RE:RE:RE:RE:The trend is your friendComparing Peyto performance vs other canadian gassy companies in the last four years illustrates the dramatic underperformance of Peyto. While most other companies have doubles their shareholders value, Peyto's as merely recovered what was lost in the period.
I've been a shareholder druing all that time frame, and I can honestly say it has been frustrating.
Peyto claim they are among the lowest cost producers and among the most efficient. So what explains the $1.5B missing in shareholder's value? Certainly not the operation part of the business as they are clearly equal or better than the others.
You've got to look at bad decisions related with their hedging strategy and a dividend policy financed by the use of debt (although to a lesser extent today). On these two issue, Peyto's as been sub-par for years and I estimate the cost to shareholders over $1.5B or close to $10/share.
DG has to show some transparency to its shareholders if he wants them back. With no change in these, PEY will stay low and will be eventually be taken out by a bigger, more efficient player.
Those are not trivial issues you can hide under the rug. The CEO could show some leadership and explain how he intend to make some adjustments to prevent a similar situation to reoccur.
2019 was the year of value destruction by an over leveraged balance sheet.
2020 and 2021 was the years of value destruction by basis deals.
2022 will be the year of value destruction by over hedging.
Man, what will it be in 2023?
This is not fiction, this is reality.