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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 ceremonyon May 10, 2018 11:51am
46 Views
Post# 28011917

RE:RE:peyto debt the TRUTH

RE:RE:peyto debt the TRUTHthe net reduction in peyto debt is $15m. PERIOD.

Yasch22 wrote: Ceremony: this is your most accurate post out of your prodigious output of the past couple of days:

in q1 peyto REDUCED the balance of the BANK CREDIT FACILITY by $115m
in q1 peyto INCREASED their Senior unsecured notes by $100m.

peyto reduced debt in one area
and increased it in another area.

the net result is a reduction in debt of $15m.


That's exactly what I've been saying. There are two relatively minor differences in our reading of the numbers. One has to do with timeline, where I emphasize that addition of the $100m in senior unsecured notes was a transaction initiated in December of 2017 (obvious!) and signed+announced on January 2. Since Dec.31/Jan.2 Peyto paid off $115m of its bank credit facility.

A second minor difference has to do the timing of the payment of $31m over and above the $84m Peyto paid off since Dec. 31. I think it's as plain as the nose on your face that this $31m was paid off on or shortly after the $100m was transferred to Peyto's accounts.

The senior unsecured notes amounted to $520m as of Dec. 31, and $620m as of Jan. 2 & March 31.

As of December 31st, the "BANK CREDIT FACILITY" was $765m. As of March 31, it was $650m.

This is the answer (given once again) to your question: When Peyto announced the $100m of senior unsecured notes, they said "Proceeds from the notes will be used to repay a portion of Peyto's outstanding bank debt." Note the emphasis on "portion". The Q1 financials reveal that Peyto paid $31m on or shortly after January 2, and then paid another $84m from its record quarter. 

You're pretending that Peyto used the entire $100m to pay off the bank credit facility and managed only to pay down another $15m out of profits. You are completely misreading the SEDAR report. You think you've based your analysis -- or what you call an "estimate"  -- on some sort of deep understanding of GAAP accounting, but ... no.  All you've got is a conspiracy theory that contradicts what the company is actually saying.



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