7 Cheapest Penny Stocks to Buy Now

5. Baytex Energy Corp. (NYSE:BTE)

Share Price: $3.31

Forward P/E Ratio: 9.38

Earnings Growth This Year: 216.70%    

Number of Hedge Fund Holders: 17

Baytex Energy Corp. (NYSE:BTE) is a Canadian energy company that operates in both the United States and Canada. It produces light and heavy crude oil, around 84% of its production comes from these products. The other 16% comes from natural gas and natural gas liquids. It is one of the cheapest penny stocks to buy now.

Last year, the company acquired Ranger Oil allowing it access to Eagle Ford in Texas, which now produces more than 60% of the company’s products. This site is said to be the differentiating factor for the company and it is expected that the production from Eagle Ford will grow by 1% to 4% each year for the next 3 years.

To acquire Ranger Oil, Baytex Energy Corp. (NYSE:BTE) had to take additional debt of around $1.9 billion in 2023. However, it does not seem to be a big challenge for the company. Management expects to generate around $388 million in free cash flow during the fiscal 2024 and plans to utilize half of it for debt reduction.

Moreover, it also continues to deliver robust growth. During the second quarter of 2024, the company reported increasing its production per share by 23% year-over-year and reached 154,000 barrels of oil per day. Therefore if you are a value investor looking for cheap oil stocks you might want to look at Baytex Energy Corp. (NYSE:BTE).