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).

TSX:PEY - Post by User

Peyto Exploration & Development Corp

Bullboard Posts

Comment by ceremonyon Mar 08, 2018 5:27pm

73 Views

Post# 27687061

RE:RE:RE:RE:RE:RE:RE:RE:Peyto cashflow & debt

y22 you can't lump me in with other bears around here. ;)
I am the boards freindly bear. :)
I said petyo will not cut the dividend.
I said peyto has a bit too much debt. but
I also said it's manageable and will be managed.

I am realistic about this company. I see it more in a holding
pattern and will not exacly be an exciting investment from here
out unless we get higher nat gas prices.
I am not in the sky is falling camp.
my critique is more about style. peyto is in no danger
financially. They have the lever of cutting the dividend to NIL if things go south. I don't expet they will need to.

Yasch22 wrote: No. It was a light poke at everyone who has been ragging on Peyto to get rid of its dividend, citing what they interpret as an unsustainable debt, without bothering to explain how exactly that debt is unsustainable or trying to understand why a company might commit to a dividend-paying policy in the first place.

So, it's extremely interesting that both TOU and POU -- in this environment -- are starting with dividends. Once a company does that, they enter on a long journey with investors, and not just with retail investors supplementing their monthly income. At each new level of yield, instititutions will add TOU to certain kinds of indices, ETFs and mutual funds. At a certain point, the dividend-paying company is judged in large part on its ability to maintain that level of yield: Institutions may punish dividend cuts by dropping a company from its vehicles, and individuals might abandon the company in a rage. This is definitely a "new chapter" in TOU's evolution.

I read through TOU's financials the other day. I was extremely impressed by pretty well everything they're doing. If I was a regular on the TOU board I'd have fired off about 10 enthusiastic posts by now. Maybe a hundred! ; )