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Peyto Exploration & Development (PEY) investor relations material
Peyto Exploration & Development Q2 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
Executive summary
Production averaged just under 132,000 BOE/d, up 8% year-over-year, driven by strong operational execution and capital program.
Funds from operations rose 24% year-over-year to $191M ($0.95/diluted share), with $83.7M in free funds flow and strong realized gas prices after hedging.
Earnings totaled $87.8M ($0.43/diluted share), and $66M was returned to shareholders as dividends.
Drilled 19 wells, completed 19, and tied in 21 during the quarter, with significant cost reductions in drilling and completion.
Continued focus on hedging and market diversification to manage commodity price volatility and secure revenue.
Financial highlights
Cash costs decreased 13% year-over-year to $1.31 per Mcfe, maintaining industry-leading cost structure.
Hedge book contributed $53M in gains, adding $0.75/Mcf to realized gas revenue; realized gas prices averaged 57% above AECO 7A.
Market diversification added $0.53/Mcf net of transportation above AECO pricing.
Net sales price was $4.27/Mcfe, up 8% year-over-year; field netback improved 16% to $3.36/Mcfe.
Paid down $40M of net debt in the quarter and $105M year-to-date.
Outlook and guidance
2025 capital spending guidance unchanged at $450M–$500M, targeting capital efficiency of $10,000–$11,000 per BOE/d.
Production ramp-up planned for Q4 to align with stronger winter pricing and LNG Canada ramp-up.
Annual corporate decline rate estimated at 27%, with new wells expected to offset declines.
Royalty rates expected to remain around 5% for the rest of the year.
Flexibility to adjust capital program and production in response to commodity prices.
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