(Source: Shutterstock.com)
Canadian E&P NuVista Energy (NVA) has temporarily curtailed production in the Wapiti area of the Alberta Deep Basin due to unscheduled maintenance at a third-party plant, the company announced Dec. 18.
The curtailment will impact December volumes. Before the incident, NuVista’s production was in line with fourth-quarter 2024 guidance. October and November production averaged 90,000 boe/d.
Revised guidance for the fourth quarter is now 83,000 boe/d to 84,000 boe/d, down from the original 89,000 boe/d to 91,000 boe/d. Full-year estimated production range was previously 83,500 boe/d to 86,000 boe/d.
That amounts to a 7% reduction in fourth-quarter production guidance, a Jefferies Securities analyst said.
“Long-term plan remains intact, as NVA expects to achieve 2024 exit production,” analyst Anthony Linton said in a Dec. 18 research report. “We've updated our estimates to reflect revised 4Q24 guidance while our 2025 estimates are unchanged.”
The facility is currently being restarted. By the end of the year, production levels will return above 90,000 boe/d, the company said.
Linton said with a restart underway, “our estimates for 25/26 are unchanged and reflect production of [90,700 boe/d] and [102,600 boe/d], respectively, in-line with NVA's five-year plan."
“We forecast NVA generating [free cash flow] of $274 [million] (~10% yield) and $224 [million] (~9% yield) in 25/26, respectively, under current strip pricing.”
Recommended Reading
Exclusive: ‘Later Innings’ for Energy M&A: Consolidator View Slows Deals
2024-11-05 - John Fossum, managing director at Petrie Partners, delves into the slowing pace of mergers amid companies vying for consolidator status and approaches companies are taking to generate cash, in this Hart Energy Exclusive interview.
Surge Energy Balancing M&A Hunt with Testing Midland’s Shallow Zones
2024-12-05 - Surge Energy’s Travis Guidry discusses the potential for $1.3 billion in Permian Basin M&A and the company’s quest to grow inventory organically.
Exclusive Occidental, CrownRock Merge Into Team of Overachievers
2024-12-10 - Thaimar Ramirez, president and general manager for Occidental Petroleum’s Midland Basin Business Unit, said 100 days after closing the CrownRock acquisition production guidance keeps going higher.
Asia, EU Buyers Warming Up to US Shale M&A Again—Jefferies
2024-10-29 - Foreign asset buyers are considering U.S. upstream M&A to lower their LNG supply costs and avoid windfall taxes on European operations, Jefferies Managing Director Bill Marko says.
Japan’s Toyo to Buy Houston Area Solar Module Production Facility
2024-11-26 - Toyo says it plans to start production of 1 GW of annual module capacity by mid-2025 and reach 2.5 GW by the end of 2025.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.