RE:PEY's debt went up by $6m If we can get NG prices to improve to a long term stability level that is key especially if it heads up around $3 or more, then all holes will be smoothed over.
Peyto's ability to pay off a well quickly is key.
Not only can they be the fastest at doing this but their numbers as purported by Gee seem to be getting much much better from the get go.
Sure their hedging is going to hold them back a little bit, but this is what has protected them all along.
Canada has done so much better rebounding with this virus, people are vacationing at home in each province, many industries like the construction industry barely blinked so this winter may help out on the demand side.
Hopefully many will have some good questions if there is a conference call.
I like this note in their earnings release:
Peyto currently has 4 drilling rigs contracted that continue to be focused in the Greater Sundance and Brazeau core areas. These 4 drilling rigs are operating intermittently and are capable of drilling 40% more wells than what is planned for 2020. Peyto expects they will be at full utilization in 2021 with an expanded capital program. Keeping these 4 rigs and their respective crews active now will ensure efficiency gains are maintained as Peyto increases its pace of activity, which is critically important considering the damage this current activity downturn is having on the oilfield services sector.
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They must be fairly confident going forward.