Baytex Energy buys back $100 million of 5 5/8% notes due 2024

New York, July 28 – Baytex Energy Corp. repurchased $100 million of its 5 5/8% notes due 2024 in a transaction that settled on Wednesday, according to a 6-K filing with the Securities and Exchange Commission.

The company paid the call price of 100.938 for the notes.

Funding for the repurchase came from free cash flow generated in the first half of the year.

Baytex said it previously repurchased $5.8 million of the 5 5/8% notes on May 4 at a discount, recording a gain of $0.4 million.

“During the second quarter, we delivered strong operating results and substantial free cash flow,” said Ed LaFehr, the company’s president and chief executive officer, in a news release announcing the second quarter results.

“Our free cash flow profile continues to improve resulting in accelerated debt reduction. We are taking proactive measures to reduce our net debt with the repurchase and cancellation of US$106 million of our outstanding long-term notes due 2024 during and subsequent to the quarter. At current commodity prices, we now expect to generate over $350 million of free cash flow in 2021. In addition, we are drilling our fourth follow up well as we continue to advance our exciting, new, oil discovery in the Clearwater play in Peace River.”

The company also said that after the end of its second quarter it amended its 2014 note indenture to expand its permitted secured indebtedness, a change that aligns the amounts with the 2020 indenture.

Net debt was C$1.63 billion at June 30, down from C$1.76 billion at March 31.

Baytex is a Calgary, Alta. oil and gas company.

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