RE: Peyto’s mistake Peyto's big mistake was to borrow the ranch to pay high dividends and having a capex program they could not afford.
Today, shareholder's market value sits around $430m while shareholders equity's book value is at $1,75B with no goodwill on the Asset side.
AND PEYTO BOARD OF DIRECTORS HAVE NOT BOUGHT A SINGLE SHARE UNDER NCIB.
The return to shareholders would be 400% greater if they disbursed buying back shares instead of spending cash flow into an activity the markets give no value for the time beeing. If commodity prices are to recover in the future, there would be a smaller number of shares and the cash flows would be there to increase production in a timely fashion.
DG and the Board have been executing a plan in the last couple of years and it is TOXIC to shareholders. This is why PEY trades at $2.70.