Canada’s Peyto Exploration rebounds in Q1
May 13, 2021 3:45:pm
Summary
by: Dale Lunan
Canadian Deep Basin producer Peyto Exploration & Development said May 12 it had Q1 2021 net earnings of C$38.5mn (US$31.8mn), reversing a year-ago loss of C$67.7mn which included a C$80mn impairment on the value of its reserves.
Funds from operations rose 114%, to C$116.7mn, w.
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CALGARY The deep freeze that swept across North America last month will provide a bumper year for Canada’s largest natural gas producer Tourmaline Oil Corp., a stock-market darling, that believes the outlook for gas is improving even in warmer weather.
Tourmaline took advantage of the Polar Vortex in February, which blew Arctic weather across Texas and other southern U.S. states, by selling huge volumes of natural gas it had stored near San Francisco and Toronto to earn what analysts termed a “windfall” in February.
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Peyto Returns To Profitability With Q4 2020 Results einnews.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from einnews.com Daily Mail and Mail on Sunday newspapers.
FD&A (finding, development and acquisition) costs are used as a measure of capital efficiency and are calculated by dividing the capital costs for the period, including the change in undiscounted FDC, by the change in the reserves, incorporating revisions and production, for the same period (eg. 2020 Total Proved ($235.7-$190)/(536.5-527.3+29.1) = $1.19/boe or $0.20/Mcfe).
The RLI is calculated by dividing the reserves (in boes) in each category by the annualized Q4 average production rate in boe/year (eg. 2020 Proved Developed Producing 274.6/(83.461x366) = 9.0). Peyto believes that the most accurate way to evaluate the current reserve life is by dividing the proved developed producing reserves by the annualized actual fourth quarter average production. In Peyto’s opinion, for comparative purposes, the proved developed producing reserve life provides the best measure of sustainability.