TSX:BTE

Stock Analysis Report

Executive Summary

Baytex Energy Corp., an oil and gas company, acquires, develops, and produces oil and natural gas in the Western Canadian Sedimentary Basin and in the Eagle Ford in the United States.

Snowflake

Fundamentals

Fair value with mediocre balance sheet.


Similar Companies

Share Price & News

How has Baytex Energy's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-10.3%

BTE

-0.5%

CA Oil and Gas

-0.2%

CA Market


1 Year Return

-46.4%

BTE

-12.6%

CA Oil and Gas

1.5%

CA Market

Return vs Industry: BTE underperformed the Canadian Oil and Gas industry which returned -12.6% over the past year.

Return vs Market: BTE underperformed the Canadian Market which returned 1.5% over the past year.


Shareholder returns

BTEIndustryMarket
7 Day-10.3%-0.5%-0.2%
30 Day-32.5%-6.1%-3.5%
90 Day-19.2%-4.5%-1.8%
1 Year-46.4%-46.4%-8.7%-12.6%5.1%1.5%
3 Year-72.3%-72.3%-17.1%-25.5%13.3%3.2%
5 Year-95.2%-95.5%-21.5%-33.4%25.2%7.2%

Price Volatility Vs. Market

How volatile is Baytex Energy's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Baytex Energy undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BTE (CA$1.56) is trading below our estimate of fair value (CA$3.69)

Significantly Below Fair Value: BTE is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: BTE is unprofitable, so we can't compare its PE Ratio to the Oil and Gas industry average.

PE vs Market: BTE is unprofitable, so we can't compare its PE Ratio to the Canadian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate BTE's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: BTE is good value based on its PB Ratio (0.3x) compared to the CA Oil and Gas industry average (0.6x).


Next Steps

Future Growth

How is Baytex Energy forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

54.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BTE is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: BTE is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: BTE is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: BTE's revenue (7.4% per year) is forecast to grow faster than the Canadian market (5.7% per year).

High Growth Revenue: BTE's revenue (7.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BTE's Return on Equity is forecast to be low in 3 years time (3.8%).


Next Steps

Past Performance

How has Baytex Energy performed over the past 5 years?

11.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: BTE is unprofitable, but has reduced losses over the past 5 years at a rate of 11.2% per year.

Accelerating Growth: Unable to compare BTE's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: BTE is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (62.2%).


Return on Equity

High ROE: BTE has a negative Return on Equity (-3.71%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: BTE is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: BTE is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Baytex Energy's financial position?


Financial Position Analysis

Short Term Liabilities: BTE's short term assets (CA$195.3M) do not cover its short term liabilities (CA$233.6M)

Long Term Liabilities: BTE's short term assets (195.3M) do not cover its long term liabilities (2.9B)


Debt to Equity History and Analysis

Debt Level: BTE's debt to equity ratio (63.5%) is considered high

Reducing Debt: BTE's debt to equity ratio has reduced from 86.3% to 63.5% over the past 5 years.


Balance Sheet

Inventory Level: BTE has a high level of physical assets or inventory.

Debt Coverage by Assets: BTE's debt is not covered by short term assets (assets are 0.1x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable BTE has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: BTE is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 75.7% per year.


Next Steps

Dividend

What is Baytex Energy's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%2.0%markettop25%6.0%industryaverage4.9%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate BTE's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate BTE's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if BTE's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if BTE's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: BTE is not paying a notable dividend for the Canadian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of BTE's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

What is the CEO of Baytex Energy's salary, the management and board of directors tenure and is there insider trading?

1.8yrs

Average board tenure


CEO

Ed LaFehr (59yo)

2.4yrs

Tenure

CA$3,243,500

Compensation

Mr. Edward David LaFehr, also known as Ed, has been the President of Baytex Energy Corp. since July 18, 2016 and has been its Chief Executive Officer since May 4, 2017. Mr. LaFehr has been Non-Executive In ...


CEO Compensation Analysis

Compensation vs. Market: Ed has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the Canadian market.

Compensation vs Earnings: Ed's compensation has increased whilst the company is unprofitable.


Board Age and Tenure

1.8yrs

Average Tenure

59yo

Average Age

Experienced Board: BTE's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: BTE insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

