Peyto Exploration & Development Corp T.PEY

looking at

[shenty46]

looking at peyto and birchcliff earnings call transcript, i think both may slash the dividend with in next few months

[sportstermathew]

I doubt Peyto will reduce the dividend. Cascades almost assures continued support and the hedges kick in even more. Add in the fact here we are in summer and prices are quite high and appearing to be going higher into this winter. I was very wrong last winter, and missed this summer also.  Still making money though.

[wreckhouse]

Net debt9 down 12% – Net debt was reduced by $122 million from Q2 2022 to $870 million. Interest costs increased 10% from $0.20/Mcfe in Q2 2022 to $0.22/Mcfe in Q2 2023, while the average Bank of Canada rate increased from 1.09% in Q2 2022 to 4.56% in Q2 2023. Net debt has fallen for 11 consecutive quarters. A sharp pencil will be required here with the higher bank rate .  If

[malx1]

Would prefer to see debt at 1x FFO. Dividend increase could have been delayed until 2024. Looks like we walk eggshells until LNG demand kicks in. Quality business with a little too much debt, for now.

[nukester]

"Quality business with a little too much debt, for now." Sounds about right! That was the essence of the Peyto investment back in the dark times of covid. Once Peyto had their credit extended with the stamping fees, higher rates etc. it seemed likely to me that Peyto had enough runway to work things out. A few years later, the market has turned (generally speaking), the hedges have

[malx1]

I like your bravery.    Sitting here with you.