Peyto Exploration & Development Corp. · TSX:PEY
Peyto Exploration & Development — Investor Presentation (September 2025)
46 slides from Peyto Exploration & Development's investor presentation, September 2025
Slide 1: Corporate Presentation September 2025
www.peyto.com Corporate Presentation September 2025
Slide 2: Who Is Peyto | Corporate Overview
WHO IS PEYTO | CORPORATE OVERVIEW Focused Assets 26-year publicly traded company focused exclusively on the Alberta Deep Basin ALBERTA One of Canada’s 131,000 boe/d (~12% liquids) August 2025 Largest Natural Long reserve life assets (10yr PDP RLI , 28yr 2P RLI @ Gas Producers 2024YE) Deep Basin 1.1
Slide 3: Who Is Peyto | Q1 2025 Highlights
WHO IS PEYTO | Q1 2025 HIGHLIGHTS Highlights Q3 2024 Q4 2024 YE 2024 Q1 2025 Q2 2025 Natural Gas mmcf/d 638 708 659 710 697 NGLs bbl/d 13,626 15,409 15,334 15,473 15,650 Average Production mmcfe/d 720 801 751 803 791 Average Production boe/d 120,031 133,426 125,202 133,883 131,754 Production per mil
Slide 4: Who Is Peyto | Resilient Strategy
WHO IS PEYTO | RESILIENT STRATEGY 2024 YE - Operating, Processing, Compression and Sharpe Ratio1 - LTM ROE Last 10 Years, Quarterly Transportations Costs 1.4 $40.00 1.2 Stable returns comparable $35.00 1 to Large Cap NA E&Ps $30.00 Resilient to changing 0.8 market conditions 0.6 $25.00 0.4 US$/BOE $
Slide 5: Who Is Peyto | Focused Core Areas
WHO IS PEYTO | FOCUSED CORE AREAS ✓ 1.1MM net acres of Alberta Deep Basin Lands Cutbank ✓ Own and operate 17 gas processing facilities with over 1.5 bcf/d of gross production capacity ✓ Proximal to major pipeline egress (NGTL, Alliance) Kakwa ✓ Drilled over 1,400 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 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 LNG Canada 1 2 bcf/d (2025) On stream LNG Canada 2 LNG export capacity across North America is forecasted to 2 bcf/d ALBERTA grow in 2025 by 33%, the largest increase since 2019, Pre-FID growing demand for natural gas in NA by over 5 bcf/d. Iroquois Export capacit
Slide 8: Why We Do It | Power Demand
WHY WE DO IT | POWER DEMAND ✓ AESO lists 32 Data Centre / AI projects currently under review for approval in Alberta that would add almost 11 GW of demand by the end of 2028 (excl Wonder Valley) ✓ Peyto is well positioned to benefit from the development of data centres Peace River ✓ Natural gas gene
Slide 9: Why We Do It | Growing Demand
WHY WE DO IT | GROWING DEMAND Lower 48 Storage (TCF) Lower 48 Natural Gas Demand and Storage Days to Cover (LTM Average) 4.0 45 120,000 3.0 40 US Nat Gas Consumption + Exports (MMCF/D) 100,000 2.0 Lower 48 Days to Cover (LTM Average) 35 1.0 30 80,000 Jan Mar Apr Jun Aug Sep Nov 5-yr Min 5-yr Max 5-y
Slide 10: How We Do It | Profitable Growth
HOW WE DO IT | PROFITABLE GROWTH 2023 PEY acquires Repsol Assets 180,000 $8,000 Peyto has a long history of returning profits (earnings) 2022 160,000 PEY acquires assets in to shareholders through the GBA and builds $7,000 2013 new Chambers Plant 140,000 dividends. Oldman North and Cumulative Earnin
Slide 11: How We Do It | Deep Basin Advantage
HOW WE DO IT | DEEP BASIN ADVANTAGE 2024 YE PDP FD&A(1) ($/boe) Average Injected Water per Well by Formation(3), 2024 $60.00 500,000 Better reservoir quality than $50.00 Fit-for-purpose, nimble rigs (telescopic other plays such as Montney Water per Well(bbl/Well) doubles) decrease cycle time and low
Slide 12: How We Do It | Low Costs Drive Margins
HOW WE DO IT | LOW COSTS DRIVE MARGINS At Peyto we focus on costs since they are “sticky” and drive superior margins. Peyto’s margins were even stronger than liquids-weighted producers in 2024. 2024 Cash Costs1 ($/mcfe) 2024 YE Results $7.00 65% PEY $6.00 60% After-tax Margin2 55% $5.00 50% $4.00 45
