Peyto’s Q2 2025 was characterized by continued operational strength—higher production, low costs, solid hedging—but missed analyst EPS and revenue forecasts and this resulted in the sell off. Still, the company’s focus on efficiency helped maintain robust margins, reduce debt, and deliver increased returns to shareholders, even as weaker commodity prices and hedging results versus Q2 2024 weighed on earnings growth. EPS missed expectations by 11% and revenue by 15%. But net debt did decline $40M. The stock remains up 12% this year and while not 'great' results we think the stock reflects this in its valuation already.
5i Research Answer: