Nuvista Financially Strong Balance Sheet. Way undervalued. Nuvista is financially strong even with current depressed NG prices, period. Management has assured me NVA will survive and thrive. They have plenty of credit to spare with $168 million on a total credit facility of $500 million still free to use. Their current plan does outspend cash flow, so debt levels are not going to rise. If required, they can adjust capital spending, as this is a smart management team and will keep the Balance Sheet strong as they have stated.
Has anyone looked at the Short Interest in NVA over the past 4 months and compared to peers? Shorts have over extended themselves. Once NG prices start to climb over the Fall/Winter and more Pipestone well results are released, the shorts will be squeezed out. Fundamentally, things are no different than they were last August when they raised $420m capital at $8.10 - $9.05 to buy Pipestone.
Imagine that, what a suburb purchase pipestone was for NVA, where Cenovis lost $800m to fix balance sheet and sold it to NVA for a steal. That’s right, Cenovis had it on its’ BS at 1.425B and sold it for $625m, less than half. A year later and NVA could not buy that now without massively diluting to company. Condensate ratios that came out in second quarter were suburb, and I bet they are going to be just as good, or better going forward!
When pessimism it at its highest, is the time to buy undervalued, financially strong companies, Arguably, Nuvista fits that bill more than any other TSX listed company right now.