RE:RE:Payout Ratio is 42% of FFO...Dividend is SustainableTotal payout ratio as per the company's financials takes into account the increase in Total Investment Expenses for the quarter.
I believe that is a non-operational cost. If you look at FFO, which is the actual cash flow from operations, the dividend is safe.
The company even states this in their outlook:
Outlook
The Company remains on track to execute a 2024 capital program targeting the lower end of Peyto's guidance of $450 - 500 million and exit at production volumes at or greater than 135,000 boe/d. The Company's disciplined hedging program has secured revenue of approximately $790 million for 2025 which supports the capital program and future dividends while Peyto’s industry leading cash costs provide insulation from low prices and allows for continued strengthening of the balance sheet. Over the balance of 2024, the Company expects to reduce net debt despite a challenging natural gas price environment.
Peyto remains bullish on the outlook for natural gas as significant LNG egress is completed in North America and the continued increase in power demand for further electrification, coal to gas switching for power generation and new technologies including data centers. Peyto’s market diversification to Eastern Canada, US Midwest, the Gulf Coast, and the Alberta power market is well positioned to provide multiple sources of revenue and reduce risk of relying on a single market.