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Highlights

  • Peyto Exploration & Development Corp has inked a partnership interest purchase agreement for the acquisition of Repsol Canada Energy Partnership for CAD 636 million.
  • In Q2 FY23, Peyto witnessed a fall in its net revenue at CAD 210.5million.

Canadian energy company Peyto Exploration & Development Corp (TSX: PEY) has its focus in developing and producing natural gas in the deep basin of Alberta. A major share of the company’s revenues is generated from the sales of natural gas and natural gas liquid.

Recently, Peyto inked a partnership interest purchase agreement for the acquisition of Repsol Canada Energy Partnership for CAD 636 million. The latter is the owner of the Canadian upstream oil and gas operations of Repsol Exploración. Under the agreement, Peyto will get rights over all the related midstream infrastructure and facilities based in the Deep Basin.

In Q2 FY23, Peyto witnessed a fall in its net revenue to CAD 210.5million. This was primarily because of lower volumes and lower realized commodity prices. Also, On the production front, the average volume was measured at 98,777 boe/d in the quarter. This represents 5% drop over Q2 2022.

However, its net debt decreased to CAD 869.5 million, as compared to CAD 991.3 million in the previous corresponding period. It is for the 11th consecutive quarter that the company’s net debt has dropped.

For September 2023, Peyto has announced to pay monthly dividend of CAD 0.11 per common share in October.

Top 10 Shareholders

Approximately 13.48% of the total shareholding is held by its top ten shareholders. While BlackRock Institutional Trust Company, N.A.  holds ­­4.48%, and Dimensional Fund Advisors, L.P. owns around 3.31% of the shares.

Stock Price Performance
The company’s stock price has gained approximately 7.93% over the last one week. It has increased by around 10.47% in the last one month. The stock’s 52-week high and low price stand at CAD 15.29 and CAD 9.82, respectively.

 

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is September 27, 2023. The reference data in this report has been partly sourced from EODHD/Others.