Peyto Exploration & Development Corp
PEY
ISIN null / Valor 12160348
Peyto Exploration & Development Corp
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About company
Peyto Exploration & Development Corp is a Calgary‑based, publicly traded (TSX: PEY) upstream oil and gas company that explores for, develops and produces natural gas and associated natural gas liquids primarily in Alberta’s Deep Basin. Its business centers on operating and developing gas-producing properties, managing midstream connections and marketing production into North American markets, while allocating capital between field development and cash returns to shareholders. The company’s activities emphasize sustaining and optimizing production from its existing inventory through ongoing drilling and facility work to generate operating cash flow.
Summarized from source with an LLMView SourceSector: EnergyLatest Results (01.03.2026):
Peyto Exploration & Development Corp. — Third quarter 2025: Peyto reported strong Q3 2025 operating and financial results, driven by low cash costs, disciplined hedging and ongoing capital activity. Key outcomes included $198.9 million of funds from operations ($0.98 diluted/share), $69.1 million of free funds flow, net earnings of $90.7 million ($0.45 diluted/share), production averaging 129,762 boe/d (up 8% YoY), and a reduction in net debt to $1.222 billion at quarter end.
Funds from operations & free funds flow
FFO for Q3 2025 was $198.9M ($0.98 diluted/share) and free funds flow was $69.1M after $126.3M of capital spending in the quarter.
Earnings & shareholder returns
Net earnings were $90.7M ($0.45 diluted/share). Peyto returned $66.4M to shareholders as dividends in the quarter (CAD $0.33/share), with a quarterly total payout ratio of ~99%.
Production
Average production in Q3 2025 was 129,762 boe/d (684.9 MMcf/d gas and 15,611 bbl/d NGLs), an 8% increase versus Q3 2024 (5% increase on a per‑share basis).
Prices, hedging & realizations
Realized natural gas price after hedging and diversification was $3.57/Mcf ($3.10/GJ), ~3.3× the AECO 7A benchmark. Peyto recorded substantial realized hedging gains and exited Q3 with hedge protection of ~450 MMcf/d for Q4 2025 and ~429 MMcf/d for 2026 (average fixed prices ~ $4.36/Mcf for Q4 2025 and $4.04/Mcf for 2026), and noted hedging/diversification has secured >$715M of 2026 revenue.
Costs, netbacks & margins
Total cash costs in Q3 2025 were $1.21/Mcfe (royalties $0.08, operating $0.51, transportation $0.30, G&A $0.06, interest $0.26), producing a cash netback of $3.14/Mcfe, an operating margin of 72% and a profit margin of 29% (trailing‑12 month ROCE 11%, ROE 13%).
Capital activity
Total capital expenditures were $126.3M in the quarter: 20 wells drilled (20.0 net), 16 wells completed (16.0 net), 18 wells brought on production (18.0 net), plus commissioning of a new Sundance field compressor and $33.3M in facilities work.
Balance sheet & liquidity
Net debt fell by $20.5M in the quarter and by $126.1M since Dec 31, 2024 to $1.222B at Sept 30, 2025. Peyto amended and extended its credit facilities on Oct 23, 2025, increasing the revolving credit to $1.05B, extending maturity to Oct 23, 2029, and repaying/terminating a $50M term loan.
2026 preliminary budget & outlook
Peyto’s preliminary 2026 capital budget is $450–$500M, targeting ~70–80 horizontal wells and expected to add ~43,000–48,000 boe/d of new production to more than offset an anticipated 26–28% base decline; program remains flexible to market conditions.
Summarized from source with an LLMView SourceKey figures
Performance
Volatility
3900 M
Market cap (USD)
1,924,044
Daily traded volume (Shares)
17.21 / 16.8
1 day high/low (USD)
52 weeks high/low (USD)
Dividend ex-date
Dividend (USD)
Dividend yield (p.a.)
Est dividend (USD)
Est dividend yield
P/E ratio
Est P/E ratio
EPS (USD)
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Ratings & reviews
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