TSX:PEY

Stock Analysis Report

Peyto Exploration & Development

Executive Summary

Peyto Exploration & Development Corp., an energy company, engages in the exploration, development, and production of oil and natural gas, and natural gas liquids in Deep Basin, Alberta.

Snowflake

Fundamentals

Undervalued average dividend payer.

Risks

  • Peyto Exploration & Development has significant price volatility in the past 3 months.

Share Price & News

How has Peyto Exploration & Development's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0.9%

TSX:PEY

-1.5%

CA Oil and Gas

-0.9%

CA Market


1 Year Return

-70.1%

TSX:PEY

-23.9%

CA Oil and Gas

-6.1%

CA Market

PEY underperformed the Oil and Gas industry which returned -23.9% over the past year.

PEY underperformed the Market in Canada which returned -6.1% over the past year.


Share holder returns

PEYIndustryMarket
7 Day0.9%-1.5%-0.9%
30 Day-14.6%-7.0%-3.9%
90 Day-37.1%-11.3%-2.9%
1 Year-68.4%-70.1%-20.6%-23.9%-2.8%-6.1%
3 Year-90.1%-91.7%-15.4%-23.8%13.2%3.1%
5 Year-89.3%-91.7%-36.7%-45.8%10.8%-4.7%

Price Volatility Vs. Market

How volatile is Peyto Exploration & Development's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Peyto Exploration & Development undervalued based on future cash flows and its price relative to the stock market?

47%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Peyto Exploration & Development's share price is below the future cash flow value, and at a moderate discount (> 20%).

Peyto Exploration & Development's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Peyto Exploration & Development is good value based on earnings compared to the CA Oil and Gas industry average.

Peyto Exploration & Development is good value based on earnings compared to the Canada market.


Price Based on Expected Growth

Peyto Exploration & Development earnings are not expected to grow next year, we can't assess if its growth is good value.


Price Based on Value of Assets

Peyto Exploration & Development is good value based on assets compared to the CA Oil and Gas industry average.


Next Steps

Future Growth

How is Peyto Exploration & Development expected to perform in the next 1 to 3 years based on estimates from 3 analysts?

-120.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Peyto Exploration & Development's revenue is expected to grow by 9.3% yearly, however this is not considered high growth (20% yearly).

Peyto Exploration & Development's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

Peyto Exploration & Development's revenue growth is expected to exceed the Canada market average.

Peyto Exploration & Development's earnings are expected to decrease over the next 1-3 years, this is below the Canada market average.

Peyto Exploration & Development's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 1.9%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Peyto Exploration & Development will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Peyto Exploration & Development performed over the past 5 years?

-8.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Peyto Exploration & Development's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.

Peyto Exploration & Development's 1-year earnings growth exceeds its 5-year average (0.1% vs -8.6%)

Peyto Exploration & Development's earnings growth has not exceeded the CA Oil and Gas industry average in the past year (0.1% vs 58.1%).


Return on Equity

Peyto Exploration & Development has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Peyto Exploration & Development used its assets more efficiently than the CA Oil and Gas industry average last year based on Return on Assets.


Return on Capital Employed

Peyto Exploration & Development's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Peyto Exploration & Development's financial position?


Financial Position Analysis

Peyto Exploration & Development is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Peyto Exploration & Development's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Peyto Exploration & Development's level of debt (65.9%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (59.3% vs 65.9% today).

Debt is well covered by operating cash flow (35%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 3.3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.1x debt.


Next Steps

Dividend

What is Peyto Exploration & Development's current dividend yield, its reliability and sustainability?

7.33%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase Peyto Exploration & Development before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

Peyto Exploration & Development's pays a higher dividend yield than the bottom 25% of dividend payers in Canada (2.03%).

Peyto Exploration & Development's dividend is above the markets top 25% of dividend payers in Canada (5.93%).

Peyto Exploration & Development has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).

Peyto Exploration & Development has only been paying a dividend for 9 years, and since then dividends per share have fallen.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.2x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (3.7x coverage).


Next Steps

Management

What is the CEO of Peyto Exploration & Development's salary, the management and board of directors tenure and is there insider trading?

8.2yrs

Average management tenure


CEO

Darren Gee (51yo)

12.6yrs

Tenure

CA$2,247,650

Compensation

Mr. Darren Gee has been the Chief Executive Officer of Peyto Exploration & Development Corp since January 1, 2007 and has been its President since August 2006. Mr. Gee served as Chief Executive Officer and ...


CEO Compensation Analysis

Darren's remuneration is higher than average for companies of similar size in Canada.

