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Peyto Exploration & Development Corp. (PEY.TO)

Toronto - Toronto Real Time Price. Currency in CAD
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7.13+0.47 (+7.06%)
At close: 3:59PM EDT
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  • L
    Louis
    PEY finally got what they deserved! I'm not surprised at all. I follow them very closely and expect exceptional results, especially for Q4 2021 and after. Will be at 9-10$ by spring 2022 for sure!
  • R
    Rue Shamrock
    What was the catalyst for price and volume going up dramatically today? Is there a buy out offer?
  • F
    Foster
    @N13 @Ryan Not sure who all is still on this message board. I just want to remind everyone how much further this stock can move. Way back early last year, Peyto and many others were given up for dead. We saw PEYUF (U.S. Symbol) trade under 1.00. At the same time one of my other holdings AR, traded under 1.00. I was worried AR was actually going out of business. I never felt that way about Peyto. Point being, AR is trading at 14 today and I got out of it at $8.60. Yeah, I feel stupid about that. I am not making that same mistake on this one. This can certainly run as high in U.S. dollars as AR. So we need to know there is an easy double on the table from here if not a triple! Don't be so eager to pull that trigger. I hope Darren doesn't agree to sell this company for a small premium like we are seeing in this industry. He either needs to go it alone or hold out for a double.
  • D
    DR
    What a day so far!
  • B
    BluHorseshoe
    lookin good/ lets smash past $7 cdn!
  • B
    BluHorseshoe
    good things...good things..
  • F
    Foster
    Volume!!! Is there no one watching this but me? Really? Someone is sure looking hard at this as I am typing!
  • F
    Foster
    Volume Alert! This stock is looking to trade over 1 million shares again today. Interesting to see that after yesterday and especially since it is bouncing off of 52 week fresh highs. Thoughts?
  • S
    Steve Cohen
    still very very cheap here $PEY.TO
  • G
    Gold
    PEYUF + AABB UP 1,500 % in 2021 = Huge Gain$....Gold/Silver mining + Gold-backed Ethereum blockchain tech Cryptocurrency Token / Wallet adding Exchange in Sept 2021.......... " newschain asia broadband " @^@)
  • F
    Foster
    I would own Peyto just for the subscriptions to Darren Gee's monthly newsletter. His two photos of the Statue of Liberty in 1920 and 2020 showing rising sea levels is the best laugh I have had since Covid. I live in Tennessee now, but I grew up near Miami. I just overheard 2 couples at a restaurant talking about why they left Miami last year. They actually think it will be underwater soon!! I could tell you 10 reasons to leave Miami, but being under sea water is not one of them
  • K
    Ken Arcwood
    PEYTO is going to blow their Q1 projected earnings out of the water. Earning come out May. 11th...
  • D
    DR
    Solid earnings. Opinions?
  • S
    SHTTW
    Heard you guys were being gobbled up by tourmaline. Welcome
  • D
    DR
    Looking forward to seeing tomorrow’s earnings report. Future looks bright for Peyto.
  • T
    T
    Buy in now before you miss out!!!!
  • M
    Mitchell
    The outlook for commodity prices in 2021 has significantly improved over the last six months which drives higher forecast cashflows, beyond the required funding for Peyto’s capital program. In addition, there have been extreme natural gas prices being realized at certain trading hubs over the last week due to record cold temperatures across much of the United States. As an example, Peyto was fortunate to have 20,000 MMBTU/d of unhedged gas sales exposed to the Ventura hub that averaged over $160/MMBTU for the last 5 days. As these superior commodity prices are realized, Peyto will look to use the free cashflow to reduce indebtedness and strengthen its balance sheet, while evaluating the ability to increase dividends to shareholders. Based on strip pricing, Peyto currently projects it will exit debt covenant relief during the second quarter of this year. While the 2021 drilling program is budgeted to be greater than 2020, Peyto currently has the team and resources to do much more and eagerly looks forward to 2022 and beyond.
  • N
    N13
    One more item to add, Warren Buffett bought Dominion Energy last year in a $10 billion deal, in which cas Berkshire Hathaway Energy will carry 18% of all interstate natural gas transmission in the United States, up from 8%. Warren Buffett has been sitting on over $100 Billion in cash for quite some time because he hasn't seen any good buys in the market, well he did last year and the bet was on natural gas, this is a definite vote of confidence in the natural gas markets future for me.
  • O
    Oco
    My take is: Peyto is so underpriced, it has a market cap of $230M, yet it has a free cashflow of $110M (note: it has $1.2B in debt, $3.6B assets), that is a crazy value (PE = 1.73!) considering the company just weathered some really challenging conditions, profitable for 20 years straight(!), and it still showing strength against those headwinds. That's an impressive performance. Of the earnings, they paid out $46M in dividends, that is a 17% return (the div requiring only 42% of free cash flow). Seems pretty safe at this price point. How is the Carona virus going to significantly affect NG prices? Gas is not the same commodity as oil, it accesses regional markets (i.e. US, Europe), not international, and is affected by the supply/demand characteristics in those specific gas markets. People still need power and heat (even if some start remote working), now folks at home and the office during all times, now we double-counting consumption. As this happens all the oil frackers reduce capex and stop drilling because of the oil price war (their breakeven is $50 oil), the associated gas dumping slows and declines fast. Basically, frackers will milk their investment dry with super fast depletion rates on the gas, just as demand is increasing. Then there is a massive gas demand crunch and prices increase. If that happens this company is poised to go into explosive returns when the gas markets recover, NA gas demand has been growing 6% yoy, that is cranking up even more, just record coal power retirements show no sign of slowing. Then who is going to make the most money, respond the fastest, the company with the lowest production cost in Canada (that's Peyto), with new access to the henry hub (i.e. price alignment) thanks to some infrastructure/contracting upgrades. If gas, doubles in value (back to normal range) this company is then making $427M free cash flow. It has no problem managing that debt in any case, probably pay it down. What is the straw that breaks the camels back in the market? Who is poised to benefit, these guys?
  • N
    N13
    One more try, here is the message I tried to leave earlier: @Foster, I'm still here and remained a Peyto shareholder throughout all the volatility the past few years....definitely not my preferred way of investing, but I feel the tides have turned and this is only the beginning of a longer more positive trend. Even though Peyto has had quite the run up over the past year from a low of sub $1, it is still extremely cheap on a financial metrics basis. Natural gas hit a 30 year low last year, which I don't think it will repeat anytime soon and with a $1 share price, the market was betting on bankruptcy at that point. This is far from reality, Peyto is financially healthy, has improved efficiency metrics each year and runs the business as if it was privately owned thinks about the long term objectives of running a business. I intend on holding this stock for years due to a few reasons: The NGTL expansion will be complete this year if my memory serves me correctly, new gas pipelines will a rare event if it occurs at all making existing lines that much more valuable, gas egress internationally will only expand based on current trends, the cascade power plant will be able to supply Alberta with 8% of it's power needs and Peyto is directly linked to the plant and capable of supplying all the energy they need (but that won't come to fruition until 2023), etc. The current price is a steal and I intend on holding long term. Only time will tell. Based on Peyto's latest corporate presentation, they are ready to capitalize on the current gas price movements, hopefully their 4th quarter report in March reflects the positive narrative, good luck to all holders!