Peyto Exploration & Development Corp. · TSX:PEY
Peyto Exploration & Development — Shareholder Meeting (May 2026)
29 slides from Peyto Exploration & Development's shareholder meeting presentation, May 21, 2026
Slide 1: Annual General Meeting
www.peyto.com Annual General Meeting May 21, 2026
Slide 2: 2026 AGM | Agenda
2026 AGM | AGENDA Welcome / Intro / Who We Are Natural Gas – Here to Stay Peyto’s Deep Basin Business 2025 Results What’s Next - 2026 Plans + Questions/Comments 2
Slide 3: 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 148,000 boe/d (~12% liquids, 98% operated) Apr-26 Largest Natural Long reserve life assets (10yr PDP RLI , 28yr 2P RLI @ Gas Producers 2025YE) Deep B
Slide 4: Who Is Peyto | Per Share Growth to 2025
WHO IS PEYTO | PER SHARE GROWTH TO 2025 "We are what we repeatedly do. Excellence is not an act, but a habit." — Aristotle 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 1,363 $4.33 $4.29 32.1 $32.31 494 $0.
Slide 5: Who Is Peyto | The Formula for Profitability
WHO IS PEYTO | THE FORMULA FOR PROFITABILITY Manage the things we can control and execute well Manage the risks we cannot control • Industry leading cash costs • Disciplined, mechanistic hedging to smooth prices • Industry leading finding costs and avoid speculation in the short term • Diversified e
Slide 6: Who Is Peyto | Shareholder Returns
WHO IS PEYTO | SHAREHOLDER RETURNS $70.00 Peyto has a 27-year history of growing 180,000 value, income and assets while delivering Mar-31-2026 160,000 $60.00 strong returns to shareholders. $27.18/share 140,000 $50.00 Avg ROCE = 17% 120,000 Avg ROE = 24% $40.00 100,000 $/share boe/d $30.00 Enterpris
Slide 7: Natural Gas - Here to Stay | Global Demand
NATURAL GAS - HERE TO STAY | GLOBAL DEMAND Global Energy Consumption by Source (2000 – 2024) 250.0 World Total Energy Consumption by Source (1965-2024) Natural Gas CAGR = 2.2% 200.0 700 25.3% of Total Energy Consumption in 2024 150.0 Fossil fuels represent over 85% of Exajoules 600 the world’s energ
Slide 8: Natural Gas – Here to Stay | Demographics of Power
NATURAL GAS – HERE TO STAY |DEMOGRAPHICS OF POWER North American Power - North America is heavily reliant on Generation by Source: natural gas as a primary source for Natural Gas (37%) generating electricity with 37% of - 26 states electricity sourced from natural - 2 provinces gas in 2024 Coal (16%
Slide 9: Natural Gas – Here to Stay | Growing LNG Capacity
NATURAL GAS – HERE TO STAY| GROWING LNG CAPACITY Ksi Lisims F-LNG LNG export capacity across North America grew by 31% 1.6 bcf/d Pre-FID ALBERTA in 2025, the largest increase since 2019, growing demand for natural gas in NA by over 5 bcf/d. Export LNG Canada 1 2 bcf/d (2025) Iroquois capacity is exp
Slide 10: Natural Gas – Here to Stay | Alberta Power Demand
NATURAL GAS – HERE TO STAY| ALBERTA POWER DEMAND ✓ AESO lists 40 Data Centre / AI projects currently under review for approval in Alberta that would add 19.5 GW of power demand over time if all the projects are developed ✓ AESO has approved data centre connections for 1.2 GW to date ✓ Natural gas ge
Slide 11: Peyto's Deep Basin Business | Operational Excellence
PEYTO’S DEEP BASIN BUSINESS |OPERATIONAL EXCELLENCE Average Injected Water per Well by Formation(3), 2024 2025 YE PDP FD&A(1) ($/mcfe) 500,000 $5.00 Better reservoir quality than other plays Not always the highest rate wells but such as Montney and Duvernay means Water per Well(bbl/Well) 400,000 $4.
