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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 my12by61on Apr 08, 2024 11:10am
153 Views
Post# 35976757

RE:Peyto taking a page from Birchcliff...........

RE:Peyto taking a page from Birchcliff...........Focusing so heavily on the spot price for NG is an off-base approach for this stock.  The majority of Pey's products are presold using the futures market with only a minority of products sold at spot market pricing.  When spot prices are down like now, Pey's realized avg selling price for products is considerably above the spot price.  Likewise, when spot prices rally quickly, Pey's avg realized selling price for products lags behind spot prices.  

In order to forecast future avg product selling prices we would need Pey's spreadsheet of product volumes presold and the presale prices.  Then we would need to make a guess at future spot pricing so that we could get a revenue estimate for that portion of overall volume that is sold at spot.  The combined total of contracted sales and estimated spot sales revenue would give us forecasted average selling prices.  

Since Pey is regularly hedging, the whole exercise is a constantly moving target.  This is why hyper-ventilating about the current spot price is not overly useful, IMO.
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