New land for PEY at approx. $391/ac during Q2 A few notes from the Q2 results/investor call:
1. Peyto paid $6mm for 24 sections ($391/ac for these leases), which is more than they have been paying lately--I mark this as forward-thinking, confident and positive, but those wanting quicker debt repayment or dividend increases would probably feel differently;
2. Darren Gee shot down variable dividends (which I agree with) and share repurchases (unfortunate in my view, if only to counteract dilution;
3. If you look at the hedging program over time it HAS NOT been fully mechanical. I've said before that I don't mind the hedging program, but high debt has caused PEY to hedge more than usual under duress, which has been an anchor on the share price. DG said that relative hedging to capital programs should decrease, however.
I couldn't be higher on Peyto's medium/long term prospects, but I suspect I'll have at 3-6 months before the next big leg up happens. GLTA...