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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 KnottyOysteron Jan 12, 2018 1:34am
98 Views
Post# 27339625

RE:RE:RE:RE:RE:RE:Divvy cut in half

RE:RE:RE:RE:RE:RE:Divvy cut in halfWe currently have a surplus of power generation in alberta, so it is unlikely we will see any new major projects on that front. Transalta however has announced that they are building a pipeline from tidewater's brazeau plant up to the keephills and sundance facilities to ultimately convert them from coal to gas. ATCO's facilities sit on top of the nova pipeline, so there may be opportunity there. Once those are converted, the majority of electricity in AB will come from natural gas, and that will surely steady prices a little. Currently there is 7555 MW installed for NG and cogen facilities, and 6003 MW from coal which is on the decline. For fun wind has 1445 MW (although it's only producing 31 MW as a write this), Hydro is at 984, and other biomass etc is at 449... Solar has 15.

https://www.auc.ab.ca/market-oversight/Annual-Electricity-Data-Collection/Documents/2017/Installed%20Capacity.pdf

ets.aeso.ca

That aside, there are a lot of other facilities coming up that use NG as a feed stock, including gas to liquids facilities, petrochemical/plastics plants, and propane dehydrogenation facilities.

They also sit close to the Alliance line, so they may be able to tap into that at some point.

With them being one of the lowest cost producers in AB, i'm sure they will be welcomed at the table by many industries partners to supply gas, and will likely win due to their lower costs, and available reserves. The pipelines they just built between some of their facilities for NGL's will also pay dividends by basically eliminating the need for trucking. This stock in time will do well, there's no doubt. I might pick away at it some more down here while the gettin is good.
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