Scotia PT $20PEY delivered a strong YE23 reserves report with top tier PDP capital efficiency metrics (impressive considering the size of the Repsol acquisition). The company delivered a >2x corporate recycle ratio, with a strong mix of organic and acquisition driven growth. PEY also released several metrics that suggest Q4/23 results should be largely in line with Street expectations. The company confirmed its previous 2024 budget and production guidance indications (~8% exit to exit growth). With its low-cost structure and large hedge book, we see the company well positioned to ride out the weak 2024 outlook for natural gas prices and deliver on its growth and debt reduction plans over the next few years across a range of commodity price scenarios. Looking ahead, we see delivery on the expected productivity improvements on the Repsol assets as the key catalyst for PEY (and the initial results look promising).