Peyto Exploration & Development Corp T.PEY

Finally! A day to buy!! EOM

[NonCredibleSrc]

EOM

[stockmarket1]

Yes, and the price of Natural Gas is over $2.80 as I'm writing this. $3 looks promising now which I think is good. 

[MikeySwoosh]

AGM held after close. Does chairman Gray survive another year? Likely the reason for the price pressure today. A new chairman could certainly mean a change in dividend policy, which actually would be welcomed by many of us. Hard to argue against debt reduction over lofty dividends when Peyto has an average interest north of 7%. Anyway, we'll see what happens.  Voting results from last

[stockmarket1]

 You mean a change in Dividend from monthly to quarterly? Or reducing the payment amount but still stay monthly? Just curious. :)

[MikeySwoosh]

I'm not sure what it would look like, but I think a base quarterly dividend of say $0.15 paired with a special dividend would be lot more fiscally responsible, much like Tourmaline does it. Some sort of commitment to pay down debt, not just an attitude of "if we happen to have FCF after the dividend we will will pay down debt". Commit say 75% of FCF to returning capital to

[stockmarket1]

I do like what you wrote here!  I think a base quarterly dividend of say $0.15 paired with a special dividend would be lot more fiscally responsible, much like Tourmaline does it.

[John14v3]

I do not disagree with being fiscally responsible. However, if an investor wants the safety of OXY, Suncor or Touramine, go buy OXY, TOU, SU. Some investors want to get an ROI that actually ends up in the bank account, not a paper gain. Kind of like our houses in Canada that are all up 400% in the last decade. It's not really a gain if you can't monetize it. Even if you sell, where you

[MagicPinstripes]

I 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

[MikeySwoosh]

MP, I think you make some valid points and I'm glad you've managed to do well with PEY. I would push back on a couple of things though if I can. 1) Peyto does have a proven track record of profitability, but my contention is that profitabilty isn't the mark of a good company, or one that is a good steward of capital. It's certainly necessary over the long run, but it can also

[MagicPinstripes]

I completely agree that the Cascade contract isn't all that transparent and there's been quite a bit of discussion on this board about it in the past. As power pool prices fluctuate, I think that once Cascade is up and running for a few quarters then we'll get a better idea of its impact on Peyto's total revenue. As for profitability, I will simply say that businesses exist to be

[Sukhi19]

Natural gas prices are much higher than Q1. CASCADE is scheduled to start in Mid July-fingers crossed. LNG Canada is only a year away. They have indicated that their debt may rise a little but have shown no inclination to tinker with the dividend. Most of the investotrs are in PEY because of the income it provides. If they cut the dividend it will negatively affect the SP as people will rush to

[Sukhi19]

This post has been removed in accordance with Community Policy

[Westcoastenergy]

I agree Sukhi.  

[stockmarket1]

I agree as well and of course, the price of Nat Gas today is on a decline ..... again! Mid $2.50 as I write this.