Slide 12: Peyto Deep Basin Business | Low Costs Drive Margins
PEYTO DEEP BASIN BUSINESS| LOW COSTS DRIVE MARGINS At Peyto we focus on costs since they are “sticky” and drive superior margins. Peyto’s margins were even stronger than liquids-weighted producers in 2025. 2025 Cash Costs1 ($/mcfe) 2025 YE Results2 (PDP Recycle Ratio Callouts) $7.00 70% $6.00 65% 3.
Slide 13: Peyto Deep Basin Business | Basin Comparisons
PEYTO DEEP BASIN BUSINESS| BASIN COMPARISONS 100% Deep Basin $/mcfe PEY (2023-2025) PDP FD&A $1.05 Cash Costs $1.39 Montney Total Supply Cost $2.44 100% Marcellus/Utica 100% Marcellus/Utica Duvernay Peer 4 (2023-2025) Peer 5 (2023-2025) Sales Price $4.50 Full Cycle Netback $2.06 $0.48 $1.23 Full Cyc
Slide 14: 2025 Results | Continuous Improvement
2025 RESULTS| CONTINUOUS IMPROVEMENT Average Well Production by Spud Year Unit Drill and Complete Costs 9,000 $900 By Year By Quarter 8,000 $800 $700 7,000 $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 Y
Slide 15: 2025 Results | Robust Returns
2025 RESULTS | ROBUST RETURNS 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 IRR = 62% DNV
Slide 16: 2025 Results | Total Shareholder Returns – 1 Year
2025 RESULTS | TOTAL SHAREHOLDER RETURNS – 1 YR Total Return - 2025 Close vs 2024 Close + Dividends 120% 100% 80% 60% 40% 40% Average 25% 20% 0% -20% Peer 10 Peer 11 Peer 12 Peer 13 Peer 14 Peer 15 Peer 16 Peer 17 Peer 18 Peer 19 Peer 20 Peer 21 Peer 22 Peer 23 Peer 24 Peer 25 Peer 26 Peer 8 Peer 9
Slide 17: 2025 Results | Total Shareholder Returns – 3 Years
2025 RESULTS | TOTAL SHAREHOLDER RETURNS – 3 YRS Total Return - 2025 Close vs 2022 Close, + Dividends 250% 200% 150% 100% 92% 50% Average 27% 0% -50% -100% Peer 10 Peer 11 Peer 12 Peer 13 Peer 14 Peer 16 Peer 17 Peer 18 Peer 19 Peer 20 Peer 21 Peer 22 Peer 23 Peer 24 Peer 25 Peer 1 Peer 2 Peer 3 Pee
Slide 18: Peyto's 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 | 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 20: Gas Marketing
GAS MARKETING Future Market Diversification and Gas Price Protection 514 MMcf/d fixed at $3.96/Mcf for Q2-Q4 2026 Peyto has used financial basis and physical transportation 348 MMcf/d fixed at $3.35/Mcf for 2027 agreements between AECO and other hubs to gain market Total fixed-price volume represent
Slide 21: Gas Marketing | Realized Prices
GAS MARKETING| REALIZED PRICES Peyto embarked upon a diversification strategy several 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 3.53 3.57 3.13 3.33 3.43 0.83 0.76 1.61 0.83 2.95 1.59 2.87 0.75 3.
Slide 22: Peyto's 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: Peyto's Debt Profile
PEYTO’S DEBT PROFILE Net Debt(1) of $1.09 billion at March 31, 2026. Notes and credit facility include: • $491 million of notes fixed at attractive interest rates of Peyto’s debt is low relative to its reserves value ~5.3% • $600 million drawn on $1.05B revolving credit facility as at March 31, 2026
Slide 24: Sustainable Future
SUSTAINABLE FUTURE Built to Last $45.00 180,000 ✓Operational excellence $40.00 160,000 ✓Lowest cost producer (Finding & Cash) $35.00 140,000 ✓Quality Assets with Long Reserves Life $30.00 120,000 ✓Strong natural gas price protection ✓Diversified North American demand $/share $25.00 100,000 boe/d mar
Slide 25: Questions?
QUESTIONS? 25
Slide 26: 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 27: 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 28: 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 29: 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
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