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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 topdopon Apr 14, 2024 7:47am
208 Views
Post# 35988036

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

RE:RE:RE:Peyto taking a page from Birchcliff...........Simply stated, why do you think it is (only) incumbent on an Issuer that they buy back shares if they seem mispriced by the market?

If you started with an ASP of over $40, perhaps it might have been a good idea to buy this issue yourself and lower - significantly - your ASP?

That you didn't; that's the question.

The stock market is full of great examples of great companies that for one reason or another, saw their prices take massive haircuts. If you believe so strongly in a company that you were willing to hold onto from $40 to $1, over some time, but didn't do anything about it; that's on you, not the company.

Validation of the above?

In the past 15 years, Teck has gone from over $60 to $4 and change - twice! Great company. Bad market. You could have made a killing there. Many people did.

Know what happened at Fukushima? Buy Cameco. Look at the long term chart.  Same thing.

Covid? Buy GE. Slam dunk. Massive, huge company that has now come good.

Copper? First Quantum. Just last year it was +$37 then went to $9 in months. Are you not looking for value in these events?

Buy FM and you get to carry a massive International Courts of Arbitration "cherry" worth north of $18 BILLION for free! (Cobre Panama).

Don't like that risk?

Buy Franco Nevada instead. Sold off on the same issue, but is a much more diversified entity than FM. And with Au raging, you just got paid. Twice.

Peyto and the NatGas collapse is definitely in this group of good, well run companies that suffered "baby-out-with-the-bath-water" events. It's why I bought from $5 and under just in the last 6 years.

Shopify is another example. It HALVED and you could have been buying cheap shares over the space of a year or so. You only need to look back in time to see the highly likely outcome if you did that trade: in the dot-com collapse +20 years ago, you could have got excellent leaders like Amazon, Apple, Microsoft for cents on the $. Look at them now.

These are a solid companies and all (had) great futures.

But my best example - from my own experience? Equinix. I bought this Nasdaq data centre company in early 2000 if I recall, and along with all my other Tech holdings, experienced the massive "dot com crash". Everything went to shyte. Equinix ended up under $1 and had to do a 1 for 30 share consolidation to remain listing compliant. Many did.

Fast forward to now, EQIX shares that were ~$3 in 2004 passed ~$800.
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