Peyto Exploration & Development (PEY.TO and PEYUF) Valuation - April 21
Posted: Mon Apr 21, 2025 9:54 am
This morning PEY.TO was trading for $17.71Cdn.
My current valuation is $24.00 Cdn per share, which translates to approximately $16.80US for PEYUF.
My updated forecast/valuation model and profile on the company have been posted to the EPG website.
Peyto Exploration & Development Corp. (PEY.TO and PEYUF) is a Canadian mid-size gas producer (ranked 5th in Canada), operating conventional gas fields in the Deep Basin in Alberta. It is a new addition to our High Yield Income Portfolio, with annual dividend yield of ~7.35% as of the date of this report.
The Company reported solid 2024 results. Production increased by 19.3% year-over-year to 125,193 Boepd, with a mix of 87.7% natural gas and 12.3% liquids, which are primarily high value NGLs that sold for an average realized price of $66.05Cdn per barrel, including cash settlements on hedges.
Peyto’s stated goal is that they will increase production by 8% to 10% per year and they have more than enough proved + probable (2P) reserves of 8.2 trillion cubic feet (TCFE) to exceed that goal.
Out of 84 energy companies, Peyto ranks a high 4th in Harry van Neck's NPV ranking system as of 4/18/2025
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Susan Riddell Rose, the CEO of Rubellite Energy (RBY.TO) will be joining me on today's EPG webinar that starts at 11AM CT. Register on the EPG website if you wish to attend the live event.
Rubellite is an upstream oil & gas company in our Small-Cap Growth Portfolio. It is an Aggressive Growth company that is funding double digit production growth entirely with operating cash flow. Current production is over 12,000 Boepd (~70% oil).
Susan and I will be taking questions about the outlook for upstream companies in Western Canada.
My current valuation is $24.00 Cdn per share, which translates to approximately $16.80US for PEYUF.
My updated forecast/valuation model and profile on the company have been posted to the EPG website.
Peyto Exploration & Development Corp. (PEY.TO and PEYUF) is a Canadian mid-size gas producer (ranked 5th in Canada), operating conventional gas fields in the Deep Basin in Alberta. It is a new addition to our High Yield Income Portfolio, with annual dividend yield of ~7.35% as of the date of this report.
The Company reported solid 2024 results. Production increased by 19.3% year-over-year to 125,193 Boepd, with a mix of 87.7% natural gas and 12.3% liquids, which are primarily high value NGLs that sold for an average realized price of $66.05Cdn per barrel, including cash settlements on hedges.
Peyto’s stated goal is that they will increase production by 8% to 10% per year and they have more than enough proved + probable (2P) reserves of 8.2 trillion cubic feet (TCFE) to exceed that goal.
Out of 84 energy companies, Peyto ranks a high 4th in Harry van Neck's NPV ranking system as of 4/18/2025
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Susan Riddell Rose, the CEO of Rubellite Energy (RBY.TO) will be joining me on today's EPG webinar that starts at 11AM CT. Register on the EPG website if you wish to attend the live event.
Rubellite is an upstream oil & gas company in our Small-Cap Growth Portfolio. It is an Aggressive Growth company that is funding double digit production growth entirely with operating cash flow. Current production is over 12,000 Boepd (~70% oil).
Susan and I will be taking questions about the outlook for upstream companies in Western Canada.