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
BUY ON WEAKNESS
A great royalty trust. Had phenomenal returns. Has the highest reserve life of a conventional royalty trust. Low payout ratio. Gas weighted so during these times of low gas prices, it may trade down to the $25/26 level which would be a good time to pick some up.
BUY
One of his top gas-weighted names. Has a very high reserve life index. Anything below $25 is a steal.
BUY
The gas exposure that they have has been partially responsible for its pullback. If you are a longer term investor, you should definitely hold. They have excellent properties and good production possibilities going forward.
HOLD
It is an oil and gas producer, heavy gas exposure. In the long term it should do fine. Hold if you own. Buying depends on your personal circumstances. The expert's company is assessing this trust to see if they want to buy or not.
BUY
Natural gas focused trust and has suffered a drop in price because of this. Also, their growth profile modified somewhat in 2005.
BUY
Has been a spectacular success story. Grew through the drill bit. That to such a size that it couldn't sustain the growth. Is now at a good entry point.
TOP PICK
Good track record. Gas focus trust at 80% of natural gas production. Since changing to trust in 2003 they have gone from 13,000 b.o.e. per day to 23,000 b.o.e. per day.
BUY ON WEAKNESS
This is a hybrid trust that only pays out about 40% with a mid-single digit yield, but what you get is better growth. Gas focused. This is one you would want to buy on weakness. A good name.
WEAK BUY
Has not been his favourite income trust because he tends to buy his trusts for yield and this one is only around 6%.
SELL
A low yielding growth trust. Believes the growth rate is slowing down and they sold their holdings.
BUY
Has a distribution of around $2. Outside of an RRSP it makes no sense to sell. Would buy this, and any other gas oriented trust. Have run into a production glitch because they have done all the production from zones they know and it will become progressively tougher to go into different formations. Won't be as profitable as it has been in the past.
BUY
Has been one of the biggest successes in the Royalty Trust sector. They did a fantastic job of growing internally. Had a tremendous growth rate in 2004 so it was normal for a slower pace in 2005. The recent price weakness is an opportunity to buy more.
BUY
79% gas production. Long reserve life. A good debt to cash flow position. Has the ability to increase production per unit. Great exploration potential.
BUY
The yield is under 8% and given his risk/reward parameters, it doesn’t fit his criteria, so not buying more at this time. A great company.
PAST TOP PICK
(A Top Pick June 3/05. No change but has had distributions.) Still likes. Low payout ratio so has a sustainable model. Has a very long reserve life index.
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