NuVista Reports Third Quarter Financial and Operational Results

NuVista Energy (TSX:NVA) announced its third quarter financial and operating results, which showed operational funds of $31.8 million of the three months ended September 30. The company also provided an update on its future business plans.
As quoted in the press release:

NuVista had a strong and steady quarter with continued operational success and significant progress on cost reduction initiatives. Since the end of spring breakup, NuVista has been active with two rigs drilling in the Wapiti area, and production from the new Elmworth compressor station has been running smoothly. The current pace of our capital program has allowed NuVista to maintain balance sheet strength while expecting to meet substantially all 2015-2016 take-or-pay (“TOP”) obligations. This preserves our ability to grow efficiently and profitably in the long term, with short term pace tuned appropriately to the changing commodity price environment.

Highlights:

• Achieved third quarter 2015 production of 21,622 Boe/d, in the midpoint of guidance despite significant TCPL/Nova and Alliance natural gas pipeline outages and service reductions which were greater than original projections. Production for the third quarter was marginally higher than second quarter production despite impacts from TCPL/Nova outages (approximately -550 Boe/d), an Alliance outage (-1,000 Boe/d), and deliberate reinjection of liquids into the gas stream due to low propane pricing (-250 Boe/d);
• Achieved funds from operations of $31.8 million ($0.21/share, basic) for the three months ended September 30, 2015, compared to the $30.3 million ($0.20/share, basic) for the three months ended June 30, 2015, due primarily to slightly higher production and slightly reduced royalties;
• Executed a successful third quarter capital program of $59.9 million as compared to $53.8 million in the second quarter of 2015. The Company drilled 4 (4.0 net) wells in our Wapiti Montney condensate rich resource play, completed a number of previously drilled wells and pads, and completed a smooth run-in of our newly operating Elmworth block compressor station and trunk lines;
• Continued to see steady progress on reducing costs and enhancing capital efficiency from a combination of continued permanent execution learnings as well as temporary service cost reductions as a result of the current low commodity price environment. We have drilled six of our last ten wells for a cost below $4.0 million with the lowest coming in at a record cost of $3.4 million with 5,478 metres of total measured depth. NuVista’s 2015 average cost per horizontal metre drilled has now dropped under $2,050 per metre with the best well under $1,600 per metre;
• Executed 9 of the last 16 well completions for a cost of less than $2.7 million each, with the lowest coming in at a record cost of less than $2.0 million. NuVista’s average completion cost per stage placed has now dropped to just under $130,000 – a reduction of approximately 40% from a year ago

Click here to read the full NuVista Energy (TSX:NVA) press release.