Page 10 - NorthAmOil Week 09 2023
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NorthAmOil PERFORMANCE NorthAmOil
Canada’s Baytex targets higher
output, acquires Ranger
US CALGARY-BASED Baytex Energy is planning production totalled 86,864 boepd, marking an
to produce 87,500 barrels of oil equivalent per 8% increase on 80,789 boepd in the fourth quar-
day (boepd) on average in 2023. This would rep- ter of 2021. According to Baytex’s latest earnings
resent a 5% increase on the previous year’s figure statement, extremely cold weather in Alberta in
of 83,519 boepd, Baytex’s president and CEO, December resulted in output being reduced by
Eric Greager, said in late February on the com- nearly 1,500 boepd in the last quarter.
pany’s earnings call. In the fourth of quarter 2022, the company’s
Baytex expects another strong year in 2023 as heavy oil output amounted to 32,819 barrels per
it advances development across its oil-weighted day, followed by 32,105 bpd of light oil and con-
portfolio and focuses on its Peavine Clearwater densate, 7,661 bpd of NGLs and 85,679 natural
and Duvernay resource plays in Alberta, Greager gas at 85.7mn cubic feet (2.4mn cubic metres)
said. He noted that the company was targeting per day.
capital expenditure of CAD575-650mn ($422- In the latest quarter, Baytex was producing In the event of a
477mn) this year based on a West Texas Interme- 29,918 boepd on average from the Eagle Ford,
diate (WTI) oil price of $75 per barrel. with 64 wells drilled and 68 wells brought online fall in oil prices,
However, in the event of a fall in oil prices, the in 2022. In 2023, the company will bring 15 net
2023 capex budget still remains fully-funded at wells onstream, Greager said. the 2023 capex
WTI levels of $55 per barrel, Greager said. Meanwhile, on February 28 Baytex
The 2023 capex budget has also assumed an announced it had entered into a definitive budget still
average Western Canadian Select (WCS) to WTI agreement to acquire Ranger Oil, an Eagle Ford remains fully-
price differential of $19 per barrel and a Mixed producer.
Sweet Blend (MSW) to WTI price spread of $2 The deal is worth $2.5bn and is due to close in funded at WTI
per barrel, a Baytex statement said. the second quarter of 2023, Baytex said.
Compared to oil sands players in Alberta that “The Ranger acquisition is strategic,” Greager levels of $55 per
primarily produce raw bitumen from the Ath- stated. “We are acquiring a strong operating
abasca, Cold Lake and Peace River areas, Baytex’s capability in the Eagle Ford, on-trend with our barrel.
operational focus is on the production of con- non-operated position in the Karnes Trough and
ventional heavy and light oil – along with natural driving meaningful per-share accretion on all
gas liquids (NGLs), condensate and natural gas metrics. The transaction more than doubles our
across four plays in Alberta and Saskatchewan. EBITDA and nearly doubles our free cash flow.
These are the Duvernay, Lloydminster, Viking The Ranger inventory immediately competes for
and Peace River (Peavine Clearwater) plays. In capital in our portfolio and brings 12-15 years of
addition, the company is expanding its presence quality oil-weighted drilling opportunities. We
in the Eagle Ford shale in the US state of Texas. are building quality scale and a more durable
In the fourth quarter of 2022, Baytex’s business with a lower breakeven WTI price.”
P10 www. NEWSBASE .com Week 09 02•March•2023
