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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Hi 5i, Peyto has long been identified as one of the highest quality and lowest cost Canadian nat gas producers. It was even suggested that before PEY would run into serious trouble some of its competitors would be going broke and selling assets out of bankruptcies. With the shifting of shareholders following the dividend cut and cap ex reduction, any thoughts on where the stock may settle and find some stability? Do you think it is okay to continue to hold it (and continue the DRIP) and wait for a cyclical lift or would it be better just to exit the scene? Also, can you name any Canadian nat gas producers that sell much of what they produce at NYMEX prices(are there any?) ? Thanks.
Read Answer Asked by Lance on January 22, 2018
Q: Peyto has been going down week after week at the same time that NYMEX gas prices have been increasing. Your going to tell me that Peyto doesn't get NYMEX prices it gets AECO price. OK but WHY is the AECO price so low; NYMEX today is over $3.20 and AECO price is ??? I used to look on the Alberta Gas Inc. website for the AECO price but it has not reported a new price since January 8th when it was around $1.50. So WHY is the Alberta price so low?? Thank you for your help. I thought we only had issues with OIL pipelines. Are gas pipelines also a problem?
Read Answer Asked by John on January 18, 2018
Q: I notice sometimes that when you are analyzing a stock that you will warn the person asking a question to note it has missed 7 of the last 8 quarters, or that the company has missed X % in the past 2 years. On this note, how has PEY performed in the last 2 years? Would this not be a strong indication PEY will cut its dividend? Thanks....lionel
Read Answer Asked by Lionel on January 12, 2018
Q: WITH OIL SEEMING TO RECOVER SOME, MY CPG WILL LIKELY BE CALLED AWAY AT $ 12.00.
COULD YOU PROVIDE A FEW LAGERS IN THE OIL SPACE THAT MIGHT BE REPLACEMENTS AND ARE REASONABLE TO OWN. (have 1/2 positions in WCP & SGY )
THANKS
YOSSI
Read Answer Asked by JOSEPH on January 10, 2018
Q: I see PEY is down 5% this morning and I am looking for your opinion on it as a long term hold. I have a full position in PEY (showing a big loss) and was expecting to see it bounce back somewhat in the New Year with tax loss selling off the table. I have always confidently felt PEY was a best in class NG producer with low production costs and strong management. Is it being taken to the woodshed strictly based on investors hating the sector or is there something specific about PEY making investors nervous? Am I wrong to be losing confidence in this investment?
Read Answer Asked by Morgan on January 05, 2018
Q: Currently, I am down over 50% on PEY. I don't really want to sell at the bottom but am concerned about the sustainability of the dividend. I don't necessarily need the dividend, so would it be a good move right now to replace PEY with BIR?
Read Answer Asked by Jake on December 19, 2017
Q: This is a follow up to David’s question(05.12.17). If one sells PEY for a tax loss would you replace with another oil or gas company? If no, why? If yes, which companies (say 2 or 3)?
Thanks, Bryn
Read Answer Asked by david on December 06, 2017
Q: Hi,

On Thursday there was a 10 Million block of shares traded near close on PEY.un. The volume for the day was more than 10x the average daily volume and the stock closed down. Is this something significant that should be noted by investors? Do your terminals provide any additional insight? Thank you for your comments.
Read Answer Asked by Brian on December 01, 2017
Q: good day i have these canadian gas plays for long term investments do you think i should continue holding ? thank you
Read Answer Asked by Norman on November 22, 2017
Q: I am looking at selling CVE for the tax-loss. Would PEY be a suitable replacement, or would you stay away from it? Any better ideas?
Read Answer Asked by chris on November 22, 2017
Q: You have indicated the payout ratio for PEY based on cash flow is 42%. Morningstar says the payout ratio is 153% for dividend and capital spending. When judging the safety of the dividend why would the capital spending not be considered? When the dividend and capital spending are not covered by cash flow is the difference made up from borrowings?
Thanks
Mike
Read Answer Asked by michael on November 22, 2017
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