Peyto Exploration & Dev (PEY) AI Stock Analysis

• Market Cap: C$4.99B
• Dividend Yield: 5.77%
• Average Volume (3M): 967.15K
• Price to Earnings (P/E): 13.2
• Beta (1Y): 0.84
• Revenue Growth: 11.52%
• EPS Growth: 24.76%
• Country: CA
• Employees: 53
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.45
• Shares Outstanding: 203,343,490
• 10 Day Avg. Volume: 974,472
• 30 Day Avg. Volume: 967,154
• PEG Ratio: -0.93
• Price to Book (P/B): 1.24
• Price to Sales (P/S): 3.69
• P/FCF Ratio: 15.57
• 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$24.13
• Price Target Upside: -1.67% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 81 Outperform
• Price Target: C$27.00 ▲(10.02% Upside)

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.

Positive Factors

Strong Cash Flow

Robust cash flow growth enhances financial flexibility, enabling strategic investments and debt management, supporting long-term stability.

Production Efficiency

Increased production efficiency and high operating margins indicate effective resource management, strengthening competitive positioning.

Successful Hedging Strategy

Effective hedging mitigates price volatility, stabilizing revenue and supporting consistent cash flow, crucial for long-term planning.

Negative Factors

Rising Debt Levels

Increasing debt levels may strain financial resources, potentially limiting future investment capacity and increasing financial risk.

Low AECO Prices

Persistently low AECO prices can pressure revenue and margins, challenging profitability and cash flow sustainability.

High Government Costs

High regulatory costs reduce operational margins, potentially impacting profitability and requiring strategic cost management.

Peyto Exploration & Dev Business Overview & Revenue Model

Company Description

Peyto Exploration & Development Corp. engages in the exploration, development, and production of oil and natural gas, and natural gas liquids in Deep Basin of Alberta. As of December 31, 2021, it had a total proved plus probable reserves of 904 million barrels of oil equivalent. The company was formerly known as Peyto Energy Trust and changed its name to Peyto Exploration & Development Corp. in January 2011. Peyto Exploration & Development Corp. was founded in 1998 and is headquartered in Calgary, Canada.

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 exhibits strong financial health with robust profitability, a stable balance sheet, and a solid cash flow position. The company has managed to grow its revenue and maintain high margins, although past revenue volatility and increasing debt levels warrant attention.

Income Statement

Peyto Exploration & Dev has shown strong profitability with a TTM gross profit margin of 53.71% and a net profit margin of 33.05%. The company has demonstrated consistent revenue growth, with a 3.19% increase in the latest TTM period. EBIT and EBITDA margins are robust at 51.81% and 90.63%, respectively, indicating efficient operations. However, past revenue fluctuations and a significant drop in revenue in 2022 highlight potential volatility.

Balance Sheet

The company's balance sheet is stable with a debt-to-equity ratio of 0.47, indicating moderate leverage. Return on equity stands at 12.32%, reflecting effective use of equity to generate profits. The equity ratio is healthy, suggesting a strong capital structure. However, the increase in total debt over the years could pose a risk if not managed carefully.

Cash Flow

Peyto Exploration & Dev has shown a strong cash flow position with a 28.68% growth in free cash flow in the latest TTM period. The operating cash flow to net income ratio is 2.08, indicating good cash generation relative to net income. The free cash flow to net income ratio of 0.38 suggests a solid ability to convert income into cash. Despite past fluctuations, the current trajectory is positive.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.03B	908.25M	945.51M	1.63B	911.98M	399.99M
Gross Profit	576.31M	421.22M	424.58M	1.07B	575.60M	124.26M
EBITDA	952.10M	849.88M	778.10M	872.94M	517.66M	261.29M
Net Income	370.91M	280.57M	292.63M	390.66M	152.25M	-35.55M
Balance Sheet
Total Assets	5.43B	5.51B	5.51B	4.01B	3.78B	3.60B
Cash, Cash Equivalents and Short-Term Investments	52.08M	13.63M	37.18M	11.90M	5.72M	9.31M
Total Debt	1.24B	1.36B	1.40B	864.52M	1.07B	1.18B
Total Liabilities	2.66B	2.81B	2.79B	1.95B	2.02B	1.92B
Stockholders Equity	2.77B	2.70B	2.71B	2.06B	1.77B	1.68B
Cash Flow
Free Cash Flow	355.40M	215.49M	233.84M	304.92M	92.82M	-32.65M
Operating Cash Flow	804.81M	672.36M	644.87M	811.78M	457.87M	203.05M
Investing Cash Flow	-451.02M	-432.24M	-1.15B	-516.91M	-351.43M	-232.58M
Financing Cash Flow	-321.07M	-263.66M	527.27M	-288.68M	-110.03M	32.66M

