New President's LetterMany that don't know Peyto that well may be interested in one of the most instructive, detailed PRESENTATIONS on their website of any oil and gas firm.
Sometimes it is not always what one wants to hear as life gives us lemons sometimes.
On top of this Darren Gee provides a monthly PRESIDENT'S LETTER with comments on current production / drilling / rigs new technology advances and what is happening in the oil and gas world as we know it from an isider's point of view.
How will firms be affected by AECO pricing in the summer is key on a long-term basis as this happens every year. You would think TRP and ENB would like the oil and gas producers to be as strong as possible to pay their bills but sadly it is every business for themselves.
A comment Gee made in this months presentation:
Now that things are back up and running smoothly at the 89-90,000 boe/d range we should see a steady stream of new wells coming on until breakup.
So improved production techniques will allow for hopefully in the mid to high 90,000 boe/d eq. this year with a lower decline rate. We will see.
Spring break-up is always a concern on top of summer rains similar to the last few years.
On a positive note I believe they are still drilling on two pads during break-up with all supplies and materials required on site. With improved shorter periods to drill a well this is only good news as the train is not stopping to slow things down.
Peyto's stock price should continue to improve regardless of oil and gas price volatility over the next two years. This is all we can ask I believe.
FFO will be good allowing more drilling and maybe a little debt repayment. The interest rates will decrease as their loan requirements are back in line.
New broker ratings will improve if not slow to recognize it all, allways.
And a reintroduction to the indexes should improve demand for shares also. If anyone has any info on how and when this will happen would be nice to hear.