Overview

* Peyto Q2 earnings rise, driven by low cash costs

* Production volumes increase 8% yr/yr, supported by capital program

* Net debt reduced by $39.9 mln in Q2, reflecting financial discipline

Outlook

* Peyto maintains 2025 capital guidance at C$450-C$500 mln

* Company plans to ramp up production in Q4 2025

Result Drivers

* LOW CASH COSTS - Peyto attributes strong funds from operations to industry-leading low cash costs

* HEDGING GAINS - Realized hedging gains of C$52.6 mln helped secure higher natural gas prices

* PRODUCTION INCREASE - 8% year-over-year production growth driven by capital program

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 EPS C$0.43

Q2 Basic C$0.44

EPS

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the oil & gas exploration and production peer group is "buy"

* Wall Street's median 12-month price target for Peyto Exploration & Development Corp ( PEYUF ) is C$21.00, about 9.5% above its August 11 closing price of C$19.01

* The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 7 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)