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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 MagicPinstripeson Jan 17, 2024 12:19am
161 Views
Post# 35830515

RE:RE:RE:RE:RE:Cascade 1 online yesterday ?

RE:RE:RE:RE:RE:Cascade 1 online yesterday ?Peyto has a deal with AESO which exposes them to Alberta’s power pool pricing. AESO’s pricing fluctuates hourly, but based on a $50/MWh price, Peyto can expect to generate about $835,000 per day based on their commitment of ~57,000MMbtu/day of natural gas to Cascade as per the corporate presentation. That’s about 16,700MWh/day upon conversion. At $50/MWh, that would generate about $835,000/day which then translates to about 300M per year. It’s a game-changer for Peyto assuming that power pool prices remain elevated. It also does not factor in any discounts, expenses, exchanges, profit-sharing, etc. Peyto is also not the sole supplier to Cascade - Mitsubishi has a supply contract through a subsidiary, Cutbank Dawson Gas Resources, which has also been contracted to supply gas to the station.
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