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Peyto Exploration & Development Corp T.PEY

Alternate Symbol(s):  PEYUF

Peyto Exploration & Development Corp. is a Canadian energy company involved in the development and production of natural gas, oil and natural gas liquids in Alberta's deep basin. The Alberta Deep Basin is a geologic setting situated on the northeastern front of the Rocky Mountain belt in the deepest part of the Alberta sedimentary basin. It acquired Repsol Canada Energy Partnership (Repsol Assets), which included around 23,000 barrels of oil equivalent per day of low-decline production and 455,000 net acres of mineral land. The acquisition includes five operated natural gas plants with combined net natural gas processing capacity of around 400 million cubic feet per day, 2,200 kilometers (km) of operated pipelines, and a 12 MW cogeneration power plant. These assets include Edson Gas Plant and the Central Foothills Gas Gathering System. The Company has a total proved plus probable reserves of approximately 7.8 trillion cubic feet equivalent (1.3 billion barrels of oil equivalent).


TSX:PEY - Post by User

Comment by mombasa1on Jan 11, 2012 5:19pm
318 Views
Post# 19393485

RE: RE: natural gas vs liquids

RE: RE: natural gas vs liquids

Yes, I concur with ELJ's assessment.  

The presentations and monthly reports on Peyto's website are a 'must read' for anybody owning Peyto or any other NatGas company for that matter.  I find Peyto's web site to be the most informative,  transparent, and up-to-date reflecting the Company's current state-of-affairs over any other in the NG universe.

In fact if you read January's Presidents report you will see Peyto is undergoing plant upgrades in order to extract more NGL's from their NatGas production stream.  These efforts are being undertaken to counter weak gas prices going forward.  If I remember right they can extract between 100 - 150 bbls of NGL's per MMCF of gas, depending on the formation being exploited.

Even though the SP is getting hit hard, I still like Peyto because of its production growth profile, liquids-rich gas, and full-cycle lowest-cost advantage over its peers (I believe it was December's President's report where Darren Gee was bragging that they were the lowest cost producer in North America)  

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