RE:RE:Q3 MagicPinstripes wrote: ...Maybe because debt increased by 20M in Q3.
Peyto's debt was 1,346B at the end of Q2 vs 1,366B at the end of Q3.
I'm surprised that it wasn't reduced - but it's not a great sign that it increased. Hopefully Q4 will have some meaningful debt reduction to demonstrate some fiscal prudence.
You shouldn't have been surprised. The CEO said during the Q1 call that debt might accumulate in Q2 and Q3 (
"in terms of free cash flow for the balance of the year, I'm wondering if you can help us sort of triangulate where you see your free cash flow profile going in the balance of 24? Well, we don't typically guide specifics on that. But generally speaking, we will with prices a little bit lower here in the next two quarters, we'll see that come down. Obviously, cash flow will come down in general. And so that might mean we accumulate a small amount of debt over those terms.") In the Q3 call he said he expects it to decline in Q4 ("
Year-to-date, we are essentially net debt neutral, but we expect to further reduce net debt in the fourth quarter with better prices both hedged and unhedged and higher production.").