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Baytex Energy (TSE:BTE)
TSX:BTE
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Baytex Energy
(TSX:BTE)
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Rating:67Neutral
Price Target:
C$3.00
▼(-9.64% Downside)
Baytex Energy's overall score reflects strong operational efficiency and an attractive valuation. However, challenges in revenue growth, free cash flow generation, and a soft commodity price environment weigh on the score. The company's focus on debt reduction and cost improvements are positive factors.
Positive Factors
Negative Factors
Baytex Energy (BTE) vs. iShares MSCI Canada ETF (EWC)
Market Cap
$2.55B
Dividend Yield2.69%
Average Volume (3M)5.04M
Price to Earnings (P/E)7.1
Beta (1Y)1.65
Revenue Growth-7.76%
EPS GrowthN/A
CountryCA
Employees370
SectorEnergy
Sector Strength52
IndustryOil & Gas Exploration & Production
Share Statistics
EPS (TTM)0.20
Shares Outstanding768,300,000
10 Day Avg. Volume6,640,287
30 Day Avg. Volume5,044,944
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.57
Enterprise Value/Revenue1.07
Enterprise Value/Gross Profit3.77
Enterprise Value/Ebitda1.86
Forecast
1Y Price Target
$4.18Price Target Upside25.91% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
Baytex Energy Business Overview & Revenue Model
Company DescriptionBaytex Energy Corp. is a Canadian oil and gas company engaged in the exploration, development, and production of crude oil and natural gas. Primarily operating in the Western Canadian Sedimentary Basin and the Eagle Ford shale in the United States, Baytex focuses on efficient resource extraction and sustainable energy production. The company’s core products include light and heavy crude oil, natural gas liquids, and natural gas, serving both domestic and international markets.
How the Company Makes MoneyBaytex Energy generates revenue primarily through the sale of crude oil, natural gas, and natural gas liquids. The company employs a revenue model based on the sale of these hydrocarbons at market prices, which can fluctuate significantly based on global supply and demand dynamics. Key revenue streams include the production and sale of oil and gas from its operated and non-operated properties. Additionally, Baytex enters into various agreements, including hedging contracts, to manage price volatility and ensure stable cash flows. The company has also established partnerships with other energy firms to enhance operational efficiencies, reduce costs, and potentially expand its resource base, which contributes to its overall profitability.
Baytex Energy Earnings Call Summary
Earnings Call Date:Jul 31, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Positive
Baytex Energy Corp. delivered solid operational performance with significant improvements in production rates and cost efficiencies. However, the soft commodity price environment and limited free cash flow generation present challenges. Overall, the positive operational achievements and financial discipline outweigh the negative aspects.Q2-2025 Updates
Positive Updates
Record Production Rates in Pembina Duvernay
The company achieved the highest 30-day peak oil rates recorded in the West Shale Basin, demonstrating the exceptional resource potential and successful technical advances.
Heavy Oil Production Growth
Heavy oil production grew by 7% quarter-over-quarter, indicating strong operational performance and capital-efficient development.
Debt Reduction and Financial Flexibility
Net debt decreased by $96 million or 4% to $2.3 billion, and the company maintains substantial financial flexibility with USD 1.1 billion in credit facility capacity.
Cost Improvements in Drilling and Completion
Baytex achieved a 12% improvement in drilling and completion costs in the Pembina Duvernay and an 11% improvement in the Eagle Ford, enhancing well economics.
Eagle Ford Refrac Success
Two strong refracs were delivered at half the cost of new wells with initial rates comparable to new well rates, highlighting significant capital efficiency.
Negative Updates
Soft Commodity Prices
The commodity backdrop in Q2 was soft with WTI averaging USD 64 per barrel, impacting overall revenue and financial performance.
Limited Free Cash Flow Generation
The company generated only $3 million in free cash flow during the quarter, potentially limiting immediate reinvestment opportunities.
