Peyto Exploration and Development Corp (PEY)

[MemoryLeaks]

This has taken quite the beating. Yielding around 6%. Will this bounce back at some stage?

tsx-winners-and-losers

Peyto Exploration and Development Corp.

Between 2014 and 2016, Peyto’s stock often traded between $30 and $40, but due to plunging natural gas prices, the Alberta-based company is now worth a tenth of its former value. In 2019, the price of natural gas briefly rallied to trading above $5 per gigajoule, but the surge did not convince investors to jump back into the company. Prior to the rally, Peyto dropped 15 per cent in one day after it announced the decision to slash its monthly dividend from $0.06 per share to $0.02 and cut spending by $100 million. Analysts have continued to cut price targets for the company whose future may be bleak until pipeline capacity is increased. In the first-half of 2019, Peyto’s share value plunged by 45.20 per cent.