A bit of a background on our corporate securities. Baytex is listed on the Toronto and New York Stock Exchanges. We have a lot of liquidity in our issue. Current enterprise value is just shy of $6 billion Canadian. We do pay a dividend on a monthly basis, $0.22 per share per month. That translates to a yield of 5.7% based on today’s price. Since inception we have distributed about $1.4 billion of dividends and distributions. That’s an important number to keep in mind when we look at our balance sheet. We have materially improved the strength of our balance sheet while growing our asset base and paying a significant dividend. We have not been a cash retention vehicle. We do have a couple of outstanding senior unsecured debenture issues. So where do we operate. The vast majority of our businesses in the few western provinces in Canada, we do have a small but growing business unit in the North Dakota Bakken. We’re a heavy oil focused producer. 73% of our current production of heavy oil, 14% light oil and NGL and the balance about a sliver of natural gas production.The vast majority of our reserves are oil and liquids and our production is weighted 60% to Alberta, 34% to Saskatchewan and the balance between BC and the U.S. I’ll spend a little bit of time talking about history and history is that, it’s what we have in the past and it’s maybe not super relevant for where we’re going but we think it's important to give you a sense of what we've been able to deliver in the past because I think it should give you some confidence on our ability to continue to deliver going forward. 2012 guidance is to average approximately 54,000 Boe per day of production. 87% of that is oil. That level of production would translate to about an 8% compound annual growth rate over the last number of years of Baytex’s existence.
We are oil focused. Virtually none of our drilling expenditures are going towards natural gas projects. So our oil and our liquids growth is accelerating faster than Boe per day growth. 46,900 barrels of oil and liquids is the oil and liquids contribution of a 54,000 Boe a day guidance. We’ve been growing our oil and liquids at an 11% cater over the same timeframe as the 8% Boe per day growth in the company as a whole.This is quite a dizzy slide but it’s a very, very important slide to start to tell the story of our historic capital efficiencies. If you just look at the right-hand column our long-term averages for finding and development costs, including and excluding future development costs for the eight year period from 2004 to 2011, excluding FDCs we’ve added reserves at an average of $9.55 per Boe including FDCs $14.40. Those are top quartile numbers for the Western Canadian Basin and we’ve been able to add reserves at a relatively low-cost and obviously as a commodity producer that's critical when you don’t control the selling price of your goods. Recycle ratio, if you don't use that metric, Recycle Ratio is simply operating net back per barrel divided by the finding and development costs or for every dollar you put in the ground how many dollars do you get back out, we've averaged 2.9 times over the life of the business. That’s about twice the recycle ratio for the Western Canadian Basin as a whole. So by this metric we’re about twice as profitable as the basin as a whole. The two bottom blocks of data are also important for understanding the income component of our model. Since inception we’ve spent 54% of our internally generated cash flow on E&P activity. By spending that 54% of cash flow we have replaced 173% of our production. So in other words, we have grown our reserve base spending just over half of our cash flow. If you follow the E&P space you know that’s a very, very rare achievement and I'm going to talk a little bit about why we've been able to do that. Read the rest of this transcript for free on seekingalpha.com