One-glance verdict
Undervalued
$13.97 our estimate vs market $4.81
Wall Street consensus: $6.66 (-52.4% lower than our fair-value estimate)
66% below our estimate, below the bear case
Fundamentals snapshot
Baytex Energy Corp.
BTE · NYQ · Energy · Oil & Gas E&P
Current price
$4.81
52-week range
$2.18 - $5.36
Market cap
$3.36B
Balance sheet
Healthy
1.40x Concerning
Net cash $399.98M. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
2 Risks
2 rewards · 2 risks
- Reward Free cash flow was positive in 4/10 years.
- Reward Dividend yield is 1.3% with 21-year payout history.
- Risk Insider ownership is only 0.6% (peer median: 11.9%).
- Risk Return on equity was -8.8% last year — the company lost money on shareholders' equity.
What this company does
Baytex Energy Corp.
Baytex Energy Corp. extracts and sells oil and natural gas, mostly from its properties in Western Canada. This means their main income comes from selling these natural resources, and how much they can sell them for directly impacts their profits.
How the company got here
Baytex Energy Corp. was founded in 1993 and initially focused on developing light oil and natural gas properties in Alberta, Canada. Over the years, the company has grown through strategic acquisitions, expanding its reach into both Canadian and U.S. markets. A significant turning point was the 2014 acquisition of Aurora Oil & Gas, which gave Baytex a substantial presence in the Eagle Ford shale play in Texas. More recently, in 2025, Baytex sold its U.S. Eagle Ford assets to refocus on its Canadian operations. This strategic shift aims to strengthen its balance sheet and streamline its business.
What it actually does
Baytex Energy Corp. is an oil and gas company that explores for, develops, and produces crude oil and natural gas. Think of them as a company that finds underground pockets of oil and gas, drills wells to bring them to the surface, and then sells these raw materials. Their products include light oil, heavy oil, natural gas, and natural gas liquids, which are essential components used in everything from gasoline and plastics to heating homes.
Light Oil (Pembina Duvernay / Viking)
This segment of Baytex focuses on extracting lighter grades of crude oil and natural gas, primarily from the Duvernay and Viking formations in Western Canada. Light oil is generally easier to process and commands a higher price than heavy oil. This business line is a significant contributor to Baytex's overall production and revenue, representing a key part of their growth strategy. The company invests in drilling new wells and optimizing existing ones to maximize the recovery of these valuable resources.
Heavy Oil (Peace River / Lloydminster)
Baytex's heavy oil operations are concentrated in the Peace River area of Alberta and the Lloydminster region, which spans Alberta and Saskatchewan. Heavy oil is a thicker, more viscous type of crude oil that requires more complex and energy-intensive methods to extract, such as thermal extraction. Despite the higher extraction costs, these assets are a substantial part of Baytex's business, providing a consistent source of production and cash flow. The company works to improve efficiency and reduce costs in these mature fields.
What management is betting on now
Baytex's current strategy centers on disciplined capital allocation and strengthening its financial position, primarily by reducing debt. They are prioritizing shareholder returns through dividends and share buybacks, while also targeting modest production growth. Management is focused on optimizing their existing high-quality assets in Western Canada, particularly in the Duvernay and heavy oil plays. The company aims for sustainable growth and value creation by efficiently managing its operations and maintaining a strong balance sheet.
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value $13.97 vs current price $4.81
Wall Street consensus is the average analyst price target: $6.66 (-52.4% lower than our fair-value estimate).
Our most-likely fair value is $13.97 a share — about 190.5% above today's price of $4.81, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $400.0M - more cash than debt. Interest coverage 1.4x.
Net debt
$-399.98M
Interest coverage
1.40x
Baytex Energy Corp.'s profit covers its interest bill about 1.4 times over. which is stronger than every peer shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
BTE
BASELINE
Baytex Energy Corp.
Total debt $104.74M Interest coverage 1.40x This is the baseline the peer rows are being compared against.
Total debt $954.82M Interest coverage 1.26x -10% vs BTE Has roughly the same debt cushion as BTE.
Total debt $1.34B Interest coverage -0.65x -100% vs BTE This peer has almost no interest-payment cushion compared with BTE.
What you should know
The case for and against BTE
2 Rewards
2 Risks
Rewards
-
Free cash flow was positive in 4/10 years.
-
Dividend yield is 1.3% with 21-year payout history.
Risks
-
Insider ownership is only 0.6% (peer median: 11.9%).
-
Return on equity was -8.8% last year — the company lost money on shareholders' equity.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
17.36x
P/B
2.26x
P/S
2.01x
EV/EBITDA
3.85x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
59.0%
Operating margin
40.8%
Net margin
-42.9%
ROE
-8.8%
ROA
0.9%
Health
Liquidity and balance-sheet strength
Debt / equity
0.07x
Current ratio
2.82x
Quick ratio
2.65x
Total debt
$104.74M
Total cash
$504.72M
Growth
How the business has been compounding
Revenue TTM
$1.17B
Revenue 5Y CAGR
-16.5%
EPS TTM
-0.38
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$1.04B
Free CF TTM
$145.37M
FCF margin
12.4%
Dividend
Shareholder payout
Yield
1.3%
Payout ratio
1.8%
Last ex-div date
2026-09-15