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Peyto Exploration & Development Corp.

TSX:PEYLive AI agent

Peyto Exploration & Development Corp.

Investor website: https://peyto.com/

About

Peyto Exploration & Development Corp. is an explorer and producer of unconventional natural gas in Alberta's Deep Basin. The company is known for its industry-leading cost structure and focus on profitability, making it unique in the Canadian Energy Industry. Peyto is committed to building value through the exploration and development of high-quality gas properties and trades on the Toronto Stock Exchange under the symbol ‘PEY’.

Verified company data

Cash position
$15,743
Shares outstanding
176005074
Fully diluted shares
208565042
Mineral resource
The Alberta Deep Basin is a geologic setting situated on the northeastern front of the Rocky Mountain belt in the deepest part of the Alberta sedimentary basin. Since its inception in 1998, Peyto has deliberately focused on exploring and developing the vast, sweet, liquids-rich, natural gas resource uniquely trapped in this basin. A lack of mobile water throughout the thick, tight Cretaceous aged sandstone formations results in higher reserve recovery with lower recovery risk and more predictable production profiles than conventional reservoirs, such as those in the foothills to the southwest. The multiple stacked formations within the Cretaceous aged sandstone rocks contain a large volume of natural gas that can be commercially developed using the latest horizontal multi-stage fractured well designs.
Projects
["The Edson Gas Plant (the \"EGP\" or \"Facility\"), built in 1965 to process sour natural gas production near the Town of Edson, is ideally situated at the confluence of major infrastructure and will feature as a key piece in Peyto’s future growth and commercial opportunities in the Deep Basin as it has many positive attributes and logistical advantages. Since closing the acquisition, we have increased our working interest in the Facility from 61% to 83%, giving us more control of the plant and more of the plant's 275 MMcf/d of gas processing capacity. While the EGP was only 30% utilized when we acquired it, we set a plan to simplify the operations, increase reliability and utilization, and ultimately reduce our operating costs. Peyto has undertaken two key projects in 2024 to achieve this including the re-direction of volumes processed at a third party deep cut plant and most recently, the shutdown of the sour processing equipment at the plant. The EGP has just the right postal code making it commercially exciting with a dual pipeline connection for both gas and liquids egress, a substantial large diameter gathering system, a nearby high voltage power line at Cascade, its own rail spur on the CN mainline, the nearby MacLeod River as a water source, and close proximity to the four-lane TransCanada highway that connects Edson to Edmonton, two hours away. Pipeline connections to the major natural gas transmission systems, NGTL and Alliance, allow gas to be sold in Alberta or to multiple downstream markets in North America. Peyto also wholly owns the Central Foothills Gas Gathering System (CFGGS) and an extensive large diameter gathering system connected south of the plant. The CFGGS is a 180 km pipeline that starts west of Peyto's Kakwa area, runs through Wild River and the heart of Sundance, and connects to the EGP. The CFGGS and southern gathering system have great potential for connecting Peyto facilities but also present commercial opportunities to bring sweet, 3rd party gas to the EGP for processing. The EGP sits on a spur of a main CN rail line giving us access to import and export products from across Canada during operations and construction projects. The Facility uses a lean oil system to extract natural gas liquids which is more effective at recovering valuable propane and butane than Peyto's standard refrigeration process. This is complimented with connections to both Pembina and Plains Midstream liquids pipeline egress for increased flexibility and redundancy. However, should Peyto construct a liquid fractionation plant, the logistical advantage of a private rail connection provides us with access to Asian (Far East) pricing by shipping propane and or butane to the west coast. The Facility is equipped with a cogeneration system that increases plant electrical reliability and consistently supplies 8 – 10 MW of power to the grid. In addition, the EGP requires only a short tie-in to provide natural gas to the nearby 900 MW Cascade power plant as supplemental or redundant supply. This gives Peyto greater certainty and flexibility to meet our 60,000 GJ/d, 15-year supply contract. The EGP is well situated for future demand growth. In May-2024, Canadian Utilities Ltd. announced a $2 billion project to build a 200 km pipeline that will deliver 1 bcf/d of natural gas from the Edson area to the Dow Chemicals ethylene cracker in Fort Saskatchewan, increasing local demand for our product. Additionally, the EGP could be an ideal location for data centre development as it sits over top of long-life natural gas reserves operated by the lowest cost operator in the industry. The Facility could provide a reliable power source with nearby cooling water from the MacLeod River and is situated on an abundance of private land adjacent to a large labour pool for construction and operation. The EGP is a key asset for Peyto, and we will continue focusing on simplifying operations, driving down costs, and evaluating the commercial opportunities that the Facility presents as part of our long-time commitment to creating shareholder value."]
Leadership
Jean-Paul 'JP' Lachance (President and Chief Executive Officer, Joined Peyto in 2011 as VP Exploitation, promoted to COO in 2018, and CEO in 2023. Over 30 years of industry experience with previous roles at ProspEx Resources, Marathon, and Chevron.), Todd Burdick (Vice President, Production, Began his oil and gas career in 1988, held various positions in well stimulation, geophysics, and pipeline/facility construction. Joined Peyto in 2005.), Tavis Carlson (Vice President and Chief Financial Officer, Joined Peyto in 2022 as VP, Finance and promoted to CFO in 2024. Over 20 years of finance and management experience in the oil and gas industry.), Michael Collens (Vice President, Marketing, Joined Peyto in 2019 with over 20 years of experience in Trading and Risk Management. Promoted to VP Marketing in 2025.), Lee Curran (Vice President, Drilling and Completions, Joined Peyto in 2006 after various roles with Chevron and Apache Resources.), Derick Czember (Vice President, Land and Business Development, Involved in oil and gas land since 2002, joined Peyto in 2015.), Riley Frame (Vice President, Engineering and Chief Operating Officer, Joined Peyto in 2013 as an Exploitation Engineer, promoted to COO in 2024.), Stephen J. Chetner (Corporate Secretary, Partner at Burnet, Duckworth & Palmer LLP since 2000, has corporate securities legal experience since 1994.), Crissy Rafoss (Vice President, Finance, Joined Peyto in 2013 as Controller, promoted to VP, Finance in 2025. Over 20 years of experience in financial operations.), Mike Rees (Vice President, Geoscience, Joined Peyto in 2012 as Senior Geologist, promoted to VP, Geoscience in 2025. Over 20 years of industry experience.)

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