Peyto Exploration & Development Corp T.PEY

Alternate Symbol(s): PEYUF

Energy Oil & Gas E&P

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).

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Peyto Exploration & Development Corp > Peyto's dividend sustainability

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Post by houbahopon Mar 13, 2024 4:55am

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Post# 35929851

Peyto's dividend sustainability

With current hedges of 70% and 56% at an average price of $4.00/mcf for 2024 and 2025 respectively, Peyto needs spot price over $0.25/mcf for the rest of its production and WTI over $70/bbl to keep its dividends from being financed with debt.

Imo, it is way too early to call the dividends unsustainable for 2026 and further. And currently, future prices for 2026 are still very interesting for producers. Around $3.75 average for both AECO and HH.

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