07:25 AM EST, 02/21/2025 (MT Newswires) -- Peyto Exploration & Development ( PEYUF ) overnight Thursday said its 2024 drilling program developed a record 76.2 million barrels of oil equivalent (MMboe) of new Proved Developed Producing (PDP) reserves.

The company estimates a total base decline rate of 27% this year, from December's monthly average production of 136 Mboe/d. Its capital budget of $450 million to $500 million is projected to add between 43,000 and 48,000 boe/d of new production by year-end and is expected to offset the 27% decline.

Peyto expects to utilize four rigs to drill 70-80 net horizontal wells, representing 80% of the 2025 budget. The remaining capital is planned for optimization and maintenance projects for Peyto's 15 operating gas plants and system infrastructure.

Management believes Peyto's commodity hedges and natural gas diversification contracts will not be directly impacted by the proposed U.S. tariffs. Most of the supplies used in the company's operations are also sourced domestically.