Seeking Alpha: Down For The Year, Baytex Energy Not Exactly Cheap Yet

This has been an interesting year for Baytex Energy (BTE). This Canadian heavy oil specialist has been doing well with production and drilling, and the company's capital spending guidance for 2014 suggests more profitable growth on the way. At the same time, differentials have been fairly benign and could get better, while increasing use of rail offers a good hedge.

The only real issue is one of valuation. Baytex's qualities are well-known, from its above-average dividend payout (a legacy of its days as a CanRoy) to its high-quality Peace River asset. Even though the shares are down about 10% year-to-date, the shares still aren't all that cheap on an EV/EBITDA basis. Looking at a long-term NAV, though, I think the investment case is stronger for Baytex and that suggests to me that patient investors may yet want to consider this name.

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Down For The Year, Baytex Energy Not Exactly Cheap Yet