Peyto Exploration & Development Corp. · TSX:PEY
Peyto Exploration & Development — Q4 2025 Earnings Presentation
45 slides from Peyto Exploration & Development's earnings presentation, Mar 11, 2026
Slide 1: Corporate Presentation
www.peyto.com Corporate Presentation March 2026
Slide 2: Who Is Peyto | Corporate Overview
WHO IS PEYTO | CORPORATE OVERVIEW 27-year publicly traded company focused Focused Assets exclusively on the Alberta Deep Basin ALBERTA One of Canada’s 146,000 boe/d (~12% liquids, 98% operated) Feb-26 Largest Natural Long reserve life assets (10yr PDP RLI , 28yr 2P RLI @ Gas Producers 2025YE) Deep B
Slide 3: Who Is Peyto | The Formula for Profitability
WHO IS PEYTO | THE FORMULA FOR PROFITABILITY Manage the costs we control Manage the risks we cannot control Long Term Profitability • Own and control • Disciplined, mechanistic hedging to • Consistent, less volatile returns • Industry leading cash costs smooth prices and avoid speculation in • Profi
Slide 4: Who Is Peyto | Highlights
WHO IS PEYTO | HIGHLIGHTS Highlights YE 2024 Q4 2025 YE 2025 2025 Results: Natural Gas mmcf/d 659 740 708 Grew production NGLs bbl/d 15,334 17,439 16,048 by 7%, 4% per share growth Average Production mmcfe/d 751 845 804 Average Production boe/d 125,202 140,794 134,055 20% growth in Production per mi
Slide 5: Who Is Peyto | Focused Core Areas
WHO IS PEYTO | FOCUSED CORE AREAS ✓ 1.1MM net acres of Alberta Deep Basin Lands NGTL Cutbank Alliance ✓ Own and operate 17 gas processing facilities Trans Mountain with over 1.5 bcf/d of gross processing capacity ✓ Proximal to major pipeline egress (NGTL, Alliance) Kakwa ✓ Drilled over 1,450 horizon
Slide 6: Why We Do It | Global Demand
WHY WE DO IT | GLOBAL DEMAND Demand for Natural Gas Continues Global Energy Consumption by Source (2000 – 2024) 250.0 World Total Energy Consumption by Source (1965-2024) Natural Gas CAGR = 2.2% 200.0 700 Currently 25.3% 150.0 Fossil fuels represent over 85% of Exajoules 600 the world’s energy consu
Slide 7: Why We Do It | Growing LNG Capacity
WHY WE DO IT | GROWING LNG CAPACITY Ksi Lisims F-LNG LNG export capacity across North America grew by 31% 1.6 bcf/d Pre-FID ALBERTA in 2025, the largest increase since 2019, growing demand for natural gas in NA by over 5 bcf/d. Export LNG Canada 1 2 bcf/d (2025) Iroquois capacity is expected to cont
Slide 8: Why We Do It | Power Demand
WHY WE DO IT | POWER DEMAND ✓ AESO lists 42 Data Centre / AI projects currently under review for approval in Alberta that would add 21.1 GW of power demand over time if all the projects are developed ✓ AESO has approved data centre connections for 1.2 GW to date ✓ Natural gas generation is the only
Slide 9: How We Do It | Profitable Growth
HOW WE DO IT | PROFITABLE GROWTH 2023 PEY acquires Repsol 180,000 Assets $8,000 Peyto has a long history of returning profits (earnings) to 2022 160,000 PEY acquires assets in Cumulative Earnings/Dividends (MM$) $7,000 shareholders through dividends. 2013 the GBA and builds new Chambers Plant Oldman
Slide 10: How We Do It | Deep Basin Advantage
HOW WE DO IT | DEEP BASIN ADVANTAGE Average Injected Water per Well by Formation(3), 2024 2025 YE PDP FD&A(1) ($/mcfe) 500,000 $5.00 Fit-for-purpose, nimble rigs (telescopic Better reservoir quality than other plays Water per Well(bbl/Well) doubles) decrease cycle time and lower 400,000 such as Mont
Slide 11: How We Do It | Low Costs Drive Margins
HOW WE DO IT | LOW COSTS DRIVE MARGINS At Peyto we focus on costs since they are “sticky” and drive superior margins. Peyto’s margins were even stronger than liquids-weighted producers in 2025. 2025 Cash Costs1 ($/mcfe) 2025 YE Results2 (PDP Recycle Ratio Callouts) $7.00 70% $6.00 65% 3.8x 1.0x 60%
Slide 12: How We Do It | Own and Control
