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).

TSX:PEY - Post by User

Peyto Exploration & Development Corp > Any opinions on support level? Timing?

<< Previous

Bullboard Posts

Next >>

Comment by Quintessential1on Jun 27, 2022 2:10pm

143 Views

Post# 34785196

RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Any opinions on support level? Timing?

On June 24th morningstar had Peyto's fairvalue share price pegged at $15.33.

Morningstar is bearish on O&G so you can take their fair value estimate FVE with a grain of salt.

However based on morningstar's chart Peyto rarely trades above their fair value estimate so you can still use it as a guide and on June 6 Peyto hit a high of $17.10 over 10% above the FVE

This is why I say at the time it was overbought because mornigstar's chart says it was overvalued.

Not by a lot. But enough to make your spidey senses tingle and when Frreeport went boom that should have been a sell day if not earlier at the 52 week high when it was fighting resistance.

Again...hindsight...Que sara sara.

I think you are right about the upward pressure which is why I am not too bummed about missing the sale on the high for the drop.

But I think it is going to take another catalyst and I don;t think the montly ex-div or the president's July report will be enough so I also think it could trade sideways or even drop again.

I don't think it will climb back unti we see a nice NG drawn down report in August with the Q2 ER.

The market can't fight hard numbers when they are staring them in the face.

GLTY and all.

sportstermathew wrote: At two x cashflow I don't know how PEY was overvalued, maybe based on current market sentiment for oil and gas.

One comment on the IV board was that the funds sold down everything in the options markets which basically took all boats down in the lower tide.

As far as I am concerned this just creates more pressure to the upside eventually as oil is real and no amount of financial instruments will alleviate the supply shortages and coming peak oil levels.

EV's are one thing but heating homes and businesses and making products out of oil and NG or for farming are just increasing more and more. You can't replace fertilizers with solar.