Out on the newsire... NuVista Energy Q3 Profit Climbs 52% on Higher Production and Strong Oil and Gas Prices; Hikes 2022 Guidance
08:35 AM EST, 11/09/2022 (MT Newswires) -- NuVista Energy (NVA.TO) on Wednesday said its third-quarter profit rose 52% as its production rose to a record amid strong prices while it raised its 2022 guidance and looks to boost returns to shareholders.
The Western Canadian natural gas and liquids producer said it earned C$223.46 million, or C$0.95 per share, in the period, up from C$147.07 million, or C$0.63, in the year-prior quarter. Adjusted funds flow tripled to C$246.12 million, or C$1.04, from C$80.6 million, or C$0.35.
NuVista's revenue in the quarter doubled to C$445.01 million from C$222.6 million, as its oil and gas production rose 35% to 68,792 barrels of oil equivalent per day (boepd), while its average price for natural gas rose 70% to C$8.32 per thousand cubic feet, while the price of condensates and natural-gas liquids was also higher.
"Adjusted funds flow and production growth continues to set new records, well investment returns are very high, rapid debt reduction continues, and the repurchase of company shares is well underway as part of the normal course issuer bid. NuVista is progressing through 2022 and into 2023 with strength and increasing momentum," the company said in a release.
NuVista said it expects to produce around 73,000 boepd in the fourth quarter and raised the midpoint of its 2022 guidance by to 68,500 boepd from 68,000. It is forecasting 2023 production of around 81,000 boepd.
The company said that when its debt falls below C$200 million, expected by year end, it will allocate 75% of free adjusted funds flow to shareholders from its current target of between 25% and 50%.
"We believe that the best method for return of capital to shareholders is initially to repurchase shares, however we will continue to re-evaluate the uses of free adjusted funds flow through 2023 as our growth plan proceeds," the company said
NuVista shares closed up C$0.02 to C$14.24 Tuesday on the Toronto Stock Exchange.