RE:RE:Bank debt reduced by $20mExactly, if the company increased production from 80,000 to say 120,000 then the debt per boe drops substantially.
I am looking for Peyto to blast through production targets through next winter if current pricing stays consistent. Nothing humongous but enough to try to mitigate the mess they are in presently.
They did say something about during certain periods hedging would be one side of the coin and then during other periods the other side. Too lazy at moment to find the exact quote.
Being big is not Peyto's total intention, being profitable is.
The payback turnaround time for Peyto's new wells as are for some other firms has dropped significantly. Hedging allows this as they lock in prices to make sure the income stream is there.
There are a lot more wells drilled ready to come onstream after break-up and with two rigs still running positions them for continued growth in a positive price environment.
Did you guys notice the comment about the new plant and their intention to drill in that area to use it to 100% of capacity thus reducing costs further.
It makes my head spin there is so much on the table for Peyto going forward.
Price wise we are at the mercy of markets in general, a bad market will pull us down a little bit here and there, but over time Peyto's price will prevail and move forward. I think most can live with in the next 12 months $7 to $9 range.
The spring is being set.