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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 Feb 21, 2021 8:47am
204 Views
Post# 32620921

RE:RE:RE:RE:RE:EXPERTS COMMENTS

RE:RE:RE:RE:RE:EXPERTS COMMENTSThe way I see it, 2021 will be another tough year.
2022 looks very promissing.
From my spreadsheet:

Year  -----  Operating CF ----- Capex
2010 ------     $200    ------------ $261
2011 ------     $300    ------------ $380
2012 ------     $305   ------------- $400
2013 ------     $420   ------------- $585
2014 ------     $640   ------------- $690
2015 ------     $550   ------------- $600
2016 ------     $485   ------------- $475
2017 ------     $555   ------------- $540
2018 ------     $470   ------------- $230
2019 ------     $320   ------------- $205
2020E ----     $190   ------------- $235
2021E ----     $325   ------------- $330 Incl. $35m aquisition
2022E ----     $530  -------------- $300

I assume from what D. Gee said in the interview, that by 2022, production will be over 100k boe/d and optimized for Peyto's producting facilities.
To have production at 100k plus a 2% growth would required around $300m in Capex.

Would Peyto's BoD really use most of this Net Free CF($230m) to reduce debt or will they repeat history and increase dividends and keep levarage at these unconfortable levels?

Answer in two years, but my guess is they will repeat the same mistake.
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