WHO IS PEYTO CORPORATE OVERVIEW 26-year publicly traded company focused Focused Assets exclusively on the Alberta Deep Basin ALBERTA 6th Largest 133,000 boe/d (12% liquids) March 2025 Canadian Gas Long reserve life assets (10yr PDP…
WHO IS PEYTO RESILIENT STRATEGY 1 2024 YE - Operating, Processing, Compression Sharpe Ratio - LTM ROE Last 10 Years, Quarterly and Transportations Costs 1.4 1.2 Stable returns comparable 40.00 1 to Large Cap NA E&Ps 35.00 0.8…
WHO IS PEYTO FOCUSED CORE AREAS 1.1MM net acres of Alberta Deep Cutbank Basin Lands Own and operate 17 gas processing facilities with over 1.5 bcf/d of gross production capacity Kakwa Proximal to major pipeline egress (NGTL,…
WHY WE DO IT NATURAL GAS Demand for Natural Gas Continues World Energy Consumption by Source (1965-2023) 700 Fossil fuels represent over 80% of 600 the worlds energy consumption. 500 Exajoules 400 300 200 100 0 1965…
WHY WE DO IT GROWING LNG CAPACITY LNG growth in North America in 2024 - 2028 Mexico 0.6 bcf/d Plaquemines 3.2 bcf/d Corpus Christi 1.5 bcf/d 12 bcf/d of LNG Canada 1.8 bcf/d Golden Pass 2.4 bcf/d new capacity Rio Grande 2.3…
WHY WE DO IT NATURAL GAS North American Demand for Natural Gas Continues to Grow USA Electricity Generation from Gas Further coal to gas switching could add 5 3500 Coal to gas switching in the bcf/d of gas demand by 2030 or as much 70…
HOW WE DO IT PROFITABLE GROWTH 2023 PEY acquires Repsol 180,000 Assets 8,000 Peyto returns profits to shareholders through dividends. 2022 160,000 Over time, Peyto expects to match PEY acquires assets in 7,000 Cumulative…
HOW WE DO IT DEEP BASIN ADVANTAGE (1) (3) 2024 YE PDP FD&A (/boe) Average Injected Water per Well by Formation, 2023 60.00 500,000 Better reservoir quality than 50.00 Fit-for-purpose, nimble rigs (telescopic other plays such as…
HOW WE DO IT LOW COSTS DRIVE MARGINS At Peyto we focus on costs since they are sticky, and they drive superior margins. Peytos margins were even stronger than liquids-weighted producers in 2024. 1 2024 Cash Costs (/mcfe) 2024 YE…
HOW WE DO IT OWN AND CONTROL Peyto controls 1.5 bcf/d of gross Gross Gross Raw Net Capacity Gas Plants Capacity Throughput processing capacity with total (MMcf/d) (MMcf/d) (MMcf/d)* utilization of 58%. This leaves plenty of room for…
HOW WE DO IT CONTINUOUS IMPROVEMENT Average Well Production by Spud Year Unit Drill and Complete Costs 9,000 900 By Year By Quarter 8,000 In 2024, Peyto realized a 25% uplift 800 7,000 in productivity relative to previous 700…
HOW WE DO IT REPSOL UPDATE Successful Development of Acquisition Lands 2024 Drill Program 14,000 12,000 Outperforming our recent programs by 40% 10,000 MCF/D 8,000 6,000 4,000 2,000 0 0 30 60 90 Days on Production…
HOW WE DO IT FIELD OPTIMIZATION Cecilia Booster to Continuing to optimize our Central Foothills Gas Gathering move gas to Wild infrastructure for cost River and Edson System (CFGGS) Gas Plants savings, increased reliability, and…
HOW WE DO IT GROWING OPPORTUNITIES Kakwa Initial Falher Results 25,000 20,000 15,000 MCF/D Kakwa GP 10,000 5,000 0 0 50 100 150 200 Days New Falher Drills PEY Spirit River Land Peyto Well 1 Peyto Well 2 Offset…
PEYTOS RETURNS ROBUST RESULTS Wells On Stream to end-Dec: 2024 Drilling Program Year to Date IRR on Acquired Lands (33 wells): 64% 66 gross / 64.3 net Price Deck: Flat, CA3.00/GJ, US70/bbl WTI IRR on Legacy Lands (33 wells): 50% Full…
PEYTOS RETURNS RETURN ON EQUITY Investors rarely get to participate in the wells themselves, making 60% type well economics somewhat 12 meaningless. ROE and ROCE are 24% the returns investors get, after 50% deducting corporate…
PEYTOS FUTURE 2025 FOCUS Drill 70 80 Net Hz Wells Focused on acquired lands and legacy Peyto properties Add 43,000 48,000 boe/d (10,500/boed) to offset 27% base production decline 450M- Optimize Infrastructure Gathering and Plant…
PEYTOS FUTURE UNDRILLED INVENTORY(1) Booked Inventory (Volume weighted) Average IRR by Species (3-year plan) 3.00/GJ and US70/bbl WTI 6% 25% 120% 109% 105% Cardium 100% 24% Dunvegan 83% 80% Notikewin 60% 60% 52% Falher 9%…
PEYTOS FUTURE SUPPLY COST GOALS 2025 /mcfe 2021 2022 2023 2024 Goals Repeat great results (3) from 2024 program PDP FD&A (1) 0.97 1.41 1.21 1.00 Royalties 0.22 1.00 OPEX 0.53 Cash Costs(1) 1.25 1.62 1.42 1.46 Transport 0.30…
