Peyto Exploration & Development Corp

Latest Results (24.09.2026):

Peyto Exploration & Development Corp's Q2 2026 results show strong production growth and robust cash generation: production averaged 145,320 boe/d, funds from operations were $227.7 million ($1.09/diluted share), free funds flow was $140.6 million, and adjusted earnings were $104.98 million ($0.50/diluted). The quarter combined high realized gas prices after hedging/diversification, low cash costs and active capital deployment while returning cash to shareholders and reducing net debt.

Production

Q2 2026 production averaged 145,320 boe/d (758.2 MMcf/d gas, 18,959 bbls/d NGLs), up 10% year-over-year (7% per share).

Cash generation

Funds from operations (FFO) were $227.7 million (up 19% YoY; $1.09/diluted share) and free funds flow was $140.6 million for Q2 2026.

Earnings

Reported earnings were $106.26 million (diluted EPS $0.51) and adjusted earnings were $104.98 million (diluted $0.50), both up versus Q2 2025.

Capital allocation — dividends, capex, debt

Q2 capex totaled $84.9 million. Peyto returned $71.8 million in dividends and reduced net debt by $72.4 million in the quarter (net debt at June 30, 2026: $1,015.9 million).

Hedging and diversification

The company recorded realized hedging gains in the quarter (report cites $36.7 million) and has hedge protection of ~505 MMcf/d for H2 2026 at $4.02/Mcf and ~404 MMcf/d for 2027 at $3.31/Mcf. Peyto also signed a long-term 10-year supply agreement with Centrica for 50,000 MMBtu/d starting 2029 (priced to TTF).

Realized prices and costs

Realized natural gas price after hedging was $3.42/Mcf (108% premium to AECO 7A). Total cash costs were $1.32/Mcfe (including $0.28/Mcfe royalties); cash costs before royalties were $1.04/Mcfe.

Margins and returns

Q2 2026 cash netback was $3.16/Mcfe, operating margin 71% and profit margin 29%; trailing 12-month ROCE was 18% and ROE 16%.

Operations and inventory

Peyto spud 10 wells, completed 14 and brought 15 on production in Q2. The company acquired 26 gross sections of mineral land in the quarter and reiterated a 2026 capital program of $450–$500 million to add 43,000–48,000 boe/d by year-end.

Outlook

Peyto emphasizes continued market diversification, mechanistic hedging and low-cost operations to manage commodity volatility while pursuing the 2026 capital plan and maintaining dividends. Management will adjust activity to market conditions as needed.