RE:Peyto Monthly Report Feb is out, link belowIt looks like there will be minimal production growth in 2024. Should be, anyway.
In the current environment of flooded markets with low natural gas prices and low futures strip values, I hope M. Lachance will readjust its capex program to somewhere below $400m.
Otherwise, they will repeat the same smoke and mirrors story of claiming 50%+ IRR on new wells while selling hedges below $2/mcf, which now they should know, it doesn't pay...
There are still good hedging prices to be added for 2026, $3.50cad at AECO and $3.75usd at HH.
2025 could be a much better year to start a program of growing production.
For now, Cash Flows would be much better used by reducing debt while keeping those high performing wells from the newly acquired lands for the next cycle of better pricing.
And keep production flat for 20224...