Peyto Exploration & Development Corp T.PEY

Another shale-gas business in play

[houbahop]

This time by Chevron selling its Duvernay assets, in Peyto's backyard:

https://boereport.com/2024/01/19/chevron-to-begin-marketing-shale-gas-assets-in-canadas-duvernay/

[stockmarket1]

U think peyto will take a run at it? 

[liljohnnyjoke]

Expect share price to drop significantly if they do, just look at what happened to CPG or BTE sp after recent purchases done by debt at high rate of interest and/or equity issue at sp lower than current market price, even if a good deal that may pay off years from now current shareholders get clobbered

[stockmarket1]

You're right. 30 to 50% drop respectively.  I don't think Peyto will take a run at it. As you know...they just completed Respol and casdade is also happening so, enough going on right now in Peyto camp.  Of course, I could be wrong. Peyto should focus on paying down debt right now. 

[houbahop]

I doubt it. They were probably approached by Chevron and declined the invitation. Otherwise we would have learnt it as a "fait accompli". I expect a shakeup in the industry in the coming months. Only the heavily hedged will prevail in this cycle. PEY is one of the few with 60%+ of 2024 and 2025 production hedged. BIR is the first to fall, some others will in 2024. Even TOU has lost 25%