10 Oversold Canadian Stocks to Buy Right Now

2) Baytex Energy Corp. (NYSE:BTE)

% Decline Over Past Year: ~34%

Forward P/E (As of October 21): 9.87x

Number of Hedge Fund Holders: 17

Baytex Energy Corp. (NYSE:BTE) is an energy company, that is engaged in the acquisition, development, and production of crude oil and natural gas in the Western Canadian Sedimentary Basin and the Eagle Ford, the US.

Baytex Energy Corp. (NYSE:BTE) remains confident in the Duvernay asset and plans to increase capital allocation. Eagle Ford play’s move to the black oil window is anticipated to yield lower well costs and better oil cuts. The company saw efficiency gains in the recent quarter, with a reduction in drilling days and costs in the Duvernay play. Baytex Energy Corp. (NYSE:BTE) took advantage of favorable market conditions in a bid to improve debt terms and extend the credit facility. The company has been evaluating and prioritizing the highest-returning assets in its portfolio.

Market experts opine that Baytex Energy Corp. (NYSE:BTE)’s strategic focus on balance sheet strength and shareholder returns, together with operational efficiencies and potential developments in the asset portfolio, places it for continued growth and profitability amidst the competitive energy market. The company’s strong ability to maintain profitability despite the fluctuating oil and gas market should help it navigate a tough economic environment.

As Baytex Energy Corp. (NYSE:BTE) continues to execute its plans for 2024, the FCF is expected to strengthen in H2 2024. This should enable the company for higher shareholder returns and debt reduction.

The company’s Q2 2024 results were aided by increased production, disciplined capital spending, and meaningful FCF. Baytex Energy Corp. (NYSE:BTE) returned $97 million to shareholders via its share buyback program and quarterly dividend.