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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 dalerules88on Aug 08, 2019 2:24pm
140 Views
Post# 30007954

RE:Its got nothing to due with transport/divi/ ng costs

RE:Its got nothing to due with transport/divi/ ng costswhy change? 
concentration risk

even if you are the best, if you're a one trick pony, a dry spell would kill you;
yes chasing liquids is costly, but if Peyto can apply their skillset in the wet gas, they may quite possibly do as well as others, if not better, and diversify in the process;  even at these prices they're still running 5% ROC and 10% ROE, which is not quite "going bankrupt" yet; covenants still have some wiggle room, generally about 20%, and looks like AECO forward curve is improving, so I think this is a survivor; the market doesn't like the leverage, but that will work in favor if AECO turns the corner here, be it by policy change or TC being more cooperative;

is it going lower? quite possibly; is it going belly up? I don't think so; remember, these are cyclicals, you make money in these not by buing and selling, but by waiting ..

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