Peyto Exploration & Development Corp. · TSX:PEY
Peyto Exploration & Development — Investor Presentation (July 2025)
46 slides from Peyto Exploration & Development's investor presentation, July 2025
Slide 1: Corporate Presentation July 2025
www.peyto.com Corporate Presentation July 2025
Slide 2: Who is Peyto | Corporate Overview
WHO IS PEYTO | CORPORATE OVERVIEW 26-year publicly traded company focused Focused Assets exclusively on the Alberta Deep Basin ALBERTA One of Canada’s 131,000 boe/d (~12% liquids) June 2025 Largest Natural Long reserve life assets (10yr PDP RLI , 28yr Gas Producers 2P RLI @ 2024YE) Deep Basin 1.1 mi
Slide 3: Who is Peyto | Q1 2025 Highlights
WHO IS PEYTO | Q1 2025 HIGHLIGHTS Highlights Q2 2024 Q3 2024 Q4 2024 YE 2024 Q1 2025 Natural Gas mmcf/d 643 638 708 659 710 NGLs bbl/d 15,174 13,626 15,409 15,334 15,473 Average Production mmcfe/d 734 720 801 751 803 Average Production boe/d 122,299 120,031 133,426 125,202 133,883 Production per mil
Slide 4: Who is Peyto | Resilient Strategy
WHO IS PEYTO | RESILIENT STRATEGY 1 2024 YE - Operating, Processing, Compression Sharpe Ratio - LTM ROE Last 10 Years, Quarterly and Transportations Costs 1.4 1.2 Stable returns comparable $40.00 1 to Large Cap NA E&Ps $35.00 0.8 Resilient to changing 0.6 $30.00 market conditions 0.4 $25.00 0.2 US$/
Slide 5: Who is Peyto | Focused Core Areas
WHO IS PEYTO | FOCUSED CORE AREAS 1.1MM net acres of Alberta Deep Cutbank Basin Lands Own and operate 17 gas processing facilities with over 1.5 bcf/d of gross production capacity Kakwa Proximal to major pipeline egress (NGTL, Alliance) Drilled over 1,390 horizontals to date across 14 discre
Slide 6: Why We Do It | Global Demand
WHY WE DO IT | GLOBAL DEMAND Demand for Natural Gas Continues World Energy Consumption by Source (1965-2023) 700 Fossil fuels still represent over 80% 600 of the world’s energy consumption. 500 400 Exajoules 300 200 100 0 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 Natural Gas Oil Co
Slide 7: Why We Do It | Growing LNG Capacity
WHY WE DO IT | GROWING LNG CAPACITY LNG Canada 1 2 bcf/d (mid-2025) Commissioning LNG Canada 2 LNG export capacity across North America 2 bcf/d Pre-FID ALBERTA is forecasted to grow in 2025 by 33%, the largest increase since 2019, growing Iroquois demand for natural gas in NA by over 5 Cedar F-LNG b
Slide 8: Why We Do It | Power Demand
WHY WE DO IT | POWER DEMAND AESO lists 29 Data Centre / AI projects currently under review for approval in Alberta that would almost 10 GW of demand by the end of 2028 (excl Wonder Valley) Peyto is well positioned to benefit from the development of data centres Natural gas generation is the on
Slide 9: Why We Do It | Growing Demand
WHY WE DO IT | GROWING DEMAND Lower 48 Natural Gas Demand and Storage Days to Cover Lower 48 Storage (TCF) (LTM Average) 4.0 45 120,000 3.5 3.0 USA Natural Gas Consumption + Exports (MMCF/D) 40 2.5 100,000 2.0 Lower 48 Days to Cover (LTM Average) 35 1.5 1.0 30 80,000 Jan Mar Apr Jun Aug Sep Nov 25 5
Slide 10: 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 2022 160,000 returning profits (earnings) to PEY acquires assets in $7,000 Cumulative Earnings/Dividends (MM$) the GBA and builds shareholders through dividends. new Chambers Plant 2013 140,00
Slide 11: How We Do It | Deep Basin Advantage
HOW WE DO IT | DEEP BASIN ADVANTAGE (1) (3) 2024 YE PDP FD&A ($/boe) Average Injected Water per Well by Formation, 2023 $60.00 500,000 Better reservoir quality than $50.00 Fit-for-purpose, nimble rigs (telescopic other plays such as Montney Water per Well(bbl/Well) 400,000 doubles) decrease cycle ti
