Peyto Exploration & Development Corp. · TSX:PEY
Peyto Exploration & Development — Q2 2026 Earnings Presentation
47 slides from Peyto Exploration & Development's earnings presentation, Aug 12, 2026
Slide 1: Corporate Presentation
www.peyto.com Corporate Presentation August 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 144,000 boe/d (~13% liquids, 98% operated) July-26 Largest Natural Long reserve life assets (10yr PDP RLI , 28yr 2P RLI @ Gas Producers 2025YE) Deep
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 2025 Q2 2025 Q2 2026 Q2 2026 Results: Natural Gas mmcf/d 708 697 758 Grew production NGLs bbl/d 16,048 15,650 18,959 by 10%, 7% per share growth Average Production mmcfe/d 804 791 872 Average Production boe/d 134,055 131,754 145,320 19% growth in Production pe
Slide 5: Who is Peyto | Focused Core Areas
WHO IS PEYTO | FOCUSED CORE AREAS ✓ 1.1MM net acres of Alberta Deep Basin NGTL Lands 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 1,475 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 - 2025) 250.0 World Energy Consumption by Source (1965-2025) Natural Gas 200.0 CAGR = 2.2% 700 25.3% of 2025 Total Energy Consumption Fossil fuels represent over 85% of 150.0 Exajoules 600 the wor
Slide 7: Why We Do It | Growing LNG Capacity
WHY WE DO IT | GROWING LNG CAPACITY Ksi Lisims F-LNG 1.6 bcf/d LNG export capacity across North America grew by 31% in ALBERTA Pre-FID 2025, the largest increase since 2019, growing demand for LNG Canada 1 natural gas in NA by over 5 bcf/d. Export capacity is Iroquois 2 bcf/d (2025) forecasted to co
Slide 8: Why We Do It | Power Demand
WHY WE DO IT | POWER DEMAND ✓ AESO lists 12 Active Data projects with accepted system access service requests totaling 1.8 GW of power demand to come online within the next five years ✓ There are an additional 29 data projects that require 17.8 GW of power currently under review for approval in Albe
Slide 9: How We Do It | Profitable Growth
HOW WE DO IT | PROFITABLE GROWTH Current 145,320 boe/d 2023 PEY acquires Repsol 180,000 Peyto has a long history of Assets $8,000 returning profits (earnings) to 2022 PEY acquires assets in 160,000 shareholders through dividends. Cumulative Earnings/Dividends (MM$) the GBA and builds $7,000 2013 new
Slide 10: How We Do It | Deep Basin Advantage
HOW WE DO IT | DEEP BASIN ADVANTAGE Average Injected Water per Well by Formation(3), 2024 2025 YE PDP FD&A(1) ($/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 Recycle3 Ratio Callouts) $7.00 70% $6.00 65% 3.8x 60% Afte
Slide 12: How We Do It | Profitable Business
HOW WE DO IT| PROFITABLE BUSINESS 100% Deep Basin $/mcfe PEY (2023-2025) PDP FD&A $1.05 Cash Costs $1.39 Montney Total Supply Cost $2.44 Duvernay Sales Price $4.50 Full Cycle Netback $2.06 Margin 46% Deep Basin Average of Average of 2 Marcellus/Utica 2 Marcellus Peers Haynesville Peers (2023-2025) (
Slide 13: How We Do It | Own and Control
HOW WE DO IT | OWN AND CONTROL Gross Raw Peyto controls 1.5 bcf/d of gross Gross Capacity Net Capacity Gas Plants Throughput processing capacity with total (MMcf/d) (MMcf/d) (MMcf/d)* utilization of 60%. This leaves plenty of 1 Edson (WI: 83%) 275 228 158 room for growth in the future without 2 Swan
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 $800 8,000 2026 performance has started off strong. Increased focus on liquids- $700 7,000 rich species is expected to produce $600 6,000 a lower annual average gas
Slide 15: How We Do It | Field Optimization
HOW WE DO IT | FIELD OPTIMIZATION Continuing to optimize our infrastructure Central Foothills Gas Gathering System (CFGGS) for cost savings, increased reliability, and revenue generation. Pipeline expansion to Added 3rd party volumes debottleneck infrastructure through the CFGGS flowing to Nosehill