HOW WE DO IT | OWN AND CONTROL Gross Raw Peyto controls 1.5 bcf/d of gross Gas Plants Gross Capacity Net Capacity Throughput processing capacity with total (MMcf/d) (MMcf/d) (MMcf/d)* utilization of 63%. This leaves plenty of 1 Edson (WI: 83%) 275 228 196 room for growth in the future without 2 Swan
Slide 13: How We Do It | Continuous Improvement
HOW WE DO IT | CONTINUOUS IMPROVEMENT Average Well Production by Spud Year Unit Drill and Complete Costs 9,000 $900 By Year By Quarter 8,000 $800 7,000 $700 $600 6,000 2025 was a repeat performance of the excellent results in 2024 $500 5,000 MCF/D $400 4,000 $300 3,000 $200 2,000 $100 1,000 $0 Year
Slide 14: How We Do It | Field Optimization
HOW WE DO IT | FIELD OPTIMIZATION Continuing to optimize our infrastructure Central Foothills Gas Gathering System (CFGGS) for cost savings, increased reliability, and revenue generation. Pipeline expansion to Added 3rd party volumes debottleneck infrastructure through the CFGGS flowing to Nosehill
Slide 15: How We Do It | Finding New Targets
HOW WE DO IT | FINDING NEW TARGETS 30,000 Falher Channel Results to Date Economics1 Units Value EUR/well bcf 7.9 25,000 DCT/well MM$ $5.1 Following up on top decile IRRs from the 2024 drilling program. IP365 boe/d 1,026 20,000 BTAX NPV10/well MM$ $10.2 IRR % 169% Mcf/d 15,000 Payout years 1.3 10,000
Slide 16: How We Do It | Bluesky
HOW WE DO IT | BLUESKY Bluesky Results Economics1 Units Value 25,000 EUR/well bcf 8.1 DCT/well MM$ $5.6MM 20,000 IP365 boe/d 1,153 BTAX NPV10/well MM$ $13.0MM 15,000 IRR % 176% Mcf/d Payout years 0.9 10,000 • Peyto acquired a drilled but uncompleted Bluesky well in 5,000 2023 Repsol acquisition • Pe
Slide 17: Peyto's Returns | Robust Results - 2025 YTD
PEYTO’S RETURNS | ROBUST RESULTS - 2025 YTD Wells On Stream to end-Dec: 2025 Drilling Program 75 gross / 71.2 net Price Deck: $3.00/GJ Flat, US$60/bbl BTAX IRR: 56.3% Includes: $1,120M/well (Facilities, Land, Seismic) >220% 220% 180% FLHR IRR = 114% WLRC IRR = 40% BLSK IRR = 176% NTKN IRR = 66% CRDM
Slide 18: Future | 2026 Focus
PEYTO’S FUTURE | 2026 FOCUS ✓ Drill ~70 – 80 Net Hz Wells 4-5 rig program contemplated using ~80% of capital budget for well-related costs Add 43,000 – 48,000 boe/d (~$10,500/boed) to offset 26%-28% base production $450M- decline ✓ Optimize Infrastructure Gathering and Plant Debottlenecking Projects
Slide 19: Peyto's Future | 2026 Drilling Species Mix
PEYTO’S FUTURE | 2026 DRILLING SPECIES MIX Peyto expects to drill 70- 80 net wells in 2026 within the Greater Sundance Area Viking two core areas. Highlights and optional drilling include: Notikewin • New prolific Sundance Falher channel Falher Wilrich • Brazeau/Chambers Cardium using latest drillin
Slide 20: Future | Undrilled Inventory
PEYTO’S FUTURE | UNDRILLED INVENTORY(1) Booked Inventory (Volume Weighted) Half-Cycle IRR by Species (Business Plan) 7% 4% $3.00/GJ AECO, US$60/bbl WTI 21% Cardium 200% Dunvegan 160% 150% Notikewin 109% 26% Falher 100% 87% 10% 79% 78% 71% 71% Wilrich 50% Bluesky 14% Other 0% 18% Falher Bluesky Notik
Slide 21: Future | Supply Cost Goals
PEYTO’S FUTURE | SUPPLY COST GOALS OPEX $0.52 2026 OPEX $0.48 $/mcfe 2021 2022 2023 2024 2025 Transport $0.30 Transport $0.30 Goals PDP G&A $0.06 G&A $0.06 FD&A(1) $0.97 $1.41 $1.21 $1.00 $0.94 $0.95 Interest $0.19 Interest $0.25 Cash Controllable $1.13 Controllable $1.03 Costs(1) $1.25 $1.62 $1.42
Slide 22: Past | Peyto's Future
PEYTO’S PAST | PEYTO’S FUTURE 180,000 Modest production growth (5-10%/year) $8.00 160,000 increases the value of our assets, generates $7.00 enough free cash flow to fund the capital 140,000 program, pay dividends, and reduce debt. $6.00 120,000 $5.00 Price ($/GJ) WI BOE/D 100,000 $4.00 80,000 $3.00
