Peyto Exploration & Development Corp T.PEY

Thoughts on takeover?

[sportstermathew]

https://seekingalpha.com/article/4416883-peyto-exploration-is-unlikely-to-remain-independent-year-end

This is my biggest fear with Peyto.

My min goal is $15 and max $30 plus.

We need to get to $10 to $12 as fast as possible to at least reduce this from happening.

Maybe a merger that Peyto could take over with minimal debt increases.

I like and trust Peyto.

Thoughts?

[houbahop]

What would be the motivation to sell the business? These guys are very independant and I guess they know the value of future earnings. By simply cutting capex to $200m a year starting in 2022, they could keep production stable around 100k boe/d and generate $300m in Net Free Cash Flow per year as long as they can sell $2.50/Gj at AECO. A $300m annuity doesn't sell for an Enterprise Value of

[sportstermathew]

It is not motivation to sell, it is how do you protect yourself from a  obnoxious takeover similar to the one Obsidian is trying to do to Bonterra. You really can't protect yourself unless you have guarantees from shareholders that they won't sell no matter the price appreciation. There are a lot of short-term holders that don't care.  They will move on leaving a very small

[Oldnagger]

Sadly , former Painted Pony minority shareholders learned this lesson in spades. There is no protection against greed. Only recourse is to move on and try again. The effect is that the industry has now destroyed itself through their own stupidity and greed . No one will put any value on long term assets any more.  One of my major reasons for purchasing Peyto was its large PDP reserves. this

[Boulter]

These takeovers are tantamount to theft at times.  I had Nova Chemicals back in 2009 which got taken private at US$6 about CAN$7.50.  Before the crisis it had spent most of the time around $30.  I figure I had stolen from me about $1/3M.  Of course the CEO made out fine.

[GoldStandard41]

Peyto is in the same boat that InterPipleine is in: given their high-debt load, there is very little they could do to fend-off a bid and protect the long-term value of their assets for current shareholders. Looks like having so much debt *ucked peyto over and over again in the last 2 years. They were crippled to buy back shares. They had to renegotiate covenants. They got squeezed for more

[houbahop]

I doubt this scenario will develop in the future for Peyto because their cash flows will enable them to pay interest and reduce their debt. But I agree the ride is rough for the shareholders of companies with too much leverage. The funny part (cynically speaking) is many posters here (also shareholders) never saw the leverage built up from 2013 to 2017 as excessive. Even Peyto's Board were