Peyto – PEY.TSE along with all the energy companies have been suffering for a long-time until recently.  Cash flow has improved significantly and the shares are still cheap.  CFIRR on a TFQ basis is now 4% up from (-1%) in 2020.  Cash Flow from Ops (CFOPS) on a TFQ basis was $462M up from $261M in 2020.  On an Annualized Q3 basis CFIRR is 7% and CFOPS is $607.

The whole time during the downturn, management continued investing in the company. 
2013 Gross Invested Capital = $3.1B

2021 Gross Invested Capital = $6.8B

Furthermore, management just restored a monthly dividend of $0.05 or $0.60 per annum which is a 5.2% yield.  Given the improvement in cash flow and management’s confidence to restore a fairly sizable dividend, I believe the dividend is relatively safe.   

Peyto is a pure play Natural Gas producer with long term assets. While fossil fuels are under pressure to be replaced, there is still a long runway before that happens and Natural Gas is much cleaner burning than oil and is widely seen as a transition fuel.