RE:PEY hedging blues, extended versionIf there were no hedges at all PEY would be up to $25 to $35 range, most companies are in the same boat. So for the current price range we are doing fairly well.
Production increasing, land increasing, plants growing in size and number, plus pipes, cashflow and FFO etc all growing with debt coming down and a decent dividend higher than most with potential to be further increased and better hedges going forward.
If they had not hedged, prices still at $2 and egress issues then only half production coming out where do you go then? You can't have it both ways.
Sure I would like to own OBE at the lows and have little to no hedges but they almost went bankrupt, I can't trust them and still don't, they work for themselves not shareholders.
IF prices are maintained in the $7 to $10 range which is Xmas day every day, then Peyto will get all that and more. $20 to $30 later this year and far more afterwards in 2023. I can handle that. We won't go to $60 right away but it is possible in the future especially if they have almost no debt, more land, more plants, more deals, more production and better drilling on these ERH's.