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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

Post by JoeBravo1on Dec 14, 2024 6:49pm
180 Views
Post# 36362727

Payout Ratio is 42% of FFO...Dividend is Sustainable

Payout Ratio is 42% of FFO...Dividend is Sustainablefindace, you said, "to me, it feels like whistling past the graveyard. Again. Payout ratio 125% cannot persist if the notion is a "safe" dividend. Sorry to say, I'm long. "

Sure, if you want to look at EPS the payout ratio is 127%, but that's not how it's calculated.

You need to look at Free Funds from Operations which were $0.78 per share for the 3Q.

All companies use FFO or AFFO to calculate Payout Ratios.  I was invested in Sienna Senior Living.  Their EPS don't cover the Dividend Payout Ratio, but when you use AFFO, Adjusted Funds From Operations, the P/O ratio was 91.3% for 3Q.

Peyto's dividend is more than sustainable and safe, with a 42% P/O ratio to FFO.
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