Peyto Exploration & Development (PEY) Q4 2025 earnings summary

Executive summary

• Invested CAD 475 million in 2025, growing annual production by 7% to 134,055 BOE/d and reducing net debt by CAD 171 million (13%).

• Paid CAD 265 million in dividends (CAD 1.32/share), maintaining capital efficiency and operational discipline.

• Achieved strong reserve additions, with 34 of 82 wells drilled in new, previously unbooked locations and PDP reserves up 7%.

• Annual funds from operations reached CAD 860 million, with annual earnings of CAD 418.6 million.

• Q4 production averaged 140,800 BOE/d, up 6% year-over-year, and Q4 earnings were CAD 126 million.

Financial highlights

• Realized natural gas price after hedging/diversification was CAD 3.82/Mcf for 2025, 117% above AECO 7A index.

• Annual operating margin was 72% and profit margin 31%; Q4 operating margin reached 74% and profit margin 34%.

• Total capital expenditures were CAD 475 million for the year, with Q4 at CAD 142 million.

• Net debt at year-end was CAD 1.18 billion, down 13% from 2024.

• Q4 funds from operations totaled CAD 245 million, up 23% year-over-year.

Outlook and guidance

• 2026 capital program planned at CAD 450–500 million, targeting 70–80 net wells using 4–5 rigs.

• 70% of summer gas volumes hedged at just under CAD 4, with flexibility to adjust rig count based on market conditions.

• Production will be managed to limit exposure to weak markets; hedging and diversification to secure revenues for dividends and debt reduction.

• Constructive on long-term gas demand due to LNG buildout and power demand from data centers.