RE:RE:RE:RE:RE:RE:Finally! A day to buy!! EOMI also agree with the idea of being fiscally responsible. I would also hope that investors in Peyto would know what they're buying into - a company with a proven track record of being profitable each year since inception (with the sole exception being 2020), a company which hedges most of its production to ensure a transparent and sustainable capital budget, and a strong commitment to returning a portion of profits back to shareholders in the form of dividends.
I would argue that Peyto is like the 'Tortoise' in the fable of the Tortoise and the Hare. They don't race at full speed towards the finish, but complete in a slow, methodical, and consistent way. I compare that to a company like Birchcliff, of which I am also a shareholder, and I much prefer Peyto's strategy over the large swings of extreme profits following by extreme deficits that Birchcliff has experienced.
Yes, Peyto has a substantial amount of debt; and that does hurt the share price and eat away at profits via interest payments, but you also know that Peyto will slowly chip away at that debt over time. If forward pricing increases, especially as LNG Canada comes online next year, then I'd expect Peyto to continue its hedging strategy to ensure that it's being fiscally responsible - not only to pay down debt, but to ensure it can remain profitable and support its capital budget and dividends.
When I bought into Peyto, part of the allure was the $0.01 monthly dividend at the time. I was specifically looking for a company that would be consistent in returning some capital back in the form of dividends and Peyto checked all the boxes for me. It still does. In fact, since the post-pandemic dividend increase, I've already earned over a 100% ROI. While I certainly did not predict that would ever happen so quickly, I'm certainly not opposed - even though I did think, at the time, that the increase was excessive. I still do. However, with Cascade coming online and exposure to Alberta Power Pool pricing (not hedged) I think that could be a great way for Peyto to bring in additional revenue to support debt repayment and/or dividend increases and/or increased production.
Go Peyto!
MP