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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 Feb 16, 2024 5:42am
223 Views
Post# 35883574

RE:RE:Peyto Delivers Strong Reserves Growth In 2023

RE:RE:Peyto Delivers Strong Reserves Growth In 2023From my perspective, being a long term shareholder (15years+):

" The Board of Directors of Peyto has approved a 2024 capital budget of $450–$500 million. The capital program is projected to add between 40,000 and 45,000 boe/d of new production by year end and offset the estimated 25% decline in base production allowing Peyto to target an exit rate between 135,000 to 140,000 boe/d."

A better report would have been:

We have lowered our 2024 capital budget to $375-$425 million to minimize selling into cyclical low spot maket, the 30% of 2024 unhedged production. The capital program is projected to add between 33,000 and 36,000 boe/d of new production by year end.... allowing an exit rate between 128,000 to 131,000 boe/d.

The lowered capex cash would be used to reduce debt by $75m, thus "keeping with Peyto's strategy of maximizing shareholder returns."


*****
Happy to see the new acquisition has reversed the upward trend in FD&A and FDC.

Besides their usual rigidity on some issues, they are doing a great job!
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