Peyto sees modest decline in Q2 earnings
Canadian Deep Basin producer Peyto Exploration & Development said August 13 it had a modest 10% drop in Q2 2024 earnings compared to the same period last year, despite natural gas prices in North America that sank to near-five-year lows in the quarter.
Earnings for the period were C$51.4mn (US$37.5mn), down from C$57.4mn in Q2 2023, while funds from operations increased to C$154.8mn from C$142.3mn. Natural gas and gas liquids sales rose 20%, to C$263.8mn from C$219.4mn on the strength of a hedging strategy that delivered gains of C$71.4mn.
Peyto realised an average natural gas price of C$2.87/’000 ft3 in Q2 2024, down from C$3.13/’000 ft3 in the same period a year ago, but more than double the AECO daily benchmark of C$1.19/’000 ft3.
Natural gas production averaged 642.8mn ft3/day in Q2 this year, Peyto said, up from 526.7mn ft3/day a year ago, largely due to its acquisition of Repsol Canada last year, which closed in Q4 2023.