TSE:PEY

Peyto Exploration & Develop. (PEY.TO)

24.32
+0.03 (0.12%)
as of Jun 26, 2026, 7:59:59 pm Market Open.
315 watching
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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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Similar
TOU
HOLD
As we enter the 4th quarter, he sees a lot of the oil/gas trusts for a shorter term trade giving out special distributions.
TRADE
More of a growth oil/gas company. Holding back a large proportion of cash for reinvestment in organic growth rather than acquisitions. Keeps their costs low. Has always traded at a significant premium to its peers.
BUY
For pure gas income trust plays, prefers TKE Energy Trust (TKE.UN-T), Progress Energy (PGX.UN-T), Thunder Energy (THY.UN-T) and Peyto (PEY.UN-T). In the producer area Storm Exploration (SEO-T) because it was incredibly cheap at $4.60. Would sell when it gets near $7.
BUY ON WEAKNESS
He's schizophrenic on this one. He's a value investor and is concerned when he has to spend too much on production and reserves, but they continually deliver. They have identified tight gas as a theme.
DON'T BUY
An extraordinary company. Market is pricing in future growth expectations and so doesn't know where to put a price on it any more. If natural gas goes up, this will trade with that. Seems to be a lot of natural gas available for this winter short term and this is priced into it.
BUY
A very low cost producer. It does spend a lot. It does grow its production every year though. Because of growth its been able to grow its trading price and net asset value on a pretty consistant basis.
TOP PICK
Low payout ratio at 46%. Added about 25% reserves last year. Very disciplined in terms of finances. Manageemnt owns 21%.
TOP PICK
The best royalty trust performer in the last 3 years. Will continue to grow at 25% for the forseeable future. Has the longest reserve life. Low operating costs. Not expensive compared to other royalty trusts. About 7.5 X next year's cash flow.
TRADE
An unusual trust. Low yield of about 4/4.5%. Recently increased its distribution. A growth trust. Redeploys 60% of its cash flow into capital expenditures. His concern is that it doesn't have a large land position.
BUY
A very unique formula. Some of its numbers are pretty spectacular in its growth. Management has a significant interest in the company. Spends a large amount of capital on their property in the Sundance area.
BUY
Prefers companies that are growing by internal growth, such as this one and Arc Energy (AET.UN-T), Ketch (KER.UN-T), Bonavista (BNP.UN-T), Focus (FET.UN-T). They pay out less of their cash flow in order to keep and grow their reserve life.
BUY
Cream of the crop of the royalty trust area. The only one that's actually growing its production per unit, probably about 30% over the next year. Lowest finding and development costs. Low payout ratio. Has management ownership.
BUY
Long term believer in Don Gray. Gets most of its reserves through the drill bit. Has an 18 year reserve life. Most of their production has been coming from one area. As they branch out, their profitability will not be as good, so there will be a decline.
BUY
Cream of the crop in royalty trusts. Lowest finding and development costs. Highest reserve life. High management ownership. Growing production per unit which is pretty rare.
HOLD
Great performance. Expensive. Great mgmt. Hold and take profits off and reinvest in other companies.
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