Peyto Exploration & Dev (PEY) AI Stock Analysis

• Market Cap: C$4.50B
• Dividend Yield: 5.95%
• Average Volume (3M): 967.15K
• Price to Earnings (P/E): 11.9
• Beta (1Y): 0.96
• 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: 203,106,950
• 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$23.00
• Price Target Upside: 3.70% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 81 Outperform
• Price Target: C$27.00 ▲(21.73% 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. (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 shows strong financial health with robust profitability and cash flow metrics. The company has managed to grow its revenue and maintain high margins, indicating operational efficiency. While the balance sheet shows a moderate level of leverage, it remains within a manageable range. The positive trajectory in cash flow growth further enhances the company's financial stability, though attention should be paid to potential risks associated with debt levels and revenue volatility.

Income Statement

Peyto Exploration & Dev has demonstrated strong revenue growth with a 7.65% increase in the TTM period. The company maintains robust profitability metrics, with a gross profit margin of 49.37% and a net profit margin of 31.66%. The EBIT and EBITDA margins are also impressive at 51.01% and 92.43%, respectively, indicating efficient operations. However, the historical volatility in revenue growth rates suggests potential risks in maintaining consistent growth.

Balance Sheet

The company has a moderate debt-to-equity ratio of 0.52, reflecting a balanced approach to leveraging. Return on equity stands at 11.00%, indicating effective use of equity to generate profits. The equity ratio is healthy, suggesting a stable financial structure. However, the increase in total debt over the years could pose a risk if not managed carefully.

Cash Flow

Peyto's cash flow performance is strong, with an 8.92% growth in free cash flow in the TTM period. The operating cash flow to net income ratio of 1.92 indicates good cash generation relative to net income. The free cash flow to net income ratio of 0.37 further supports the company's ability to generate cash. Despite past fluctuations in free cash flow growth, the recent positive trend is encouraging.

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: 22.18
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 22.18 is below the 20-day moving average (MA) of 22.40, above the 50-day MA of 21.17, and above the 200-day MA of 18.77, indicating a neutral trend. The MACD of 0.28 indicates Positive momentum. The RSI at 51.86 is Neutral, neither overbought nor oversold. The STOCH value of 19.21 is Positive, 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$4.50B	11.92	13.48%	5.95%	11.52%	24.76%
BTE	75 Outperform	C$3.30B	15.37	5.16%	2.10%	-8.89%	―
NVA	74 Outperform	C$3.42B	10.88	13.57%	―	-6.14%	14.09%
TVE	73 Outperform	C$3.76B	-39.55	-4.70%	2.01%	-1.36%	-149.45%
ATH	68 Neutral	C$3.35B	7.70	27.19%	―	3.04%	115.77%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
POU	65 Neutral	C$3.39B	2.49	41.81%	2.96%	-32.36%	282.99%

Peyto Exploration & Dev Corporate Events

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.

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.

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.