During Q4, Peyto (PEYUF) generated positive total netbacks again before and after hedges. But the funds flow from operations dropped by 38% compared to last year. This decrease was due to lower production volume and the drop in the Canadian oil and gas prices.
Yet, even with conservative assumptions, the company will generate enough free cash flows to pay the dividend and reduce the net debt in 2019.
The market values Peyto at a premium compared with other Canadian gas producers because of its low-cost structure. But the stock price is still 40%+ below my