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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 houbahopon Mar 10, 2022 6:39am
205 Views
Post# 34502059

RE:RE:Peyto expects $700 to $800m FFO in 2022

RE:RE:Peyto expects $700 to $800m FFO in 2022Cash Flows of $750m

Adjusted 2022 est. Capex to $410m to include the Brazeau River acquisition.

FreeCF of $340m

Dividends of $101m

Debt payment of $239m

Hopefully, commodity prices won't crash during the year. They shouldn't, but who knows?

Besides, not much meat around the bone concerning hedging activities for 2022. They could enlighted us a little better. It has been the biggest drag in 2021:

Nat. gas production: 476.4 mcf/d  => 173 740 mcf for the year

Marketing diversification activities cost: $1.16/mcf => $201.5m
Hedging activities cost: $0.91/mcf  => $173.7m

Liquid production:  11 653 bbl/d => 4.25m bbl for the year

Hedging activities cost: $8.49/bbl => $36m

These market diversification and hedging activities had a total impact of $410m on Peyto's finance in the course of 2021.

THIS IS HUGE AND IT IS A BIG PART OF THE CAUSE, SHARE PRICE IS DEPRECIATED.

Yet, in this PR, not much has been written on the topic for 2022 in order to reassure investors.
Darren should come in front and provide clarity on their startegy for 2022 and future years.
This would turn the last page of this obscure book!

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