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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 houbahopon Dec 02, 2023 2:53pm
128 Views
Post# 35765319

RE:RE:RE:PEY's SP rising inspite of lower O&G prices.

RE:RE:RE:PEY's SP rising inspite of lower O&G prices.I am not in possesion of the true. Obviously, its a game of probability (statistics) and this is only an exchange of point of views.

Looking at the new climate prediction from NOAA:

https://www.cpc.ncep.noaa.gov/products/predictions/814day/814temp.new.gif

it looks like it will pay to wait before adding some PEY shares.
Abnormaly hot weather accross the US until Christmas and inventory/storage over 90% full in
US and Europe is not encouraging for the producers trying to sell their commodity in a saturated market. I think Natgas prices have plenty of room to decline even more before year end. But we all know those prices are very volatile and may reverse quite violently.

My game plan is to wait for better visibility for a reversal of the situation. For the time being, market is flooded with natgas and the risk is for further downside for PEY. If it ever trades around $10, fundamentals will certainly look even more ugly than it is today. Technicals might indicate at that point in time we are at the apex of panic selling. Perfect time to buy, imo.

Again, this situation might not present itself, but it is very rewarding not to be caught on the wrong side and take advantage of it when the opportunity shows up.

For the time being, patience is greatly helped  by the 10%+ dividend return.

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