Slide 23: Future | Room to Grow
PEYTO’S FUTURE | ROOM TO GROW 1,400 Peyto has ample processing capacity 1,200 and firm transportation to support growth plans of 5% - 10% per year 1,000 over the next several years. Net Sales Gas Rate (Mcf/d) 800 600 400 200 - Oct-21 Oct-20 Oct-22 Oct-23 Oct-24 Oct-25 Oct-26 Oct-27 Oct-28 Jan-26 Jul
Slide 24: Marketing
PEYTO’S MARKETING Gas Hedging and Diversification Strategy Moderates Volatility Gas Price(1) ($/mcf) $10.00 Emerson 2 Dawn/Parkway $8.00 Edmonton 2026 GJ/d 28,275 2026 GJ/d 81,652 2027 GJ/d 68,348 Cascade Power 2027 GJ/d 81,652 $6.00 Calgary Trasport CA/GJ $0.56 Transport CA/GJ $1.15 2026 GJ/d 60,00
Slide 25: Gas Marketing | Realized Prices
GAS MARKETING| REALIZED PRICES Peyto embarked upon a diversification strategy ~5 years ago. This has complimented our hedging program to yield superior prices over AECO. Natural Gas Price 4.50 4.05 4.17 3.87 4.01 4.00 3.53 3.57 3.13 3.33 3.43 0.83 0.76 3.50 0.83 1.59 2.87 2.95 0.75 3.00 0.93 0.76 0.
Slide 26: Gas Marketing
GAS MARKETING Future Market Diversification and Gas Price Protection 490 MMcf/d fixed at $4.14/Mcf for 2026 Peyto has used financial basis and physical transportation 248 MMcf/d fixed at $3.53/Mcf for 2027 agreements between AECO and other hubs to gain market Total fixed-price volume represent 3% of
Slide 27: Gas Marketing - Fixed Price Gas Contracts
GAS MARKETING Peyto uses a dollar cost averaging approach to smooth out Fixed Price Gas Contracts the volatility in future prices by forward selling smaller blocks of production. Fixed price swaps give price certainty. Prices do not include deductions for Fuel (~2%). USD contracts converted at 1.365
Slide 28: Gas Marketing - Floating Price Gas Contracts
GAS MARKETING Peyto has exposure to natural gas price upside with its Floating Price Gas Contracts diversification to premium markets in the US mid-west, Ontario, California, and its Cascade Power contract. • Henry Hub, Malin, Dawn and Chicago volumes are sold using physical basis deals from AECO an
Slide 29: NGL Marketing
NGL MARKETING Fixed Price Contracts Peyto uses swaps and costless collars to secure liquids revenue as well. USD contracts converted at 1.365 CAD/USD Please refer to https://www.peyto.com/Marketing.aspx for the most recent marketing data and slides. 29
Slide 30: Diversification | Power
DIVERSIFICATION| POWER Cascade Gas Supply Agreement Peyto gas market diversification includes exposure to Alberta power pool prices Power Transmission Lines ✓ A 15-year Gas Supply Agreement, which came into effect on August 31st, 2024, to directly supply ~52 MMcf/d to Kineticor’s Cascade Power Proje
Slide 31: Gas Diversification | LNG Opportunity
GAS DIVERSIFICATION | LNG OPPORTUNITY Our Partners Rockies LNG is a partnership of Canadian natural gas producers working together to Peyto is part of the Rockies LNG Consortium whose goal is to advance West Coast LNG opportunities. support the construction of an LNG project off the Westcoast of BC
Slide 32: Peyto's Debt
PEYTO’S DEBT In October 2025, Peyto increased its Revolving Credit Facility to $1.05 billion and extended the maturity to October 23, 2029. Additionally, the term loan was repaid and terminated. Net Debt(1) of $1.18 billion at December 31, 2025. Notes and credit facility include: Date Issued Rate Ma
Slide 33: Tax Pools
PEYTO’S TAX POOLS 1800 $1.2B 1600 1400 1200 Federal Tax Pools Millions 1000 Q4/25 800 600 400 200 $9.4B Peyto Cumulative CapEx 0 Q4/25 (including Repsol) 2015 2022 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2016 2017 2018 2019 2020 2021 2023 2024 2025 CEC UCC (25
Slide 34: Advisories
