Baytex Energy (BTE) ran 14% after the $3.3B sale of its Eagle Ford assets, a deal that effectively hits the reset button by cutting out BTE’s U.S. exposure…

… and recapitalizes the balance sheet, putting the company in a net cash position. With the windfall, Baytex will de-lever and return capital to shareholders - potentially through a substantial issuer bid…

… that would put a floor under the stock in the near-term. In the longer term, BTE’s renewed Canadian focus should bring a >10% improvement in breakeven costs, 3-5% annual production growth, and opportunities to bulk up through M&A.

Looks good on paper, let’s see how it plays out in practice.