Slide 16: How We Do It | Finding New Targets
HOW WE DO IT | FINDING NEW TARGETS Falher Channel Results to Date Economics1 Units Value 12000 EUR/well bcf 7.0 Falher results from the first 17 drills are a key contributor DCT/well MM$ $4.9 10000 to Peyto’s success over the IP365 boe/d 862 last two years. 8000 BTAX NPV10/well MM$ $9.5 IRR % 100% M
Slide 17: How We Do It | Bluesky
HOW WE DO IT | BLUESKY Bluesky Results Economics1 Units Value 25,000 EUR/well bcf 8.9 DCT/well MM$ $6.4MM 20,000 IP365 boe/d 1,089 BTAX NPV10/well MM$ $10.3MM 15,000 IRR % 131% Mcf/d Payout years 0.9 10,000 • Peyto acquired a drilled but uncompleted Bluesky well in 2023 Repsol acquisition 5,000 • Pe
Slide 18: How We Do It | Cardium Refresh
HOW WE DO IT | CARDIUM REFRESH 8,000 Economics1 Units Value +Up to 100 bbl/MMcf total liquids on initial EUR/well bcf 4.6 production DCT/well MM$ $5.0MM 6,000 IP365 boe/d 559 BTAX NPV10/well MM$ $9.1MM MCF/D 4,000 IRR % 140% Payout years 0.9 • Peyto stepped into thinner Cardium pay in 2023 2,000 • I
Slide 19: 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 20: 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 21: Future | 2026 Drilling Species Mix
PEYTO’S FUTURE | 2026 DRILLING SPECIES MIX Greater Sundance Area Peyto expects to drill 70- 80 net wells in 2026 within the Cardium two core areas. Highlights and optional drilling include: Viking Notikewin • New prolific Sundance Falher channel Falher • Brazeau/Chambers Cardium using latest drillin
Slide 22: Peyto's 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$75/bbl WTI 21% Cardium 250% Dunvegan 192% 200% Notikewin 26% 150% Falher 115% 107% 106% 10% 99% 100% 82% 79% Wilrich Bluesky 50% 14% Other 0% 18% Falher Bluesk
Slide 23: 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 24: 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 $3.00
Slide 25: Future | Room to Grow
PEYTO’S FUTURE | ROOM TO GROW 1,400 Peyto has ample processing capacity 1,200 and firm transportation to support growth plans of 5% - 10% per year 1,000 over the next several years. Net Sales Gas Rate (Mcf/d) 800 600 400 200 - Oct-21 Oct-20 Oct-22 Oct-23 Oct-24 Oct-25 Oct-26 Oct-27 Oct-28 Jan-26 Jul
Slide 26: Marketing
PEYTO’S MARKETING Gas Hedging and Diversification Strategy Moderates Volatility Gas Price(1) ($/mcf) $10.00 Emerson 2 Dawn/Parkway Edmonton 2026 GJ/d 28,275 $8.00 2026 GJ/d 81,652 2027 GJ/d 68,348 Cascade Power Calgary Trasport CA/GJ $0.56 2027 GJ/d 81,652 2026 GJ/d 60,000 Transport CA/GJ $1.15 $6.0
Slide 27: Gas Diversification | Premium Markets
GAS DIVERSIFICATION | PREMIUM MARKETS Peyto’s gas diversification portfolio reduces Exposure to premium North American demand hubs the risk of selling into a single market and - Henry Hub – Major trading hub in the Southern US exposes gas sales to demand markets that can be more influenced by season
Slide 28: Gas Diversification | LNG-Linked Pricing
GAS DIVERSIFICATION | LNG-LINKED PRICING Ksi Lisims AECO LNGC TTF Empress Emerson Parkway Dawn Chicago Ventura Malin On June 2nd, 2026, Peyto announced the signing of a long-term natural gas supply agreement with Centrica Energy - 10-year term commencing in 2029 - Delivery of 50,000 MMBtu/d to AECO
Slide 29: Gas Marketing
GAS MARKETING Future Market Diversification and Gas Price Protection Peyto has used financial basis and physical transportation 505 MMcf/d fixed at $4.02/Mcf for Q3–Q4 2026 agreements between AECO and other hubs to gain market 404 MMcf/d fixed at $3.31/Mcf for 2027 diversification and exposure to de
Slide 30: 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 5.00 4.69 4.05 4.17 4.01 0.37 3.87 4.00 3.33 3.53 3.57 3.43 0.83 3.42 0.76 1.61 0.83 2.95 1.59 2.87 0.75 3.00 0.
