RE:RE:About Peyto's forward sales
mrmomo wrote: This is somewhat deceiving Mr. houbahop.............
First, folks should STOP using/quoting Canadian figures as it's not exactly accurate and will confuse most investorrs. The STANDARD here is HH prices and US dollars. Next, WHERE or which hub does Peyto sell most of their gas? I think that will be pertinent in evaluating Peyto's revenue. And please remember that even a low cost ng producer such as Peyto, is unprofitable below $3 HH levels or in your case, by the numbers you've quoted above, that's~$4 Kanuck bucks.......So they're are ust barely scapping by. Will it be sufficient to cover ALL expenses & divvy obligations as well as maintain sufficient capex.......without boeeowing more? We will soon see, after Q1 numbers are released,
GLTA
Stop with the stupidity. Borrowing money to pay a dividend is nothing like borrowing money to buy an asset that then produces more income than it cost to purchase. If you can't understand that basic fact then you should just leave your money in a savings account.
Second, since Repsol was purchased in September we can infer that those conversations were going on for months before that. So, by your logic, Peyto must have known that ng would be at all time lows almost one year early in order to time this purchase. So Peyto can predict the future. Peyto knew we were going to have one of the warmest winters ever in NA and Europe. Perfect. That is the best reason to invest ever!
Third, Peyto hedges 2 years into the future. And they can't hedge production they do not own. So they couldn't start to hedge the Repsol production until October. Of course then that production is unhedged right now. But it won't be forever. Sticks are forward looking. Buyers can see the positive future here.
Last, the words of the CEO in the last earnings call, just under a month ago. Not only do they have enough money to cover the capex and dividend they even plan on reducing debt. That sounds exactly like Birchcliff borrowing money just to be able to pay the dividend. Oh wait...no it doesn't.
"our diversification and hedging program has our revenues well protected in 2024. Approximately 70% of our forecasted volumes are hedged and even in 2025 where we have about 56% of our forecasted gas volumes fixed against oil prices. So that gives us the confidence to execute our capital program, pay our dividend, and pay down some debt for the balance of the year."