Canada’s Peyto reports “strong” Q2 results
Canadian Deep Basin producer Peyto Exploration & Development said August 9 it had “strong” financial results in Q2 2023, led by a 70% operating margin, a combined 26% profit margin, and 15% return on equity.
But most other financial metrics were off sharply from a year ago, reflecting collapsing natural gas prices and stagnant demand. Earnings fell to C$57.4mn (US$42.9mn) from C$94.5mn, funds from operations declined to C$142.3mn from C$205.9mn, while free funds flow dropped to C$60mn from C$98mn.
Natural gas production averaged 526.7mn ft3/day in Q2 2023, down from 541mn ft3/day a year ago, reflecting the impact on operations of wildfires in west central Alberta.
With natural gas commodity prices falling sharply at the AECO hub in Alberta and Henry Hub in the US, Peyto’s hedging program delivered a realised gain of C$0.93/’000 ft3 in the quarter. Its average realised natural gas price, however, fell 23%, to C$3.13/’000 ft3 from C$4.08/’000 ft3 in Q2 2022.