Slide 12: How We Do It | Low Costs Drive Margins
HOW WE DO IT | LOW COSTS DRIVE MARGINS At Peyto we focus on costs since they are “sticky”, and they drive superior margins. Peyto’s margins were even stronger than liquids-weighted producers in 2024. 1 2024 Cash Costs ($/mcfe) 2024 YE Results $7.00 65% PEY $6.00 60% 55% After-tax Margin 2 $5.00 50%
Slide 13: How We Do It | Own and Control
HOW WE DO IT | OWN AND CONTROL Peyto controls 1.5 bcf/d of gross Gross Gross Raw Net Capacity Gas Plants Capacity Throughput processing capacity with total (MMcf/d) (MMcf/d) (MMcf/d)* utilization of 58%. This leaves plenty of room for growth in the future 1 Edson (WI: 83%) 275 228 117 without substa
Slide 14: 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 In 2024, Peyto realized a >25% uplift $800 7,000 in productivity relative to previous $700 6,000 years. Peyto continues to optimize $600 well designs and reduc
Slide 15: How We Do It | Field Optimization
HOW WE DO IT | FIELD OPTIMIZATION Cecilia Booster to Continuing to optimize our Central Foothills Gas Gathering move gas to Wild infrastructure for cost River and Edson System (CFGGS) Gas Plants savings, increased reliability, and revenue generation. Line looping to debottleneck Added 3rd party volu
Slide 16: Returns | Robust Results
PEYTO’S RETURNS | ROBUST RESULTS Wells On Stream to end-Dec: 2024 Drilling Program Year to Date IRR on Acquired Lands (33 wells): 64% 66 gross / 64.3 net Price Deck: Flat, CA$3.00/GJ, US$70/bbl WTI IRR on Legacy Lands (33 wells): 50% Full Cycle Economics - $1.2MM/well >200% Entire 2024 Program Forec
Slide 17: How We Do It | Finding New Targets
HOW WE DO IT | FINDING NEW TARGETS Falher Results to Date Economics1 Units Value 25000 EUR bcf 6.7 DCT MM$ $5.3 Following up on top decile IRRs 20000 from the 2024 drilling program. IP365 boe/d 870 BTAX NPV10 MM$ $11.0 15000 IRR % 140% MCF/D Payout years 1.0 10000 • Peyto tested a newly mapped Falhe
Slide 18: Returns | Return on Equity
PEYTO’S RETURNS | RETURN ON EQUITY Investors rarely get to participate in the wells themselves, making 60% type well economics somewhat $12 meaningless. ROE and ROCE are the returns investors get, after 50% deducting corporate costs. $10 40% $8 26 yr Avg ROE to 2024 30% $6 20% $4 10% $2 0% $0 1999 2
Slide 19: Future | 2025 Focus
PEYTO’S FUTURE | 2025 FOCUS Drill ~70 – 80 Net Hz Wells Focused on acquired lands and legacy Peyto properties Add 43,000 – 48,000 boe/d (~$10,500/boed) to offset ~27% base production decline Optimize Infrastructure Gathering and Plant Debottlenecking Projects Sundance Field Compression project
Slide 20: Future | 2025 Drilling Species Mix
PEYTO’S FUTURE | 2025 DRILLING SPECIES MIX Greater Sundance Area Dunvegan Viking Peyto expects to drill 70- 80 net wells in 2025 Notikewin within the two core areas. Highlights and Falher optional drilling include: Wilrich • New prolific Sundance Falher channel Bluesky • Brazeau/Chambers Cardium usi
Slide 21: Future | Undrilled Inventory
PEYTO’S FUTURE | UNDRILLED INVENTORY(1) Booked Inventory (Volume weighted) Average IRR by Species (3-year plan) $3.00/GJ and US$70/bbl WTI 6% 25% 120% 109% 105% Cardium 100% 24% Dunvegan 83% 80% Notikewin 60% 60% 52% Falher 9% 40% Wilrich Bluesky Bullhead 20% 19% 0% 17% Notikewin Dunvegan Wilrich Fa
Slide 22: Future | Supply Cost Goals
PEYTO’S FUTURE | SUPPLY COST GOALS 2025 $/mcfe 2021 2022 2023 2024 Goals Repeat great results (3) from 2024 program. PDP FD&A (1) $0.97 $1.41 $1.21 $1.00 Royalties $0.22 $1.00 OPEX $0.53 Cash Costs(1) $1.25 $1.62 $1.42 $1.46 Transport $0.30 $1.38 G&A $0.05 Royalties up. Total Supply Cost $2.22 $3.03
