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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 TerribleEngon Feb 17, 2022 9:20pm
204 Views
Post# 34440430

RE:my only question is what the real value

RE:my only question is what the real valueThis stock is a double from here. With frac sand prices spiking in Texas and the midwest, I would expect gas focused drilling to shift to oil. The oil players can price the gas guys down there out of the market. Inflation for pipe, rig rates and frac sand is really picking up. I think that keeps a lid on drilling or companies keep drilling but use less sand at the expense of rig efficiency. I need to update my model with the new production and recent changes in the forward curve across North American markets. Just backing out Capex here, but they are spending $130MM in growth capital and sending at least $200MM to debt and $100M to dividends. That's about $430MM in FCF or 26% FCF yield.
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