Business
Peyto Reports Strong Fourth Quarter and 2024 Annual Results
CALGARY, Alberta, March 11, 2025 (GLOBE NEWSWIRE) -- Peyto Exploration & Development Corp. ("...
About this update from Peyto Exploration & Development Corp.
[{"type":"text","content":"Peyto Reports Strong Fourth Quarter and 2024 Annual Results \n\n\n\n CALGARY, Alberta, March 11, 2025 (GLOBE NEWSWIRE) -- Peyto Exploration & Development Corp. (\"Peyto\" or the \"Company\") is pleased to report operating and financial results for the fourth quarter and 2024 fiscal year, and senior management additions.\n \n\n\n Full Year and Q4 2024 Highlights:\n \n\n\n\n Delivered $199.0 million in funds from operations\n \n 1\n \n\n ,\n \n\n 2\n \n (\"FFO\"), or $1.00/diluted share, and $79.6 million of free funds flow\n \n 3\n \n in the quarter. Annual FFO totaled $712.8 million or $3.62/diluted share, and annual free funds flow totaled $246.7 million.\n \n\n Annual capital expenditures\n \n 4\n \n of $457.6 million resulted in record production of 136 Mboe/d (720.7 MMcf/d gas, 15,708 bbl/d NGLs) in December, yielding a trailing 12-month capital efficiency\n \n 5\n \n of $9,700 boe/d. Peyto booked a record 6.0 Bcfe of Proved Developed Producing (\"PDP\") reserves per well in 2024, up 40% from 2023. Peyto delivered a 66% annual operating margin\n \n\n 6\n \n\n and a 24% annual profit margin\n \n 7\n \n , resulting in a 9% return on capital employed\n \n 8\n \n (\"ROCE\") and a 10% return on equity\n \n 8\n \n (\"ROE\"), on a trailing 12-month basis.\n \n\n The Company's disciplined hedging and diversification program in 2024 protected revenues from the sharp decline in benchmark natural gas prices. The 2024 average price for the AECO daily benchmark sunk to an annual average of $1.38/GJ, yet Peyto realized an average price of approximately $2.89/GJ ($3.32/Mcf). The Company exited 2024 with a strong hedge position, which currently protects approximately 480 MMcf/d and 366 MMcf/d of natural gas production for 2025 and 2026, respectively, at prices greater than $4/Mcf. Peyto’s hedging and diversification program protects future revenues for the sustainability of the Company's dividends, capital program, and debt repayment. Additionally, this program minimizes the impacts of potential US tariffs.\n \n\n Peyto generated earnings of $78.2 million, or $0.39/diluted share, in the quarter and $280.6 million, or $1.42/diluted share, in 2024. Approximately 92% of earnings, or a record $258.4 million ($1.32/share) of dividends were returned to shareholders in 2024. Since inception, Peyto has returned over $3 billion of dividen...