Peyto Exploration & Development Corp T.PEY

PEY vs BIR

[Seppelt]

Has anyone tried to compare the two? Boe production is about same but different share count and debt. One is mainly dry gas in the deep basin, the other is in liquids-rich Montney. One is trading around $3, the other $2. 
No reason not to own both, but if one believes in oil markets recovering from Covid and only given a single choice, the higher liquids producer is probably more attractive.
The comparison may not be as simple if one looks into cost, management and many other factors. A lot of it is personal preference.

[Maxmoe]

Why beat your head in trying to compare. They are all going to raise or fall together. Some more than others, but not enough that it will matter unless you pick the ccaa club.  Compare it to something completely different. A transport, a bank, a crazy promote tech name. Or if your sensible, compare it to owning a broad based index fund or etf with near zero management fees. 

[Seppelt]

Holders of oil and gas stocks (among others) know where they stand. Too soon to capitulate and chase other opportunities including "crazy promote tech name".  Lets get thru the Covid-19 and see if the battered industry recovers next year or two.  Those betting on the recovery from current unprecedented demand destruction probably own a number of energy stocks so a

[Maxmoe]

Try the bir board. I'm sure they'd love to do a comparison to pey. Or ask Jeff tonken , I bet he could give you a good 10 minute spiel.  

[Yasch22]

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[Seppelt]

Good points, Yasch. It’s always easier when you see some numbers in front of you. Not sure about losses but BIR spent a lot more this year than it’s cash flow. Said it was to better utilize its 100% owned gas processing plant, among other expenditures. I think, markets didn’t like it, stock traded close to a dollar this summer. Looks like gas fundamentals and prices have improved but oil demand

[TerribleEng]

Yasch, The deal with BIR losses is that they are more highly exposed to shitty basis differentials than PEY to the Eastern and NYMEX hubs than Peyto and to a much longer degree. If you look at slide 23 on their presentation, it outlines their basis deal for NYMEX and transport cost to dawn that TC extorted them into signing. The NYMEX deals will roll off 2023 though and dawn till 2027. 

[Yasch22]

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[Yasch22]

This post has been removed in accordance with Community Policy

[miscstuff]

Basic rule is to be out of commodities by mid February. 

[Seppelt]

The CEO was a harsh critic of the old ngtl system and frequent restrictions to access storage during summer maintenance by TransCanada. He lobbied for a change, stayed with AECO and it is now paying off. But you can’t blame others for diversifying their markets. Many are slowly transitioning to AECO and things may also change. Not sure what it will take, maybe a cold blast in the Midwest and