On today’s Breakouts report, there are five stocks on the positive breakouts list , and 16 stocks are on the negative breakouts list .). The stock is benefitting from recent strength in the price of natural gas. Looking ahead, a key risk for the stock is a warm winter leading to soft demand for natural gas.
Last month, management announced that it entered into an agreement to purchase Repsol Canada Energy Partnership with assets also located in the Alberta Deep Basin. The acquisition, with a purchase price of US$468-million, is expected to be completed in mid-Oct. To fund this planned acquisition, the company expanded its existing revolver credit facility to $1-billion from $800-million, and completed an equity financing.
Management employs a hedging strategy in order to mitigate risk from commodity price volatility. For the winter, over 55 per cent of the company’s forecast volumes are hedged at $4.77 per thousand cubic feet , and next summer around 45 per cent of Peyto’s volumes are hedged at $3.6 per Mcf.On Aug. 9, the company reported better-than-expected second-quarter financial results. Funds from operations came in at 81 cents per share, a penny above the Street’s expectations.
Raymond James’ Jeremy McCrea upgraded his recommendation to an “outperform” from “market perform” and raised his target price to $15 from $13.50.Scotiabank’s Cameron Bean raised his target price by $2 to $23 .The consensus cash flow per share estimate is $3.91 in 2023, down from $4.73 reported in 2022, and $4.66 in 2024.The stock is commonly valued by analysts on an enterprise value-to-debt adjusted cash flow basis.
The stock chart turned positive. In late September, the stock exhibited a bullish technical signal – a “golden Cross.” This occurs when the 50-day moving average rises above the 200-day moving average.