RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Peyto...Hedges are in place for the next two years at very interesting levels. The best in a decade.
Who knows where Natgas prices will be at the end of 2025? Until then, enjoying the current almost risk free dividend is worth the wait.
My concern is about Peyto's capex program. Its rigidity has proven pretty destructive for shareholders in the past. Spending on capex simply to keep production going while selling at spot under $1/Gj or selling hedges under $2.50 can make alot of damage on the balance sheet in the long term.
Hopefully they have learnt from past mistakes and gave the program some desired flexibility in order to reduce debt.
Maybe some clarification on the topic could be addressed by JP Lachance in the next report.