Peyto Exploration & Development Corp T.PEY

Dividend Predictions

[ngtraderng]

Who wants to speculate on the rate and magnitude of dividend hikes? I know Shenty thinks we'll go back to a $0.11/month dividend soon.

I think the dividend will stay quarterly and will be raised to 0.06/quarter by summer 2022, unless oil & gas prices collapse again. That'll cost the company $40 million/year and the rest of the free cash flow will go towards debt repayment.

[TerribleEng]

I think you are really close.  I am leaning toward $0.02/month until debt gets down to 1x Net/EBITDA which is basically the Canadian average. That could be done by paying down debt, but I would greatly prefer they fill out their infrastructure and start generating positive returns on those idle assets.  You can either pay down $1 in debt to avoid $0.05 in interest... or put $1 in CAPEX

[shenty46]

I think we would have 6 cents mothly dividend reinstated by first half of 2022.

[uncutgems]

I would be surprised if they go monthly. unless you just want to court retail ownership. that didn't exactly work well when the divvie had to be cut.

[TerribleEng]

When the divvie was cut the stock actually rallied. The stock got crushed because they were paying the dividend by running up debt and had no cash flow.