Why Baytex Energy Shares Are Trading Lower Today

BMO Capital analyst Ray Kwan raised the price target for Baytex Energy Corp BTE BTEGF to C$8.50 from C$8 while maintaining the Market Perform rating on the shares.
The analyst mentions that while the quarter was in line, the Clearwater at Peavine continues to deliver exceptional results, with recent wells having initial rates as high as 1,200bbl/d.
Kwan adds that inflationary pressures and operational success have contributed to an increased 2022 budget and guidance.
The analyst believes Baytex provides substantial torque to rising oil prices and flexibility to the Clearwater play at Peavine. Despite excellent deleveraging/free cash flow activities in 2022, leverage remains greater than its rivals.
Price Action: BTE shares are trading lower by 8.16% at C$6.53 on TSX, and BTEGF is lower by 8.35% at $5.09 on the last check Friday.