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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 houbahopon Apr 11, 2024 6:03am
128 Views
Post# 35982729

RE:RE:About Peyto's forward sales

RE:RE:About Peyto's forward salesMr. Momo, you are looking at natgas spot price and might be missing the big picture, imo.

From what I see, Peyto will have a minimum of $400m of very lucrative liquid sales in 2024.
Add 459MMcf/d fixed at $3.93/Mcf (70% of forecasted 2024 production) or $658m, it
adds up to $1B+ in sales for 2024.
Your are left with 30% of unhedged production to be sold at spot prices to various NA hubs.
Simulate average selling price of $2/Mcf for 200mmcf/d gives $146m in added revenues.

My guess is FCF available will cover dividends and reduce debt by $125m during 2024.

The only risk I see is if JPL goes all out on capex to increase production and selling hedges under $3/Mcf. I obviously can't bet on this....

*** All these amounts are in CAD, of course. 


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