Peyto Exploration & Development Corp. · TSX:PEY
Peyto Exploration & Development — Investor Presentation (December 2025)
45 slides from Peyto Exploration & Development's investor presentation, December 2025
Slide 1: Corporate Presentation December 2025
www.peyto.com Corporate Presentation December 2025
Slide 2: Who Is Peyto | Corporate Overview
WHO IS PEYTO | CORPORATE OVERVIEW Focused Assets 27-year publicly traded company focused exclusively on the Alberta Deep Basin ALBERTA One of Canada’s 141,000 boe/d (~12% liquids, 98% operated) Nov-25 Largest Natural Long reserve life assets (10yr PDP RLI , 28yr 2P RLI @ Gas Producers 2024YE) 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 2023 YE 2024 Q1 2025 Q2 2025 Q3 2025 Natural Gas mmcf/d 554 659 710 697 685 NGLs bbl/d 12,657 15,334 15,473 15,650 15,612 Average Production mmcfe/d 630 751 803 791 779 Average Production boe/d 104,948 125,202 133,883 131,754 129,762 Production per million sha
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 production capacity ✓ Proximal to major pipeline egress (NGTL, Alliance) Kakwa ✓ Drilled over 1,420 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 is forecasted to 1.6 bcf/d Pre-FID ALBERTA grow in 2025 by 31%, the largest increase since 2019, growing demand for natural gas in NA by over 5 bcf/d. LNG Canada 1 2 bcf/d (2025) Iroquois Export capacity is
Slide 8: Why We Do It | Power Demand
WHY WE DO IT | POWER DEMAND ✓ AESO lists 33 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) ✓ AESO has approved data centre connections for 1.2 GW to date ✓ Peyto is well positioned to benefit from
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 $7,000 Cumulative Earnings/Dividends (MM$) 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 2024 YE PDP FD&A(1) ($/boe) Average Injected Water per Well by Formation(3), 2024 500,000 $60.00 Better reservoir quality than other plays Water per Well(bbl/Well) $50.00 Fit-for-purpose, nimble rigs (telescopic 400,000 such as Montney and Duvernay means doubles)
Slide 11: How We Do It | Low Costs Drive Margins
HOW WE DO IT | LOW COSTS DRIVE MARGINS At Peyto we focus on costs since they are “sticky” and drive superior margins. Peyto’s margins were even stronger than liquids-weighted producers in 2024. 2024 Cash Costs1 ($/mcfe) 2024 YE Results $7.00 65% PEY $6.00 60% After-tax Margin2 55% $5.00 50% $4.00 45
Slide 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 56%. This leaves plenty of 1 Edson (WI: 83%) 275 228 156 room for growth in the future without 2 Swan
Slide 13: How We Do It | Continuous Improvement
HOW WE DO IT | CONTINUOUS IMPROVEMENT Unit Drill and Complete Costs Average Well Production by Spud Year $900 By Year By Quarter 9,000 $800 8,000 With most recent drills, 2025 average well $700 7,000 productivity is now trending closer to last year’s outstanding performance with more $600 6,000 resu
Slide 14: 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 15: Returns | Robust Results - 2025 YTD
PEYTO’S RETURNS | ROBUST RESULTS - 2025 YTD Wells On Stream to end-Oct: 2025 Drilling Program 58 gross / 56.3 net Price Deck: $3.00/GJ Flat, US$60/bbl BTAX IRR YTD: 51%, Full Program: 53% Includes: $1,132M/well (Facilities, Land, Seismic) 220% 180% BLSK IRR = 210% DNVG IRR = 28% VKNG IRR = 34% NTKN
Slide 16: How We Do It | Finding New Targets
HOW WE DO IT | FINDING NEW TARGETS Falher Results to Date Economics1 Units Value 30000 EUR bcf 6.7 DCT MM$ $5.3 25000 Following up on top decile IRRs from the 2024 drilling program. IP365 boe/d 870 20000 BTAX NPV10 MM$ $11.0 IRR % 140% Mcf/d 15000 Payout years 1.0 10000 • Peyto tested a newly mapped
Slide 17: How We Do It | Bluesky
HOW WE DO IT | BLUESKY Bluesky Results Economics1 Units Value 25,000 EUR bcf 8.3 DCT MM$ $6.8MM 20,000 IP365 boe/d 1,203 BTAX NPV10 MM$ $14.9MM 15,000 IRR % 188% Mcf/d Payout years 0.8 10,000 • Peyto acquired a drilled but uncompleted Bluesky well in 2023 Repsol acquisition 5,000 • Peyto completed t
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: 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 Dunvegan two core areas. Highlights and optional drilling include: Viking Notikewin • New prolific Sundance Falher channel Falher • Brazeau/Chambers Cardium using latest drilli
Slide 20: Future | Undrilled Inventory
PEYTO’S FUTURE | UNDRILLED INVENTORY(1) Booked Inventory (Volume weighted) Average IRR by Species (3-year Plan) 6% $3.00/GJ AECO, US$60/bbl WTI 25% 200% Cardium 160% 24% Dunvegan 150% Notikewin 109% 100% 87% Falher 79% 78% 71% 71% 9% Wilrich 50% Bluesky Bullhead 19% 17% 0% Falher Bluesky Notikewin C
