Survey choice #4I would like to see CAPEX increased (possible purchases).
No dividend at least till 2022
Pay down some debt maybe split 50/50 between increase in CAPEX and debt
I believe Peyto will go this route as I doubt if they feel prices are so good that the
growth is so much better than the level of low interest rates they would have to pay.
Once Production grows longer term, FFO improve dramatically, debt covenants are no longer a factor funds grown from increased drilling will be far and above any interest costs saved.
One caveat. Prices?
Two hurdles: AECO has already improved over the last year so not as much an issue, we will see if this summer is any better.
Future prices, due to increased production I can see Peyto locking in what they can and with an improved drilling program they would realize spot prices from this new production.
They also have to get enough production for the NG plant being built. I keep asking about this but no one seems to know what is going on with it.
Maybe time to ask Gee for a detailed comment either in the President's Notes or at the next report for 1st Quarter.
It will be interesting to see if this plant is built on time.