TSE:PEY

Peyto Exploration & Develop. (PEY.TO)

25.76
+0.54 (2.14%)
as of Jun 8, 2026, 8:00:00 pm Market Open.
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Investor Insights
star iconJun 8, 2026, 12:00 am

This summary was created by AI, based on 13 opinions in the last 12 months.

Peyto Exploration & Development (PEY) is primarily viewed as a strong player in the natural gas sector, with several analysts expressing optimism about its potential for growth. Many experts highlight its recent acquisitions and solid dividend yield, indicating that the company is well-positioned to benefit from rising natural gas prices, especially as it maintains a significant inventory and has a pragmatic hedging strategy. Although some analysts urge caution regarding immediate investments if one already holds oil exposure, there is a general perception that Peyto's fundamentals are robust, especially given its low-cost structure and expansion into new markets. The stock has a fair price target from analysts, and although some suggest potential overvaluation at current levels, most agree it remains a formidable option in the energy market for natural gas investments.

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Consensus
Cautious
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Valuation
Fair Value
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TOU
TOP PICK
A departure for him because it is gassy but is very liquids rich with gas liquids coming out of their production. Have 5 gas plants throughout the deep basin. Will probably grow production by 35% next year. About to convert to a Corp which could become more attractive to common stock investors. 4% yield.
HOLD
No reason to Sell. Sentiments a little high and it might come back to the $15 break out level. Not overbought or oversold. Also volume has started to pick up.
COMMENT
Pengrowth Energy (PGF.UN-T) or Peyto Energy Trust (PEY.UN-T)? 9.3% yield, which is to drop to 7% next year. Both are gas weighted but this one has a better set of land and has been demonstrably better in proving up value over time. Prefers Peyto.
DON'T BUY
Has benefited from the natural gas trade with the low cost gas producers doing particularly well. Have concerns over the sustainability of distributions. Introducing horizontal drilling into some of their plays, which should help to increase production levels.
DON'T BUY
Highly gas levered. The big question is will they be able to maintain their distribution of 14.9%. Natural gas inventories have been building.
DON'T BUY
Not crazy about gas. Would prefer an oilier name or a gas name outside of North America.
HOLD
More weighted to natural gas. With natural gas prices hovering around $2.50 it is somewhat problematic for them. Have a very good property in Sundance and this is what you need to stick with in times of volatile commodity prices.
COMMENT
One of the lowest cost producers. Difficulty past year has been debt so had to do a stock issue. Also growing very quickly and declines were very high but are starting to slow down. Still trying to understand how they will look in 2011. Currently doesn't have balance sheet strength to grow. Could see another 15%-20% decline. Because of hedging, distribution should be safe but it could be cut for their financial stability. This could give a buying opportunity.
HOLD
Has one of the longest reserve lives of royalty trusts. Gas weighted so distribution is potentially at risk, especially if he is right and gas prices stay down for 1 or 2 years. No balance sheet issues. Could be acquired.
PAST TOP PICK
(A Top Pick June 4/08. Down 38.51%.) Sold this last fall. Major gas play. Have grown their reserves through the drill bit. Possibility of distributions being cut.
SELL
Very gas weighted. Originally it was very much of a growth story and people were paying for growth. Their operation is tight gas giving very high initial production rate but very steep declines. Need a lot of capital to fund their growth so are a little bit stretched on the balance sheet. Well hedged through 2009 so we should be able to maintain distributions if gas prices improve. Good quality assets. Consider selling and coming back in at a lower level.
DON'T BUY
This is a gas play. Great divergence of opinion on whether this is where you want to be positioned. Could cut the distribution to protect capital. 2-3 years oil and gas have nowhere to go but up.
DON'T BUY
Primarily natural gas, which is not his favourite commodity. Concerns about their debt levels.
BUY
(Market Call Minute.) Have a good level of leverage.
DON'T BUY
(Market Call Minute.) Her outlook on gas is unfavourable and is going to be quite weak for the rest of 2009. Would prefer and oilier name.
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