PEYTOS PAST PEYTOS FUTURE 180,000 Modest production growth (5-10%) 8.00 increases value of our assets, generates 160,000 7.00 free cash flow to fund the capital program, 140,000 pay dividends and reduce debt. 6.00 120,000…
PEYTOS FUTURE CASH COSTS Still a Leader in the Industry Despite being the lowest cost producer, Peyto continuously strives to Total Cash Costs (excluding(1) Royalties and Taxes) reduce controllable unit costs. Peyto 2.50 expects to…
PEYTOS MARKETING Gas Hedging and Diversification Strategy Moderates Volatility Gas Price(1) (/mcf) Cascade Power 2025 GJ/d 60,000 10.00 2026 GJ/d 60,000 9.00 Emerson 2 2025 GJ/d 23,751 Dawn/Parkway 8.00 Edmonton 2026 GJ/d 37,418…
GAS MARKETING Future Market Diversification and Gas Price Protection Peyto has used financial basis and physical transportation agreements between AECO and other 480 MMcf/d fixed at 4.13/Mcf in 2025 hubs to gain market…
GAS MARKETING Peyto uses a dollar cost averaging approach to Fixed Price Gas Contracts smooth out the volatility in future prices by forward selling smaller blocks of production. Fixed price swaps give price certainty. Prices do…
GAS MARKETING Peyto has exposure to natural gas price upside with its diversification to premium markets in Floating Price Gas Contracts California, Ontario and the US mid-west and its Cascade Power contract. Henry Hub, Malin,…
NGL MARKETING Peyto uses swaps and costless collars to secure Fixed Price Contracts liquids revenue as well. USD contracts converted at 1.42CAD/USD 27
DIVERSIFICATION POWER Cascade Gas Supply Agreement Peyto gas market diversification includes exposure to Alberta power pool prices Power Transmission Lines A 15-year Gas Supply Agreement, which came into effect on August…
GAS DIVERSIFICATION LNG OPPORTUNITY Peyto is part of the Rockies LNG Consortium whose goal is to Our Partners support the construction of another LNG project off the Rockies LNG is a partnership of Canadian natural gas producers working…
PEYTOS DEBT In June 2024, Peyto extended its Revolving Credit Facility and Amortizing Term Loan to October 13, 2027, and October 13, 2026, respectively. Peyto plans to reduce debt over the next 2 years targeting leverage under 1.0…
Drilling Locations This presentation discloses drilling locations in three categories: (i) proved locations; (ii) probable locations; and (iii) unbooked locations. In respect of the Acquisition, proved locations and probable locations…
Oil and Gas Metrics Peyto has used a number of oil and gas metrics herein which do not have standardized meanings and therefore may be calculated differently from the metrics presented by other oil and gas companies. Such metrics include…
Netback is a non-GAAP measure that represents the profit margin associated with the production and sale of petroleum and natural gas. Peyto computes field netback per Mcfe as commodity sales from production, plus third-party sales net of…
PEYTOS HISTORY The Ensign 401 rig has been drilling for Peyto since November 2009. 36
PEYTOS HISTORY PER SHARE GROWTH Over time, the Peyto model is designed to deliver a superior total return with per share growth in value, income and assets. Production/share 2 Reserves/share1 FFO/share 2 2P NPV10/debt adj. share3…
PEYTOS HISTORY SHAREHOLDER RETURNS 70.00 180,000 160,000 60.00 Peyto has a 26-year history of growing value, income and assets while delivering strong returns to 140,000 50.00 shareholders Dec-31-2024 17.14/sh 120,000…
PEYTOS HISTORY COST CONTROL Peyto has been successfully controlling supply costs to preserve margin 33% on average during last 10 years. /mcfe 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 PDP FD&A(1) 1.64 1.44 1.36 1.18 1.55…
PEYTOS HISTORY PROFITABLE RESERVES GROWTH Annual Reserves Per Share Reserves Life Index(1) (by Category) (Reserves/ Q4 Annualized Production) Reserves per Share (boe/sh) 8.00 35 6.91 28 Reserves Life Index 7.00 P+P: 13%…
PEYTOS HISTORY RESERVE GROWTH Over the past 26 years, Peyto has discovered 11.2 TCFe of natural gas reserves. 12,000 10,000 2,947 8.2 (BCFe) 8,000 6,000 25% CAGR 2,412 11,167 2,843 TCFe of 4,000 2P…
PEYTOS HISTORY LAND GROWTH Peyto continues to expand its Alberta Deep Basin footprint with additional drilling inventory. 1.1 Peyto Lands 2,000 1,800 1,600 Million Net Acres 1,400 18% CAGR 1,725 1,200 Net Sections…
Loading...
