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 > Hedging losses

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Comment by Quintessential1on Aug 15, 2022 4:49pm

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Post# 34897632

RE:RE:RE:RE:Hedging losses

So people that do not have mortgages do not need mortgage insurance.

Brilliant.

I am pretty sure that is what I said.

GLTA Longs

uncutgems wrote: what?

you know who doesn't need mortgage insurance? people that paid CASH. you know who doesn't need mechanical hedging to protect their balance sheets? Companies with FORTRESS balance sheets. When was the last time someone complained about TOU hedges?

Quintessential1 wrote: I look at hedging like mortgage insurance. As long as you have a mortgage you should have mortgage insurance but no one ever wants to cash in on that policy.

Eliminate the mortgage and you also eliminate the need for the insurance.

The faster debt can be reduced the better for the company and for shareholders.

GLTA

TerribleEng wrote: The issue is that the market is demand driven now and is in backwardation. Hedging is very expensive in a market like this because even if Natural gas prices remain flat... you lose because you are always hedging out 18-24 months at large discount prices. Even if it were perfectly flat, market goes up and you lag the market and get punished. Prices fall, and you get punished for because your debt is high and reserves get derated. The conf call had several questions around variable dividends and reducing hedging to a level that protects the Capex plan and nothing more.