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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 Quintessential1on Dec 02, 2023 4:11pm
130 Views
Post# 35765377

RE:RE:RE:RE:PEY's SP rising inspite of lower O&G prices.

RE:RE:RE:RE:PEY's SP rising inspite of lower O&G prices.I agree it is an exchange of point of views and the more point of views the better.  

Well I agree that the forecasts points to lower gas pricing for the near future I am keeping in mind that the recent acquisition and production and reserves additions will not really be digested until the next monthly report.  It could very well be the swing factor as I believe (and I think you do too) that fundamentals trump technicals and even lesser fundamentals like forecasted weather and pricing.

I think PEY is going to tow the line on the charts bouncing here or just slightly lower.  The $10 level is just too far down now for a well hedged, increased production company with decent headwinds like future Coastal gas link pipe line filling and the Cascade power plant starting  up later plus...winter.

I also agree it becomes a better, easier buy to pull the trigger on as the pirce gets lower and becomes more oversold as the yield gets higher.  Funny how that works and is the opposite for shorters that feel more confidence as the stock price becomes higher and more overbought.

Then there is FOMO.  Which is why we are doing what we are doing.  Discussing.

GLTY and all  



houbahop wrote: I am not in possesion of the true. Obviously, its a game of probability (statistics) and this is only an exchange of point of views.

Looking at the new climate prediction from NOAA:

https://www.cpc.ncep.noaa.gov/products/predictions/814day/814temp.new.gif

it looks like it will pay to wait before adding some PEY shares.
Abnormaly hot weather accross the US until Christmas and inventory/storage over 90% full in
US and Europe is not encouraging for the producers trying to sell their commodity in a saturated market. I think Natgas prices have plenty of room to decline even more before year end. But we all know those prices are very volatile and may reverse quite violently.

My game plan is to wait for better visibility for a reversal of the situation. For the time being, market is flooded with natgas and the risk is for further downside for PEY. If it ever trades around $10, fundamentals will certainly look even more ugly than it is today. Technicals might indicate at that point in time we are at the apex of panic selling. Perfect time to buy, imo.

Again, this situation might not present itself, but it is very rewarding not to be caught on the wrong side and take advantage of it when the opportunity shows up.

For the time being, patience is greatly helped  by the 10%+ dividend return.



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