Peyto Exploration & Development Corp. (PEY.TO) was upgraded to Outperform from Market Perform at BMO Capital Markets on Monday.

Analyst Randy Ollenberger maintained a price target of $19.50 on shares of the Calgary-based natural gas-weighted exploration and development company.

"The company's extensive hedging program and peer-leading cost structure has allowed the company to fund its capital program, reduce debt, and maintain its healthy dividend despite the ongoing weakness in western Canada natural gas prices," Ollenberger said in a note to clients.

"The company's acquisition of the Repsol Deep Basin assets has been very successful, and allowed the company to deliver an approximate 25% improvement in overall well productivity," the analyst said.

"Given its hedges, Peyto should reach its debt target by the end of 2025, which could support higher returns to shareholders."

(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)

Price: 18.10, Change: +0.69, Percent Change: +3.96