Canada’s Peyto Exploration posts higher output in Q3
Canadian Deep Basin producer Peyto Exploration & Development said November 13 it had Q3 2024 natural gas production that was 23% higher than a year ago and natural gas liquids (NGL) output that was 21% higher.
Combined with a modest 11% drop in its average realised natural gas price, the company had earnings of C$51.03mn (US$36.5mn) in the quarter, also down 11% from C$57.44mn in Q3 2023. Funds from operations rose 4%, to C$154.3mn from C$147.9mn.
Natural gas production averaged 638.4mn ft3/day in Q3 2024, up from 520.5mn ft3/day a year ago, while Peyto’s average realised natural gas price, after hedging and diversification, dipped to C$2.95/’000 ft3 from C$3.33/’000 ft3. The third quarter average of C$2.57/GJ, was nearly four times higher than the average AECO daily benchmark price of C$0.65/GJ.
“Peyto’s natural gas hedging activity resulted in a realized gain of $1.31/’000 ft3 (C$76.8mn) in the quarter, due to the low-price environment at AECO and Henry Hub,” Peyto said in its earnings release.