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Nuvista Energy Ltd T.NVA

Alternate Symbol(s):  NUVSF

NuVista Energy Ltd. is an oil and natural gas company, which is engaged in the exploration for, and the development and production of, oil and natural gas reserves in the Western Canadian Sedimentary Basin. Its primary focus is on the scalable and repeatable condensate rich Montney formation in the Alberta Deep Basin (Wapiti Montney). Its core operating areas of Wapiti and Pipestone in the Montney formation are located near the City of Grande Prairie, Alberta, approximately 600 kilometers northwest of Calgary. Its Montney Formation is a shale gas and shale oil resource. The Montney formation in the Wapiti area is a thick (200m+) section of hydrocarbon-charted fine-grained reservoir found at depths ranging from 2,500-3,500m.


TSX:NVA - Post by User

Post by MyHoneyPoton Nov 09, 2023 12:56pm
119 Views
Post# 35726465

Significant AFFO with low gas prices?

Significant AFFO with low gas prices?In the Q3 results the big plus sign are in the condensate production.

These are table pounding results....

In the Wapiti area, a 6-well pad on the Gold Creek block was drilled in record time, testing full co-development of the Middle Montney with the emerging zone - the Lower Montney. The wells all averaged 1,975 Boe/d (55% condensate)(2) each over the first 30 days of production. The three Lower Montney wells on the pad exhibited strong deliverability and particularly high condensate rates, averaging over 2,200 Boe/d and 63% condensate each(3). This result drives the expansion of the Gold Creek infrastructure capacity in 2024 and reinforces the exceptional economics in this area of growing well inventory. Additionally, a 5-well pad was drilled on the Bilbo block, including one infill pilot well in the C zone, drilled between two legacy wells which have produced for almost a decade from the B zone immediately below. The infill well has produced an IP30 of 1,200 Boe/d (67% condensate)(4), versus the pad average IP30 of 1,400 Boe/d (52% condensate)(5) per well. This is a highly encouraging initial result regarding future infill opportunities on the block, showing depletion from the two legacy wells below the infill is well within acceptable economic bounds.

In Q3 after capex was 110 million, and with 202 million in AFFO they are dripping with FCF and now have the options to do things. 

Share buyback with a small float and three hedge funds have big blocks of NVA stock, making the float pretty small. So share buyback are going to have a long of torque. 

Not only have their had great production numbers wells with 67% condensate are fantastic, and going forward they will have about 100 million in cash to do with what they want, (Share buybacks, Debt Reduction, Increased Production)

Gas is going to be a bonus as prices increase through the winter, the first cold snap and the stock with start soaring. 

NVA is hitting it out of the ball park with zero debt. When you see CPG buy a company with wells that just don't get the same result, and have the production for roughly what NVA is trading for. This company is a steal and trading at 1/2 price and spewing out cash for shareholders returns. 

IMHO



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