PEYUF - Peyto Exploration & Development: Back To Growth
Despite Peyto Exploration & Development's (OTCPK:PEYUF) high leverage, management shifted its focus away from debt reduction. After two years of production decline because of its important debt load combined with depressed Canadian gas prices, the natural gas producer announced a 2020 budget that corresponds to production growth.
In contrast, many Canadian producers stopped growing their production to maximize short-term free cash flow and reduce their leverage because of limited access to extra capital. But Peyto's capital program makes sense considering its competitive advantages.
Image source: ArtTower via Pixabay (Peyto lake)
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