RE:RE:RE:RE:TOU take PEYDG's monthly PR would be missed for sure...slant and all.
GLTA
Yasch22 wrote: One of the things I'd miss most about TOU taking over PEY is the monthly conversations generated by Gee's newsletter and the regularly updated presentations. Peyto had the gift of creating a community going all the way back to its founding.
Their commitment to outsized but sustainable dividend payouts was a big part of that, and were a great exemplar amongst other oil & gas companies (and even other Canadian blue chips) in the income trust model. There was a lot of suspicion about that model in the ranks of Tory politicians, perhaps because there was kind of a socialist element to it. Whatever inscrutable thinking he was doing, Jim Flaherty tried to kill off income trusts with his "Hallowe'en massacre" of November 2006. Still, a lot of companies adapted, and persisted in delivering the same outsized returns. PEY remained a favourite because executives never got ridiculously high salaries and the company maintained great fiscal discipline.
Starting around 2017, the spell began to break. The price of NG dropped a lot, and for a lot longer than the usual, ordinary downturn. The payouts began adding to debt. The share price kept dropping. The covenants with the banks became stress points. Peyto dropped the dividend to 2 cents per month, then Covid hit. The sp collapsed, the banks went nuts, the divvy dropped to $0.01 per quarter, and Peyto compounded all that trouble with some pretty bad decisions on diversification and hedging.
Now we're back to double digit share price. Divvy yield is 4.7%, though anyone who bought back in or bought more under $6 has an effective yield of 10% or higher. Almost enough to stoke the old fires of contentment with Peyto's brain trust....
All in all, I suspect the TOU rumour is a pump. Still, I'd be happy to take the $24(?). I'd be happy too with Mike Rose and his crew. Have they made a single major misstep in their 14 year history? Effective dividend yield of 7% if the last couple of special dividends are included. I also like the way they keep the basic divvy low and only add payouts in quarters with great results.
So, lol, if only Mike Rose started writing monthly newsletters....