(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
Shale Players Hit Sweet Spot with Higher Volumes, Lower Costs: EIA
2024-12-12 - Over the past two years, publicly traded E&Ps have generally increased production, with oil volumes in second-quarter 2024 averaging 3.9 MMbbl/d while production costs have fallen by $11/boe since 2019.
Hess Goes Forth in Bakken with Chevron Deal Entangled in Dispute
2024-10-30 - Waiting to close a $55 billion sale to Chevron, Hess Corp. plans to continue running four rigs in the North Dakota Bakken shale play through the fourth quarter.
Exclusive: Surge Energy Seeks Midland M&A with $1.3B in Dry Powder
2024-11-19 - Surge Energy is one of the largest private oil producers in the Permian Basin. With $1.3 billion in dry powder to put to work, Surge is scouring the northern Midland Basin for M&A, executive Travis Guidry told Hart Energy.
Exxon: Longer Laterals, Cube Well Design Lowering Permian Costs
2024-12-11 - Exxon Mobil is boosting spending to grow global oil and gas production by 18% by 2030. U.S. rival Chevron Corp. recently said it’s cutting spending in favor of free cash flow.
Chevron, in Hess Holding Pattern, Sells $6.8B in Alaska, Canada
2024-10-08 - Chevron Corp., waiting to close a $55 billion takeover of Hess Corp., is selling off non-core assets in Canada and Alaska.
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.