10 Best Oil and Gas Penny Stocks To Buy

08. Baytex Energy Corp. (NYSE:BTE)

Number of Hedge Fund Holders: 17

Share Price: $2.94

Baytex Energy Corp. (NYSE:BTE) is a Canadian energy company engaged in acquiring, developing, and producing crude oil and natural gas in the Western Canadian Sedimentary Basin and the Eagle Ford in the United States. Established in 1993, Baytex Energy Corp. (NYSE:BTE) offers a diverse portfolio that includes light oil, heavy oil, natural gas, and natural gas liquids. The company’s primary assets are located in Alberta, Saskatchewan, and Texas, where it holds a significant interest in the Eagle Ford property.

In the second quarter of 2024, Baytex Energy Corp. (NYSE:BTE) delivered robust financial results, demonstrating disciplined capital management and strong production growth. The company reported a 23% year-over-year increase in production per share, with average production reaching 154,000 barrels of oil equivalent (BOE) per day, 85% of which was oil and natural gas liquids. This increase was supported by higher production from the company’s key assets, including a 4% quarter-over-quarter rise in crude oil production, averaging over 110,000 barrels per day.

Baytex Energy Corp. (NYSE:BTE) financial performance has been equally impressive. The company generated CAD533 million in adjusted funds flow, representing CAD0.65 per share, a 38% increase compared to the same period in 2023. Net income for the quarter stood at CAD104 million, translating to CAD0.13 per share. Additionally, Baytex generated CAD181 million in free cash flow during Q2, allowing the company to return CAD97 million to shareholders through share buybacks and a quarterly dividend. This commitment to shareholder returns is further evident in the company’s ongoing normal course issuer bid, which has repurchased 7.2% of its outstanding shares since June 2023.

Baytex Energy Corp. (NYSE:BTE) is also focused on maintaining a strong balance sheet, with a total debt-to-EBITDA ratio of 1.1x. As of Q2 2024, the company’s total debt was CAD2.5 billion, largely unchanged from the previous quarter due to strategic acquisitions and credit facility extensions. Moving forward, Baytex expects to generate CAD700 million of free cash flow in 2024, weighted 75% towards the second half of the year, enabling further debt reduction and shareholder returns.

As of Q2 2024, Baytex Energy Corp. (NYSE:BTE) was held by 17 hedge funds, up from 14 in the previous quarter, indicating increased institutional confidence in the company’s financial performance and growth prospects.