Peyto Exploration & Development (PEY) investor relations material

Corporate overview and strategy

• Operates exclusively in Alberta's Deep Basin with 1.1 million net acres and 17 gas processing facilities, controlling 1.5 bcf/d of capacity and over 90% ownership.

• Maintains a disciplined, low-cost operating model with industry-leading cash and finding costs, and active hedging for revenue stability.

• Focuses on shareholder returns with a 27-year average ROE of 24% and monthly dividends of $0.11/share.

• Pursues prudent risk management through market diversification and infrastructure optimization.

Financial and operational performance

• 2025 production grew 7% to 140,794 boe/d in Q4, with 18% FFO per share growth and 46% earnings per share growth.

• Reduced net debt by $171MM (-13%) to $1.18B at year-end 2025, with a Debt/EBITDA ratio of 1.16.

• Achieved field netbacks of $3.74/mcfe in Q4 2025 and maintained capital efficiency at $9,900/boe/d.

• 2025 total shareholder return was $1.32/share, with $265MM in dividends paid.

Cost leadership and margin preservation

• Maintains industry-leading cash costs, averaging $1.04/mcfe over five years, and total supply costs of $2.23/mcfe in 2025.

• Focuses on continuous improvement, reducing controllable costs by 10% year-over-year and optimizing drilling and completion costs.

• Achieved a 51% margin in 2025, with a full cycle netback of $2.36/mcfe.