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).

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Peyto Exploration & Development Corp > President's Report for August 2022

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Comment by sportstermathewon Aug 06, 2022 8:35am

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Post# 34876129

RE:RE:RE:President's Report for August 2022

People for too long have gotten away with having oil and gasoline priced too low.

It is not keeping up with inflation, but I have not analyzed this myself.

I have to admit some things are nuts lately, as with vegetables, $7 for a single item, I mean who buys cabbage by the pound.

Energy prices of course have also gone ballistic in other continents, and it will be more of an impact on them.

I can't say if prices will keep going up, I believe some levels of production have been but for how long. Demand will keep rising other than maybe for cars but I know it will be a long time before I can afford a $70,000 Tesla or Hyundai etc. I have a 20 year old Altima that gets 35mpg on the highway. To me that is being green, not replacing a car every 3 years.

Back to PEY. You have to wonder what the numbers are going to be and the amount of debt repayment coming our way will be.

We are in August 2022 so heading to the end of of 2022, and then lookinf forward to 2023. If prices stay up here which they seem to be for NG at least, PEY should be in very good shape.

Producer Price Index

However, the relationship between the oil price and inflation isn’t entirely dead.

Rather than the CPI, the St. Louis Fed has said that today the oil price has a much stronger relationship with the Producer Price Index (PPI). The PPI is a measurement of the average change over time in the selling prices producers receive for their output.

As of 2018, the PPI and the oil price had a positive correlation of 0.71 (compared to a correlation of 0.27 between CPI and the oil price). “This seems to show that crude oil, as an inflation hedge, is not especially useful,” Path Trading Partners’ Iaccino concluded in his discussion of the oil price and inflation. “But as an input to the idea of potential future inflation, crude oil price has some value.”

https://www.macrotrends.net/1369/crude-oil-price-history-chart

The only thing helping people is due to the fact companies have become more efficient. However, with peak oil costs are going to go up. No one helped these companies when they went bankrupt or lost money for years or reduced production due to lack of funds and growth.

I worked for a small firm that went belly-up. I think I am jinxed.