Peyto Exploration & Develop. (PEY.TO)

Doesn't own now, but no qualms about taking a position, given the constructive view on natural gas. 

A somewhat smaller producer of nat gas, with ~$4.5B market cap. Operates in Western Canada, but in the Deep Basin. Produces close to 90% natural gas, so almost a pure play. Production has grown ~4% compounded pace over the last decade. Company has had ups and downs; enjoying an "up" now. Had to cut dividend 3 times (2018, 2019, and 2020), cumulatively 95%. Incredibly, under new management it's grown all the way back. 

Keeps costs low. Diversifying end markets away from low price points. Catalysts on horizon for whole nat gas sector -- LNG Canada plus "major projects". Yield now ~5.9%.

His preferred exposure to nat gas is via TOU. 

Believes it has 20 years of booked drilling inventory, with another 20 years unbooked. So roughly 40 years of stay-flat inventory. Recently bought extremely good assets for a song. As it continues to de-lever, sees increase in dividend by 20-25% around second half of next year. Yield is 5.88%, quite attractive. 

EPS of 45c beat estimates of 43 cents; revenue of $310.2M beat estimates of $299.8M. EBITDA of $231.8M matched estimates. Sales rose 19%. Production rose 8.1%. Capital budget for 2026 is $450M to $500M. Cash costs were good at $1.21/Mcfe. Debt fell $20.5M. We are comfortable with these numbers.
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Good chart, nothing negative to say. Solid upward trend developing. Natural gas does well this time of year. Seeing more demand for nat gas. Nuclear's great but we need to get there, and natural gas is the way.

Yield is 7%, really attractive. But does mostly dry gas, and gas prices have come off quite a bit. Voluntarily shuttering production and waiting for nat gas prices to go higher. Nothing wrong with the company or management, but see her Top Picks.

If you're looking for something in O&G that's a bit safer with a really nice dividend. It's hedged out to 2026.

Has good exposure to nat gas; he's a nat gas bull. They bought a fine company last year just as they smartly hedged natural gas. So, there's upside ahead. Pays a sustainable 6.9% dividend yield, which he expects to rise in June 2026 possibly to 8%.

Great company and dividend. Rather risky, riskier than GEI. Q4 was in line, operating costs down 8%, production up. 2025 calls for 6% production growth. A 10% tariff is, really, peanuts. Will be helped by better decisions in building out Canadian infrastructure.

EPS of 39c slightly beat estimates; revenue of $310M was 1% short of estimates. EBITDA of $502M was much higher than expected. Capex is still seen at $450M to $500M. Production of 133,426 b/d beat estimates of 132,943 b/d. Production rose 11%. Consensus calls for very good growth in 2025 as natural gas prices have already improved nicely. We are comfortable with the numbers and the stock remains very cheap.
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Still likes it. Juniors are cheap, good value. If things really get going, it'll do well. If things don't get going, not too much bad will happen as it's cheap.

Will benefit along with others from LNG Canada. But it's dry gas, so not as much optionality. Lowest-cost producer around. Has no issues with the name, but depends what you're looking for. Other names she likes more.

She owns ARX, which is more wet gas. You get the NGL plus the condensate. Long reserve life of assets.

Pays a dividend of 8.1%, good for income. While energy stocks have been sideways this year, Peyto moved up. A great chart, and a leader in energy.

He's bullish on nat gas, with the proviso that it depends on the weather (always the Achilles heel). Lots of positives:  AI, data centres, US doubling LNG export capacity between now and 2030. Really good acquisition recently -- a natural fit, bringing down costs, hedged price of nat gas. 

Trades at material discount to US peers. Several decades of inventory. Not as torquey as other names. Yield is 7.8%, happy to earn in his income fund and write calls on it.

Believes company has room for price appreciation. Weak natural gas prices have put pressure on share price. Hedged into 2026/27. Believes dividend is safe. Balance sheet is strong. Would recommend holding. If natural gas prices rise - share price will head upwards. Good management team. 

Owns shares in income fund. Good dividend yield at ~9%. Believes dividend is safe. Hedging strategy very strong. Even with low natural gas prices, company will be ok. Trades at premium, but good for income oriented investors.