Baytex Energy's Strategic Repositioning and Financial Strength Drive Buy Rating9:00 PM Baytex Energy Corp. (TSX: BTE-T) Buy (1) ESG C$4.75 (Prior Migration - Report THE TD COWEN INSIGHT Exits EF for US$2.305bln (C$3.25bln; US$200mm break-fee), following media speculation (note). Plans to accelerate PDuv/convent'l heavy oil dev., deleverage b/s, and accelerate RoC. While the cross-border model has clear benefits and the EF served an imp't role historically, this was no longer recognized by investors. We like this more streamlined, nimble and well-capitalized version of BTE. Impact: POSITIVE Price tag maps to 11% unlevered FCF yield at US$65/bbl WTI, or ~C$39k/flowing (~US$28k/flowing): This is in-line with our published estimate $3.3bln (note).