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NOVEMBER 9 , 2021 NEWS RELEASE SYMBOL : PEY - TSX PEYTO REPORTS THIRD QUARTER 2021 RESULTS , REINSTATES MONTHLY DIVIDEND CALGARY , ALBERTA - Peyto Exploration & Development Corp. ( " Peyto " or the " Company " ) is pleased to present its operating and financial results for the third quarter of the 2021 fiscal year . A 63 % Operating Margin ( ¹ ) and a 18 % Profit Margin ( 2 ) in the quarter delivered an 8 % Return on Capital and a 9 % Return on Equity , on a trailing twelve - month basis . Highlights for the quarter included : • • • • • Funds from operations per share up 110 % . Funds from Operations ( " FFO " ) were $ 105 million after hedging losses of $ 72 million in the quarter . Per share FFO were $ 0.63 , up from $ 0.30 in Q3 2020. FFO in the quarter exceeded capital expenditures by $ 14 million . Over the past 12 months Peyto has generated $ 380 million in FFO , while allocating $ 324 million to capital expenditures . Production per share up 14 % . Third quarter 2021 production of 89,998 boe / d , comprised of 473 MMcf / d of natural gas , 6,685 bbl / d of Condensate and Pentanes , and 4,479 bbl / d of Butane and Propane , was up 15 % ( 14 % per share ) from 78,210 boe / d in Q3 2020. Total liquid yields of 23.6 bbl / MMcf , or 12 % of total production , was down from 28.0 bbl / MMcf in Q3 2020 due to an increased focus on leaner Spirit River plays . Total cash costs of $ 1.22 / Mcfe ( or $ 0.86 / Mcfe ( $ 5.14 / boe ) excluding royalties ) . Industry leading low total cash costs included $ 0.36 / Mcfe royalties , $ 0.35 / Mcfe operating costs , $ 0.23 / Mcfe transportation , $ 0.02 / Mcfe G & A and $ 0.26 / Mcfe interest , which combined with a realized price of $ 3.33 / Mcfe to result in a $ 2.11 / Mcfe ( $ 12.68 / boe ) cash netback , up 86 % from $ 1.14 / Mcfe ( $ 6.83 / boe ) in Q3 2020. Operating costs per unit for Q3 2021 were consistent with Q1 and Q2 2021 despite rising power prices , higher chemical costs and maintenance costs associated with 10 plant turnarounds . Interest charges were down 26 % from $ 0.35 / Mcfe in Q3 2020 due to lower interest rates and reduced debt levels . Capital investment of $ 90 million in organic activity . A total of 24 gross wells ( 93 % Working Interest , " WI ” ) were drilled in the third quarter , 22 gross wells ( 93 % WI ) were completed , and 21 gross wells ( 94 % WI ) were brought on production . Over the last 12 months new production additions , inclusive of acquisitions , accounted for approximately 40,100 boe / d at the end of the quarter , which , when combined with a trailing twelve - month capital investment of $ 324 million , equates to a record annualized capital efficiency of $ 8,100 / boe / d . Earnings of $ 0.18 / share , Dividends of $ 0.01 / share . Earnings of $ 29.3 million were generated in the quarter while dividends of $ 1.7 million were paid to shareholders . The Board of Directors of Peyto is pleased to increase the dividend to $ 0.05 / share on a monthly basis to shareholders of record as of November 30 , 2021 , paid on December 15 , 2021 . Third Quarter 2021 in Review A steady stream of drilling and completion activity throughout the quarter , utilizing the five drilling rigs active in Peyto's Deep Basin core areas , resulted in continuous production growth from 86,500 boe / d at the start of July to 94,000 boe / d by the end of September . Superior operational execution , combined with improved well results , delivered record capital efficiency throughout the period . AECO daily natural gas prices , while substantially higher , were extremely volatile with recorded highs of $ 4.80 / GJ and lows of $ 1.02 / GJ . This was the result of insufficient access to EGAT storage reservoirs during periods of NGTL restrictions . Despite the volatility , AECO daily prices averaged $ 3.41 / GJ in Q3 2021 , up 161 % from $ 2.12 / GJ in Q3 2020. Peyto's unhedged natural gas price for the quarter was $ 3.39 / GJ , which is evidence of its improving market diversification program . The Company's methodical hedging program resulted in predictable after - hedge commodity prices that trailed the rapidly rising spot prices . Peyto's realized revenues were up 77 % from Q3 2020 , which combined with total cash costs , yielded operating margins of 63 % . Lower depletion rates driven by better finding and development costs resulted in improved earnings and a profit margin of 18 % . Peyto's ESG working group was active throughout the quarter advancing several initiatives to improve the Company's ongoing sustainability and industry leading environmental performance . 1. Operating Margin is defined as funds from operations divided by revenue before royalties but including realized hedging gains / losses . 2. Profit Margin is defined as net earnings for the quarter divided by revenue before royalties but including realized hedging gains / losses . Natural gas volumes recorded in thousand cubic feet ( mcf ) are converted to barrels of oil equivalent ( boe ) using the ratio of six ( 6 ) thousand cubic feet to one ( 1 ) barrel of oil ( bbl ) . Natural gas liquids and oil volumes in barrel of oil ( bbl ) are converted to thousand cubic feet equivalent ( Mcfe ) using a ratio of one ( 1 ) barrel of oil to six ( 6 ) thousand cubic feet . This could be misleading , particularly if used i isolation as it is based on an energy equivalency conversion method primarily applied at the burner tip and does not represent a value equivalency at the wellhead .