3. Baytex Energy Corp. (NYSE:BTE)
Share Price as of July 18: C$5.04 (C$1 = US$0.73)
Number of Hedge Fund Holders: 14
Baytex Energy Corp. (NYSE:BTE) is a Canada-based company that acquires, develops, and produces crude oil and natural gas in the Western Canadian Sedimentary Basin and in the Eagle Ford, the United States. Additionally, the company holds interest in various lands, including the Eagle Ford property in Texas, Viking and Lloydminster properties in Alberta and Saskatchewan, and Peace River and Duvernay properties in Alberta.
Baytex Energy (NYSE:BTE) is set for robust performance in 2024, as evidenced by its strong production guidance and impressive free cash flow projections. The company expects production levels to range between 150,000 to 156,000 barrels of oil equivalent (BOE) per day for the year. The forecast is supported by the efficiency gains in its exploration and development (E&D) program, combined with higher expected production volumes and improved crude oil realizations across its key operating regions, including Canada and the Eagle Ford in Texas.
In Canada, Baytex Energy (NYSE:BTE) is benefiting significantly from the completion of the Trans Mountain Pipeline expansion, which has improved the company’s oil export capacity from Western Canada. The strategic infrastructure improvement is expected to increase revenue streams as it is expected to refine transportation logistics and reduce operational costs. Similarly, in the Eagle Ford region, the company benefits from its exposure to premium U.S. Gulf Coast pricing for its light oil and condensate production, which has led to margins and overall profitability.
Baytex Energy’s (NYSE:BTE) focus remains on honing its acreage and operational efficiencies. In the first quarter of 2024, the company successfully brought three upper Eagle Ford wells online, with plans for additional well completions throughout the year. Moreover, a refracturing operation in the Medina unit is anticipated to yield attractive returns, which is a sign of the company’s preemptive approach to maximizing production from existing assets. The company has identified further refracturing opportunities that complement its capital expenditure program to better its overall cost management and operational effectiveness.
Baytex Energy (NYSE:BTE) is committed to driving down drilling and completion costs and has targeted an 8% reduction in operated drilling and completion costs per completed lateral foot compared to 2023. The efficiency focus of the company can be seen in the company’s successful execution of its 2024 drilling program in the Pembina Duvernay and Viking regions. The company achieved significant improvements in drilling performance, with a 21% reduction in drilling days and a 10% decrease in drilling costs for its Duvernay operations during the first quarter of the year.
In the first quarter, 14 hedge funds had stakes in Baytex Energy (NYSE:BTE), with total positions worth $94.482 million. As of March 31, Millennium Management is the largest shareholder in the company and has a position worth $34.15 million.
