Post by
GregC24 on Mar 08, 2024 8:42am
Scotia's Comment
Latest Research (March 07, 2024):OUR TAKE: Neutral. PEY delivered solid Q4/23 results, with cash flow modestly ahead of consensus on stronger-than-expected natural gas price realizations. The company also put up lower-than-expected opex, which we see as a positive for the first quarter following the Repsol acquisition. PEY reiterated its plan to target the lower range of its 2024 capital program. Looking ahead, we see the company well positioned to ride out potential volatility in natural gas prices through 2024 and deliver on its growth and debt reduction plans over the next few years across a range of commodity price scenarios. Looking ahead, we see proof of concept for the productivity improvements from the new assets as the key catalyst for PEY.