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
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.
WEAK BUY
Has had a good run and are looking at scaling back a little. If you are looking to buy, you have to look at this as an exploration company rather than an income trust. The yield is below 5%. Great potential on their lands. Speculation on future developments.
BUY
Have some of the best financial numbers in the industry. Some of the lowest cost numbers, lowest payout ratio numbers, lowest F&D costs. Very well run operation.
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