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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 May 10, 2018 6:07am
57 Views
Post# 28009607

RE: "Proceeds from the notes will be used to repay a portion"

RE: "Proceeds from the notes will be used to repay a portion"You guys got a pretty active night!

Can we agree Notes are part of the Long Term Liabilities family and Notes with a maturity under a year are in the Current Liabilities?
As far as Debt being reimbursed - $15m looks pretty low for Q1 - but they have injected $65m in their Working Capital during the Quarter. It is expected the situation will revert lightly in Q2 (around $0).

As a long term investor, I would be worried if Peyto would start buying back shares at current level. I would rather see them reimburse the debt they have raised while production was increasing. Now that production is decreasing, they should repay that debt.

Yash, you might want to revisit the debt covenants. I don't see any related to market value of the shareholders. Accountants, banks and creditors prefer to use book values.

Have a nice day!
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