3/4 of FAFF on share buybacks - $91 Million Q3FAFF - NVA Definition
Free adjusted funds flow NuVista uses free adjusted funds flow, defined as adjusted funds flow less net capital expenditures and asset retirement expenditures, as an indicator of the funds available for additional capital allocation such as the repurchase of common shares, or the retirement of debt. For the three and nine months ended September 30, 2023, free adjusted funds flow was $91.2 million and $139.9 million, compared to $133.0 million and $281.0 million in the prior year comparative periods.
NVA is going to take 3/4 of its FAFF to buy back shares. (70 million dollars Q3)
NVA has a 2.7 Billion Market Cap with 210 shares issues. (10%) (270 million in buybacks)
Production 77,000 boe (2023) grows to 87,000 boe (2024) (13%) (Production Growth)
So Roughly a (23%) increase on a per share bases, for a stock that is already about 20% under valued.
NVA is way to cheap, and spewing off FCF and do not have that many shares trading.
23% appreciation for 2024 + a rerating for NVA
IMHO