Canadian E&P Peyto posts Q4, 2021 turnaround
Robust commodity prices throughout 2021 contributed to a significant turnaround for Canadian Deep Basin producer Peyto Exploration & Development, it said March 10, with funds from operations rising 120% year-over-year and 2021 ending with net earnings of C$152.2mn (US$119mn), reversing a C$35.5mn net loss in 2020.
Funds from operations for the year increased to C$469.7mn from C$212.7mn in 2020, and in Q4 2021 rose to C$166.2mn from C$76mn in the comparable 2020 period. Fourth quarter earnings rose 9%, to C$71.7mn.
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The company spent C$246mn to drill 85.6 net wells and complete 77 net wells in 2021. Its capital program for 2022 is budgeted at C$350-C$400mn, funding a drilling program that will see five rigs running steadily through the year.
Natural gas production for the year was 16% higher, at 476.4mn ft3/day versus 409.6mn ft3/day in 2020, and in Q4 was 19% higher, at 517.6mn ft3/day. Overall production in 2021 averaged 546.3mn ft3/day-equivalent, an increase of 14%, as liquids production rose slightly, to 11,653 b/d from 11,308 b/d.
Realised natural gas prices were 62% higher on the year and 63% higher in Q4, Peyto said, reflecting a diverse marketing strategy that uses several North American gas hubs and both physical fixed prices and basis transactions.