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Peter
I was shocked to read on Peyto´s conference call (https://finance.yahoo.com/news/edited-transcript-pey-earnings-conference-185021198.html) that prices for natural gas had turned negative i. e. producers had to pay others to have their gas taken.
Is that something which happened on the Canadian market only (and why)? What´s your take on Peytos recent numbers.
Cold you elaborate on that
Robert Rapier
Sorry for the slow response Peter. I am traveling. That situation has not happened in the U.S. market to my knowledge. I knew that propane had turned negative at times in the Canadian market, but didn’t hear that about natural gas. Peyto’s revenues are up over the past 12 months, but their cash from operations hasn’t been enough to sustain both capital spending and pay the dividend. I would be a little worried about a dividend cut if natural gas prices don’t recover a bit there. I still think they are a great company, but they have been at the mercy of natural gas prices there, which have been at the mercy of U.S. shale gas production.
Stock Talk
Peter
I was shocked to read on Peyto´s conference call (https://finance.yahoo.com/news/edited-transcript-pey-earnings-conference-185021198.html) that prices for natural gas had turned negative i. e. producers had to pay others to have their gas taken.
Is that something which happened on the Canadian market only (and why)? What´s your take on Peytos recent numbers.
Cold you elaborate on that
Robert Rapier
Sorry for the slow response Peter. I am traveling. That situation has not happened in the U.S. market to my knowledge. I knew that propane had turned negative at times in the Canadian market, but didn’t hear that about natural gas. Peyto’s revenues are up over the past 12 months, but their cash from operations hasn’t been enough to sustain both capital spending and pay the dividend. I would be a little worried about a dividend cut if natural gas prices don’t recover a bit there. I still think they are a great company, but they have been at the mercy of natural gas prices there, which have been at the mercy of U.S. shale gas production.
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