Peyto Reports Third Quarter 2026 Results and Preliminary 2027 Capital Program

CALGARY, Alberta, Nov. 09, 2026 (GLOBE NEWSWIRE) -- Peyto Exploration & Development Corp. ("Peyto" or the "Company") is pleased to report its operating and financial results for the third quarter of 2026 and a preliminary capital budget for 2027.

Q3 2026 Highlights: * Peyto delivered third quarter production volumes of 142,952 boe/d (745.6 MMcf/d of natural gas, 18,678 bbls/d of NGLs), a 10% increase year over year (7% on a per share basis), driven by the Company's successful capital program. * Total NGL production increased 20% year over year, due to Peyto's increased Cardium drilling and higher NGL recoveries on volumes directed to a third-party, deep-cut gas plant. * Cash costs(1)(,)(2) totaled $1.29/Mcfe, including $0.27/Mcfe of royalties. Excluding royalties, cash costs were $1.02/Mcfe (operating $0.49, transportation $0.29, G&A $0.06, interest $0.18), down 10% from Q3 2025, and Peyto's lowest since Q1 2023. * Generated funds from operations(3) ("FFO") of $220.9 million ($1.06/diluted share, up 8%), and $92.8 million of free funds flow(4) in the quarter. Strong FFO was driven by the Company’s industry-leading low cash costs and realized natural gas price after hedging and diversification activities of $3.50/Mcf, 108% higher than the AECO 7A monthly benchmark. * A 71% operating margin(5) and a 30% profit margin(6) were generated in the quarter, resulting in an 18% return on capital employed(7) ("ROCE") and an 18% return on equity(8) ("ROE"), on a trailing 12-month basis. * Adjusted earnings(8) (earnings excluding the after-tax effect of unrealized gains or losses on financial instruments and foreign exchange) for the quarter rose 15% to $105.4 million, or $0.50/diluted share, compared to $91.7 million, or $0.45/diluted share in Q3 2025. * The Company returned $74.3 million of dividends to shareholders in the quarter and reduced net debt(9) by $23.8 million from June 30, 2026. Year to date, Peyto has returned $213.7 million of dividends and reduced net debt by $185.5 million. * As previously announced on November 3, 2026, Peyto's Board of Directors increased the monthly dividend to $0.13/share, starting with the November dividend (record date November 30, 2026; payable December 15, 2026). This is the Company's second dividend raise in 2026, increasing the monthly dividend 18% over the 2025 distribution of $0.11/share. * Peyto recorded $40.6 million in realized hedging gains in the quarter and has a hedge position protecting approximately 462 MMcf/d of natural gas production for the fourth quarter of 2026 and 417 MMcf/d for 2027, at $4.20/Mcf and $3.32/Mcf, respectively. The Company’s natural gas and NGL hedges combine to secure revenue of approximately $690 million for 2027, thus far. * The Company was awarded over 80,000 GJ/d of new transportation service on the TC Energy Mainline to Ontario through the latest Existing Capacity and New Capacity Open Seasons, with service set to commence in November 2028. * Capital expenditures totaled $124.0 million in the quarter. Peyto drilled 22 wells (22.0 net), completed 19 wells (19.0 net), and brought 20 wells (20.0 net) on production. Additionally, the Company acquired 10 gross (10.0 net) sections of land in the Company’s core areas through crown land sales totaling $0.9 million or $129/acre in the third quarter. Year to date, total capital invested in land for new drilling inventory is $6.4 million, acquiring 78 gross (62.7 net) sections.