TSX:PEY - Post Discussion
Post by
Westcoastenergy on Apr 04, 2024 10:25am
Scotia update
Scotia maintains a $20 price target
Peyto Exploration & Development Corp.
April 2024 Monthly Report – Q1/24 Production Update
OUR TAKE: Slight Positive. PEY reported March 2024 estimated production at ~127 mboe/d (87% natural gas), resulting in Q1/24 estimated production of ~125.3 mboe/d (~87% natural gas). The company’s Q1/24 production estimate is in-line with our forecast and the Street. Capital spending for the first two months of Q1/24 totaled ~$71M, suggesting the full quarter could come in below us ($139M) and the Street (~$127M), which is consistent with PEY’s messaging on targeting the lower end of its capex guidance range ($450M to $500M).
- PEY noted that it drilled two additional step-out wells in Q1/24 with encouraging results.
- The company initiated several locations in the Dunvegan since the closing of the Repsol deal and expects the locations to be drill ready for 2H/24.
- PEY expects to enter the summer with a backlog of wells to complete, which will boost 2H/24 production.
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