RE:RE:RE:PEY and FRU Have Exactly The Same Market Cap at 2.56BI suspect that past and present management of this company want to maintain share positions to generate a large income. Unless you sell your shares you don't really get that money out and if the price tanks as has happened then your options are less.
On the other hand management is paying down debt, slower than some would probably like maybe but they feel with hedges it can be paid down for the next 8 to 12 quarters at least.
When you compare the interest they are presently paying, and any covenants in place have negilible impact on rates or conditions to the returns they are getting on new wells it is a no brainer from their standpoint.
They need that extra 70 mmcfd for next year's Cascades plant for which the returns will be very very good, far exceeding any small interest rate charges. Thus then you can use those funds to really pay down debt like crazy.
A lot more of their production will probably be left to market prices as they increase production. In addition this results in a lower percentage being hedged. There are of course the short hedges and longer ones.
The retail market is not what it used to be and Peyto has never promoted themselves that way.
I would rather they build a solid rock hard foundation in their business model going forward so that regardless of prices they will hold up. Debt is only one part of this.
As long as they don't get into this hedging mess again, and TC does not cut them off at the knees for getting NG out of the country at least for the next three years.
I am still suspect in when and what is going to happen when and if they start to export LNG out of BC.