Slide 23: Past | Peyto's Future
PEYTO’S PAST | PEYTO’S FUTURE 180,000 Modest production growth (5-10%) $8.00 increases value of our assets, generates 160,000 free cash flow to fund the capital program, $7.00 140,000 pay dividends and reduce debt. $6.00 120,000 $5.00 Price ($/GJ) WI BOE/D 100,000 $4.00 80,000 $3.00 60,000 $2.00 40,
Slide 24: Future | Room to Grow
PEYTO’S FUTURE | ROOM TO GROW Peyto has ample processing capacity and firm transportation to support growth plans of 5% - 10% / year over the next several years. Net Sales Gas Rate Jul-20 Jul-21 Jul-22 Jul-23 Jul-24 Jul-25 Jul-26 Jul-27 Jul-28 Apr-20 Apr-21 Apr-22 Apr-23 Apr-24 Apr-25 Apr-26 Apr-27
Slide 25: Future | Cash Costs
PEYTO’S FUTURE | CASH COSTS Still a Leader in the Industry Despite being the lowest cost Total Cash Costs (excluding(1) Royalties and Taxes) producer, Peyto continuously strives to reduce controllable unit costs. Peyto $2.50 expects to achieve this through higher plant utilization, operational impro
Slide 26: Marketing
PEYTO’S MARKETING Gas Hedging and Diversification Strategy Moderates Volatility Gas Price(1) ($/mcf) Cascade Power 2025 GJ/d 60,000 $10.00 2026 GJ/d 60,000 Emerson 2 $9.00 2025 GJ/d 23,751 Dawn/Parkway $8.00 Edmonton 2026 GJ/d 28,275 2025 GJ/d 55,290 $7.00 2026 GJ/d 81,652 Trasport CA/GJ $0.56 $6.00
Slide 27: Gas Marketing | Realized Prices
GAS MARKETING| REALIZED PRICES Peyto embarked upon a diversification strategy ~5 years ago which has really begun Natural Gas Price to pay dividends over the last several quarters. This has complimented are hedging 5.00 program to yield superior prices over AECO. 4.05 4.17 3.87 4.00 3.43 3.33 0.83 3
Slide 28: Gas Marketing
GAS MARKETING Future Market Diversification and Gas Price Protection Peyto has used financial basis and physical transportation agreements between AECO and other 489 MMcf/d fixed at $4.04/Mcf for Q2–Q4 2025 hubs to gain market diversification and exposure to 409 MMcf/d fixed at $3.98/Mcf for 2026 de
Slide 29: Gas Marketing | Fixed Price Gas Contracts
GAS MARKETING Peyto uses a dollar cost averaging approach to Fixed Price Gas Contracts smooth out 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 1.33
Slide 30: Gas Marketing | Floating Price Gas Contracts
GAS MARKETING Peyto has exposure to natural gas price upside Floating Price Gas Contracts with its diversification to premium markets in California, Ontario and the US mid-west and its Cascade Power contract. • Henry Hub, Malin, Dawn and Chicago volumes are sold using physical basis deals from AECO
Slide 31: NGL Marketing
NGL MARKETING Peyto uses swaps and costless collars to secure Fixed Price Contracts liquids revenue as well. USD contracts converted at 1.36CAD/USD 31
Slide 32: 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 33: Gas Diversification | LNG Opportunity
GAS DIVERSIFICATION | LNG OPPORTUNITY Peyto is part of the Rockies LNG Consortium whose goal is to Our Partners support the construction of another LNG project off the Rockies LNG is a partnership of Canadian natural gas producers working together to Westcoast of BC to supply the World with another
Slide 34: Debt
PEYTO’S DEBT In June 2024, Peyto extended its Revolving Credit Facility and Amortizing Term Loan to October 13, 2027, and October 13, 2026, respectively. Peyto plans to reduce debt over the next 2 years targeting leverage under 1.0 Debt/EBITDA(2). Net Debt(1) of $1.28 billion at March 31, Date Issue
Slide 35: Tax Pools
PEYTO’S TAX POOLS $1,800 $1,600 $1,400 $1,200 $1,000 Federal Tax Pools $800 Q4/24 Millions $600 $400 $200 $- 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 CEC UCC (25%) CEE (100%) CDE (30%) COGPE (10%) Tax Loss Carry
