CALGARY, Alberta, May 10, 2023 (GLOBE NEWSWIRE) — Peyto Exploration & Development Corp. (“Peyto” or the “Company”) is pleased to report first quarter 2023 operating and financial results. A 71% operating margin1,2, combined with a 32% profit margin3 delivered return on capital employed (“ROCE”) for the quarter4) of 14% and return on equity (“ROE”)4) of 17% based on the last 12 months. Other highlights included:
- Strong Funds from Operations5 from $1.02/diluted share – Generated $180 million in Funds from Operations (“FFO”) in Q1 2023, despite lower realized commodity prices and a current income tax of $19 million ($nil in Q1 2022).
- Free Flow of Money6 of $58 million – Free cash flow for the first quarter of 2023 totaled $58 million compared to $60 million in the first quarter of 2022 due to lower realized commodity prices and ongoing income taxes, partially offset by lower overall capital expenditures.
- Total Cash Cost7 from $1.52/Mcfe (or $0.99/Mcfe before royalties) – Quarterly cash costs of $0.99/Mcfe before royalties of $0.53/Mcfe were 6% higher than Q1 2022 due to inflationary pressures on costs. Operating costs for the first quarter of $0.50/Mcfe, Transportation costs of $0.24/Mcfe, G&A of $0.03/Mcfe and interest expense of $0.22/Mcfe resulted in an operating margin of 71%. Peyto continues to have the lowest capital costs in Canada’s natural gas industry.
- total investments8th of $122 million — During the first quarter, a total of 19 gross wells (net 17.6) were drilled, 14 gross wells (net 13.2) were completed and 14 gross wells (net 13.3) were commissioned. Facilities and pipeline projects totaled $32 million for the quarter, including $13 million for the construction of the 14-mile, large-diameter pipeline connecting Peyto’s Swanson natural gas facility directly to the Cascade power plant.
- net debt9 down 18% – Net debt was reduced by $186 million to $878 million from the first quarter of 2022. Interest expense increased 5% from $0.21/Mcfe in Q1 2022 to $0.22/Mcfe in Q1 2023, while the average Bank of Canada interest rate increased…
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