Darren's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

8.2yrs

Average Tenure

52yo

Average Age

The average tenure for the Peyto Exploration & Development management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

10.6yrs

Average Tenure

53yo

Average Age

The average tenure for the Peyto Exploration & Development board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

Peyto Exploration & Development individual insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

SellCA$40,32716 Aug 19
Darren Gee
EntityIndividual
Role
Chief Executive Officer
president
Shares12,590
Max PriceCA$3.21
SellCA$66,98026 Jun 19
Michael MacBean
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares17,000
Max PriceCA$3.94
BuyCA$66,98026 Jun 19
Michael MacBean
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares17,000
Max PriceCA$3.94
SellCA$195,10014 Jun 19
Stephen Chetner
EntityIndividual
Role
Secretary
Corporate Secretary
Shares50,000
Max PriceCA$3.90
BuyCA$102,40028 May 19
John Rossall
EntityIndividual
Role
Member of the Board of Directors
Director
Shares20,000
Max PriceCA$5.12
BuyCA$64,40005 Apr 19
Kathy Turgeon
EntityIndividual
Role
Member of the Board of Directors
VP of Finance
Shares10,000
Max PriceCA$6.44
BuyCA$65,20822 Mar 19
Jean-Paul Lachance
EntityIndividual
Role
Chief Operating Officer
VP of Engineering & COO
Shares8,800
Max PriceCA$7.41
SellCA$151,20008 Jan 19
Scott Robinson
EntityIndividual
Shares20,000
Max PriceCA$7.56
SellCA$69,00028 Dec 18
Scott Robinson
EntityIndividual
Shares10,000
Max PriceCA$6.90
SellCA$374,00011 Dec 18
Scott Robinson
EntityIndividual
Shares40,000
Max PriceCA$9.35
SellCA$406,08003 Dec 18
Darren Gee
EntityIndividual
Role
Chief Executive Officer
president
Shares40,000
Max PriceCA$10.15
SellCA$231,70921 Nov 18
Kathy Turgeon
EntityIndividual
Role
Member of the Board of Directors
VP of Finance
Shares20,000
Max PriceCA$11.62
SellCA$242,60010 Oct 18
Michael MacBean
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares20,000
Max PriceCA$12.13
BuyCA$242,60010 Oct 18
Michael MacBean
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares20,000
Max PriceCA$12.13
BuyCA$575,00001 Oct 18
Scott Robinson
EntityIndividual
Shares50,000
Max PriceCA$11.50
SellCA$329,58902 Sep 18
Scott Robinson
EntityIndividual
Shares30,000
Max PriceCA$10.99

Ownership Breakdown


Management Team

  • Steve Chetner (52yo)

    Corporate Secretary

    • Tenure: 19.6yrs
    • Compensation: CA$120.10k
  • Darren Gee (51yo)

    president

    • Tenure: 12.6yrs
    • Compensation: CA$2.25m
  • JP Lachance

    VP of Engineering & COO

    • Tenure: 1.5yrs
    • Compensation: CA$1.53m
  • Kathy Turgeon (57yo)

    VP of Finance

    • Tenure: 1.3yrs
    • Compensation: CA$1.12m
  • David Thomas

    Vice President of Exploration

    • Tenure: 8.8yrs
    • Compensation: CA$1.57m
  • Tim Louie

    Vice President of Land

    • Tenure: 7.6yrs
    • Compensation: CA$842.73k
  • Lee Curran

    Vice President of Drilling & Completions

    • Tenure: 4.6yrs
    • Compensation: CA$1.26m
  • Todd Burdick

    Vice President of Production

    • Tenure: 4.6yrs
    • Compensation: CA$1.03m
  • Lydia Hamaliuk

    Manager of Human Resources

    • Tenure: 0.0yrs

Board Members

  • Greg Fletcher (71yo)

    Independent Director

    • Tenure: 12.6yrs
    • Compensation: CA$98.15k
  • Don Gray (53yo)

    Independent Chairman of the Board

    • Tenure: 10.3yrs
    • Compensation: CA$135.90k
  • Darren Gee (51yo)

    president

    • Tenure: 12.6yrs
    • Compensation: CA$2.25m
  • Mick MacBean (51yo)

    Lead Independent Director

    • Tenure: 10.6yrs
    • Compensation: CA$105.70k
  • John Rossall (58yo)

    Director

    • Tenure: 0.3yrs
  • Kathy Turgeon (57yo)

    VP of Finance

    • Tenure: 1.3yrs
    • Compensation: CA$1.12m
  • Brian Davis (53yo)

    Independent Director

    • Tenure: 13.0yrs
    • Compensation: CA$98.15k

Company Information

Peyto Exploration & Development Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Peyto Exploration & Development Corp.
  • Ticker: PEY
  • Exchange: TSX
  • Founded: 1997
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: CA$529.246m
  • Shares outstanding: 164.87m
  • Website: https://www.peyto.com

Number of Employees


Location

  • Peyto Exploration & Development Corp.
  • 600 – 3rd Avenue SW
  • Suite 300
  • Calgary
  • Alberta
  • T2P 0G5
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PEYTSX (The Toronto Stock Exchange)YesCommon SharesCACADAug 2006
PXKDB (Deutsche Boerse AG)YesCommon SharesDEEURAug 2006
PEYU.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDAug 2006
PXKBST (Boerse-Stuttgart)YesCommon SharesDEEURAug 2006
0VCOLSE (London Stock Exchange)YesCommon SharesGBCADAug 2006

Biography

Peyto Exploration & Development Corp., an energy company, engages in the exploration, development, and production of oil and natural gas, and natural gas liquids in Deep Basin, Alberta. As of December 31,  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/25 00:20
End of Day Share Price2019/08/23 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.