Bayman Texan Energy

FAQs

  

General Frequently Asked Questions

How is Bayman Texan Energy different from other oil and gas companies?

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At Bayman Texan Energy, we offer sector-leading capital efficiencies and robust asset level returns across all three core resource plays. Approximately 78% of our production and 84% of our reserves are derived from crude oil and liquids. We have amassed a significant inventory of long-term, low cost development projects, most notably in the Peace River area of northwest Alberta, our Lloydminster heavy oil region and the Eagle Ford in Texas. 

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What is Bayman Texan Energy's hedging policy?

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Bayman Texan Energy manages its exposure to a variety of risks arising directly or indirectly in the conduct of its business, including commodity prices, foreign exchange rates and interest rates. Pursuant to its Risk Management Policy, management of Bayman Texan Energy is authorized to enter into transactions covering, in aggregate, up to 60% of its exposure to the risk being managed. Transactions in excess of this level must be pre-authorized by the Board of Directors. In addition, Bayman Texan Energy actively employs risk mitigation strategies to maximize the profitability of its heavy oil production, including an expanded use of crude by rail which allows us to deliver our heavy oil to higher netback markets. 

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How can I receive regular investor information?

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To automatically receive news alerts, financial reports and other regulatory filings, click here to enter your name and email information.  Please note that you may remove yourself from our mailing list at any time. 

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Common Shares Frequently Asked Questions

What are the risk factors of holding Bayman Texan Energy's common shares?

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Bayman Texan Energy is subject to numerous risks including commodity prices, production levels, global energy production and policy, political conditions, currency fluctuations and weather conditions. For a more detailed description of these risks, see the section of our Annual Information Form (page 11) entitled "Risk Factors". Click here to access this document.

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Can I purchase common shares directly from Bayman Texan Energy?

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Common shares cannot be purchased directly from Bayman Texan Energy. You must contact your broker or other financial intermediary in order to purchase our common shares, which are traded on the Toronto Stock Exchange and the New York Stock Exchange (under the trading symbol BTE).

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What is Bayman Texan Energy's stock symbol and where do its common shares trade?

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Bayman Texan Energy’s common shares trade on the Toronto Stock Exchange and the New York Stock Exchange under the symbol BTE. 
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Tax Frequently Asked Questions

What are the tax implications of owning Bayman Texan Energy's common shares?

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The information contained herein is intended to be a general guideline and not an exhaustive discussion of all possible income tax consequences. It is not intended to constitute legal or tax advice to any holder or potential holder of common shares. Holders or potential holders of common shares should consult their own legal or tax advisors as to their particular tax consequences of holding common shares.

 

a. Canadian non-taxable accounts (registered accounts including RRSP accounts)
Investors holding Bayman Texan Energy common shares in TFSAs, RRSPs, RRIFs, RESPs or DPSPs should not need to report any amount for capital gains or income from dividends on their Canadian personal tax return.

 

b. Canadian taxable accounts (non-registered accounts)
Since conversion to a corporation on December 31, 2010, all dividends paid by Bayman Texan Energy have been designated as “eligible dividends” for Canadian income tax purposes.  This designation will continue to apply until a notification of change is posted on this website..

 

c. US non-taxable accounts
No amounts are generally required to be reported as taxable income where Bayman Texan Energy common shares are held within a qualified retirement plan. For non-residents of Canada, dividends from Canadian corporations are generally subject to a 25% tax withheld at source. Under the terms of the Canada/US income tax treaty, US Shareholders that hold their common shares in tax-exempt accounts are eligible for 0% withholding tax on cash dividends paid on their common shares. For more information on applying for tax-exempt status, see the FAQ below titled "Is it possible for US Shareholders holding common shares in tax-exempt accounts to pay no Canadian withholding tax on their cash dividends?"

 

d. US taxable accounts

Bayman Texan Energy is of the view that its dividends meet the criteria for “qualified dividends”. There are certain individual circumstances where the dividends may not be qualified dividends, such as circumstances where the shareholder does not meet a holding period test.  Where these circumstances apply, the dividends are to be reported as “ordinary dividends.”
Information relating to dividends paid by Bayman Texan Energy is provided annually on Form 1099-DIV.  Registered U.S. resident shareholders will receive this form from our transfer agent, Valiant Trust Company, who can be reached directly at 1-866-313-1873.  Non-registered U.S. resident shareholders will receive their Form 1099-DIV from their broker and not from Bayman Texan Energy or our transfer agent.  We strongly recommend you obtain advice from your tax advisor about the tax treatment of the dividends you receive.
Under Canadian tax legislation, dividends paid by Bayman Texan Energy to non-residents of Canada are subject to a withholding tax.  The withholding rate is 25% and may be reduced to 15% under the Canada/US income tax treaty (“Treaty”).  The Canada Revenue Agency requires that brokers obtain certain information from shareholders in order to determine the appropriate rate of withholding.
Registered, non-resident shareholders whose names appear on the records of the registrar and transfer agent of Bayman Texan Energy are mailed a form by Bayman Texan Energy’s transfer agent requesting this information. Until such form is completed and returned to Bayman Texan Energy’s transfer agent, the reduced Treaty rate of 15% will not be applied when determining the amount of withholding tax.
Non-registered, non-resident shareholders’ eligibility for any applicable Treaty rate will be determined by each shareholder’s broker and not by Bayman Texan Energy or its transfer agent. Certain brokers may require additional information or certifications in order to determine a non-resident shareholder’s eligibility for the reduced Treaty rate. Non-resident, non-registered shareholders are encouraged to contact their brokers or other tax, legal or financial advisors in the event that they have any questions or concerns in this regard. The withholding tax may be recovered in whole or in part as a foreign tax credit or a foreign tax deduction.
At the end of the year, U.S. resident shareholders receive a Form 1099-DIV which includes information about withholding tax paid to Canada during the year.

