Scotia's CommentLatest Research (November 08, 2023): OUR TAKE: Neutral. PEY delivered solid Q3/23 results, with cash flow in line and capex ahead of consensus on lower-than-expected capex. The company confirmed its 2023 capital budget and provided preliminary 2024 guidance right in line with expectations. Notably, the company plans to drill seven wells on its newly acquired assets during Q4/23 and 40 in 2024. True to form, PEY added significant hedges to its portfolio to protect the acquired production and planned growth. We see the company well positioned to ride out potential volatility in natural gas prices through 2024 and deliver on its growth and debt reduction plans over the next few years across a range of commodity price scenarios. Looking ahead, we see proof of concept for the productivity improvements from the new assets as the key catalyst for PEY.