Peyto Exploration & Development (PEY) Q3 2026 earnings summary

Executive summary

• Q3 production averaged 142,952 boe/d, up 10% YoY; liquids rose 20%, driven by Cardium drilling and higher NGL recoveries.

• Funds from operations were CAD 220.9 million, up 11% YoY, and adjusted earnings were CAD 105.4 million, up 15%.

• Low controllable costs, diversified gas markets and hedges supported cash generation, debt reduction and a higher dividend.

Financial highlights

• FFO was CAD 220.9 million, or CAD 1.06 per diluted share; free funds flow was CAD 92.8 million.

• Adjusted earnings were CAD 105.4 million, or CAD 0.50 per diluted share; reported earnings rose 72% to CAD 155.7 million.

• Q3 gas and NGL sales including realized hedging gains rose 12% YoY to CAD 344.7 million; 9M FFO was CAD 741.5 million, up 20%.

• Realized gas price was CAD 3.50/Mcf; diversification contributed CAD 1.00/Mcf net of costs and hedges added CAD 0.82/Mcf.

• Controllable cash costs fell 10% YoY to CAD 1.02/Mcfe.

Outlook and guidance

• Preliminary 2027 capital budget is CAD 475–525 million, targeting 70–80 horizontal wells; well-related costs are expected to be ~80% of spending.

• The 2027 program is expected to add 45,000–50,000 boe/d by year-end, offset annual declines of 26%–28%, and bring liquids close to 15% of production.

• Cardium is expected to account for over one-third of 2027 drilling; a fifth rig is expected before year-end 2026, with spending flexible to market conditions.

• Planned 2027 spending includes ~CAD 10 million for closure work, plant and pipeline optimization, and connections to the Edson and Bigstone gas plants.

• 2027 gas hedges cover just over 400 MMcf/d at CAD 3.32/Mcf; liquid hedges secure CAD 690 million.