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Peyto Exploration & Development Corp T.PEY

Alternate Symbol(s):  PEYUF

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

Comment by MikeySwooshon Aug 22, 2022 12:01am
202 Views
Post# 34910522

RE:RE:RE:Good news: Peyto basically unaffected by AECO drop

RE:RE:RE:Good news: Peyto basically unaffected by AECO drop
MikeySwoosh wrote: As far as spot pricing on Empress is concerned, I haven't subscribed to Naturalgasintel.com either, so I don't have access to the pricing, but looking at the graph provided for spot pricing, and looking at the fixed Empress hedges that Peyto entered into over the past 6-12 months (ranging from $4.32/GJ - 6.77/GJ) it would appear that Peyto is getting at least $5/GJ on sales to Empress currently...perhaps even a couple of dollars in excess of that. As far as the unhedged portion getting Empress pricing, I'm just looking at the graph on the marketing report, where it suggests that all unhedged production outside of Ventura and Emerson is floating on Empress.


So it turns out that the average daily price for Empress in Q2 was $7.87/Mcf as per Advantage Energy's Q2 report. Referring to the chart on Naturalgasintel.com, Q3 pricing looks to be trading at a similar value, perhaps slightly lower, but it's currently at its highs for the quarter, so unless Empress pricing breaks down, Peyto shouldn't be put in the penalty box.
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