Peyto Exploration & Development Corp T.PEY

Conf call Transcript

[houbahop]

Thank you Yasch for posting the transcript.
Very exciting CC.

What I read and I will compare my new expectation with the realized:

"...

Darren Gee

Yes, I mean, for us, it is more of a depth-to-cash flow target that we are looking at. And it should be because we could see some commodity price changes throughout the year, and then that would change our cash flow projections.

But I think we are looking to be a onetime debt-to-EBITDA by the end of next year. I think that is a reasonable expectation. That is sort of where the industry has gone, I think in terms of de-leveraging, and we have got the majority really of 2022 cash flows locked up with a lot of hedging and that we are continuing to do into 2022.

So we feel quite confident about where we are going to get to in terms of balance sheet. And that was obviously one of the big drivers in deciding how much dividend we could afford...."

********************

From what I read:

If DEBT to EBITDA ratio falls to 1, debt should be below $800m by the end of 2022.

[Yasch22]

This post has been removed in accordance with Community Policy

[houbahop]

It is rather an aggressive target and might be overkill. Also, to be achieved, natural gas prices strip need to stay at current levels (or higher) during summer months, and capex would need to stay on the low side of the $350-$400m range. A 1.2 ratio would be a great target to aim for the end of 2022 and place them in a much better position to proactively deal with an unpredictable environment