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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 PabloLafortuneon Oct 17, 2023 12:20pm
221 Views
Post# 35687320

RE:TOU vs PEY

RE:TOU vs PEYIt is an advantage for Tourmaline to use their stock to buy companies.  They issued 3% stock (+ debt) to add 11% production.  Peyto issued 10% stock (+ more debt) to add 25% production.  If Peyto had gone 50/50 equity and debt like TOU, it would have been 15% stock to add 25% production.

Where Peyto benefits of course is that Repsol is leaving behind all that infrastructure (anybody know how well it was maintained? is it in pristine condition or are we looking at rust buckets?) so 15% share dilution (normalized to 50/50 debt/equity) --> 25% production will be more like 15% --> 50% production eventually.

The problem of course is that the AECO market is already oversupplied so what Tourmaline is doing - maintaining production - makes more sense for the industry overall.

All my amateur opinion.
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