Peyto Exploration & Development Corp T.PEY

$100 million annual dividend

[ngtraderng]

I have mixed feeling about this dividend. If they can refinance the debt and sell long-term (2030+) notes at reasonable rates like the big seniors then I'll be happy with it but right now it seems like they aren't concerned about the debt load and that gives me mixed feelings about this dividend. Interests rates are going to rise and the banks are pressued by the ESG lobbies to cut lending to the E&Ps.

[BSdetector2016]

I couldn't agree more. Peyto is still a debt pig and there is zero guarantee that NG prices will remain buoyant long-term. More importantly, what is the war on fugitive gasses going to look like? There will be significant costs to mitigate these types of emissions and those costs will be borne by industry, at least initially.

[houbahop]

Sad they do not prioritize repayment of debt, but i'm not surprised. Peyto's capital structure will remain vulnerable to higher interest rates and the next cycle of low NatGas prices. Not long ago, DG said their target was to achieve 100 000 boe/d and have a capex program around $300m/year for the next couple of years. It seems they are acting emotional in this window of opportunity of

[perplexed01]

agree that debt should have had somewhat higher priority but at least the divy goes in our pockets instead of some new project or expansion which may or may not prove wise.  as a senior this divy reinstatement with my dramitically increased share-count re-bought very cheap will let me start holidaying biz class again.   so for the moment (covid and interest rate hike worries aside)&

[itsalie]

100%. need the divvy.