Peyto Exploration & Development Corp
TSX:PEY

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Peyto Exploration & Development Corp Logo
Peyto Exploration & Development Corp
TSX:PEY
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Price: 19.42 CAD 1.15% Market Closed
Market Cap: 3.9B CAD

Operating Margin
Peyto Exploration & Development Corp

23.1%
Current
44%
Average
11.6%
Industry

Operating Margin represents how efficiently a company is able to generate profit through its core operations.

Higher ratios are generally better, illustrating the company is efficient in its operations and is good at turning sales into profits.

Operating Margin
23.1%
=
Operating Profit
208m
/
Revenue
901.9m

Operating Margin Across Competitors

Peyto Exploration & Development Corp
Glance View

Market Cap
3.9B CAD
Industry
Energy

Peyto Exploration & Development Corp., established in 1998, has carved a niche for itself as a prominent player in Canada's energy sector. This Calgary-based company focuses primarily on the exploration, development, and production of unconventional natural gas in the Alberta Deep Basin. Peyto's business model has long been admired for its operational efficiency and cost-effectiveness. They employ a strategy centered on acquiring and developing long-term, low-cost natural gas reserves with high deliverability. By honing in on advanced drilling and completion technologies, Peyto maximizes its output while keeping operational costs lean, which is pivotal in a volatile commodity market. The company's revenue stream is firmly anchored in its ability to produce and sell natural gas and natural gas liquids (NGLs). Peyto's adeptness at vertically integrating its operations—from acquiring prime drilling land to developing and maintaining infrastructure—allows the company to capture a larger portion of the value chain. They sell the produced gas primarily under long-term contracts, securing a steady inflow of funds and minimizing market risk. As international push for cleaner energy sources grows, Peyto positions itself strategically to benefit from the increasing demand for natural gas, which, due to its lower carbon footprint compared to coal and oil, is seen as a bridge fuel in the transition to a sustainable energy future.

PEY Intrinsic Value
28.9 CAD
Undervaluation 33%
Intrinsic Value
Price
What is Operating Margin?

Operating Margin represents how efficiently a company is able to generate profit through its core operations.

Higher ratios are generally better, illustrating the company is efficient in its operations and is good at turning sales into profits.

Operating Margin
23.1%
=
Operating Profit
208m
/
Revenue
901.9m
What is the Operating Margin of Peyto Exploration & Development Corp?

Based on Peyto Exploration & Development Corp's most recent financial statements, the company has Operating Margin of 23.1%.

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