$PEY.TO

Peyto Exploration & Development and Centrica Energy Enter 10-Year Natural Gas Supply Agreement

Peyto Exploration & Development (PEY.TO) said Tuesday it signed a long-term natural-gas supply agreement with Centrica Energy to deliver 50,000 MMBtu of natural gas per day over a 10-year period beginning in 2029.The company said deliveries will be made at TC Energy's NIT AECO hub in Alberta. The gas will be priced against the Title Transfer Facility (TTF), the benchmark for European natural-gas markets.Peyto said the agreement supports its strategy of diversifying natural-gas sales to premium demand markets and provides the company with long-term exposure.Shares of Peyto closed up $0.35 at $25.59 on the Toronto Stock Exchange.

Peyto Exploration & Development Posts 50% Jump in Q1 Earnings YoY

Peyto Exploration & Development's (PEY.TO) earnings rose 50% year over year in the first quarter as it delivered record first-quarter production volumes, the company reported late on Tuesday.Earnings were C$171.1 million, or $0.82 per share, up from $114.1 million, or $0.57 per share. The result beat the earnings per share consensus estimate of $0.80 as compiled by FactSet.Natural gas and natural gas liquids sales including realized hedging gains or losses amounted to $429.6 million, rising from $354.3 million. The result exceeded the sales consensus estimate of $403.1 million as compiled by FactSet.The company recorded $20.2 million in realized hedging gains in the first quarter.Production volumes were 147,513 barrels of oil equivalent per day, up from 133,883 boe/d. The increase was driven by Peyto's successful capital program.The company's board approved a monthly dividend of $0.12 per share starting in May for shareholders of record as of May 31 and paid on June 15. The new dividend represents a 9% increase over the current $0.11 per share dividend.Peyto is on track with its 2026 capital program, which will invest $450 million to $500 million to add 43,000 to 48,000 boe/d of new production by the end of 2026.

Earnings Flash (PEY.TO) Peyto Reported Record Q1 Earnings $171.1M, or $0.82/diluted share; 9% Dividend Increase

RBC Expects Canadian E&P Companies to Discuss Use of Free Cash Flows During Q1 Earnings Season

RBC Capital Markets on Monday said it expects Canadian oil and gas exploration and production companies to discuss the use of free cash flows amid higher crude prices during the earnings reporting season for the first quarter.RBC expects the companies to outline their near-term focus on higher buybacks and debt repayment, with capital programs to increase later this year if pricing remains robust.According to RBC, AECO natural-gas prices experienced a brief rebound during the first quarter, but have since pulled back as supplies have remained robust, keeping pace with increased demand from LNG Canada.RBC said its estimates are largely above FactSet consensus forecasts for now.The earnings season will kick off April 20 with PrairieSky Royalty (PSK.TO) reporting after market close.Price: $10.11, Change: $+0.01, Percent Change: +0.10%