Baytex Energy: The Business of Oil & Gas

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[00:03:19] - [First question] - The journey of producing a barrel of oil and how Baytex fits into the oil production ecosystem

[00:05:29] - How $100 is dispersed amongst the value chain when a barrel of oil is purchased

[00:08:03] - A broad overview of Baytex today and their history

[00:13:05] - The production of a barrel of shale oil and unique characteristics of shale

[00:16:25] - The main drivers of increased productivity and optimization in oil production

[00:19:11] - What breaking even looks like today on a barrel of oil

[00:23:20] - Describing the decline rate of a shale well compared to conventional plays 

[00:25:22] - Overview of the differences of oil blends and quality coming out of Texas versus Canada

[00:29:14] - Where the US still imports oil outside of Canada 

[00:30:51] - A snapshot of what Baytex’s Canadian operations look like

[00:35:38] - The other major Canadian assets Baytex has 

[00:38:28] - The heavy oil decline rate of Canadian oil wells compared to US shale wells

[00:39:59] - What makes Clearwater such an exciting and interesting opportunity for Baytex

[00:43:30] - Identifying where oil might be and what that process looks like

[00:47:02] - His process as an investor in evaluating new projects like Clearwater

[00:56:00] - How to ascribe value to a project like Duvernay compared to Clearwater

[01:00:05] - Baytex’s approach to hedging and how it differs from the rest of the industry

[01:02:15] - How the management team at Baytex manages capital allocation

[01:05:33] - Why return capital to shareholders 

[01:07:41] - Metrics he uses to value an oil production company or adjacent business

[01:11:19] - Rules of thumb to consider when it comes to evaluating the asset base

[01:14:05] - Main risks that could drive stock underperformance

[01:16:38] - Lessons and takeaways from his time investing and working with Baytex