Peyto Exploration & Dev Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 24.54
• 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 24.54 is above the 20-day moving average (MA) of 23.03, above the 50-day MA of 22.54, and above the 200-day MA of 19.53, indicating a bullish trend. The MACD of 0.65 indicates Negative momentum. The RSI at 68.70 is Neutral, neither overbought nor oversold. The STOCH value of 71.98 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$4.99B	13.19	13.48%	5.77%	11.52%	24.76%
BTE	75 Outperform	C$3.61B	16.83	5.16%	2.07%	-8.89%	―
NVA	74 Outperform	$3.60B	11.47	13.57%	―	-6.14%	14.09%
ATH	68 Neutral	C$3.84B	8.91	27.19%	―	3.04%	115.77%
TVE	67 Neutral	$4.47B	-47.74	-4.70%	1.91%	-1.36%	-149.45%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
POU	65 Neutral	C$3.71B	2.70	41.81%	2.84%	-32.36%	282.99%

Peyto Exploration & Dev Corporate Events

Peyto Extends Debt Maturities With New $100 Million Senior Notes

Peyto Exploration & Development Corp. has refinanced its debt by issuing $100 million in senior secured notes at a 5.03% coupon, maturing in 2033, through a private placement that ranks pari passu with its existing credit facilities and note agreements. The proceeds were used to fully repay $100 million of notes that matured on January 3, 2026, effectively extending the company’s debt maturity profile and supporting balance-sheet stability without increasing net debt, which may enhance financial flexibility and investor confidence in its long-term funding strategy.

The most recent analyst rating on (TSE:PEY) stock is a Buy with a C$27.00 price target. To see the full list of analyst forecasts on Peyto Exploration & Dev stock, see the TSE:PEY Stock Forecast page.

Peyto Exploration & Development Confirms December Dividend

Peyto Exploration & Development Corp. announced a monthly dividend of $0.11 per common share for December 2025, payable on January 15, 2026. This announcement reinforces Peyto’s commitment to providing returns to its shareholders and highlights its stable financial position within the energy sector.

The most recent analyst rating on (TSE:PEY) stock is a Buy with a C$27.00 price target. To see the full list of analyst forecasts on Peyto Exploration & Dev stock, see the TSE:PEY Stock Forecast page.

Peyto Exploration Confirms November Dividend Payout

Peyto Exploration & Development Corp. has announced a confirmed monthly dividend of $0.11 per common share for November 2025, payable on December 15, 2025. This decision reflects the company’s ongoing commitment to providing value to its shareholders, reinforcing its stable financial position and its role as a key player in the energy industry.

The most recent analyst rating on (TSE:PEY) stock is a Hold with a C$21.00 price target. To see the full list of analyst forecasts on Peyto Exploration & Dev stock, see the TSE:PEY Stock Forecast page.

Peyto Reports Robust Q3 2025 Results and Outlines 2026 Capital Plans

Peyto Exploration & Development Corp. reported strong third-quarter results for 2025, with $198.9 million in funds from operations and $90.7 million in earnings, driven by low cash costs and strategic hedging. The company increased production by 8% year over year and plans to invest $450 to $500 million in 2026 to offset production decline, while maintaining a strong financial position with reduced net debt.

The most recent analyst rating on (TSE:PEY) stock is a Hold with a C$21.00 price target. To see the full list of analyst forecasts on Peyto Exploration & Dev stock, see the TSE:PEY Stock Forecast page.

Peyto Exploration & 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.