Scotia's CommentLatest Research (January 04, 2024): OUR TAKE: Neutral. PEY reported December 2023 estimated production at ~128 mboe/d (87% natural gas), resulting in Q4/23 estimated production of ~121 mboe/d (~87% natural gas). The company’s Q4/23 production estimate is ~2% below our forecast and street estimates, which we view as reasonable given the acquisition of Repsol Canada during the quarter (M&A typically introduces noise into quarterly estimates and the Q4/23 estimates for PEY have a high standard deviation relative to peers). Capital spending for the first two months of Q4/23 totaled ~$95M, compared to us at $127M for the full quarter. PEY reiterated that it expects full year capex to total ~$425M, implying ~$32M of capex for December 2023.