Peyto Exploration & Development : Confirms Dividends for January 15, 2020

FOR IMMEDIATE RELEASE DECEMBER 13, 2019

TSX SYMBOL: PEY

PEYTO EXPLORATION & DEVELOPMENT CORP. CONFIRMS DIVIDENDS FOR

JANUARY 15, 2020 AND APPROVES 2020 CAPITAL BUDGET

CALGARY, ALBERTA- Peyto Exploration & Development Corp. (TSX: PEY) ("Peyto") confirms that the monthly dividend with respect to December 2019 of $0.02 per common share is to be paid on January 15, 2020, for shareholders of record on December 31, 2019. The ex-dividend date is December 30, 2019.

Dividends paid by Peyto to Canadian residents are eligible dividends for Canadian income tax purposes.

Peyto has also finalized it's 2020 budget and the Board of Directors has approved the $250-$300 million 2020 capital program as previously described in the third quarter 2019 press release. The capital program is expected to be funded entirely from free cashflow but Peyto will ensure it remains nimble with the ability to react to changing commodity prices and the global economic environment.

Shareholders and interested investors are encouraged to visit the Peyto website at www.peyto.comto learn more about what makes Peyto one of North America's most exciting energy companies. The website also includes the President's monthly report, which discusses various topics chosen by the President and includes estimates of monthly capital expenditures and production. For further information please contact:

Darren Gee

President and Chief Executive Officer

Phone: [phone]

Fax: [phone]

Certain information set forth in this document, including management's assessment of Peyto's future plans and operations, contains forward-looking statements. By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond these parties' control, including the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other industry participants, the lack of availability of qualified personnel or management, stock market volatility and ability to access sufficient capital from internal and external sources. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. Peyto's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits that Peyto will derive therefrom. The Toronto Stock Exchange has neither approved nor disapproved the information contained herein.