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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 ElJon Feb 15, 2024 1:34pm
144 Views
Post# 35882298

RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Nuttall....change in strategy?

RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Nuttall....change in strategy?Houbahop,
                     Both you and I recognize that this is the Payto BBoard, but your legitimate recent  "PS reference"  to TOU getting close to 2 Year low, brings to mind a Relative comparison that may be interesting to colleague investors who might be strategically allocating some "opportunity investment funds" to the NGas sector, which is currently under NGas commodity pressure.   

In trying to decide between Peyto and Tourmaline, of course siderations should include:  Leverage through debt;  Hedge Book;  Operational excellence;  Diversity anjd complications of target markets including transportation and LNG conversion costs, etc... but also on a simple basis of market relative valuation the following Price Ratio approach might be useful  (examples): 

            Back in 2020......All Time Low...May 31,2022...Sept. 16,2022...Dec. 29,2023...Feb. 15,2024
Peyto Price     $1.50           $0.90             $15.48              $11.43               $12.04           $12.70
 
Tourmaline     $8.00            $6.75             $78.08               $78.86              $56.40           $53.99

Pey/Tou ratio   0.1875          0.133             0.198                 0.145                0.202             0.235
Better Mkt-Value                     Pey               Tou                    Pey                   Tou                Tou

This Price ratio has no indication of short-term price direction, but rather relative value as indicated by the marketplace,

Peace,
Good Decision-making to All,
ElJ
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