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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 Apr 09, 2022 11:28am
177 Views
Post# 34590636

RE:RE:RE:Margin calls??

RE:RE:RE:Margin calls??Any company producing in Canada is going to get love. The valuations are just too low given the demand and price strip right now. Some are just more discounted than others. AAV and their MCCS technology give them another revenue stream and some leverage to ESG investing. In the long run, this is all noise. Eventually Peyto's hedges will catch up to higher strip pricing and the stock will rally. We are just discussing how much drag these hedges might put on and the impact to cashflows. The amounts right now are not really rounding error. All things considered I would have rathered they didn't up their hedges as much as they did in early March, and maybe even bought some summer 23 back... that ship has sailed though. Feels like I have been waiting for basis trades and low hedges to roll off for 3 years now.
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