Company Guidance
During Baytex Energy Corp's second quarter 2025 earnings call, the company provided detailed guidance on its operational and financial metrics. Key highlights included a 7% quarter-over-quarter increase in heavy oil production and a 2% rise in production per share year-over-year, with an average production of 148,095 BOE per day. The company achieved adjusted funds flow of $367 million, equating to $0.48 per basic share, and net income of $152 million. They generated $3 million in free cash flow, while reducing net debt by $96 million to $2.3 billion. The call also emphasized a significant 12% improvement in drilling and completion costs in the Pembina Duvernay and an 11% improvement in the Eagle Ford, showcasing their focus on operational efficiencies. Baytex anticipates generating approximately $400 million in free cash flow in 2025, with a commitment to allocate this towards debt repayment. They also discussed their strategic hedging approach, targeting a $60 floor for oil prices, and outlined plans for continued development in key areas, including the transition to full commercialization in the Pembina Duvernay by 2027.Baytex Energy Financial Statement Overview
Summary
Baytex Energy shows strong operational efficiency with healthy EBIT and EBITDA margins. However, challenges in revenue growth and free cash flow generation are concerns, impacting overall financial stability.Income Statement
Baytex Energy's income statement shows a mixed performance. The TTM (Trailing-Twelve-Months) gross profit margin of 37.90% is strong, indicating effective cost management. However, the net profit margin of 9.80% and a negative revenue growth rate of -16.20% suggest challenges in maintaining profitability and growth. The EBIT and EBITDA margins are healthy at 18.42% and 53.88%, respectively, reflecting operational efficiency. Despite these strengths, the declining revenue growth rate is a concern.65
Positive
Balance Sheet
The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.52, indicating moderate leverage. The return on equity (ROE) of 8.95% shows decent profitability relative to shareholders' equity. The equity ratio of 54.10% suggests a solid capital structure. While the company has managed its debt well, the ROE could be improved to enhance shareholder value.70
Positive
Cash Flow
Cash flow analysis reveals some challenges. The free cash flow growth rate is negative at -24.10%, indicating a decline in cash available after capital expenditures. The operating cash flow to net income ratio of 2.99 suggests strong cash generation relative to net income. However, the free cash flow to net income ratio of 0.29 indicates limited cash flow relative to profits. Improving free cash flow growth is essential for future investments and debt reduction.60
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.75B | 4.21B | 2.71B | 2.89B | 1.87B | 975.48M |
| Gross Profit | 1.06B | 1.03B | 750.68M | 1.08B | 603.51M | -82.80M |
| EBITDA | 2.16B | 2.18B | 723.50M | 1.58B | 2.27B | -1.99B |
| Net Income | 367.88M | 236.60M | -233.36M | 855.61M | 1.61B | -2.44B |
Balance Sheet | ||||||
| Total Assets | 7.55B | 7.76B | 7.46B | 5.10B | 4.83B | 3.41B |
| Cash, Cash Equivalents and Short-Term Investments | 7.16M | 16.61M | 55.81M | 5.46M | 0.00 | 0.00 |
| Total Debt | 2.13B | 2.28B | 2.44B | 937.17M | 1.39B | 1.79B |
| Total Liabilities | 3.47B | 3.59B | 3.64B | 2.07B | 2.62B | 2.83B |
| Stockholders Equity | 4.08B | 4.17B | 3.83B | 3.03B | 2.21B | 578.21M |
Cash Flow | ||||||
| Free Cash Flow | 519.66M | 593.85M | 239.61M | 648.83M | 396.62M | 70.48M |
| Operating Cash Flow | 1.80B | 1.91B | 1.30B | 1.17B | 712.38M | 353.10M |
| Investing Cash Flow | -1.26B | -1.28B | -1.51B | -488.99M | -310.76M | -314.47M |
| Financing Cash Flow | -577.82M | -668.17M | 266.25M | -678.42M | -401.62M | -44.20M |
Baytex Energy Technical Analysis
Positive
3.32
Price Trends
2.92
Positive
2.67
Positive
2.93
Positive
Market Momentum
0.15
Negative
59.88
Neutral
69.80
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:BTE, the sentiment is Positive. The current price of 3.32 is above the 20-day moving average (MA) of 3.16, above the 50-day MA of 2.92, and above the 200-day MA of 2.93, indicating a bullish trend. The MACD of 0.15 indicates Negative momentum. The RSI at 59.88 is Neutral, neither overbought nor oversold. The STOCH value of 69.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:BTE.
Baytex Energy Peers Comparison
Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | 1.84B | 9.72 | 25.11% | 5.44% | 8.47% | -1.60% | |
69 Neutral | 2.23B | 17.71 | 0.00% | 7.92% | -0.92% | -23.14% | |
67 Neutral | $2.55B | 7.06 | 9.05% | 2.69% | -7.76% | ― | |
60 Neutral | 1.95B | 36.05 | 3.22% | ― | 24.90% | -33.81% | |
57 Neutral | 1.64B | -8.86 | -6.87% | 4.82% | -1.60% | 76.21% | |
55 Neutral | 1.61B | 20.71 | 3.42% | 3.22% | -15.60% | 85.49% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% |
* Energy Sector Average
Performance Comparison
TSE:BTE
Baytex Energy
3.34
-0.75
-18.32%
AAVVF
Advantage Energy
8.44
1.66
24.48%
VET
Vermilion Energy
7.71
-1.74
-18.41%
BIREF
Birchcliff Energy
4.28
0.20
4.90%
CDDRF
Headwater Exploration
5.60
1.05
23.08%
FRHLF
Freehold Royalties
9.85
0.09
0.92%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.