Baytex Energy: 2025 Guidance Does Not Alter My Buy Thesis

Summary

• Baytex Energy Corp. plans no production growth for fiscal year 2025.
• The return on Clearwater wells has declined because the company is using lower commodity prices for this budget.
• Technological advances may drive 0-4% production growth, depending on cost progress and production improvements.
• Management is cautious about fiscal year 2025.
• Both the Eagle Ford and Clearwater production growth and improvements should allow BTE profitability to increase.