Baytex restarts most of its suspended wells as crude oil prices bounce back

Baytex restarts most of its suspended wells as crude oil prices bounce back

CALGARY — Baytex Energy Corp. says it is responding to higher oil prices by bringing back on line some of the wells it had shut down in April and May to avoid selling into an oversupplied market.

The Calgary-based producer says it has restored about 20,000 barrels per day of the 25,000 bpd it had previously curtailed, thanks to improving profitability.

It says about 5,000 bpd of heavy oil production is expected to remain off-line in the second half of the year.

The company says it is not restoring its 2020 capital spending plan, leaving it at between $260 million and $290 million or about half of the original plan of up to $575 million.

Baytex revised its full-year production guidance to a mid-point of 80,000 barrels of oil equivalent per day, up from 72,000 boe/d.

It says second quarter output will average between 72,000 and 73,000 boe/d.

“As the global supply and demand picture continues to unfold, crude oil prices have strengthened from their lows in April and we are now starting to benefit from the steps we have taken,” said CEO Ed LaFehr.

“At current commodity prices, we expect to generate positive free cash flow over the remainder of 2020 and maintain over $300 million of financial liquidity.”

This report by The Canadian Press was first published June 25, 2020.

Companies in this story: (TSX:BTE)

The Canadian Press

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Comments are closed

Just Posted

47 new COVID-19 cases Tuesday in Alberta, still 620 active cases

3 active COVID-19 cases remain in Red Deer

PHOTOS: After a two-year hiatus, the Castor & District Museum is open for business

The hours are Thursdays, Saturdays and Sundays from 2 until 4 p.m for the duration of summer

COVID-19: Central zone at four active

Alberta confirms 130 cases Monday

Albertans get an extra free order of COVID-19 masks

Packages will be available July 13 at fast food restaurants

Church services set to resume in Castor amidst the pandemic

The province is moving through the phases of reopening

QUIZ: A celebration of dogs

These are the dog days of summer. How much do you know about dogs?

Charges dropped against N.S. woman injured during arrest in racial profiling case

Charges dropped against N.S. woman injured during arrest in racial profiling case

Conservative stalwart Scott Reid backing newcomer Leslyn Lewis for leadership

Conservative stalwart Scott Reid backing newcomer Leslyn Lewis for leadership

Planned class-action lawsuit alleges illegal strip-searches of federal prisoners

Planned class-action lawsuit alleges illegal strip-searches of federal prisoners

Two protesters get conditional discharge after Alberta turkey farm demonstration

Two protesters get conditional discharge after Alberta turkey farm demonstration

Daisies bring a sunny look to the garden

Daisies bring a sunny look to the garden

IIHF encouraged by NHL’s potential return to Olympics in ‘22

IIHF encouraged by NHL’s potential return to Olympics in ‘22

Raptors coach Nick Nurse knows attention to family will be key for players

Raptors coach Nick Nurse knows attention to family will be key for players

NFL, NFLPA still haven’t resolved all protocol for camps

NFL, NFLPA still haven’t resolved all protocol for camps

Most Read