Peyto Exploration and Development (PEYUF), a low cost Canadian natural gas producer, has seen much of its market cap evaporate over the past five years. Like many Canadian E&Ps, it has seen the differentials between its production and that of more well-known American benchmarks continue to erode. Unfortunately, those headwinds are unlikely to ease at any point in the next several years. Management is hunkering down, cutting costs where it can and making a hefty cut to the dividend in order to retain cash for delevering the balance sheet. In principle, I agree