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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Similar
TOU
DON'T BUY
(Market Call Minute.) Debt levels are too high.
DON'T BUY
Yield of about 17.5%, which is telling you that it is somewhat chancy. Despite forecasts of reductions in cash for distribution, it is still running ahead of the $1.80 so there is a bit of a cushion. Thinks there are others that are more attractive.
BUY
(Market Call Minute.) 20 years reserve life. Great asset for any oil sands miner looking to have a stable source of natural gas.
BUY
In terms of gas exposure, distributions and payout ratio is one of the best out there. When they convert into a regular company in 2011, he thinks they will get back on track. 10.6% yield.
COMMENT
Mainly a gas producer. Had a dramatic growth rate in the early years. Low debt level. There are other trusts that are more attractive. Not a bad place to be.
BUY
Yield is not that great but on the other hand, with the tax pools they have, you are not looking at taxes any time soon.
TOP PICK
Natural gas. Have touched only 25% of their undeveloped acreage. Grow reserves from drill bit rather than acquisition. Tax pools probably keep them out of a taxable position until 2014/2015. Looking for distributions to increase. Capital gain will only be 4% or 5% and the rest of it will be distributions.
COMMENT
Remains one of his favourite trusts because they develop their own reserves through the drill bit. Have accumulated massive amounts of land and will be able to keep production up.
HOLD
(Market Call Minute.) One of the better names generally, but still not in a sweet spot in terms of a royalty trust.
COMMENT
Very focused on natural gas. Has a wonderful asset in the western basin. In the current natural gas pricing market, many of these trusts are pulling back on new Cap X they are willing to spend.
HOLD
He has confidence in the gas story playing out in the longer term. Natural gas did not have a good year last year and this year is a bit better. Yields around 10%. Payout ratio is around 70%.
SELL
DON'T BUY
This company does not pass his financial tests, so it is too weak for him to buy.
HOLD
Has been hit pretty hard because it is pretty highly levered to natural gas. Have cut back on their capital expenditure programs, which cuts into their production. Well run.
HOLD
Gas weighted trust and feels you will eventually be rewarded by holding on. Commodities have had a positive run in the last week or so and feel that this will continue.
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