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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

Post by mmodanoon Oct 14, 2017 8:20am
230 Views
Post# 26813237

Seeking Alpha

Seeking Alpha

Summary

Cash costs to produce the gas are rock bottom by industry standards.

Operating netback percentages are sky high. They average well over 50%.

Cash flow from operations before hedging about doubled from the previous quarter last year.

Management predicts that cash flow will soon cover both the capital budget and the dividend.

The industry bottom provides an above average dividend yield and the start of heating season just about guarantees capital appreciation.


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