Peyto Exploration & Development Corp PEYUF

"Ohhh, butt the HEDGE BOOK!!" Where'd the NG experts go?

[malx1]

Did all the day-traders move over to "unhedged" BIR back when it was $10?

Howdy, gents!   How's the view from down there?


See PEY just galloping into the sunset................................................................

[TerribleEng]

Peyto is going up because of its daylight robbery of Repsols assets not because of their hedge books.    If anything their hedgebook is making them make the same mistakes. Deploying cash into growth at negative rates of return. They should at least be leaving those wells TIL and waiting to turn them on in the winter. The hedges are in the money whether they produce into them or not

[houbahop]

"But yeah let's take these hedges that are now in the black and use it to generate unhedged growth... putting all the initial production into a flooded market. " I have been decrying the same, for months. They have done this mistake in 2017 and it placed shareholders in a near death situation a couple of years later. Now, if they repeat the same mistake of being voluntarely blind

[GregC24]

Chesapeake CEO a few days ago... "While we will benefit from a strong hedge position, we are responding accordingly with our 2024 capital and operational plan. First, we are reducing capital by nearly 20% and production approximately 15% from the preliminary outlook we provided last quarter. Under our revised capital program, we plan to limit our turn-in-line count to 30 to 40 wells with

[GregC24]

The Q&A portion of the Chesapeake call is interesting for their view of the market and handling capital in this situation: https://www.insidermonkey.com/blog/chesapeake-energy-corporation-nasdaqchk-q4-2023-earnings-call-transcript-1262975/#q-and-a-session

[houbahop]

Peyto should read this and learn instead of adopting a sub-efficient myopic approach to its capex and hedging program. On the other hand they are among the best on the operation side. Can't have it all...I guess.

[auagntungsten]

After puchasing Natural producing land, and the existing infrastucture, the power plant utilizing fuel at a  price better than normal (henry hub - pipline costs) and a pipeline west to the world it seems that bringing in this supply in a tested thruput, is prudent. The low costs keep the shale plays down so when the price recieved  becomes stable. Holding these cards is what management

[TerribleEng]

What Chesapeake is doing with the TILs is brilliant. They are capturing the financial gain on the hedges and using it to fund their operations, debt and dividend like hedges should. They are taking supply offline because what they are selling into spot is a money losing venture just like it is for Peyto. While also drilling up their CAPEX but not bringing them into production. They capture the

[topdop]

We've been at this a long time discussing the hedge book and why they don't (won't) choose to reduce (more) debt... but, they are such good, cost efficient guardians of the development of their plays. And that Reserve Report was awesome. On balance I do think that being a "cost efficient guardian", as I have described, MUST require some shut-ins - carry on drilling, but don

[Singoa58]

Nobody cares zzzz

[MikeySwoosh]

"I read your use of the word "myopic" and I couldn't agree more - it's very applicable here. Gee is gone... why can't the new CEO better understand shareholder concerns?" https://www.peyto.com/Files/News/2023/20230613DirectorPressRelease.pdf The answer may very well just be that Peyto is still being governed (at least in part) by the original CEO and founder, and

[topdop]

Agreed