Peyto Exploration & Development Corp T.PEY

Alternate Symbol(s): PEYUF

Energy Oil & Gas E&P

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

Peyto Exploration & Development Corp > Thoughts on takeover?

<< Previous

Bullboard Posts

Next >>

Comment by houbahopon Mar 31, 2021 5:05pm

163 Views

Post# 32916732

RE:Thoughts on takeover?

What would be the motivation to sell the business?
These guys are very independant and I guess they know the value of future earnings.
By simply cutting capex to $200m a year starting in 2022, they could keep production stable around 100k boe/d and generate $300m in Net Free Cash Flow per year as long as they can sell $2.50/Gj at AECO.

A $300m annuity doesn't sell for an Enterprise Value of $4B unless LT interest rates shoot to the Moon.

<< Previous

Bullboard Posts

Next >>

BMO evolves InvestorLine with enhanced tools for options trading