Peyto Exploration & Development Corp T.PEY

Divi in Danger

[Sukhi19]

In Q3, ther P/O ration was over 100%.. Yield is over 10%. NG price trying to break the support level of $2. Sold most of my shares around $13. Debating about the rest. Bought WCP.. Just sharing my thoughts. BIR divi cut is a danger signal. Was lucky to get out of BIR over $6. Yields over 10% are usually too good to be true.

[houbahop]

Yeah, Sukhi, Peyto's 23'Q3 payout was over 100%. But unlike Birchcliff, the dividend is far far away from being in peril. Peyto has already sold most of its 2024 and 2025 production at higher price than what it got for its 2023 sales. 23'Q3 FCF was $50m, 23'Q4 and 24'Q1 will be over $100m, so payout will be back under 70%. Its all written in Peyto's corporate

[earlybird_787]

Houbahop, that is an excellent analysis of the dividend sustainability for 2024 and 2025. Another thing to consider is that Peyto includes capital expenditures in the payout ratio calculation which results in a conservative figure. 

[stockmarket1]

Good comments Houb. I haven't bought any more shares for awhile now as I'm waiting to see if the share price dips below $12. Share price is on a downward trend which is pretty evident.  It's a good time to have cash at bay in case. Especially now with Nat gas price tanking and the share reflecting that.. We might get better pricing soon, I think. I'm banking my dividends in