Baytex Energy Trust BTE.UN F&D Higher Than Expected, but Drilling Results

admin — Wed, 24 Feb 2010 17:47:34 +0000

Baytex Energy Trust (BTE.UN): $32.47 – F&D Higher Than Expected, but Drilling Results
Outperform, Average Risk, Price Target: $33.00 (prev. $30.00)
Baytex reported 2P reserves of 197 mmboe, a 5% increase over 2008, and 1P reserves of 129 mmboe. Heavy oil reserves continued to show strong growth (+15.5% from 2008), while light declined by 4%, NGLs by 22.5% and natural gas by 25%. Finding costs for the year were higher than expected, with 2P F&D (including FDC) of $20.10/boe versus 2008 at $12.09/boe and the three-year average of $11.08/boe. The results reflected: (i) negative revisions to natural gas and NGL reserves; and (ii) a substantial increase to estimated future development capital, which was partially due to revisions to cost estimates for previously booked reserves.

BTE-UN 2010 Capital Budget and 50% Distribution Increase

admin — Wed, 02 Dec 2009 18:20:03 +0000

Baytex announced 2010 guidance and a 50% increase to its monthly distributions. Baytex announced its 2010 E&D capex budget of $235 million versus $165 million in 2009 and our estimate of $205 million. Roughly 60% of the capital program will be directed to heavy oil. The remainder of the capital budget will focus on light oil and natural gas spending. Management views 2010 as a transition year for Baytex as it shifts from an income-focused model to a growth-and-income model for the post-trust era. Baytex has increased its monthly distribution to $0.18/unit from $0.12/unit (we had previously modeled an increase to $0.15/unit). The larger than expected distribution increase should allow Baytex to modestly grow its tax pools as 2011 approaches.

TSX Commentary » Baytex Energy Trust

Baytex Energy Trust BTE.UN F&D Higher Than Expected, but Drilling Results

BTE-UN 2010 Capital Budget and 50% Distribution Increase