Slide 31: 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 1.39
Slide 32: 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 33: NGL Marketing
NGL MARKETING Fixed Price Contracts Peyto uses swaps and costless collars to secure liquids revenue as well. USD contracts converted at 1.39 CAD/USD Please refer to https://www.peyto.com/Marketing.aspx for the most recent marketing data and slides. 33
Slide 34: 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 $1.02 billion at June 30, 2026. Notes and credit facility include: Date Issued Rate Maturi
Slide 35: Tax Pools
PEYTO’S TAX POOLS 1800 $1.2B 1600 1400 1200 Federal Tax Pools Millions 1000 Q4/25 800 600 400 200 $9.4B Peyto Cumulative CapEx 0 Q4/25 (including Repsol) 2015 2022 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2016 2017 2018 2019 2020 2021 2023 2024 2025 CEC UCC (25
Slide 36: Advisories
ADVISORIES Forward Looking Statements This presentation contains forward-looking information (forward-looking statements). Words such as "guidance", "may", "can", "would", "could", "should", "will", "intend", "plan", "anticipate", "believe", "aim", "seek", "propose", "contemplate", "estimate", "focu
Slide 37: Drilling Locations
Drilling Locations This presentation discloses drilling locations in three categories: (i) proved locations; (ii) probable locations; and (iii) unbooked locations. In respect of the Acquisition, proved locations and probable locations are derived from the GLJ Acquisition Report and account for drill
Slide 38: Oil and Gas Metrics
Oil and Gas Metrics Peyto has used a number of oil and gas metrics herein which do not have standardized meanings and therefore may be calculated differently from the metrics presented by other oil and gas companies. Such metrics include "DCET", "EUR", "payout", "Before tax IRR" and "NPV @ 10%". DCE
Slide 39: Non-GAAP measures: Netback and Funds from Operations
Netback is a non-GAAP measure that represents the profit margin associated with the production and sale of petroleum and natural gas. Peyto computes "field netback per Mcfe" as commodity sales from production, plus third-party sales net of purchases, if any, plus other income, less royalties, operat
Slide 40: History
PEYTO’S HISTORY The Ensign #401 rig has been drilling for Peyto since November 2009. 40
Slide 41: History | Per Share Growth
PEYTO’S HISTORY | PER SHARE GROWTH Over time, the Peyto model is designed to deliver a superior total return with per share growth in value, income and assets. Production/share2 Reserves/share1 FFO/share2 2P NPV10/debt adj. share3 (MMcfe/y/mm sh) 2P Bcfe/mm sh) ($/sh) ($/sh) 42.9 $4.85 1,463 $40.36
Slide 42: History | Shareholder Returns
PEYTO’S HISTORY | SHAREHOLDER RETURNS $70.00 180,000 Peyto has a 27-year history of growing 160,000 $60.00 June 30-2026 value, income and assets while delivering $23.66/sh strong returns to shareholders. 140,000 $50.00 120,000 Enterprise $40.00 Value 100,000 $/share boe/d $30.00 80,000 60,000 $20.00
Slide 43: 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 44: 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 45: 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 46: 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 47: 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 1,664 footprint with additional drilling inventory and divest non-core lands acquired from Repsol in 2023. 1,600 1,400 Net Peyto Sections 1,200 17% Net Sections CAGR 1,000 800
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