Peyto Posts Record Production, Strong Capital Efficiency in 2025 Results
According to BOE Report, Peyto Exploration delivered record production of 145,000 boe/d in December 2025 while posting industry-low development costs of $0.94/Mcfe. The Calgary-based natural gas producer spent $475.2 million in annual capital expenditures and achieved strong operational margins despite challenging AECO gas prices.
The company’s disciplined hedging program helped realize $3.32/GJ average gas prices versus $1.76/GJ at the AECO hub. Peyto maintains hedge positions protecting 490 MMcf/d of production in 2026 and 248 MMcf/d in 2027.
What It Means for Subcontractors
- Sustained drilling activity expected - Record capital efficiency of $9,900 per boe/d and strong margins suggest continued high drilling pace requiring completion, trucking, and equipment services
- Proven operator with payment stability - $860.5 million in annual funds flow and reduced net debt indicate reliable payment capacity for service contractors
- Geographic focus on established plays - Peyto’s low-cost development model typically concentrates activity in core Alberta areas, creating consistent work opportunities for regional service providers
