Peyto Exploration & Development Corp T.PEY

Conference call

[winafew]

Pretty positive conference call, here's my favorite line from Darren Gee

"Our 2022 right now looks fantastic as far as what we're projecting. I think Peyto might actually generate record cash flow in '22 based on the current strip. So we're very excited about that and all -- that brings, getting back to the days of old when we were financially much stronger. So things have definitely looked up and picked up and are looking really good going forward. And we'll be excited to get back to you in November with Q3 and will be well underway into the winter by then and be even more excited about what's happening in 2022. So thanks for tuning in, and we'll talk to you then."

[Yasch22]

This post has been removed in accordance with Community Policy

[shenty46]

Have you noticed that first time ever there were no brokerage houses like TD, RBC in the conference call, as the results were so dismal, and there is a lack of clarity going forward, the looses due to hedges may continue well into march 2022.  I have trimmed my position yesterday and added arc resources, shall add peyto may be in february 2022 again.

[borne2run]

I see no reason to buy only one Canadian nat gas stock.  Using current strip pricing, AAV, ARX, BIR, PEY & TOU will all generate fantastic cash flows in 2022. Thus, all of these stocks should do well. At any point in time, I will usually own positions in at least 3 of the names.

[llerrad5]

Agreed and I own 4 out of the 5. The hedging position is no surprise as it was laid out clearly in the previous financials. I also agree with another poster that measuring O and G by cash flow multiples is best. The have so much in the way of depreciation and amortization that it makes P/E a poor tool.

[Oldnagger]

I have been trying to convince other investors , that both cash flow and recycle rate are the important vectors. Recycle rate encompasses may other factors such as product mix , drilling and completion costs, decline rates  and ultimate recoverable resource. More cash flow means more money for capex and high recycle rates mean future returns on that capex. This methodology is quick and more

[sportstermathew]

Maybe you should try other ones. Clearly you can't stay with a stock more than five minutes. Peyto is more clear than any company on anything they do. It won't be all good news and the hedging is overall positive long term. A lot of things are out of their hands. They are trying to reduce GHG while at the same time increase revenues or decrease costs.  This takes time.  They

[NGinsider]

Just to put that in perspective, Peyto had $4.33/shr in CF back in 2014. That means Darren thinks they will around $715m in CF next year. So with $4.33/shr in CF and $300m Capex needed to keep production flat, or $1.80/shr... that means they have over $2.50/shr in Free CF (35% FCF yield). What will they do with the $415m in FCF? I would like to see the following $100m additional Capex $150 debt

[Oldnagger]

You have raised an interesting point with the modigliani-miller theorem, if I understand it right, then share buybacks would be essentially from cost free money as they would add to the debt and hence the return . Do I understand this correctly ? And is a dividend any different ? Colour me confused !!