Peyto Exploration & Develop. (PEY-T)

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. 

Investing is about yield and capital appreciation, not one or the other. Not expensive, but not cheap. Has no edge, nothing to make him think the business will be better in a few years. You're guessing on commodity prices, and that's not his game.

Likes it for the dividend. Stock's done well. Grinding down costs. Hedged next 2 years of nat gas at very strong pricing. He's bullish on nat gas. Yield is 9%, very sustainable going forward for income. If adventurous, you can write calls.

He owns it for the yield and a juicy call premium. Really strong hedge position, protecting them through this period of weakness. Leverage to nat gas in 2025-26. Very strong balance sheet. Minimal upside potential of 10-15%. Yield is 9.1%, sustainable.

A high, safe dividend. Shares have been sideways, but it's historically traded cheaply

Long term - is bullish natural gas (better than coal for carbon). Commodity linked company can present risk in terms of investing. Would buy if at the bottom of natural gas cycle. Divided yield can also be risky with low natural gas prices. Would recommend a small position if interested. 

Dividend of 12% is safe and managers are great. They're making capital investments to sustain production. Shares have been effected by weakness in natural gas prices.

You get growth. Dividend is 10.1%, yet has excess cashflow after that. He also sells calls on it. Doesn't see capital appreciation. Uses it as an attractive income vehicle.

The new gas line will bring 2 billion cubic feet of LNG to the coast but they won't see the impact of the new pipeline until 2025. This makes for a good future. The dividend of 9% relies on the underlying commodity prices for the company so therefore the stock price can be volatile.

Owns shares in income fund. Dividend is very safe at ~9%. Recent M&A good for business. Getting more interested in natural gas stocks given LNG future in Canada. Strong management team. Great stock for dividend investors. 

PEY has a solid balance sheet and a long history of growth. It has seen many cycles already, and was one of the first companies to convert into an income trust way back (which did benefit shareholders). It trades at only 7X earnings and barely 4X cash flow. The dividend is attractive and was more than doubled late last year. It is not guaranteed of course but is well-covered by cash flow. Payout ratio is 21%. We like management and its leverage to gas prices is very high. Some fault it because of its hedge program on prices, but of course this does also reduce risk of price volatility.
Unlock Premium - Try 5i Free