Upstream energy company Baytex Energy Corp. (BTE) recently declared that it plans to spend $765.0–$790.0 million during 2014. Owing to this investment, the company’s total production for the year will likely average 75,000.0–77,000.0 barrels of oil equivalent per day (BOE/D).
Baytex Energy also projected total capital investment – for the second half − between $440.0-$465.0 million, which will likely lead to production in the band of 88,000–90,000 BOE/D. The company came out with the updated production guidance to account for its expanded asset base following the purchase of Aurora Oil & Gas Limited. Baytex Energy revealed that 86.0% of the expected average output will likely be liquids – of which 50.0% will be heavy oil and the remaining 36.0% will be light oil and natural gas liquid. More than 90.0% of the projected capital investment for the second half will likely be allocated to North America’s three oil rich resource plays.
The company estimates $325.0 million in total capital spending for the first half of 2014, with average production of 62,750 BOE/D. Second quarter production is an estimated 66,000 BOE/D, which is higher than the first-quarter output of 59,502 BOE/D.
Calgary, Canada-based Baytex Energy primarily carries out its upstream operations in the U.S. and in the Sedimentary Basin of Western Canada. The company currently sports a Zacks Rank #1 (Strong Buy), which implies that it is expected to significantly outperform the broader U.S. equity market over the next one to three months.
One can also consider other players in the same industry like Canadian Natural Resources Limited (CNQ), Crescent Point Energy Corp. (CPG) and Enerplus Corp. (ERF). All these stocks carry a Zacks Rank #2 (Buy).
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