Peyto Exploration & Dev (PEY) AI Stock Analysis

• Market Cap: C$4.13B
• Dividend Yield: 6.39%
• Average Volume (3M): 967.15K
• Price to Earnings (P/E): 12.2
• Beta (1Y): 0.89
• Revenue Growth: 7.02%
• EPS Growth: 7.16%
• Country: CA
• Employees: 53
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.43
• Shares Outstanding: 201,896,600
• 10 Day Avg. Volume: 974,472
• 30 Day Avg. Volume: 967,154
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$22.00
• Price Target Upside: 6.54% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 81 Outperform
• Price Target: C$22.00 ▲(6.54% Upside)

Peyto Exploration & Dev's strong financial performance and positive earnings call are the most significant factors driving the score. The company's robust profitability, effective cost management, and strategic hedging have enhanced its financial stability. Technical indicators suggest a bullish trend, though caution is advised as momentum indicators approach overbought levels. The reasonable valuation and attractive dividend yield further support the stock's appeal.

Positive Factors

Cost Management

Effective cost management enhances profitability and allows the company to maintain competitive pricing, supporting long-term financial health.

Debt Reduction

Reducing debt improves financial flexibility and reduces interest expenses, strengthening the company's balance sheet over time.

Production Growth

Consistent production growth indicates successful operational strategies and enhances revenue potential, supporting long-term business expansion.

Negative Factors

Revenue Volatility

Revenue volatility can impact financial predictability, posing challenges to maintaining consistent growth and planning long-term investments.

Operational Interruptions

External disruptions like fires can lead to operational challenges, affecting production and revenue, highlighting the need for risk management strategies.

Higher Operating Costs

Unexpected increases in operating costs can strain profit margins and require adjustments in financial planning to maintain profitability.

Peyto Exploration & Dev Business Overview & Revenue Model

Company Description

Peyto Exploration & Development Corp. (PEY) is a Canadian oil and gas company focused on the exploration, development, and production of natural gas and natural gas liquids in the Western Canadian Sedimentary Basin. Established in 1998, Peyto specializes in the development of high-quality, economically viable natural gas reserves, primarily targeting the Montney and Deep Basin formations. The company is known for its efficient operations, innovative technology, and commitment to sustainability in its resource extraction processes.

How the Company Makes Money

Peyto Exploration & Development generates revenue primarily through the sale of natural gas and natural gas liquids, which are produced from its various drilling operations. The company’s revenue model is based on the extraction, production, and marketing of hydrocarbons, with key revenue streams coming from long-term sales contracts and spot market sales. Peyto employs a strategy of maintaining low operating costs and optimizing production efficiency, which helps to maximize profit margins. Additionally, the company benefits from strategic partnerships with midstream operators for transportation and processing of its production, and it is influenced by market prices for natural gas and liquids, making it sensitive to fluctuations in commodity prices. The company also engages in hedging strategies to manage price volatility, ensuring a more stable cash flow.

Peyto Exploration & Dev Financial Statement Overview

Summary

Peyto Exploration & Dev demonstrates strong profitability and operational efficiency, with robust EBIT and EBITDA margins. However, inconsistent revenue growth and cash flow volatility present potential risks. The balance sheet is stable, with moderate leverage and a reasonable return on equity.

Income Statement

Peyto Exploration & Dev has shown a mixed performance in its income statement. The TTM gross profit margin is approximately 49.4%, indicating healthy cost management. The net profit margin is around 31.7%, suggesting strong profitability in the current period. However, the revenue growth has been inconsistent, with a significant decline in 2022 but a slight recovery in the most recent period. The EBIT and EBITDA margins are also robust, at 25.0% and 92.4% respectively, reflecting operational efficiency.

Balance Sheet

The company's balance sheet exhibits a stable financial structure. The debt-to-equity ratio stands at 0.52, indicating a moderate level of leverage. The return on equity is about 11.4%, showing a reasonable return for shareholders. The equity ratio is approximately 48.4%, suggesting a balanced capital structure. Overall, Peyto maintains a healthy balance between debt and equity, though the slight decline in equity year-on-year warrants attention.

