RE:RE:RE:RE:RE:RE:RE:Killing It....
Energy Summary for Feb. 26, 2021
2021-02-26 20:07 ET - Market Summary
by Stockwatch Business Reporter
Within the sector, Keith MacPhail and Ronald Poelzer's Alberta Montney-focused NuVista Energy Ltd. (NVA) reached an intraday high of $2.04 -- its first time above $2 in a year -- before settling at $1.98, up 19 cents, on 5.73 million shares. It has arranged a $94-million asset sale. This money will go entirely toward debt repayment. The assets comprise non-core, non-Montney, mostly undeveloped land in the Wembley area, as well as some Montney water infrastructure in the Pipestone area.
NuVista did not specify which parts of the $94-million price tag are for which assets. Given that it said the infrastructure deal has already closed, this may have been the $24-million deal that Topaz Energy Corp. (TPZ: $14.44) announced last month, when it talked about a "strategic water infrastructure acquisition in the Alberta Montney." This speculation was shared by Scotia Capital analyst Cameron Bean in a research note this morning. If true, then the purchase price that NuVista fetched for its non-core Wembley assets would be $70-million. Mr. Bean said he would have pegged the value of these assets at $40-million to $55-million, so to him the price tag shows that NuVista will "realize more value from the assets through the disposition than it would have been able to crystallize through the drill bit" -- in other words, well done. The analyst hiked his price target on NuVista to $2.20 from $1.50. The stock closed today at $1.98.