Peyto Exploration & Development Corp T.PEY

Surprised No Comments on Ceo's Defense of the Dividend

[DeanEdmonton]

He politly called TD out as being ill informed. Says cashflow is much easier to project, especially with heavy hedging and the lowest production costs in the industry, than share buybacks, and that is why they went that way. Made good sense to me. With an 11% yield, I am okay if the share price stays in the 13 dollar range. I am all about total yield, SP+Divy, and I don't care which gives me the return.

[houbahop]

You will be very happy when dividends yield 15%+ ! The only problem is SP if falling much faster than the dividend distributions. But one day, this will revert. Got to wait for the right timing... Kind of surprised how BIR is holding despite the lack of hedged production.

[TerribleEng]

Kind of surprised how BIR is holding despite the lack of hedged production.   Because that doesn't matter. It's a one time bet on a financial basis. The NPV of the company's reserves net of debt is what matters to the stock. BIR is less leveraged, and this almost completely offsets the hedging gain that Peyto now has. Only one of those have long term value. You will win, and

[Yasch22]

This post has been removed in accordance with Community Policy

[MikeySwoosh]

Yasch, I can confirm that over the past couple of quarters that all of the insiders have either increased their share position or held steady. And just to clarify on the exercise of options, if not fully understood by everyone, the insiders have to purchase the shares at the option price, and then they can obviously dispose of them on the open market, which has been happening a lot as of late. If

[uncutgems]

it's truly amazing that once again the CEO has to go on BNN to defend the dividend and debt levels. PEY had years to improve their balance sheet and right size their dividend. But here they are back on BNN "defending" their decison making. Some things never change.