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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

Post by SecondhandGnuson Aug 13, 2021 12:33pm
253 Views
Post# 33701082

PEY—more bad Q3 hedges, yet there is hope...

PEY—more bad Q3 hedges, yet there is hope...    If you invest in PEY you are automatically losing approx. 76 cents/share in present bad hedges.  I'll round it up to 90 cents/sh inc. ugly virtual transportation charges.  Q2 was bad, bad, bad in this regard, and Q3 will hurt worse with higher unhedged index prices--so where's the upside?

    While many are/will trade into companies without the bad hedge book millstone (hello BIR!), i'm banking on PEY for this very reason.  If the market discounts it's future value by more than the poor hedging warrants, then it's a value play in my eyes with its low costs and growth.  For those of you who have read Peter Lynch, Peyto is giving off a waft of "Cajun Cleansers", which smells like dough to me--GLTA.
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