RE:and anotherHere is the section mentioning dividend increases.
You have to think they are planning on reducing debt also on an ongoing basis.
Having little to no debt is good for sure, however the way I think they look at it is it is better to borrow others money at low rates and get much higher returns on the other end.
These new assets they bought are excellent, they must have given the seller their costs back and more plus the sale price. However, the rate of decline is fantasticly low and Peyto knows how to improve production of these wells, tweaking as necessary.
I get a kick out of the guy on BNN saying Peyto has struggled over the last few years as others have also.
Sure it has been tough times, but they have also improved many areas of efficiency on all fronts during this time frame, added land, kept rigs going and still pay dividends. You can't help it if short sellers (could have been Saudis) drove the whole industry into the ground and just to be safe said HEY LETS FLOOD THE MARKET AND KILL THEM OFF.
The outlook for commodity prices in 2021 has significantly improved over the last six months which drives higher forecast cashflows, beyond the required funding for Peyto’s capital program. In addition, there have been extreme natural gas prices being realized at certain trading hubs over the last week due to record cold temperatures across much of the United States. As an example, Peyto was fortunate to have 20,000 MMBTU/d of unhedged gas sales exposed to the Ventura hub that averaged over $160/MMBTU for the last 5 days. As these superior commodity prices are realized, Peyto will look to use the free cashflow to reduce indebtedness and strengthen its balance sheet, while evaluating the ability to increase dividends to shareholders.