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 Gas Plants Gross Capacity Net Capacity Throughput processing capacity with total (MMcf/d) (MMcf/d) (MMcf/d)* utilization of 55%. This leaves plenty of 1 Edson (WI: 83%) 275 228 131 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 8,000 The first half of 2025 is tracking similar to $800 7,000 last year’s first half performance. As the $700 drill schedule shifts to focus on Notikewin 6,000 $600
Slide 15: How We Do It | Field Optimization
HOW WE DO IT | FIELD OPTIMIZATION Cecilia Booster to Continuing to optimize our infrastructure move gas to Wild Central Foothills Gas Gathering System (CFGGS) River and Edson for cost savings, increased reliability, and Gas Plants 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 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 26 yr Avg ROE to 2024 30% $6 14% 20% $4 10% $2 0% $
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 $450M- ✓ Optimize Infrastructure Gathering and Plant Debottlenecking Projects Sundance Field Compression pr
Slide 20: Future | 2025 Drilling Species Mix
PEYTO’S FUTURE | 2025 DRILLING SPECIES MIX Greater Sundance Area Peyto expects to drill 70- 80 net wells in 2025 Dunvegan within the two core areas. Highlights and optional Viking Notikewin drilling include: Falher • New prolific Sundance Falher channel Wilrich 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% 120% 109% 105% 25% Cardium 100% Dunvegan 83% 24% 80% Notikewin 60% 60% 52% Falher 9% 40% Wilrich 20% Bluesky Bullhead 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 (3) Royalties $0.22 PDP FD&A(1) $0.97 $1.41 $1.21 $1.00 $1.00 Repeat great results from OPEX $0.53 2024 program. Cash Costs(1) $1.25 $1.62 $1.42 $1.46 Transport $0.30 $1.33 G&A $0.05 Total Supply Royalties up. Cost $2.22 $3.03
Slide 23: Past | Peyto's Future
PEYTO’S PAST | PEYTO’S FUTURE 180,000 Modest production growth (5-10%) $8.00 160,000 increases the value of our assets, generates $7.00 free cash flow to fund the capital program, 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 $2.0
Slide 24: 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 800 600 400 200 - Oct-24 Oct-26 Oct-28 Oct-20 Oct-21 Oct-22 Oct-23 Oct-25 Oct-27 Jul-20 Jul-21 Jul-
Slide 25: Future | Cash Costs
PEYTO’S FUTURE | CASH COSTS Still a Leader in the Industry Despite being the lowest cost producer, Peyto continuously strives to reduce Total Cash Costs (excluding(1) Royalties and Taxes) controllable unit costs. Peyto expects to $2.50 achieve this through higher plant utilization, operational impro
Slide 26: Marketing
PEYTO’S MARKETING Gas Hedging and Diversification Strategy Moderates Volatility Gas Price(1) ($/mcf) $10.00 Emerson 2 Dawn/Parkway Edmonton 2025 GJ/d 23,751 $8.00 2025 GJ/d 55,290 2026 GJ/d 28,275 Cascade Power Calgary Trasport CA/GJ $0.56 2026 GJ/d 81,652 2025 GJ/d 60,000 Transport CA/GJ $1.15 $6.0
Slide 27: Gas Marketing | Realized Prices
GAS MARKETING| REALIZED PRICES Peyto embarked upon a diversification strategy ~5 years ago. This has Natural Gas Price complimented our hedging program to yield superior prices over AECO. 5.00 4.05 4.17 3.87 4.00 3.53 3.33 3.43 0.83 0.83 2.95 1.59 2.87 0.75 3.00 0.14 0.76 1.16 1.13 0.53 ($/Mcf) 0.23
Slide 28: Gas Marketing
GAS MARKETING Future Market Diversification and Gas Price Protection Peyto has used financial basis and physical transportation 479 MMcf/d fixed at $4.13/Mcf for Q3–Q4 2025 agreements between AECO and other hubs to gain market 410 MMcf/d fixed at $4.00/Mcf for 2026 diversification and exposure to de
Slide 29: 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 1.38