BuyCA$149,58901 Oct 19
Jennifer Maki
EntityIndividual
Role
Member of the Board of Directors
Director
Shares75,000
Max PriceCA$2.00
SellCA$225,00024 Sep 19
Jason Jaskela
EntityIndividual
Shares100,000
Max PriceCA$2.25
SellCA$1,320,85320 Sep 19
Kevin Olson
EntityIndividual
Shares600,000
Max PriceCA$2.21
SellCA$1,320,85320 Sep 19
Kevin Olson
EntityIndividual
Shares600,000
Max PriceCA$2.21
SellCA$217,00018 Sep 19
Kevin Olson
EntityIndividual
Shares100,000
Max PriceCA$2.17
SellCA$192,00017 Sep 19
Kevin Olson
EntityIndividual
Shares100,000
Max PriceCA$1.92
BuyCA$47,75010 Sep 19
Edward LaFehr
EntityIndividual
Role
Chief Executive Officer
President
Shares25,000
Max PriceCA$1.91
SellCA$512,09310 Sep 19
Kevin Olson
EntityIndividual
Shares286,000
Max PriceCA$1.83
BuyCA$28,35010 Sep 19
Brian Ector
EntityIndividual
Role
Head of Corporate Communications
Senior Vice President of Capital Markets & Public Affairs
Shares15,000
Max PriceCA$1.89
SellCA$1,945,36430 Aug 19
Jason Jaskela
EntityIndividual
Shares1,170,000
Max PriceCA$1.70
SellCA$162,50029 Aug 19
Kevin Olson
EntityIndividual
Shares100,000
Max PriceCA$1.62
SellCA$85,29628 Aug 19
Scott Rideout
EntityIndividual
Shares52,652
Max PriceCA$1.62
SellCA$233,67423 Aug 19
Jason Jaskela
EntityIndividual
Shares130,000
Max PriceCA$1.84
BuyCA$126,84607 Jun 19
Trudy Curran
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares60,000
Max PriceCA$2.11
BuyCA$4,76026 Mar 19
Edward LaFehr
EntityIndividual
Role
Chief Executive Officer
President
Shares2,000
Max PriceCA$2.38
BuyCA$5,02218 Mar 19
Edward LaFehr
EntityIndividual
Role
Chief Executive Officer
President
Shares2,222
Max PriceCA$2.26
BuyCA$22,74912 Mar 19
Mark Bly
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares10,000
Max PriceCA$2.27
BuyCA$10,90029 Jan 19
Edward LaFehr
EntityIndividual
Role
Chief Executive Officer
President
Shares5,000
Max PriceCA$2.18
BuyCA$6,37522 Jan 19
Edward LaFehr
EntityIndividual
Role
Chief Executive Officer
President
Shares2,500
Max PriceCA$2.55
BuyCA$6,60014 Jan 19
Edward LaFehr
EntityIndividual
Role
Chief Executive Officer
President
Shares2,500
Max PriceCA$2.64
BuyCA$51,50027 Dec 18
David Pearce
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares25,000
Max PriceCA$2.06
BuyCA$96,50026 Dec 18
David Pearce
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares50,000
Max PriceCA$1.93
BuyCA$203,00025 Dec 18
David Pearce
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares100,000
Max PriceCA$2.03
BuyCA$24,30020 Nov 18
Brian Ector
EntityIndividual
Role
Head of Corporate Communications
Senior Vice President of Capital Markets & Public Affairs
Shares10,000
Max PriceCA$2.43
BuyCA$100,00120 Nov 18
Edward LaFehr
EntityIndividual
Role
Chief Executive Officer
President
Shares41,494
Max PriceCA$2.41
SellCA$172,26019 Nov 18
David Pearce
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares66,000
Max PriceCA$2.61
SellCA$180,60018 Nov 18
David Pearce
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares70,000
Max PriceCA$2.58
BuyCA$86,40007 Nov 18
Naveen Dargan
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares30,000
Max PriceCA$2.88
SellCA$86,40007 Nov 18
Naveen Dargan
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares30,000
Max PriceCA$2.88

Ownership Breakdown


Management Team

  • Brian Ector (50yo)

    Senior Vice President of Capital Markets & Public Affairs

    • Tenure: 0yrs
    • Compensation: CA$1.03m
  • M. Lovett (45yo)

    Vice President of Corporate Development

    • Tenure: 0yrs
  • Ed LaFehr (59yo)

    President

    • Tenure: 2.4yrs
    • Compensation: CA$3.24m
  • Rodney Gray (47yo)

    Executive VP & CFO

    • Tenure: 5.5yrs
    • Compensation: CA$2.00m

Board Members

  • Trudy Curran (56yo)

    Independent Director

    • Tenure: 3.3yrs
    • Compensation: CA$227.50k
  • Neil Roszell (51yo)

    Chairman of the Board

    • Tenure: 1.2yrs
    • Compensation: CA$105.29k
  • Greg Melchin (65yo)

    Independent Director

    • Tenure: 11.8yrs
    • Compensation: CA$229.99k
  • Naveen Dargan (61yo)

    Independent Director

    • Tenure: 16.8yrs
    • Compensation: CA$242.00k
  • Dave Pearce (65yo)

    Independent Director

    • Tenure: 1.2yrs
    • Compensation: CA$71.83k
  • Jennifer Maki (49yo)

    Director

    • Tenure: 0.08yrs
  • Mark Bly (59yo)

    Lead Independent Director

    • Tenure: 0.6yrs
    • Compensation: CA$225.56k
  • Ed LaFehr (59yo)

    President

    • Tenure: 2.4yrs
    • Compensation: CA$3.24m

Company Information

Baytex Energy Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Baytex Energy Corp.
  • Ticker: BTE
  • Exchange: TSX
  • Founded: 1993
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: CA$870.356m
  • Shares outstanding: 557.92m
  • Website: https://www.baytexenergy.com

Number of Employees


Location

  • Baytex Energy Corp.
  • Centennial Place, East Tower
  • Suite 2800
  • Calgary
  • Alberta
  • T2P 0R3
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BTETSX (The Toronto Stock Exchange)YesCommon SharesCACADNov 1993
BTENYSE (New York Stock Exchange)YesCommon SharesUSUSDNov 1993
B5XDB (Deutsche Boerse AG)YesCommon SharesDEEURNov 1993

Biography

Baytex Energy Corp., an oil and gas company, acquires, develops, and produces oil and natural gas in the Western Canadian Sedimentary Basin and in the Eagle Ford in the United States. The company offers li ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 00:20
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.