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Peyto Reports First Quarter 2025 Results
CALGARY, Alberta, May 13, 2025 (GLOBE NEWSWIRE) -- Peyto Exploration & Development Corp. (TSX...
About this update from Peyto Exploration & Development Corp.
[{"type":"text","content":"Peyto Reports First Quarter 2025 Results\n\n\n\n CALGARY, Alberta, May 13, 2025 (GLOBE NEWSWIRE) -- Peyto Exploration & Development Corp. (TSX: PEY) (\"Peyto\" or the \"Company\") is pleased to report operating and financial results for the first quarter of 2025.\n \n\n\n Q1 2025 Highlights:\n \n\n\n\n Peyto reported $225.2 million in funds from operations\n \n 1\n \n\n ,\n \n\n 2\n \n (\"FFO\"), or $1.12/diluted share, and generated $120.2 million of free funds flow\n \n 3\n \n in the quarter.  Strong FFO was driven by a realized natural gas price after hedging of $4.17/Mcf, 89% higher than the AECO 7A monthly benchmark, and the Company’s industry-leading low cash costs\n \n 4\n \n .\n \n\n Earnings for the quarter totaled $114.1 million, or $0.57/diluted share, and Peyto returned $65.7 million as dividends to shareholders.\n \n\n Net debt\n \n 5\n \n was reduced by $65.7 million from December 31, 2024 to $1.28 billion at the end of the quarter.\n \n\n First quarter production volumes averaged 133,883 boe/d (710.5 MMcf/d of natural gas, 15,473 bbls/d of NGLs), a 7% increase year over year (5% on a per share basis), driven by strong well results from the Company's capital program.\n \n\n Recorded $50.8 million in realized hedging gains and exited the quarter with a hedge position protecting approximately 489 MMcf/d and 406 MMcf/d of natural gas production for Q2–Q4 2025 and 2026, respectively, at approximately $4/Mcf. Peyto’s natural gas and liquid hedging has secured approximately $875 million of revenue for 2025 and $605 million for 2026.\n \n\n Cash costs totaled $1.42/Mcfe for the quarter, including royalties of $0.25/Mcfe, operating expense of $0.53/Mcfe, transportation of $0.29/Mcfe, G&A of $0.06/Mcfe and interest expense of $0.29/Mcfe. Peyto continues to have the lowest cash costs of Canadian producers in the oil and natural gas industry.\n \n\n Total capital expenditures\n \n 6\n \n of $102.1 million in the quarter.  Peyto drilled 19 wells (18.2 net), completed 13 wells (13.0 net), and brought 14 wells (14.0 net) on production.\n \n\n Peyto delivered a solid operating margin\n \n 7\n \n of 71% and profit margin\n \n 8\n \n of 32%, resulting in a 10% return on capital employed\n \n 9\n \n (\"ROCE\") and an 11% return on equity\n \n 9\n \n (\"ROE\"), on a trailing 12-month basis....