ADVISORIES Forward Looking Statements This presentation contains forward-looking information (forward-looking statements). Words such as "guidance", "may", "can", "would", "could", "should", "will", "intend", "plan", "anticipate", "believe", "aim", "seek", "propose", "contemplate", "estimate", "focu
Slide 35: Drilling Locations
Drilling Locations This presentation discloses drilling locations in three categories: (i) proved locations; (ii) probable locations; and (iii) unbooked locations. In respect of the Acquisition, proved locations and probable locations are derived from the GLJ Acquisition Report and account for drill
Slide 36: Oil and Gas Metrics
Oil and Gas Metrics Peyto has used a number of oil and gas metrics herein which do not have standardized meanings and therefore may be calculated differently from the metrics presented by other oil and gas companies. Such metrics include "DCET", "EUR", "payout", "Before tax IRR" and "NPV @ 10%". DCE
Slide 37: Non-GAAP Measures: Netback and Funds from Operations
Netback is a non-GAAP measure that represents the profit margin associated with the production and sale of petroleum and natural gas. Peyto computes "field netback per Mcfe" as commodity sales from production, plus third-party sales net of purchases, if any, plus other income, less royalties, operat
Slide 38: Peyto's History
PEYTO’S HISTORY The Ensign #401 rig has been drilling for Peyto since November 2009. 38
Slide 39: History | Per Share Growth
PEYTO’S HISTORY | PER SHARE GROWTH Over time, the Peyto model is designed to deliver a superior total return with per share growth in value, income and assets. Production/share2 Production/share1 FFO/share2 2P NPV10/debt adj. share3 (MMcfe/y/mm sh) (MMcfe/y/mm sh) ($/sh) ($/sh) 42.9 $4.85 1,463 $40.
Slide 40: History | Shareholder Returns
PEYTO’S HISTORY | SHAREHOLDER RETURNS $70.00 180,000 Peyto has a 27-year history of growing 160,000 $60.00 value, income and assets while delivering Dec-31-2025 strong returns to shareholders. $22.71/sh 140,000 $50.00 120,000 Enterprise $40.00 Value100,000 $/share boe/d $30.00 80,000 60,000 $20.00 F
Slide 41: Returns | Return on Equity
PEYTO’S RETURNS | RETURN ON EQUITY 60% Investors rarely get to participate in the $12 wells themselves, making type well 24% 50% 40% economics somewhat meaningless. ROE and ROCE are the returns investors get, after deducting corporate costs. $10 $8 27 yr Avg ROE to 2025 30% $6 17% 20% $4 10% $2 0% $
Slide 42: History | Cost Control
PEYTO’S HISTORY | COST CONTROL $/mcfe 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 PDP FD&A(1) $1.44 $1.36 $1.18 $1.55 $1.06 $0.97 $1.41 $1.21 $1.00 $0.94 Cash Costs(1) $0.76 $0.83 $0.92 $0.95 $1.01 $1.25 $1.62 $1.42 $1.46 $1.29 Total Supply Cost $2.20 $2.19 $2.10 $2.50 $2.07 $2.22 $3.03 $2.63
Slide 43: History | Profitable Reserves Growth
PEYTO’S HISTORY | PROFITABLE RESERVES GROWTH Annual Reserves Per Share Reserves Life Index (by Category) (Reserves/ Q4 Annualized Production) 8.00 Reserves per Share (boe/sh) 7.15 35 7.00 28 Reserves Life Index P+P: 13% CAGR 30 6.00 PDP: 20% CAGR 25 5.00 20 4.00 15 3.00 10 2.00 10 1.00 5 0.00 0 2001
Slide 44: History | Reserve Growth
PEYTO’S HISTORY| RESERVE GROWTH 14,000 Over the past 27 years, Peyto has discovered 12 8.7 12,000 10,000 TCFe of natural gas and associated liquids reserves. 3,143 TCFe of 2P Reserves 8,000 24% 2,505 Bcfe CAGR Gross MMBOE 2025 2024 2023 11,973 6,000 Proved Developed Producing 509 474 443 Proved Deve
Slide 45: History | Land Growth
PEYTO’S HISTORY | LAND GROWTH 1.1 Peyto Lands 2,000 Million Net Acres Peyto continues to expand its Alberta Deep Basin 1,800 1,725 footprint with additional drilling inventory. 1,600 1,400 Net Peyto Sections 1,200 18% Net Sections CAGR 1,000 800 600 Kakwa 400 Greater Sundance Area 200 Greater 0 Braz
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