Slide 21: 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 $1.32 G&A $0.05 Total Supply Royalties down. Cost $2.22 $3.0
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 $3.00
Slide 23: Future | Room to Grow
PEYTO’S FUTURE | ROOM TO GROW 1,400 Peyto has ample processing capacity 1,200 and firm transportation to support growth plans of 5% - 10% per year 1,000 over the next several years. Net Sales Gas Rate 800 600 400 200 - Oct-24 Oct-26 Oct-28 Oct-20 Oct-21 Oct-22 Oct-23 Oct-25 Oct-27 Jul-20 Jul-21 Jul-
Slide 24: Marketing
PEYTO’S MARKETING Gas Hedging and Diversification Strategy Moderates Volatility Gas Price(1) ($/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 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 Natural Gas Price yield superior prices over AECO. 4.50 4.05 4.17 3.87 4.00 3.57 3.43 0.83 3.53 3.13 3.33 3.50 0.83 1.59 2.87 2.95 0.75 3.00 0.93 0.76 0.14 1.38 1.
Slide 26: Gas Marketing
GAS MARKETING Future Market Diversification and Gas Price Protection 450 MMcf/d fixed at $4.36/Mcf for Q4 2025 Peyto has used financial basis and physical transportation 429 MMcf/d fixed at $4.04/Mcf for 2026 agreements between AECO and other hubs to gain market 128 MMcf/d fixed at $3.73/Mcf for 202
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 1.40
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 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 29: NGL Marketing
NGL MARKETING Fixed Price Contracts Peyto uses swaps and costless collars to secure liquids revenue as well. USD contracts converted at 1.40CAD/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 $1.22 billion at September 30, 2025. Notes and credit facility include: Date Issued Rate M
Slide 33: 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 $- Q4/24 (including Repsol) 2002 2018 1999 2000 2001 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2019 2020 2021 2022 2023 2024 C
Slide 34: Advisories
ADVISORIES Forward Looking Statements This presentation contains forward-looking information (forward-looking statements). Words such as "guidance", "may", "can", "would", "could", "should", "will", "intend", "plan", "anticipate", "believe", "aim", "seek", "propose", "contemplate", "estimate", "focu
Slide 35: Drilling Locations
Drilling Locations This presentation discloses drilling locations in three categories: (i) proved locations; (ii) probable locations; and (iii) unbooked locations. In respect of the Acquisition, proved locations and probable locations are derived from the GLJ Acquisition Report and account for drill
Slide 36: Oil and Gas Metrics
Oil and Gas Metrics Peyto has used a number of oil and gas metrics herein which do not have standardized meanings and therefore may be calculated differently from the metrics presented by other oil and gas companies. Such metrics include "DCET", "EUR", "payout", "Before tax IRR" and "NPV @ 10%". DCE
Slide 37: Netback and Non-GAAP Measures
Netback is a non-GAAP measure that represents the profit margin associated with the production and sale of petroleum and natural gas. Peyto computes "field netback per Mcfe" as commodity sales from production, plus third-party sales net of purchases, if any, plus other income, less royalties, operat
Slide 38: Peyto's History
PEYTO’S HISTORY The Ensign #401 rig has been drilling for Peyto since November 2009. 38
Slide 39: History | Per Share Growth
PEYTO’S HISTORY | PER SHARE GROWTH Over time, the Peyto model is designed to deliver a superior total return with per share growth in value, income and assets. 2 1 Production/share Reserves/share FFO/share2 2P NPV10/debt adj. share3 (MMcfe/y/mm sh) (2P Bcfe/mm sh) ($/sh) ($/sh) $4.85 $41.65 1405 41.
Slide 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 strong returns to shareholders. 140,000 Sept-30-2025 $50.00 $18.13/sh 120,000 $40.00 100,000 $/share boe/d Enterprise $30.00 Value 80,000 60,000 $20.00
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 26 yr Avg ROE to 2024 30% $6 14% 20% $4 10% $2 0% $
Slide 42: 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 43: 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 44: 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 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 18% 1,200 Net Sections CAGR 1,000 800 600 Kakwa 400 Greater Sundance Area 200 Greater - Braz
Peyto Exploration & Development — Investor Presentation (December 2025) on 6ix