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  5. PEY: Thank you for your past guidance ! [Peyto Exploration & Development Corp.]
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Investment Q&A

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Q: Thank you for your past guidance !
Can you please find out when Peyto's existing hedges expire ?
Can I check this on my own ?

Thank you

Asked by Filip on May 16, 2022
5i Research Answer:

If you look at Note 12 of the company's March 31 First Quarter financial statements at www.sedar.com all the hedges are detailed.  We have copied the note below but the format may be a bit more difficult to read than on the financial statements themselves. 

Following is a summary of all risk management contracts in place as at March 31, 2022:

page13image3176800064 page13image3176800320 page13image3176800576

Natural Gas
Period Hedged- Monthly Index 
April 1, 2022 to October 31, 2022 November 1, 2022 to March 31, 2023 April 1, 2023 to October 31, 2023

Natural Gas
Period Hedged - NYMEX
April 1, 2022 to October 31, 2022 November 1, 2022 to December 31, 2022 November 1, 2022 to March 31, 2023 January 1, 2023 to December 31, 2023 April 1, 2023 to October 31, 2023 January 1, 2024 to March 31, 2024

Natural Gas
Period Hedged - Malin
April 1, 2022 to October 31, 2022 November 1, 2022, to March 31, 2023

Crude Oil
Period Hedged - WTI
January 1, 2022 to December 31, 2022 April 1, 2022 to June 30, 2022

Crude Oil
Period Hedged - WTI
January 1, 2022 to June 30, 2022 January 1, 2022 to December 31, 2022 April 1, 2022 to June 30, 2022
July 1, 2022 to September 31, 2022 July 1, 2022 to December 31, 2022 October 1, 2022 to December 31, 2022 January 1, 2023 to March 31, 2023

Type

Fixed Price Fixed Price Fixed Price

Type

Fixed Price Fixed Price Fixed Price Fixed Price Fixed Price Fixed Price

Type

Fixed Price Fixed Price

Type

Fixed Price Fixed Price

Type

Fixed Price Fixed Price Fixed Price Fixed Price Fixed Price Fixed Price Fixed Price

Daily Volume

115,000 GJ 195,000 GJ 180,000 GJ

Daily Volume

55,000 mmbtu 70,000 mmbtu 70,000 mmbtu 70,000 mmbtu 40,000 mmbtu 60,000 mmbtu

Daily Volume

40,000 mmbtu 40,000 mmbtu

Daily Volume

300 bbl 300 bbl

Daily Volume

600 bbl

900 bbl 2,900 bbl 400 bbl 1,200 bbl 100 bbl 400 bbl

Price (AECO CAD/GJ)

$2.07 to $2.26 $2.30 to $4.03 $2.05 to $3.00

Price (Nymex USD/mmbtu)

$2.56 to $4.19 $3.97 to $4.78 $4.05 to $4.85 $3.42 to $3.77 $3.35 to $3.90 $4.15 to $4.27

Price (Nymex USD/mmbtu)

$2.35 to $2.40 $2.90 to $3.10

Price (WTI USD/bbl)

$63.75 to $64.65 $62.10 to $64.00

Price (WTI CDN/bbl)

$83.45 to $90.50

$79.75 to $85.50 $89.50 to $151.00 $100.15 to $121.50 $87.75 to $105.75 $100.70 $85.25 to $101.05

page13image3176960096 page13image3176960352 page13image3176960608page13image3176960928 page13image3176962064page13image3176962384 page13image3176962640 page13image3176962896page13image3176963152 page13image3176963408 page13image3176963664page13image3176965056 page13image3176965248 page13image3176965504page13image3176965760 page13image3176966016 page13image3176966272page13image3176966528 page13image3176967664page13image3176967984 page13image3176968240 page13image3176968496 page13image3176968752 page13image3176969008page13image3176969264 page13image3176970400page13image3176970720 page13image3176963840 page13image3176971488page13image3176971744 page13image3176972000 page13image3176972256

As at March 31, 2022, Peyto had committed to the future sale of 92,575,000 gigajoules (GJ) of natural gas at an average price of $2.65 per GJ or $3.05 per mcf, 66,180,000 mmbtu at an average price of $3.58 US per mmbtu, 109,800 barrels of crude at an average price of $63.79 USD per bbl,and 868,800 barrels of crude at an average price of $94.63 CAD per

13

bbl. Had these contracts closed on March 31, 2022, Peyto would have realized a loss in the amount of $348.6 million. If the gas price on March 31, 2022, were to increase by $0.10/GJ, the unrealized loss would increase by approximately $31.7 million. An opposite change in commodity prices would result in an opposite impact on other comprehensive income.

Subsequent to March 31, 2022, Peyto entered into the following contracts:

page14image3136834160 page14image3175088384 page14image3136834480

Natural Gas
Period Hedged - NYMEX 
January 1, 2024 to March 31, 2024

Crude Oil
Period Hedged - WTI
July 1, 2022 to September 30, 2022 July 1, 2022 to December 31, 2022 January 1, 2023 to March 31, 2023 April 1, 2023 to June 30, 2023

Related party transactions

Type

Fixed Price

Type

Fixed Price Fixed Price Fixed Price Fixed Price

Daily Volume

10,000 mmbtu

Daily Volume

300 bbl 100 bbl 500 bbl 200 bbl

Price (Nymex USD/mmbtu)

$5.03

Price (WTI CDN/bbl)

$122.10 to $130.25 $125.00 $115.25 to $111.75 $111.50