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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 sportstermathewon Aug 13, 2021 12:28pm
139 Views
Post# 33701057

RE:RE:RE:Conference call

RE:RE:RE:Conference callMaybe you should try other ones.

Clearly you can't stay with a stock more than five minutes.

Peyto is more clear than any company on anything they do.

It won't be all good news and the hedging is overall positive long term.

A lot of things are out of their hands.

They are trying to reduce GHG while at the same time increase revenues or decrease costs.  This takes time.  They are one of the best on abandoned wells as their wells never get abandoned or hardly ever.  They have sole control over ten plants, great contacts with service and drlling rig companies, know how to reduce costs during bad times for the longer term picture.

I firmly believe this will be a $20 to $30 stock but not just as quickly as I would like.  

I would be willing to put 100% into Peyto, and may do so if the equation gets me a certain # of Peyto shares overall.

Dividends will probably be increased next year to 2 or 3 cents, along with debt reduction while at the same time improving their plants, land and pipes along with 7% annual production growth.

This seems very reasonable as you don't want to go nuts, then the declines start to add up.  You average in the low decline wells with the high decline wells.  Sure they pay within a year or so at today's prices but most don't want to raise production too much and drive prices down.  

The curve will flatten out either $4 and above or $3 and above.  All good.
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