PEY netbackshere's a key metric from today's release, for those of you who invest on fundamentals, not emotion:
The current 2018 future AECO strip price for Alberta natural gas is $1.35/GJ, which when combined with a Canadian Light Sweet oil price of approximately $75/bbl, yields an unhedged revenue stream of approximately $2.30/Mcfe, using Peyto's current blend of gas and NGLs. As mentioned, Peyto has secured a fixed price for approximately 75% of the expected 2018 natural gas production at an average price of $2.34/GJ ($2.68/Mcf). When these prices are adjusted for Peyto's historic NGL and heat content premiums and are combined with the Company's industry leading cash costs of approximately $0.75-$0.80/Mcfe, they are expected to yield cash netbacks of approximately $2.21/Mcfe ($13.30/boe).