Slide 30: 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 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 Fixed Price Contracts Peyto uses swaps and costless collars to secure liquids revenue as well. USD contracts converted at 1.38CAD/USD Please refer to https://www.peyto.com/Marketing.aspx for the most recent marketing data and slides. 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 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 34: Peyto's 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 Net Debt(1) of $1.24 billion at June 30, 2025. under 1.0 Debt/EBITDA(2). Notes
Slide 35: Tax Pools
PEYTO’S TAX POOLS $1,800 $1,600 $1,400 $1,200 $1.2B Federal Tax Pools $1,000 Q4/24 Millions $800 $600 $400 $8.9B $200 Peyto Cumulative CapEx $- Q4/24 (including Repsol) 2002 2018 1999 2000 2001 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2019 2020 2021 2022 2023 2024 C
Slide 36: Advisories
ADVISORIES Forward Looking Statements This presentation contains forward-looking information (forward-looking statements). Words such as "guidance", "may", "can", "would", "could", "should", "will", "intend", "plan", "anticipate", "believe", "aim", "seek", "propose", "contemplate", "estimate", "focu
Slide 37: Drilling Locations
Drilling Locations This presentation discloses drilling locations in three categories: (i) proved locations; (ii) probable locations; and (iii) unbooked locations. In respect of the Acquisition, proved locations and probable locations are derived from the GLJ Acquisition Report and account for drill
Slide 38: Oil and Gas Metrics
Oil and Gas Metrics Peyto has used a number of oil and gas metrics herein which do not have standardized meanings and therefore may be calculated differently from the metrics presented by other oil and gas companies. Such metrics include "DCET", "EUR", "payout", "Before tax IRR" and "NPV @ 10%". DCE
Slide 39: Netback and Non-GAAP Measures
Netback is a non-GAAP measure that represents the profit margin associated with the production and sale of petroleum and natural gas. Peyto computes "field netback per Mcfe" as commodity sales from production, plus third-party sales net of purchases, if any, plus other income, less royalties, operat
Slide 40: Peyto's History
PEYTO’S HISTORY The Ensign #401 rig has been drilling for Peyto since November 2009. 40
Slide 41: History | Per Share Growth
PEYTO’S HISTORY | PER SHARE GROWTH Over time, the Peyto model is designed to deliver a superior total return with per share growth in value, income and assets. 2 1 Production/share Reserves/share FFO/share2 2P NPV10/debt adj. share3 (MMcfe/y/mm sh) (2P Bcfe/mm sh) ($/sh) ($/sh) $4.85 $41.65 1405 41.
Slide 42: History | Shareholder Returns
PEYTO’S HISTORY | SHAREHOLDER RETURNS $70.00 180,000 Peyto has a 26-year history of growing value, income and assets while delivering 160,000 $60.00 strong returns to shareholders. June-30-2025 140,000 $50.00 $19.45/sh 120,000 $40.00 100,000 $/share boe/d Enterprise $30.00 Value 80,000 60,000 $20.00
Slide 43: History | Cost Control
PEYTO’S HISTORY | COST CONTROL $/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 $0.83 $0.92 $0.95 $1.01 $1.25 $1.62 $1.42 $1.46 Total Supply Cost $2.45 $2.20 $2.19 $2.10 $2.50 $2.07 $2.22 $3.
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) Reserves per Share (boe/sh) 8.00 6.91 35 28 Reserves Life Index P+P: 13% CAGR 30 6.00 25 PDP: 21% CAGR 20 4.00 15 10 2.00 10 5 - - 2016 1999 2001 2003 2005
Slide 45: History | Reserve Growth
PEYTO’S HISTORY| RESERVE GROWTH 12,000 Over the past 26 years, Peyto has discovered 8.2 10,000 11.2 TCFe of natural gas reserves. 2,947 8,000 TCFe of 25% 2P Reserves CAGR 2,412 (BCFe) 6,000 11,167 Gross MMBOE 2024 2023 2022 Proved Developed Producing 474 443 328 2,843 Proved Developed Non-Producing
Slide 46: 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 18% 1,200 Net Sections CAGR 1,000 800 600 Kakwa 400 Greater Sundance Area 200 Greater - Braz
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