TSE:PEY

Peyto Exploration & Develop. (PEY.TO)

24.47
+0.15 (0.62%)
as of Jun 29, 2026, 1:31:19 pm Market Open.
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Investor Insights
star iconJun 28, 2026, 12:00 am

This summary was created by AI, based on 15 opinions in the last 12 months.

Peyto Exploration & Development (symbol: PEY-T) is viewed positively by various experts, particularly in the context of natural gas investments. Many analysts appreciate its solid operational track record and commend management for effective acquisitions and a strong dividend yield, which is currently around 5.5% to 7%. There is a consensus that while the stock may experience short-term volatility due to natural gas price trends, the long-term outlook remains favorable, especially if political constraints on Canadian energy resources ease. As natural gas is considered a critical transitional fuel, many view the company as well-positioned for growth in the next few years, with analysts’ price targets suggesting considerable upside potential. However, opinions vary regarding whether to buy now or wait for a better entry point, with some experts suggesting caution due to potential overvaluation at current levels.

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Consensus
Positive
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Valuation
Fair Value
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TOU
HOLD
Has an extremely high quality asset base. Been struggling with above normal decline rates on 3 wells that affected its growth rate. That is behind them and production has stabilized. Valuation is fair. He is negative on gas until the end of Jan-Feb, but becoming very bullish on it for 2008.
PAST TOP PICK
(A Top Pick April 26/06. Down 36.1%.) Still likes. Will be one that will easily convert back to a corporation.
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.
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