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Peyto Exploration & Dev ( (TSE:PEY) ) has provided an update.
Peyto reported strong 2025 reserves additions, adding 504 BCFe of new proved developed producing reserves at its lowest finding, development and acquisition cost in 23 years, while growing reserves across all categories and achieving record December production of 145,000 boe/d. The company invested $475 million in capital, funded just over half from funds from operations while returning $265 million in dividends and reducing net debt by $170 million, and its low-cost structure and hedging delivered robust netbacks and recycle ratios, supporting a before-tax net present value of up to $9.4 billion on a proved plus probable basis.
The board approved a 2026 capital budget of $450–$500 million, aimed at drilling 70–80 net horizontal wells and optimizing existing infrastructure to add up to 48,000 boe/d of new production and more than offset natural declines. With hedges securing over $4.00/Mcf for roughly 475 MMcf/d of gas and additional liquids hedges, Peyto expects more than $830 million of revenue in 2026, providing coverage for capital spending and dividends while enabling continued debt reduction and reinforcing its competitive position in the Canadian gas sector.
The most recent analyst rating on (TSE:PEY) stock is a Hold with a C$24.00 price target. To see the full list of analyst forecasts on Peyto Exploration & Dev stock, see the TSE:PEY Stock Forecast page.
Spark’s Take on TSE:PEY Stock
According to Spark, TipRanks’ AI Analyst, TSE:PEY is a Outperform.
Peyto Exploration & Dev’s strong financial performance and positive earnings call sentiment are the most significant factors driving the stock’s score. The company’s robust profitability, efficient operations, and strategic hedging contribute to a positive outlook. Technical indicators support a bullish trend, although caution is advised due to potential overbought conditions. Valuation metrics are favorable, offering a balance of growth and income potential.
To see Spark’s full report on TSE:PEY stock, click here.
More about Peyto Exploration & Dev
Peyto Exploration & Development Corp. is a Calgary-based oil and gas producer focused on natural gas and natural gas liquids in Western Canada. The company operates 13 gas plants and an extensive gathering system, emphasizing low-cost reserve development, disciplined capital allocation, and active hedging to stabilize cash flows and support long reserve life indices.
Average Trading Volume: 996,629
Technical Sentiment Signal: Buy
Current Market Cap: C$5.37B
For detailed information about PEY stock, go to TipRanks’ Stock Analysis page.