RE:RE:RE:RE:RE:RE:RE:RE:RE:Peyto's hedges should prop sp in downturn?For Peyto, it would be great if NG prices level out at stay in the $3-4 range. Their MOAT of being the lowest cost producer has be been rendered useless with the NG price swings. I guess that's what they're trying to do with the hedges. A low steady gas price would discourage rapid production growth and allow for consistent coal to gas switching as well. These wild swings haven't helped as they've lost CF due to hedges when prices were high and now would be in a position of high debt/high dividend if prices were to drop further and stay down in 2024 and beyond.
Long-term Peyto will do well with their new diversification/cascade power plant. They shouldn't have raised the div so quickly IMO. My guess is their div growth the past two years has done the opposite of what they expected with respect to the share price. An additional $150 mil off of the debt presently would have been the better option.