Peyto Exploration & Development Corp T.PEY

The train kept a rollin’

[SecondhandGnus]

Despite the fact that Q3 will be Peyto's worst ever quarter WRT hedging (their fixed hedges are bigly bad), they have some real positives coming round the bend:
1. By now PEY's net debt ratio is <3x, below the level where extra interest penalties kick in;
2. PEY should end up CF-positive and profitable during a high reinvestment, poorly-hedged period;
3. There may not be a formal announcement re: dividend increases, but I'd expect Darren Gee to strongly hint that it could happen as soon as Q1 '22;
4. The 2 winter quarters will be monstrously profitable, with the trifecta of significantly increasing debt repayments, production and profitability;
Enjoy the ride, folks...

[llerrad5]

I've also read where PEY is the lowest cost NG producer in Canada.

[SecondhandGnus]

PEY as lowest-cost producer has been their calling card, as mentioned in every shareholder update for ages.  Cash cost are creeping up (they've just raised their estimates from $1 to $1.20/mcfe), but PDP FD&A costs are trending way down.  I'm guessing that they beat their stated goal of 1$/mcfe this year.   2022 will be ridiculously profitable for Peyto and other gassy