Canada’s Peyto reports lower Q3 earnings
Canadian Deep Basin producer Peyto Exploration & Development said November 8 its Q3 2023 earnings and funds from operations both fell from a year ago, reflecting sharply lower commodity prices, but said these declines were softened by realised natural gas hedging gains of C$36mn (US$26.1mn).
Earnings for the period fell to C$57.4mn from C$84.9mn in the comparable 2022 period, while funds from operations declined to C$147.98mn from C$197.39mn. Through nine months this year, Peyto had earnings of C$205mn and returned 85%, or C$175mn, to shareholders as dividends.
Peyto’s average realised natural gas price in the quarter was C$2.90/GJ, 18% higher than the average AECO daily price of C$2.46/GJ.
Natural gas production averaged 520.5mn ft3/day in Q3 2023, down from 544.8mn ft3/day a year ago as Peyto reduced capital expenditures in response to the sharp decline in natural gas prices in early 2023. Natural gas liquids production slipped to 11,231 barrels/day from 13,263 barrels/day.
Alongside its Q3 results, Peyto marked its 25th anniversary in October. Over those 25 years, it has invested C$7.6bn into developing Alberta’s natural gas resources, contributed C$1bn to provincial royalty coffers and generated C$3.3bn in earnings, returning C$2.8bn of that to shareholders.
It also noted the pending retirement, effective March 31, 2024, of Kathy Turgeon as its CFO. She started with Peyto as controller in 2004 before being appointed vice president of finance in 2006 and CFO in 2008. Tavis Carlson, vice president of finance since joining Peyto in 2022, will take over as CFO on April 1, 2024.
Peyto is also promoting Riley Frame, vice president of engineering, to the position of COO effective January 1, 2024.