About Peyto's forward salesFrom the latest Corporate Presentation, Peyto has currently these natural gas hedges:
2024: 459 000 Mcf/d @ $3.93/Mcf 65% of forecast production
2025: 435 000 Mcf/d @ $4.08/Mcf 58% of forecast production
2026: 195 000 Mcf/d @ $4.02/Mcf 24% of forecast production
Now, if JP is clever enough, he won't repeat the same mistake done by DG2 and Peyto's Board going all-in in capex and production growth if Natgas prices stay low and the Futures Curve Contango starts to flatten. By adjusting capex dollars with forward sales perspective, these % of forecast production can increase by 6-7% simply by keeping production flat or simply replacing the 25% base decline rate of producing wells.
In 2023, Peyto realized the following natural gas production and sales:
2023: 630 000 Mcf/d @ $3.57/Mcf
Nice to see the $15 resistance being blown away all the while enjoying the $0.11/share monthly dividend!