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Peyto Exploration & Development Corp T.PEY

Alternate Symbol(s):  PEYUF

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.


TSX:PEY - Post by User

Comment by TerribleEngon Feb 05, 2022 11:26am
161 Views
Post# 34400915

RE:RE:RE:RE:RE: With heavy

RE:RE:RE:RE:RE: With heavySorry I should been more clear. With the Winter 2023 pricing popping substantially this week, and Peyto 50% unhedged for that period, they have the opportunity to realize $4/GJ in Q4/Q1 at the current strip. As you mentioned the rest of 2023 looks dismal, and this ends in March. I was just commenting that it's Peyto's first real opportunity to participate in this energy crisis and make the IRRs they have been touting in their presentations and president's letter. When Peyto says that they are seeing sub 1 year payouts, it's not really the case. That's the case at spot pricing, but then you factor in hedging losses and its closer to 1-2 years. Gee is saying that currently a marginal well that is drilled and "unhedged" would see those kinds of returns. In no way is Peyto corporately seeing ROCE of 100+%. Like I mentioned before there is an opportunity to risk-free raise production without adding to debt or hurting FCF, so I see Peyto materially exceeding Capex to take advantage of this.
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