RE:Peyto Monthly Report, May 2024(From May 2024 Monthly report)
extracted example of Operating Excellence:
- "We regularly look at market prices to determine whether there are more profits to be made running the Cheap Cut (ethane extraction) or if it’s better to shut it down and keep more of the liquids in the gas phase.".... operational option if owning the processing facility)
- ethane was worth approximately the same in the gas phase as it was in the liquid phase and the extra costs of extracting the liquid outweighed the benefits of selling the product as a liquid.
- When considering the cost of (previously) transporting the Repsol acquired gas to a non-operated plant, the additional processing fees to extract the liquids, the incremental carbon taxes, and the costs to get the final product to market, the extraction of ethane to a liquid doesn't make economic sense at current pricing.
“This is a good example of the advantage of owning and operating our own facilities… and lowering our operating costs. Afterall, the Peyto business approach is always about making money not just BOE's."
Some of this may seem obvious, but operations excellence can be elusive, and overall focus on this area is beneficial over the long-haul,
Peace,
Good Decision-making to All,
ElJ