 


Is it possible for US shareholders holding common shares in tax-exempt accounts to pay no Canadian withholding tax on their cash dividends?

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US shareholders that hold their common shares in tax-exempt accounts are eligible for 0% withholding tax on cash dividends paid on their common shares. The process for qualifying for 0% withholding tax is dependent on whether you are a beneficial or registered shareholder.


Beneficial Shareholders

  • A shareholder who holds their common shares through a broker, investment dealer, financial institution or other nominee is a beneficial shareholder.
  • For US beneficial shareholders holding common shares in a tax-exempt account, Bayman Texan Energy is required to withhold tax and remit such amount to the Canada Revenue Agency. The US shareholder can subsequently apply to the Canada Revenue Agency for a refund of the Canadian withholding tax paid. See the next FAQ for information on how to apply for a refund of Canadian withholding tax.

Registered Shareholders

  • A shareholder who holds a physical share certificate to evidence their ownership of common shares is a registered shareholder. 
  • To qualify for 0% Canadian withholding tax, a registered shareholder in the US must apply to the Canada Revenue Agency for a tax-exempt status letter. For information on how to obtain a tax-exempt status letter, please contact the International Tax Services Office at Canada Revenue Agency by telephone at 1-800-267-3395, by fax at 613-941-6905 or by clicking the following link to their website: http://www.cra-arc.gc.ca/cntct/international-eng.html
  • Once obtained, the tax-exempt status letter should be delivered to our transfer agent at the following address:
    Computershare
    Attention: Tax Department
    100 University Ave, 8th Floor
    Toronto, ON M5J 2Y1
  • Should the registered shareholder have their tax-exempt status withdrawn by Canada Revenue Agency, they are required to immediately advise our transfer agent, Valiant Trust Company.
The information contained herein is intended to be a general guideline and not an exhaustive discussion of all possible income tax consequences. It is not intended to constitute legal or tax advice to any holder or potential holder of common shares. Holders or potential holders of common shares should consult their own legal or tax advisors as to their particular tax consequences of holding common shares.

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Is it possible for US shareholders holding common shares in a tax-exempt account to get a refund of Canadian withholding tax previously paid?

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Beneficial Shareholders

  • For US beneficial shareholders holding common shares in a tax-exempt account, Bayman Texan Energy is required to withhold tax and remit such amount to the Canada Revenue Agency.
  • To obtain a refund of the Canadian withholding tax (i.e., Part XIII tax) paid, the US beneficial shareholder should complete Form NR7-R “Application for Refund of Part XIII Tax Withheld” and file the form with Copy 3 of the NR4 supplementary (provided by your broker or other intermediary) with the Canada Revenue Agency at each calendar year end. Click the following link to access the Form NR7-R: http://www.cra-arc.gc.ca/E/pbg/tf/nr7-r/README.html
  • The Form NR7-R has to be filed with the Canada Revenue Agency no later than two years from the end of the calendar year in which the withholding tax was remitted.

Registered Shareholders

  • For US registered shareholders holding common shares in a tax-exempt account, Bayman Texan Energy is required to withhold tax and remit such amount to the Canada Revenue Agency until such time as such shareholder has submitted a copy of their tax-exempt status letter obtained from Canada Revenue Agency.
  • To obtain a refund of the Canadian withholding tax (i.e., Part XIII tax) paid, the US registered shareholder should complete Form NR7-R “Application for Refund of Part XIII Tax Withheld” and file the form with Copy 3 of the NR4 supplementary (to be provided by Valiant Trust Company) with the Canada Revenue Agency at each calendar year end. Click the following link to access the Form NR7-R: http://www.cra-arc.gc.ca/E/pbg/tf/nr7-r/README.html
  • The Form NR7-R has to be filed with the Canada Revenue Agency no later than two years from the end of the calendar year in which the withholding tax was remitted.
The information contained herein is intended to be a general guideline and not an exhaustive discussion of all possible income tax consequences. It is not intended to constitute legal or tax advice to any holder or potential holder of common shares. Holders or potential holders of common shares should consult their own legal or tax advisors as to their particular tax consequences of holding common shares.

