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Investor Relations
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Q3 2011 VideoBaytex's President & CEO, Anthony Marino discusses the Q3 2011 results and recent divestitures See our video »
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Corporate Responsibility
Corporate Responsibility Home Environment, Health & Safety Community Investment Community Policy IN FOCUS
Community InvestmentBaytex believes in supporting the communities in which our employees live and work.
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Why Invest in Baytex
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Sustainable Growth-and-Income Model At Baytex, we strive to provide investors with a meaningful dividend while growing our production base organically. Over the long term, we expect to fund substantially all of our exploration & development expenditures as well as our cash dividends, from internally generated funds from operations, thus leading to the sustainability of our business model. Our long-range plan calls for a projected organic production growth rate of approximately 8% per annum. |
Sector-Leading Capital Efficiencies Baytex continues to demonstrate superior capital and operational efficiencies as we prudently execute our strategy for long-term sustainability. From September 2003 through year-end 2010, we have grown our reserve base at a compound annual growth rate of 12%, to a level of 229 million barrels of oil equivalent (proved plus probable) at December 31, 2010. At the same time, we have replaced 297% of our annual production at a finding, development, and acquisition cost of $5.90 per boe, excluding changes in future development costs, resulting in a recycle ratio of 5.6x. |
Technically-Focused Team At Baytex we are a technically-focused organization. We employ a full complement of engineering, geological and geophysical, land, marketing, environmental, health & safety, accounting, human resource, and investor relations disciplines. We were the first to employ a multi-lateral well design at Seal, our key oil sands property, where capital efficiency ratios average under $5,000 per daily boe, based on first month average production rates. We continue to look for ways to extract further value from our land base, and have plans for our first commercial enhanced oil recovery project at Seal in 2011. |
Long-Term, Low-Cost Drilling Inventory We are an oil company – approximately 84% of our production and 91% of our reserves are derived from crude oil. We have amassed a significant inventory of long-term, low cost crude oil projects, most notably at Seal in the Peace River Oil Sands of northwest Alberta, consisting of both cold primary production and thermal development, and our Lloydminster heavy oil region of west central Saskatchewan and east central Alberta. Emerging light oil resource plays within our portfolio include the Bakken-Three Forks in North Dakota, the Viking at both Bon Accord in southeast Alberta and Dodsland in southwest Saskatchewan. |
Conservative Payout Ratio |
Long-Term Market Outperformance In the trust era from September 2003 to December 2010, Baytex generated the highest return among its trust peers. Baytex's high crude oil weighting, technical focus, sustainable business model, and strong inventory of development projects have all been key factors in this outperformance. In the new corporate era, as in the trust era, we will base our business on sound technical decisions, prudent financial practices, and creation of real value from our assets. We believe the emphasis on capital efficiency that Baytex learned during the trust era has prepared us well for the corporate era. |
Baytex's sustainable business model is one based on a conservative payout ratio and a strong balance sheet. Historically, Baytex's payout ratio has generally averaged between 40% and 50% of our funds from operations. As a result of our self-funding nature, we are conservatively financed with a debt to funds from operations ratio of 1.1x and a debt to enterprise value of 9%, as of December 31, 2010. While maintaining the strength of our balance sheet, cash payments to our shareholders have totaled over $1.2 billion. 
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Our operations are organized into Canadian Heavy Oil, Canadian Light Oil and Gas and United States business units.
In addition to shareholders, Baytex has a responsibility to the communities in which we work and do business.
Learn more about the
business of heavy oil in our marketing section.
- © 2010 Baytex Energy Corp.
- info@baytex.ab.ca