Cash Flow

Cash flow analysis reveals a solid performance with an operating cash flow to net income ratio of 2.36, indicating efficient cash generation relative to earnings. The free cash flow to net income ratio is 0.86, reflecting decent cash availability after capital expenditures. However, the free cash flow growth rate has been volatile, highlighting potential cash flow management challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.00B	908.25M	945.51M	1.63B	911.98M	399.99M
Gross Profit	538.30M	421.22M	424.58M	1.07B	575.60M	124.26M
EBITDA	908.40M	849.88M	778.10M	872.94M	517.66M	261.29M
Net Income	331.21M	280.57M	292.63M	390.66M	152.25M	-35.55M
Balance Sheet
Total Assets	5.42B	5.51B	5.51B	4.01B	3.78B	3.60B
Cash, Cash Equivalents and Short-Term Investments	31.68M	13.63M	37.18M	11.90M	5.72M	9.31M
Total Debt	1.29B	1.36B	1.40B	864.52M	1.07B	1.18B
Total Liabilities	2.69B	2.81B	2.79B	1.95B	2.02B	1.92B
Stockholders Equity	2.73B	2.70B	2.71B	2.06B	1.77B	1.68B
Cash Flow
Free Cash Flow	276.19M	215.49M	233.84M	304.92M	92.82M	-32.65M
Operating Cash Flow	727.15M	672.36M	644.87M	811.78M	457.87M	203.05M
Investing Cash Flow	-465.70M	-432.24M	-1.15B	-516.91M	-351.43M	-232.58M
Financing Cash Flow	-252.22M	-263.66M	527.27M	-288.68M	-110.03M	32.66M

Peyto Exploration & Dev Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 20.65
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:PEY, the sentiment is Positive. The current price of 20.65 is above the 20-day moving average (MA) of 19.87, above the 50-day MA of 18.99, and above the 200-day MA of 17.78, indicating a bullish trend. The MACD of 0.51 indicates Negative momentum. The RSI at 67.08 is Neutral, neither overbought nor oversold. The STOCH value of 77.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:PEY.

Peyto Exploration & Dev Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PEY	81 Outperform	C$4.13B	12.25	12.21%	6.39%	7.02%	7.16%
WCP	79 Outperform	$12.85B	8.90	10.88%	6.95%	36.36%	-19.92%
POU	74 Outperform	C$3.28B	2.40	41.81%	3.93%	-32.36%	282.99%
NVA	74 Outperform	C$3.46B	10.42	14.64%	―	-9.78%	5.12%
ATH	71 Outperform	$3.43B	7.75	27.19%	―	3.04%	115.77%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
IPCO	62 Neutral	C$2.64B	37.97	3.59%	―	-9.12%	-70.87%

Peyto Exploration & Dev Corporate Events

Peyto Exploration & Development Corp. Confirms October 2025 Dividend

Peyto Exploration & Development Corp. has announced a monthly dividend of $0.11 per common share for October 2025, payable on November 14, 2025. This announcement underscores Peyto’s commitment to providing returns to its shareholders, reflecting its stable financial position and ongoing efforts to maintain investor confidence.

The most recent analyst rating on (TSE:PEY) stock is a Buy with a C$22.00 price target. To see the full list of analyst forecasts on Peyto Exploration & Dev stock, see the TSE:PEY Stock Forecast page.

Peyto Exploration’s Earnings Call Highlights Growth and Strategy

The recent earnings call for Peyto Exploration & Development showcased a generally positive sentiment, with the company reporting substantial production growth, effective cost management, and successful hedging strategies. These factors contributed to increased funds from operations and significant debt reduction, overshadowing challenges such as operational interruptions from fires and higher property taxes.

Peyto Exploration & Development Corp. Confirms August Dividend

Peyto Exploration & Development Corp. has announced a monthly dividend of $0.11 per common share for August 2025, payable on September 15, 2025, to shareholders of record by August 31, 2025. This dividend declaration underscores Peyto’s ongoing commitment to delivering shareholder value and highlights its stable financial performance amidst the dynamic energy market.

The most recent analyst rating on (TSE:PEY) stock is a Hold with a C$17.00 price target. To see the full list of analyst forecasts on Peyto Exploration & Dev stock, see the TSE:PEY Stock Forecast page.

Peyto Reports Strong Q2 2025 Results with Increased Production and Debt Reduction

Peyto Exploration & Development Corp. reported strong financial results for the second quarter of 2025, with $191.3 million in funds from operations and a significant reduction in net debt. The company achieved an 8% increase in production volumes year over year, driven by its capital program, and maintained industry-leading low cash costs. Peyto’s strategic hedging and market diversification allowed it to realize a natural gas price significantly higher than the AECO benchmark, securing substantial revenue for future periods. The company’s disciplined risk management and operational efficiency resulted in a solid operating margin and profit margin, supporting shareholder dividends and further debt reduction.

The most recent analyst rating on (TSE:PEY) stock is a Hold with a C$17.00 price target. To see the full list of analyst forecasts on Peyto Exploration & Dev stock, see the TSE:PEY Stock Forecast page.