RE:RE:"Ohhh, butt the HEDGE BOOK!!" Where'd the NG experts go?"But yeah let's take these hedges that are now in the black and use it to generate unhedged growth... putting all the initial production into a flooded market. "
I have been decrying the same, for months. They have done this mistake in 2017 and it placed shareholders in a near death situation a couple of years later. Now, if they repeat the same mistake of being voluntarely blind instead of being pro active about the situation, someone on the Board of Directors is not doing its job. Capex should be adjusted, not only for seasonality, but also according to prevailing spot and prevailing futures price. Growing production in a flooded market is NOT a good use of Capex dollars. And this is exactly what they said they would do in 2024:
"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."
In the meanwhile, Mr. Rose of Tourmaline said its 2024 production would be kept at the same level as its 2023 exit rate. Mr. Rose is doing his job while someone at Peyto's is playing hide & seek on this issue and some others. Totally irresponsible...
" It wasn't smart then, and it's not smart now. I have told Darren this before, and he told me his job isn't to take a position on gas prices. That may be true but the hedges have an NPV and that mpneynis fungible. The decision to deploy capital should be based on the unhedged position, as it's an independent choice."