RE:RE:Peyto November Monthly Report"It's baffling to me (though not really, given Peyto seems more concerned with lowering unit costs than producing the marginal MCF profitably) that they would spend $80M in the past two months on D,C,E,T to bring on 10K boe/day when effectively every NG hub is trading sub $2.00/MCF, some pretty considerably."
This is the kind of decisions that leaves some shareholders disgusted. I would not be surprised the marginal selling price would be negative.
Growing production at all costs is NOT what shareholders want and some Directors are sleeping on the Board. They are litterally blowing money away on capex in a flooded natgas market instead of reducing debt. This could look not so bad for the time being but it will eventually catch up in the near future when good hedges expire and new ones are done at a much lower price. Too much debt, breach of covenant, reduce dividends, etc.
They have done it in the past, and they still don't get it. Or they are fully aware of this and using this strategy to create volatility on the shares which provide them with more cheap options?
As for my pov, this volatility justify trading the stock vs buy and hold.