67 WALL STREET, New York - May 7, 2013 - The Wall Street Transcript has just published its High-Yield Equity Securities Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs and Equity Analysts. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
Topics covered: Increasing Demand for Midstream Assets - U.S. Energy Infrastructure Build Out - Oil and Gas Transportation Infrastructure Demand - Master Limited Partnerships Distribution Growth - Low Treasury Yields and MLP Dividends -
Companies include: Baytex Energy Trust (BTE) and many more.
In the following excerpt from the High-Yield Equity Securities Report, the President, CEO and Director of Baytex Energy Corp. (BTE) discusses company strategy and the outlook for this vital industry:
TWST: Please give us a little bit of a history of Baytex.
Mr. Bowzer: Baytex has been around for 20 some odd years, and started in the early 1990s. Initially, it was a small startup. The company was fairly successful at developing discovered resources, and then as the oil price uplift happened and the trust era occurred, Baytex converted to a trust.
The objective was to steadily maintain cash flow and pay a dividend. Through that time, Baytex continued to acquire leases and acquired quite a large acreage position in two areas: the Greater Lloydminster area and the Peace River region of Northwest Alberta. Later on, Baytex added the Bakken region of North Dakota.
The trust era ended here in 2010, and therefore Baytex converted back to a corporation, but tried to maintain the business model of balanced growth with a monthly payout to its shareholders that is substantial. We have been successful at maintaining that growth and income model throughout the entire life of Baytex.
It mitigates the risk to shareholders substantially, because our dividend does yield around 6%. We preserve enough capital to grow the company in single digits, 5% to 7% growth in production with our capital expenditures.
As a company, we clearly have been, and still are, focused on growth in production and reserves on a per share basis. Our growth does not come from acquisitions; it is internally generated organic growth. We are heavily weighted toward the production of oil, and a large portion of our portfolio is heavy oil.
We pay a meaningful dividend, as I described, and as a result of doing that, we have to do two additional things. First, that...
For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
- Basic Materials Industry
- Baytex Energy Trust