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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 houbahopon Nov 19, 2017 5:45pm
102 Views
Post# 26992973

RE:RE:RE:3 options for potential Q4 profit of $17m

RE:RE:RE:3 options for potential Q4 profit of $17m$17M would be Net Free Cash Flow, meaning Cash Flow after Capex.
Profits for 17Q4 would be around $50M, imo.
Debt will increase by $37M after paying $54M in dividends.

Of course this suppose they will sell all their production, meaning AECO will stay above $1.50/Gj until end of year.

For 18H1, it is another story. The plan will generate $40M of available cash AFTER paying the dividend if its stay at current level for the first 6 months. Production would remain around 113 000 boe/d.
I can bet they won't buyback a single share even if it would be the best economic option.
Peyto shares could trade below $10 and they wouldn't buy any. Peyto Board is programed in another fashion. But they certainly would reduce debt.
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