Nuvista Energy sees FY24 average production 83.5K-86K boe/d

The company said, “We are extremely well-positioned with top-tier assets and highly favorable economics. Our disciplined execution has enabled us to achieve growth in production and adjusted funds flow, while also generating positive free adjusted funds flow, which has allowed us to continue to return capital to our shareholders through the repurchase of shares. Our high condensate weighting, for which pricing has remained strong, continues to drive superior economics despite the weakness in natural gas prices through the first half of 2024. We continue to execute according to our plans, with well and facility outperformance in several areas. As such, we are making no changes to our 2024 capital expenditure guidance target of approximately $500 million, allowing us to maintain the efficiencies of a steady 2-drill-rig execution. Weekly production has recently reached a new record of 88,000 Boe/d with strong new well performance and we continue to expect monthly volumes to reach over 90,000 Boe/d at some point in the second half of 2024. Due to the unusually long stretch of hot weather in Alberta, we have incurred cooling restrictions in July at Company and third-party facilities. These have had an impact of approximately 2,400 Boe/d on third quarter average production volumes thus far. With low natural gas prices, we have limited any costly efforts to maximize production through this hot period. We therefore provide production guidance for the third quarter of 83,000 – 86,000 Boe/d, with the lower end of that range allowing contingency in case of hot weather through August. Longer term, ongoing third-party facility expansions will provide the cushion needed for most hot weather events. Commensurate with the above, full year 2024 average production guidance is tightened to 83,500 – 86,000 Boe/d from 83,000 – 87,000 Boe/d. We intend to continue our track record of carefully directing free adjusted funds flow towards a prudent balance of capital return to shareholders and debt reduction, while investing in high return growth projects. NuVista’s top quality asset base, deep inventory, and management’s relentless focus on value maximization supports our medium-term plans for value-adding growth to the plateau level of 125,000 Boe/d. We will continue to closely monitor and adjust to the environment in order to maximize the value of our asset base and ensure the long-term sustainability of our business. We would like to thank our staff, contractors, and suppliers for their continued dedication and delivery, and we thank our Board of Directors and our shareholders for their continued guidance and support.”