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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 sportstermathewon Nov 23, 2022 8:23am
229 Views
Post# 35121086

RE:RE:RE:PEY and FRU Have Exactly The Same Market Cap at 2.56B

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.


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