RE:Q2 Expectations - HighTaken from Scotia Analyst:
The company’s 2022 capital budget increase was expected; however the magnitude of the bump outpaced both Scotia and consensus expectations, while the resulting production guidance increase is merely in line with prior forecasts. The real win from the capex increase is expected in 2023, with preliminary production guidance putting the company at its
85 mboe/d to 90 mboe/d plateau a year ahead of schedule MyHoneyPot wrote:
Review the posted video presentation where the CEO discussed their go forward Strategy, and the adjustments they made to Capex.
NVA adding 65 million dollars to their capex, this will speed up well drilling and improve drilling efficiency and keep up the rythum of new wells coming on line. The exciting part is that the significant beats that NVA has done on a quarter by quarter bases as a product of the modest production base adds significantly to the bottom line.
Hedges
The hedges in place for NVA are reasonable, well priced, and do not put a significant loss on the balance sheet. You really need to appreciate after the fiscal hardship that NVA went through with the banks, they did not destroy a lot of capital with a poor hedging strategy.
Infastructure in Place
What is really excited about NVA is the Infastructure in place and a clear plathway to 90,000 boe. Really they have a clear line of sight to their production goal, and it is really over the next 18 months. Well they are marching up to 90,000 boe this year they will pay down 200 million in debt and buy back 200,000 million in stock. Today their market cap is 2.75 billion so that is a good chunk of stock.
So reduced debt, reduced share count, increased production and high energy prices, if all that will not significantly move the stock, i don't know what will.
IMHO