Peyto Exploration & Development Corp T.PEY

Alternate Symbol(s): PEYUF

Energy Oil & Gas E&P

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

Peyto Exploration & Development Corp > $15.2 to $ 11.89

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Comment by Quintessential1on Dec 09, 2023 2:45pm

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Post# 35776378

RE:RE:RE:RE:$15.2 to $ 11.89

Like you have said there are tailwinds now (low NG pricing, tax loss selling, a general low sentiment on O&G to begin with) so I expect the low to come soon. $11ish is my target. I expect headwinds later with higher NG prices with winter heating demand increasing plus the extra production that the acquisition has added.

After that I am not married to it but it is going to take some pretty significant upside to shake me off of a 12% dividend. Somewhere in the range of 36% or 3 years worth of divi would do it so I would be looking in the $15 plus range again but it would depend upon what the fundamentals look like then. For instance will NG storage levels be depleted with the NG winter demand? Can a summer heat wave maybe sustain them with cooling power demand and circumvent a shoulder season. With Cascade coming online and hedges helping maybe PEY has more potential for some more upside, less debt, an increased divi...who knows...we'll see then.

One thing I think is fairly certain. The divy is safe and secure at these levels for the forseeable future so its just a matter of when you would like to add more and at what price.

GLTY and all

stockmarket1 wrote: Tax loss selling is here and the start of 2024, TFSA season begins. With that said...I'm raising cash, saving all my dividends etc in cash until 2024. Then, I'll reassess this. I'll have plenty of cash to re-deploy. Lots! I'll wait until this hit 12% or more in yield. Even if it takes until spring 2024.

Also, if it gets cheap enough, what are the odds this becomes a take over target? After all, isn't Peyto one of the lowest cost producers? If so, wouldn't that attract a larger company?

Quintessential1 wrote: It very well could get there if it drops below support here. I have to say I too would be a buyer at that level.

GLTY and all

stockmarket1 wrote: I'm not adding more until the yield hits 12%.Nuff said.

Sukhi19 wrote: NG prices apart but PEY SP cratered despite the Respol addion.

It is trading below the offering price of 11.90.

Market does not seem to care for their hedging policy.

,S4 and Q1 have to be good for the SP to get some traction.