Slide 36: Advisories
ADVISORIES Forward Looking Statements This presentation contains forward-looking information (forward-looking statements). Words such as "guidance", "may", "can", "would", "could", "should", "will", "intend", "plan", "anticipate", "believe", "aim", "seek", "propose", "contemplate", "estimate", "focu
Slide 37: Drilling Locations
Drilling Locations This presentation discloses drilling locations in three categories: (i) proved locations; (ii) probable locations; and (iii) unbooked locations. In respect of the Acquisition, proved locations and probable locations are derived from the GLJ Acquisition Report and account for drill
Slide 38: Oil and Gas Metrics
Oil and Gas Metrics Peyto has used a number of oil and gas metrics herein which do not have standardized meanings and therefore may be calculated differently from the metrics presented by other oil and gas companies. Such metrics include "DCET", "EUR", "payout", "Before tax IRR" and "NPV @ 10%". DCE
Slide 39: Netback and Non-GAAP Measures
Netback is a non-GAAP measure that represents the profit margin associated with the production and sale of petroleum and natural gas. Peyto computes "field netback per Mcfe" as commodity sales from production, plus third-party sales net of purchases, if any, plus other income, less royalties, operat
Slide 40: Peyto's History
PEYTO’S HISTORY The Ensign #401 rig has been drilling for Peyto since November 2009. 40
Slide 41: History | Per Share Growth
PEYTO’S HISTORY | PER SHARE GROWTH Over time, the Peyto model is designed to deliver a superior total return with per share growth in value, income and assets. Production/share 2 Reserves/share1 FFO/share 2 2P NPV10/debt adj. share3 (2P Bcfe/mm sh) ($/sh) ($/sh) (MMcfe/y/mm sh) $4.85 $41.65 41.6 140
Slide 42: History | Shareholder Returns
PEYTO’S HISTORY | SHAREHOLDER RETURNS $70.00 180,000 160,000 $60.00 Peyto has a 26-year history of growing value, income and assets while delivering strong returns to 140,000 shareholders. Mar-31-2025 $50.00 $18.23/sh 120,000 $40.00 Future Prospects 100,000 $/share Enterprise boe/d Value 80,000 $30.
Slide 43: History | Cost Control
PEYTO’S HISTORY | COST CONTROL Peyto has been successfully controlling supply costs to preserve margin 33% on average during last 10 years. $/mcfe 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 PDP FD&A(1) $1.64 $1.44 $1.36 $1.18 $1.55 $1.06 $0.97 $1.41 $1.21 $1.00(3) Cash Costs(1) $0.81 $0.76 $0
Slide 44: History | Profitable Reserves Growth
PEYTO’S HISTORY | PROFITABLE RESERVES GROWTH Annual Reserves Per Share Reserves Life Index(1) (by Category) (Reserves/ Q4 Annualized Production) 8.00 35 Reserves per Share (boe/sh) 6.91 7.00 28 P+P: 13% CAGR 30 Reserves Life Index 6.00 PDP: 21% CAGR 25 5.00 20 4.00 15 10 3.00 2.00 10 1.00 5 - - 2001
Slide 45: History | Reserve Growth
PEYTO’S HISTORY| RESERVE GROWTH Over the past 26 years, Peyto has discovered 11.2 TCFe of natural gas reserves. 12,000 10,000 2,947 TCFe of 8,000 2P Reserves 2,412 25% CAGR (BCFe) Gross MMBOE 2024 2023 2022 6,000 Proved Developed Producing 474 443 328 11,167 Proved Developed Non-Producing 9 5 6 2,84
Slide 46: History | Land Growth
PEYTO’S HISTORY | LAND GROWTH Peyto continues to expand its Alberta Deep Basin footprint with additional drilling inventory. Peyto Lands Million Net Acres 2,000 1,800 1,600 1,400 Net Peyto Sections 18% 1,200 CAGR Net Sections 1,000 800 600 Kakwa 400 200 Greater Sundance Area - 1999 2004 2009 2014 20
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