(April 8, 2014 – Seeking Alpha) Peyto Exploration: A Winning Stock For Growing Oil Sands Diluent Demand (By: Michael Fitzsimmons)
RBN Energy continues its excellent energy market reporting with today's "Daily Energy Post": Da Duvernay - The Golden Canadian Diluent Play? Author Sandy Fielden explains how Canadian oil sands producers have been importing the majority of diluent demand from the US, how much diluent demand is expected to grow, and how Canadian diluent production could grow as a result of wet gas production in the Duvernay. Fielden goes on to discuss the possible implications if domestic diluent production pushes out US imports. While such a change to conventional wisdom would have far-reaching macro effects (for both Canadian and US energy companies), I am looking for specific beneficiaries. One company in an excellent position to benefit from the trend is Peyto Exploration (OTCPK:PEYUF) - the Alberta Deep Basin's low cost natural gas producer. Peyto enjoys a geographic competitive advantage and also owns and operates the great majority of its gas production, transport, and processing infrastructure. As a result, RBN's report merely reinforces my rating of Peyto as a STRONG BUY with a potential 40% total return over the next 12 months.
Read the full story here: http://seekingalpha.com/article/2131833-peyto-exploration-a-winning-stock-for-growing-oil-sands-diluent-demand
