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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 mrmomoon Jun 15, 2023 10:04am
136 Views
Post# 35497883

RE:RE:RE:We here dont really know

RE:RE:RE:We here dont really know"I think BIR's dividend is generous enough (over 10% yield at current SP) to the point that they are taking on debt to pay it. "

Like i said, there is a SIGNIFICANT difference here between Birch's debt and that of Peyto's. Where the former's is ~$300M and the latter is more than 3X that. So do your own math there. And yes, Birchcliff's divvy is also "generous" at 10%, and thev reason why they will eventually cut it if energy prices don't turn around by year end. You cannot borrow and go into debt indefinitely JUST to pay a dividend. Imho, both Birch & Peyto will CUT their divvys in half BEFORE year end.

"What they do not have is any hedges in place to cover it."

And THATS Birchcliff's Achille's Heel........IF NG prices continue to remain below $4. Which imo they will until the 2024 elections or if Russia goes BK or both.

GLTA


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