TD - Possible PEY infrastructure saleBelow is a comment from this morning's TD research report on the possible infrastructure sale... Nice to know they have this hidden asset in their back pocket.
"Partial Infrastructure Sale a Potential Option to Reduce Debt: Peyto holds a significant infrastructure portfolio, with approximately 845 mmcf/d of processing capacity. Although, off strategy from a historical perspective, in our view, Peyto is well-positioned to enter an Advantage-style (AAV-T) midstream divestiture/ agreement. Under such a scenario, Peyto could divest a small portion of its infrastructure and commit to a take-or-pay processing fee on a small portion of its total production. This would serve to bring in cash, increase optionality, reduce leverage, and perhaps lower its interest rate on its outstanding debt (given that its interest rate improves as leverage ratios fall)."