13:44:29 EDT Thu 28 Mar 2024
Enter Symbol
or Name
USA
CA



Baytex Energy Corp
Symbol BTE
Shares Issued 168,661,811
Close 2015-03-03 C$ 19.45
Market Cap C$ 3,280,472,224
Recent Sedar Documents

Globe says Baytex, others have elevated funding risk

2015-03-03 09:30 ET - In the News

Also In the News (C-LRE) Long Run Exploration Ltd
Also In the News (C-PMT) Perpetual Energy Inc
Also In the News (C-POU) Paramount Resources Ltd (2)

The Globe and Mail reports in its Tuesday edition that BMO sees capital expenditures in the oil patch outstripping cash flow by about 10 per cent in 2015. The Globe's Luke Kawa writes that jumps to 25 per cent once dividend payments are included. BMO analyst Jared Dziuba says, "As this is an unsustainable trend, we believe this suggests additional capital spending and dividend reductions may be coming." By the end of 2016, about half of existing credit facilities are likely to have been drawn. Also, some firms with long-term debt coming due over the next two years may face difficulty securing funding in the future. Others are in danger of breaching their covenant terms on loans, which could restrict their access to credit and should be viewed as a "red flag," says Mr. Dziuba. Whether investors have the appetite for many big new Canadian energy financings is an open question. Companies with a higher degree of funding risk include Perpetual Energy, Baytex Energy, Paramount Resources and Long Run Exploration. Mr. Dziuba says, "We believe that a modest recovery in oil prices to the $60 [a barrel] level is not enough to restore the financial health of most highly leveraged companies."

© 2024 Canjex Publishing Ltd. All rights reserved.