Peyto Exploration & Development Corp T.PEY

Alternate Symbol(s): PEYUF

Energy Oil & Gas E&P

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).

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Peyto Exploration & Development Corp

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Comment by gvfsdgbfsdgbfsaon Nov 03, 2017 11:59am

55 Views

Post# 26901046

RE:RE:RE:RE:RE:RE:the natural merger partner

I thought the letter was very informative. What I got out of it was that there are various scenarios on how to run the company given a 2.00/GJ price. No capex could payback 226M in Debt and make 125M. A good option. Why go to the next option which increase profits by 50M but only payback 23M in debt. In essence, it will cost 203M to gain 50M in profits. Why increase production in a low price environment. As he stated "the cure for low nat gas price is low nat gas prices.

Peyto is expected to produce 3rd quarter profit of $.20/share on 102,000 BOE/D whereas Tourmaline is expected to produce$.11/share on 250,000 BOE/D. Who is the better operator?

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