Peyto Exploration & Development Corp T.PEY

Alternate Symbol(s): PEYUF

Energy Oil & Gas E&P

Peyto Exploration & Development Corp. is a Canada-based oil and natural gas company. The Company conducts exploration, development and production activities in Canada. It is a Canadian energy company involved in the development and production of natural gas, oil and natural gas liquids in Alberta’s deep basin. The Company’s total Proved plus Probable reserves are 5.6 trillion cubic feet equivalent (929 million barrels of oil equivalent) as evaluated by its independent petroleum engineers. Its production’s weight is approximately 89 per cent to natural gas and 11 per cent to natural gas liquids.

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Peyto Exploration & Development Corp > Hedging losses

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Comment by Quintessential1on Aug 15, 2022 4:49pm

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Post# 34897632

RE:RE:RE:RE:Hedging losses

So people that do not have mortgages do not need mortgage insurance.

Brilliant.

I am pretty sure that is what I said.

GLTA Longs

uncutgems wrote: what?

you know who doesn't need mortgage insurance? people that paid CASH. you know who doesn't need mechanical hedging to protect their balance sheets? Companies with FORTRESS balance sheets. When was the last time someone complained about TOU hedges?

Quintessential1 wrote: I look at hedging like mortgage insurance. As long as you have a mortgage you should have mortgage insurance but no one ever wants to cash in on that policy.

Eliminate the mortgage and you also eliminate the need for the insurance.

The faster debt can be reduced the better for the company and for shareholders.

GLTA

TerribleEng wrote: The issue is that the market is demand driven now and is in backwardation. Hedging is very expensive in a market like this because even if Natural gas prices remain flat... you lose because you are always hedging out 18-24 months at large discount prices. Even if it were perfectly flat, market goes up and you lag the market and get punished. Prices fall, and you get punished for because your debt is high and reserves get derated. The conf call had several questions around variable dividends and reducing hedging to a level that protects the Capex plan and nothing more.