Peyto generated $225 million in funds from operations in Q1 2025, supported by gas hedging gains and a diversified gas marketing portfolio, achieving $4.17 per Mcf—89% higher than the monthly AECO price.
Operating margin was strong at 71%, with cash costs reduced to $1.42 per Mcfe (down from $1.51 in Q1 2024), and further cost reductions expected throughout the year as synergies with Repsol assets are realized.
Capital spending for the quarter was $102 million, enabling $60 million in dividends and a $66 million reduction in net debt; facility capital is expected to increase in Q3 due to scheduled plant turnarounds and compressor projects.
The company drilled 19 wells, completed 13, and tied in 14 during the quarter, with successful cost-saving innovations in Cardium drilling techniques reducing drill cost per horizontal meter by 40% compared to historical programs.
2025 guidance remains unchanged: planned capital spending of $450–500 million, targeting capital efficiency of $21,000 per flowing BOE by year-end to offset a 27% corporate decline rate; hedging strategy aims for 50–80% coverage in the current season, tapering out over three years.