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    Canada’s NuVista Energy cuts Q2 2021 loss

Summary

Losses from a hedging programme impacted the company's earnings.

by: Dale Lunan

Posted in:

Complimentary, Natural Gas & LNG News, Americas, Corporate, Financials, News By Country, Canada

Canada’s NuVista Energy cuts Q2 2021 loss

Canadian Montney producer NuVista Energy on August 4 reported a C$10.9mn (US$8.7mn) net loss in Q2 2021, a marked improvement on its year-ago loss of C$80.4mn.

Adjusted funds flow, however, rose to C$55.45mn from C$15.11mn, NuVista said, largely the result of improved commodity pricing and modestly higher production.

But the increase in commodity prices compared to NuVista’s lower hedged prices resulted in an unrealised loss of C$25.8mn on financial derivatives in Q2 2021 compared to a loss of C$49.4mn in Q2 2020.

Excluding the unrealised losses, net income in Q2 would have been C$9.4mn, NuVista said.

Total production averaged 51,485 barrels of oil equivalent/day in Q2 2021, a modest 1% increase from 50,922 boe/d in the same period a year ago. Condensate and crude oil production averaged 16,296 barrels/d, up from 14,231 b/d, but natural gas production was off about 5%, at 178.2mn ft3/d versus 187.1mn ft3/d, largely reflecting unplanned midstream curtailments caused by unusually hot weather in June, which affected the operating efficiency of gas plant and pipeline compressors.