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Operational Frequently Asked Questions

What is Bayman Texan Energy's production mix?

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For 2016, Bayman Texan Energy's production is expected to be 34% heavy oil, 44% light oil and natural gas liquids and 22% natural gas.

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What is Bayman Texan Energy's production and revenue by product?

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For Q3 2015, Bayman Texan Energy had an average daily production rate of 82,170 boe/d. For Q3 2015, total oil and gas revenue was $261.4 million, of which 37% was from heavy oil, 48% was from light oil, 4% from natural gas liquids and 11% from natural gas.

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What is Bayman Texan Energy's reserves life index?

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Bayman Texan Energy has an estimated reserves life index of 12.8 years for proved plus probable reserves based on our estimated reserves at December 31, 2014 and Q4 2014 actual production rate of 92,220 boe/d.

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Who evaluates Bayman Texan Energy's reserves?

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Bayman Texan Energy's year-end 2014 proved and probable reserves were evaluated by Sproule Unconventional Limited ("Sproule") and Ryder Scott Company, L.P. ("Ryder Scott"), both independent qualified reserves evaluators.  Sproule prepared our reserve report by consolidating the Canadian properties evaluated by Sproule with the United States properties evaluated by Ryder Scott, in each case using Sproule's January 1, 2015 forecast price and cost assumptions.  We had Ryder Scott audit the possible reserves associated with our Eagle Ford assets.  All of Bayman Texan Energy's oil and gas properties were evaluated or audited in accordance wtih National Instrument 51-101 "Standards of Disclosure for Oil and Gas Activities". 

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Advisory Regarding Forward-Looking Statements

In the interest of providing Bayman Texan Energy's unitholders and potential investors with information regarding Bayman Texan Energy, including management's assessment of Bayman Texan Energy's future plans and operations, certain statements in this document are "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and "forward-looking information" within the meaning of applicable Canadian securities legislation (collectively, "forward-looking statements"). In some cases, forward-looking statements can be identified by terminology such as "anticipate", "believe", "continue", "could", "estimate", "expect", "forecast", "intend", "may", "objective", "ongoing", "outlook", "potential", "project", "plan", "should", "target", "would", "will" or similar words suggesting future outcomes, events or performance. The forward-looking statements contained in this document speak only as of the date of this document and are expressly qualified by this cautionary statement.

Specifically, this document contains forward-looking statements relating to: our business strategies, plans and objectives; the taxation of our dividends; our ability to fund our capital expenditures and dividends from funds from operations; dividend policies and levels; our ability to grow our reserve base and add to production levels through exploration and development activities; our reserves life index; and our average production rates.  In addition, information and statements relating to reserves are deemed to be forward-looking statements, as they involve implied assessment, based on certain estimates and assumptions, that the reserves described exist in quantities predicted or estimated, and that the reserves can be profitably produced in the future.

These forward-looking statements are based on certain key assumptions regarding, among other things: petroleum and natural gas prices and differentials between light, medium and heavy oil prices; well production rates and reserve volumes; our ability to add production and reserves through our exploration and development activities; capital expenditure levels; the availability and cost of labour and other industry services; the amount of future cash dividends that we intend to pay; interest and foreign exchange rates; and the continuance of existing and, in certain circumstances, proposed tax and royalty regimes. The reader is cautioned that such assumptions, although considered reasonable by Bayman Texan Energy at the time of preparation, may prove to be incorrect.

Actual results achieved during the forecast period will vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors. Such factors include, but are not limited to: fluctuations in market prices for petroleum and natural gas; fluctuations in foreign exchange or interest rates; general economic, market and business conditions; stock market volatility and market valuations; changes in income tax laws; industry capacity; geological, technical, drilling and processing problems and other difficulties in producing petroleum and natural gas reserves; uncertainties associated with estimating petroleum and natural gas reserves; liabilities inherent in oil and natural gas operations; competition for, among other things, capital, acquisitions of reserves, undeveloped lands and skilled personnel; risks associated with oil and gas operations; changes in royalty rates and incentive programs relating to the oil and gas industry; changes in environmental and other regulations; incorrect assessments of the value of acquisitions; and other factors, many of which are beyond the control of Bayman Texan Energy. These risk factors are discussed in Bayman Texan Energy's Annual Information Form, Form 40-F and Management's Discussion and Analysis for the year ended December 31, 2014, as filed with Canadian securities regulatory authorities and the U.S. Securities and Exchange Commission.

There is no representation by Bayman Texan Energy that actual results achieved during the forecast period will be the same in whole or in part as those forecast and Bayman Texan Energy does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities law.

  
  

Explore Our
Operations

Our operations are organized into Canadian Heavy Oil, Canadian Light Oil and Gas and United States business units.

Operations Map

Operations Map
Responsible Development

In addition to shareholders, Bayman Texan Energy has a responsibility to the communities in which we work and do business.

Corporate Responsibility

Understanding
Heavy Oil

Learn more about the
business of heavy oil in our marketing section.


Learn More

Understanding Heavy Oil