CALGARY, Alberta - NuVista Energy Ltd. (TSX: NVA), an independent oil and gas company, announced a record-setting production outcome for the fourth quarter of 2023, surpassing its forecasted range with a field-estimated production of 85,900 barrels of oil equivalent per day (Boe/d). This figure notably exceeded the company's guidance of 82,000 to 84,000 Boe/d. The production composition included about 31% condensate, 9% natural gas liquids (NGLs), and 60% natural gas.
The company attributed this production uptick to the effective performance of its wells from the 2023 development program and the successful debottlenecking of both NuVista and third-party midstream facilities. The annual production for 2023 averaged approximately 77,200 Boe/d, which also topped the anticipated range of 76,000 to 77,000 Boe/d.
In the realm of shareholder returns, NuVista highlighted a significant deployment of capital, amounting to $103 million, towards share repurchases and cash settlements of share-based compensation in the fourth quarter. Throughout 2023, the company repurchased and cancelled 15.3 million common shares, with the total reaching 28.8 million shares since the initiation of the repurchase program in mid-2022. These shares were bought back at a weighted average price of $11.85 per share.
NuVista also expanded its asset base by adding 15.5 gross sections (98% working interest) of land in the Wapiti area, primarily during the last quarter. This acquisition is poised to enhance the company's drilling location inventory and improve land configuration efficiency, facilitating growth beyond 100,000 Boe/d.
In terms of financials, NuVista's net capital expenditures for 2023 were revised from the expected $475 million to approximately $520 million. The company's year-end net debt was estimated at $180 million, significantly below the soft ceiling of $350 million.
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