Peyto Exploration & Development Corp T.PEY

Alternate Symbol(s): PEYUF

Energy Oil & Gas E&P

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).

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Peyto Exploration & Development Corp > AECO curve making huge moves

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Comment by TerribleEngon Apr 07, 2022 9:39am

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Post# 34583781

RE:RE:AECO curve making huge moves

Houba,

https://www.cmegroup.com/markets/energy/natural-gas/natural-gas.quotes.html

Henry Hub is averaging over $6.20USD/mmbtu which works out to a price of $7.46CAD/GJ. This basis is much higher than the $0.80/GJ or so it takes in transport to get to a Henry Hub priced basis, so all of the AECO gas will get exported and none will flow into storage. AECO seems to be pricing in bottlenecks USJR that will prevent pricing and flows into storage unless a temperary NGTL tariff is put into place to provide for an orderly market.

NGTL will provide firm service out of the basin first before interruptible service (flows into storage), so the price will never spike up to encourage flows into storage (see 2018,2019 summer AECO where storage just continually refused to fill).

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