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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 boarderex86on Nov 21, 2017 10:39am
97 Views
Post# 27003152

Peyto = boring

Peyto = boringI have been watching this stock for a while now; I like the low cost structure and conservative management approach.  Basically, PEY is happy to be a boring stock focused on fundamentals.

I think the current issue is that this boring stock feels a little bit more risky now that they are struggling to fund the dividend.  Investors who have trusted management need to let management execute on their strategy for the next few quarters to show that they made the right choice in continuing to pay the dividend.  A cut now with promises of full coverage just over the horizon will undercut faith in the management team.

My only complaint with management is their insistence of continuing to publicly complain about their issues with NGTL and transmission / storage infrastructure.  I understand what they are trying to achieve but ultimately they are talking down their own basin!  This is bad for sentiment on all WCSB producers and it would be more constructive if they would leave the laundry inside the house.

I continue to watch this closely and will likely open a position if the stock stabilized in this price range.
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