On the occasion of its 20th year of existence, Peyto (OTCPK:PEYUF) reported positive earnings for the 55th consecutive quarter. The free cash flow covered the dividend. And the net debt decreased (by a small amount, though).
But without hedges, the company would have generated tiny profits. And with the low gas prices environment, the company hedged next year's gas production at lower prices.
Yet, thanks to the low-cost operations, the company can sustain these depressed prices for many years. Management is avoiding AECO (a Canadian gas hub) prices by selling