Canada’s Peyto down slightly in Q1 on weak prices
Deep Basin producer Peyto Exploration & Development said May 10 its Q1 net earnings dipped this year to C$89.9mn (US$67mn) from C$97.8mn as natural gas prices slumped across most of its markets.
“Natural gas prices were particularly volatile in the quarter with many benchmarks decreasing sharply from the Q1 2022 averages,” Peyto said. “The average daily Henry Hub price was down 42% and the average daily AECO price was down 32% in the quarter compared to the first quarter of 2022.”
Prices in the west, however, were strong, reflecting supply shortages in California. The average daily price at the Malin hub in Oregon was 235% higher year-over-year.
Funds from operations in the quarter were down 12%, to C$179.8mn from C$203.5mn, while free funds flow dropped to C$58mn from C$60mn on lower commodity prices.
Total production averaged 102,918 barrels of oil equivalent (boe)/day in Q1 2023, down slightly from 101,549 boe/day a year ago. Natural gas production was 2% higher, at 544.3mn ft3/day compared to 535.7mn ft3/day.
Peyto’s averaged realised natural gas price, after hedging, fell to C$3.91/’000 ft3from C$4.08/’000 ft3.
Natural gas hedging resulted in a realised loss of C$1.44/’000 ft3, largely due to higher prices at Malin, where prices averaged US$18.98/mn Btu for the quarter. Peyto’s Malin hedges ended March 31, and its marketed volumes there will be exposed to floating prices through the end of October.