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    Canada’s NuVista sees earnings growth in Q1


Montney producer benefited from strong US west coast gas prices.

by: Dale Lunan

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

Canada’s NuVista sees earnings growth in Q1

Canadian Montney producer NuVista Energy said May 9 net earnings in Q1 2023 increased 15% over the same period a year ago, climbing to C$80.7mn (US$60.3mn) from C$70.3mn on higher production and stronger commodity prices.

Natural gas production was 11% higher year-over-year, at 253.3mn ft3/day compared to 229mn ft3/day, while NuVista’s average realised natural gas price rose 21%, to C$7.02/’000 ft3 from C$5.79/’000 ft3.

“Commodity prices weakened in the first quarter, with oil prices impacted by recessionary concerns and natural gas prices impacted by unseasonably warm weather conditions,” NuVista said. “Despite this commodity price volatility, NuVista’s exposure was mitigated by its diversified natural gas portfolio, particularly from volumes delivered into the California market which saw elevated pricing.”

Monthly benchmark prices at the Malin hub in Oregon, which serves most west coast US markets, averaged US$18.98/mn Btu in the first quarter, up from US$5.66/mn Btu in the comparable 2022 period. About 11% of NuVista’s physical natural gas sales in 2023 have exposure to Malin, the company said.

Cash provided by operating activities increased to C$215.2mn from C$162.4mn, while free adjusted funds flow declined to C$27.9mn from C$64.3mn on higher net capital expenditures. 

Although NuVista does not pay dividends, it has an ongoing normal course issuer bid (NCIB) programme, and in Q1, share buybacks totalled C$12.2mn.