Peyto Exploration & Dev (PEY) AI Stock Analysis

• Market Cap: C$3.75B
• Dividend Yield: 7.03%
• Average Volume (3M): 807.37K
• Price to Earnings (P/E): 12.6
• Beta (1Y): 0.95
• Revenue Growth: 2.80%
• EPS Growth: -7.94%
• Country: CA
• Employees: 53
• Sector: Energy
• Sector Strength: 42
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.57
• Shares Outstanding: 199,242,110
• 10 Day Avg. Volume: 937,476
• 30 Day Avg. Volume: 807,373
• PEG Ratio: 3.05
• Price to Book (P/B): 1.46
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 14.90
• 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$20.88
• Price Target Upside: 11.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 73 Outperform
• Price Target: C$21.00 ▲( 11.64% Upside)

Peyto Exploration & Dev scores well due to its strong profitability, positive technical indicators, and effective strategic initiatives highlighted in the earnings call. Valuation is attractive with a high dividend yield. However, revenue consistency and cash flow volatility require attention.

Positive Factors

Asset Acquisition

The company's acquisition of the Repsol Deep Basin assets has been very successful, and allowed it to deliver a ~25% improvement in overall well productivity.

Dividend Yield

Peyto shares currently imply a compelling dividend yield of roughly 8%, supported by its hedging program and peer-leading cost structure.

Hedging Strategy

Peyto's extensive hedging program and peer-leading cost structure has allowed it to fund its capital program, reduce debt, and maintain its healthy dividend despite ongoing weakness in western Canada natural gas prices.

Negative Factors

Hedging Constraints

The extensive hedge book has constrained its upside to any potential improvements in natural gas prices relative to its peers.

Market Exposure

The company has no exposure to floating AECO prices, which will remove any upside associated with LNG Canada.

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 Corp generates revenue primarily through the production and sale of natural gas and natural gas liquids. The company owns a substantial portfolio of natural gas reserves and infrastructure, enabling it to extract and process these resources efficiently. Revenue is earned from selling the extracted natural gas and NGLs to various markets, including industrial, commercial, and residential customers. Additionally, Peyto benefits from its cost-control strategies and operational efficiencies, which help to maximize profit margins. The company's strategic focus on high-quality assets and low-cost operations is a key factor in its ability to generate consistent cash flow and sustain financial performance.

Peyto Exploration & Dev Financial Statement Overview

Summary

Peyto Exploration & Dev shows strong profitability and an efficient operational setup, as reflected in its margins and debt management. However, revenue consistency and cash flow volatility pose potential risks. The company's financial health remains robust, but attention should be paid to revenue growth strategies and cash flow stabilization to enhance future performance.

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
931.07M	908.25M	945.51M	1.63B	911.98M	399.99M
	Gross Profit
459.68M	421.22M	424.58M	1.07B	575.60M	124.26M
	EBIT
233.17M	141.67M	385.84M	907.92M	442.82M	18.70M
	EBITDA
860.59M	849.88M	778.10M	872.94M	517.66M	261.29M
	Net Income Common Stockholders
294.81M	280.57M	292.63M	390.66M	152.25M	-35.55M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
54.35M	13.63M	37.18M	11.90M	5.72M	9.31M
	Total Assets
5.36B	5.51B	5.51B	4.01B	3.78B	3.60B
	Total Debt
1.34B	1.36B	1.40B	864.52M	1.07B	1.18B
	Net Debt
1.28B	1.35B	1.37B	852.61M	1.07B	1.17B
	Total Liabilities
2.76B	2.81B	2.79B	1.95B	2.02B	1.92B
	Stockholders Equity
2.59B	2.70B	2.71B	2.06B	1.77B	1.68B
Cash Flow		Free Cash Flow
253.58M	215.49M	233.84M	304.92M	92.82M	-32.65M
	Operating Cash Flow
694.68M	672.36M	644.87M	811.78M	457.87M	203.05M
	Investing Cash Flow
-437.93M	-432.24M	-1.15B	-516.91M	-351.43M	-232.58M
	Financing Cash Flow
-235.88M	-263.66M	527.27M	-288.68M	-110.03M	32.66M

Peyto Exploration & Dev Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 18.81
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 18.81 is above the 20-day moving average (MA) of 18.40, above the 50-day MA of 17.66, and above the 200-day MA of 15.73, indicating a bullish trend. The MACD of 0.49 indicates Positive momentum. The RSI at 57.49 is Neutral, neither overbought nor oversold. The STOCH value of 32.87 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	73 Outperform	C$3.75B	12.59	11.17%	7.03%	2.80%	-7.94%
Sector *	57 Neutral	$7.06B	3.07	-3.45%	5.82%	0.59%	-50.58%
ATHOF		$1.89B	5.53	30.45%	―	―	―
SPGYF		$7.82B	5.71	16.40%	8.56%	―	―
PRMRF		$1.99B	1.85	48.97%	23.20%	―	―
NUVSF		$1.99B	7.41	16.78%	―	―	―
IPCO	60 Neutral	C$2.20B	20.34	8.83%	―	-7.83%	-45.69%

Peyto Exploration & Dev Corporate Events

Peyto Exploration & Development Corp. Announces Shareholder Meeting Results

Peyto Exploration & Development Corp. announced the results of its annual and special meeting of shareholders, where all nominated directors were elected. Additionally, Deloitte LLP was appointed as auditors, and resolutions concerning executive compensation and the total shareholder return rights plan were approved. These decisions reflect shareholder support for the company’s strategic direction and governance, potentially impacting its operational and financial strategies moving forward.

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 Q1 2025 Results with Increased Production and Revenue

Peyto Exploration & Development Corp. reported strong financial results for the first quarter of 2025, with $225.2 million in funds from operations and $114.1 million in earnings. The company’s success was driven by a significant increase in realized natural gas prices and industry-leading low cash costs. Peyto’s strategic hedging secured substantial revenue for the coming years, and the company reduced its net debt by $65.7 million, while also increasing production volumes by 7% year-over-year. These results underscore Peyto’s robust operational efficiency and its ability to capitalize on favorable market conditions, benefiting stakeholders and reinforcing its competitive position in the industry.

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 Exploration Confirms April 2025 Dividend Payment

Peyto Exploration & Development Corp. has announced a monthly dividend of $0.11 per common share for April 2025, payable on May 15, 2025, to shareholders of record as of April 30, 2025. This announcement underscores Peyto’s commitment to returning value to its shareholders and maintaining its position as a significant entity in the energy industry.

Peyto Confirms April 2025 Dividend Payment

Peyto Exploration & Development Corp. has announced a confirmed monthly dividend of $0.11 per common share for March 2025, payable on April 15, 2025. This decision reflects the company’s ongoing commitment to providing shareholder returns and maintaining its position as a significant player in the North American energy sector.

Peyto Reports Strong 2024 Results Amid Strategic Hedging Success

Peyto Exploration & Development Corp. reported strong financial and operational results for the fourth quarter and full year 2024, with significant increases in production and reserves. The company’s strategic hedging and diversification efforts have successfully shielded it from declining natural gas prices, allowing it to maintain a robust financial position and return substantial dividends to shareholders.