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Bullboard - Stock Discussion Forum Peyto Exploration & Development Corp T.PEY

Alternate Symbol(s):  PEYUF

Peyto Exploration & Development Corp. is a Canadian energy company involved in the development and production of natural gas, oil and natural gas liquids in Alberta's deep basin. The Alberta Deep Basin is a geologic setting situated on the northeastern front of the Rocky Mountain belt in the deepest part of the Alberta sedimentary basin. It acquired Repsol Canada Energy Partnership (Repsol... see more

TSX:PEY - Post Discussion

Peyto Exploration & Development Corp > New President's Letter
View:
Post by sportstermathew on Feb 03, 2022 9:57pm

New President's Letter

https://www.peyto.com/Files/PMReport/2022/PMR2022Feb3.pdf

Wow, at current and even remote pricing PEY is doing better and better.

I was wondering if drilling is like mining copper or moly or gold, in that you don't always drill your good locations?

Do you drill a mix to help bring in the less profitable with the more profitable and average out?

In the US we have all read that they have been drilling many of the better locations which are slowly starting to dry up leaving only lesser quality to chase.

I think unless prices collapse we will be in the $10 to $13 range till new reports come out, new earnings and drilling etc and any other developments then it will move to $12 to $15 range, firm up and move on from there.

Interest rates are bound to be pushed up but even 1% or 1.5% won't have a huge impact on these companies especially when debt starts to get paid down.

It will then depend upon how the economy moves along.
Comment by finedace on Feb 04, 2022 12:34am
Dividend as a proxy for current value. sportstermathew "Interest rates are bound to be pushed up but even 1% or 1.5% won't have a huge impact on these companies especially when debt starts to get paid down." TerribleEng Jan. 30 post Post# 34375800 Subject line, comically, "RE:RE:RE:RE:RE:I read" "At some point in the near future Peyto will be giving out $2+ in ...more  
Comment by TerribleEng on Feb 04, 2022 9:05am
A high paying job gives me the ability to take additional risk knowing that the capital can have a longer timeline and I can ride out short term trends. The last 3 years has done marvelous things to my ability to no longer need that for much longer.   One thing to mention here, look for companies with obscured FCF. The dividend will come after that use for cash isn't needed. In your ...more  
Comment by TerribleEng on Feb 04, 2022 9:34am
Sportster, It depends. Within a reservoir you will be drilling pads to capture pools of resource. When you drill a pad, you typically want to drill the entire pad worth of wells at the same time to avoid frac-hits. You space out your pads to maximize coverage of the resource. In general though as you target these pools on your lease, wells in the edge of a pad are targeting less pay (thickness of ...more  
Comment by TerribleEng on Feb 04, 2022 10:16am
Just a comment on Gee's storage comments. It is both factually correct but misleading. Yes both production and consumption are up dramatically over the year, but storage is used to buffer changes in demand. If you breakdown the demand growth, LNG exports & most industrial users are not variable consumers and thus do not need storage to offset seaonality. Power burn is more of a factor in ...more  
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