the reported quarter compared to CAD 746.7 million in the prior year.

Despite the revenue decline, earnings before income taxes saw a 22.0% YoY increase, reaching CAD 215.0 million from CAD 176.2 million in 3Q2023. This improvement, alongside lower expenses, contributed to a significant 45.4% YoY jump in net earnings, which reached CAD 185.2 million, up from CAD 127.4 million in the same quarter last year.

Further, the company posted improved financial results in 3Q2024 compared to 3Q2023, driven by higher production and reduced costs. Furthermore, it saw a notable rise in cash generated from operations and an increase in free cash flow.

Recent Business Update

On December 20, 2024, the company notified about the sale of its Kerrobert thermal asset in Saskatchewan for consideration of nearly CAD 42 million. The asset, which produces around 2,000 bbl/d of 100% heavy oil, has now been divested as part of the company’s strategic portfolio adjustments.

Company Outlook

For FY24, the company provided production guidance of 153,000 boe/d, alongside exploration and development (E&D) expenditures of CAD 1.25 billion. Additionally, the company anticipates generating around CAD 570 million in free cash flow.

Top 10 Shareholders

The top 10 shareholders of Baytex Energy collectively own approximately 29.78% of the company's total shares. Juniper Capital Advisors, L.P. holds the largest stake at around 13.15%, followed by Ninepoint Partners LP with a 5.02% ownership.

Stock Performance

The stock has experienced a rise of approximately 2.07% over the past week and 15.92% over the past month. Currently, it is trading below the average of its 52-week high of CAD 5.545 and 52-week low of CAD 3.15. The closing price as of January 15, 2025, is CAD 3.93.

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 January 15, 2025. The reference data in this report has been partly sourced from EODHD/Others.