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
DON'T BUY
Has owned some very good property, particularly in the Sundance region in Alberta. Will be a tougher go for them to replicate that. They are right up against where they stand on their bank lines. It will be difficult now to raise new equity.
BUY
Anything to do with natural gas has been in a bit of a bear market. Starting to recover. Has grown, on a per-unit basis, the greatest over the last 5 years. 70%-80% natural gas. 16 year reserve life index.
HOLD
Getting a decent yield and you have one or two years before there is a big whacking cut. Very long reserve life. Hold, but if you want to sell wait until winter and sell into strength. See how things go.
DON'T BUY
If we have a warm winter, gas prices will collapse. Has a great long-term track record. Pound for pound, dollar for dollar, you can get better value in corporations.
BUY
Tarred with the “income trust” brush and low gas price. Has a low payout ratio, so distributions are less at risk than some others. Good balance sheet.
DON'T BUY
Not a favourite. Prefers Suncor (SU-T) which has the right mix of assets.
BUY
An excellent gas play. Has done a good job of developing their gas plays in the Western sedimentary basin. 7.5% yield. Low distribution ratio.
BUY
Natural gas focused. Gas prices have been firming up in the last little while. Long reserve life index. High quality assets. Good value here.
SELL
Undergone a big change. Has been a very steady, growing trust. Got to a point in their asset base where they are unable to continue to grow production/cash distributions. One of the highest payout ratios out there which may have to be adjusted.
BUY
Pretty volatile. Have always kept their payout ratio pretty low and rolled the money back into exploration. Relatively low yield, but more potential growth.
PAST TOP PICK
(A Top Pick June 2/06. Down 10%%.) Very gas weighted. Has held in versus some of the more levered gas names. Reserve life of about 17 years and a payout ratio of about 50%-60%.
BUY
They have a good quality base with the longest reserve life. They pay out 50% of their cash flow. Management has been shaken up but he believes it has provided an opportunity.
PAST TOP PICK
(A Top Pick Jun 2/06. Down 7.9%.) Management change so wait before buying and buy on weakness.
BUY ON WEAKNESS
Thinks it will have to continue to spend a lot of money on its production. 100% natural gas, so buy on weakness over the next couple of months. Good performer, but will not do as well as it used to.
BUY
Great production increases. Seem to be back in sync again. Yield, at 7.5%, is too low for him. An aggressive company with a lot of drilling prospects and a lot of land. Have been very effective in getting their production up.
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