RE:What I am Hopefully they are patient putting on new hedges over the winter to capture some more spot pricing!
I'm not totally opposed to a mechanical hedging program but the forward prices still need to good make sense. If the forward curve is in steep backwardation and you don't want to sell gas at the forward prices relative to spot, don't hedge.
Presumably Peyto's hedging strategy makes it an attractive acquisition target for a larger producer with a different philosophy on hedging. Take-over rationale... buy Peyto, just eliminate the hedging program and its cash flow increases materially at current prices.