Peyto Exploration & Develop. (PEY-T)

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.
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Buying shares recently.
Strong company with good dividend.
Expecting higher natural gas prices.
Hedging allows for safety on dividend.
Excellent management team.

If we stay at the current gas price for the next year, dividend is not sustainable. PEY has a good hedge position, and they're actually getting good gas pricing, so it has a buffer. He owns it in an income fund, making about 18% after selling calls. Not in his main fund, as all he wants to own is Canadian heavy oil.

Yields 11.6%. Not for the feint of heart. A dryer gas player. Medium-term this looks good, and it's a good way to play western Canadian gas. Buy a partial position, but expect some rough days short-term as you collect that 11.6%.