The Repsol lands are no longer the new kit. They are the growth kit
Peyto Exploration & Development Corp. (TSX: PEY) published its September 2026 shareholder letter on September 3, titled as a three-year lookback on the $636 million purchase of Repsol's Canadian assets. Peyto said production from those Deep Basin properties increased about 130 percent, from 23,000 boe per day at acquisition to about 53,000 boe per day.
The company said it has drilled 135 Spirit River horizontal wells on the acquired lands, with average 180-day production 44 percent higher than earlier wells in the area. Estimated recoverable gas per well moved from about 3.5 billion cubic feet to 5 billion cubic feet. Processing throughput on the acquired plants rose from roughly 175 million to 265 million cubic feet per day.
Since close Peyto said it repaid $347 million of debt and brought debt-to-EBITDA back to about 1.0 times. The September letter put August volumes near 143,000 boe per day, about 14 percent liquids, with four rigs running. Management still pointed to an exit above 150,000 boe per day by December 2026.
AECO remains cheap. That is the cash-flow risk on a Deep Basin gas name, not the well results. LNG Canada is running. It has not re-rated Alberta spot.
Neutral read
PEY is on the listed producer list. Banks were skipped. 53,000 boe per day on the Repsol lands and $347 million of debt repaid are the facts. Write this as a three-year operating scorecard, not as an AECO forecast. Watch whether the December exit rate actually clears 150,000 boe per day and whether winter AECO pays the extra volumes.