Operational and Financial Highlights
During the third quarter ended September 30, 2025, NuVista:
Produced 67,680 Boe/d, as compared to our third quarter guidance of 68,000, 70,000 Boe/d. Following the completion of the third-party gas facility turnarounds and recent successful commissioning of the Pipestone Gas Plant, volumes have ramped up to over 100,000 Boe/d;
The production composition for the third quarter exceeded guidance at 31% condensate(1), 9% natural gas liquids ("NGLs") and 60% natural gas;
Generated adjusted funds flow(3) of $143.5 million ($0.73/share, basic(4)) and $469.7 million ($2.35/share, basic) year-to-date;
Delivered a strong operating netback(5) at $27.51/Boe and a corporate netback(5) at $23.07/Boe, reflecting increases of 38% and 27%, respectively, compared to the third quarter of 2024;
Invested $141.1 million in net capital expenditures, supporting the drilling of 8 wells and completion of 15 wells; year-to-date, invested $376.3 in net capital expenditures with 29 wells drilled and 43 wells completed;
Exited the quarter with $142.9 million drawn on our $550 million credit facility, maintaining a favorable net debt to annualized third quarter adjusted funds flow(3) ratio of 0.5x;
Achieved net earnings of $36.5 million ($0.19/share, basic) and $229.2 million ($1.15/share, basic) year-to-date; and
Repurchased and cancelled 3.4 million common shares under the NCIB program; year-to-date, repurchased and cancelled 11.3 million common shares, reducing shares outstanding by 4.9% since the beginning of the year.
Notes:
(1)
NGLs are defined by National Instrument 51-101, Standards of Disclosure for Oil and Gas Activities to include ethane, butane, propane, pentanes plus and condensate. Unless explicitly stated in this press release, references to "NGL" refers only to ethane, butane and propane and references to "condensate" refers to only to condensate and pentanes plus. NuVista has disclosed condensate and pentanes plus values separately from ethane, butane and propane values as NuVista believes it provides a more accurate description of NuVista's operations and results therefrom.
(2)
"Net capital expenditures" is a non-GAAP financial measures that does not have any standardized meanings under IFRS Accounting Standards and therefore may not be comparable to similar measures presented by other companies where similar terminology is used. Reference should be made to the section entitled "Specified Financial Measures" in this press release.
(3)
Each of "adjusted funds flow", "net debt" and "net debt to annualized third quarter adjusted funds flow" are capital management measures. Reference should be made to the section entitled "Specified Financial Measures" in this press release.
(4)
Each of "adjusted funds flow per share" and "free adjusted funds flow per share" are supplementary financial measures. Reference should be made to the section entitled "Specified Financial Measures" in this press release.
(5)
Each of "operating netback" and "corporate netback" are non-GAAP ratios that do not have any standardized meanings under IFRS Accounting Standards and therefore may not be comparable to similar measures presented by other companies where similar terminology is used. Reference should be made to the section entitled "Specified Financial Measures" in this press release.
Operations Update
NuVista has had a strong year operationally, achieving record production levels, building significant volumes behind pipe, and delivering meaningful cost savings through the disciplined execution of our development plan. Operational efficiency has continued to remain strong, supported by our dedicated two-rig drilling program and established completions crews. We have wrapped up our completions program for the year and have brought 43 new wells on-line, with material volumes remaining behind pipe.
Following completion of the third-party gas plant turnaround in our Greater Wapiti area, which impacted production during the second and third quarters, and the successful commissioning of the new third-party Pipestone Gas Plant, we have ramped up production above 100,000 Boe/d. We will continue to closely monitor operations at the new facility, and maintain our previous fourth quarter production guidance of approximately 100,000 Boe/d and 2025 average production guidance of approximately 83,000 Boe/d.
Return of Capital to Shareholders and Balance Sheet Strength
During the year, we successfully met our annual commitment to return a minimum of $100 million to shareholders through share buybacks in the first half of the year and continued this momentum in the third quarter, spending an additional $51 million on share repurchases. Since the inception of our NCIB program in 2022, we have repurchased over $580 million in shares, reducing our total shares outstanding by approximately 47 million, or 20% of the shares outstanding at the start of the program.
NuVista remains in a strong financial position with low net debt, ending the third quarter with net debt of $310 million and a net debt-to-adjusted funds flow ratio of 0.5x, well below our long-term target of less than 1.0x. Following the announcement of the Transaction (described below), NuVista has suspended its share buyback program and intends to allocate all incremental adjusted funds flow to further reduce net debt for the remainder of the year.
The Transaction
As announced on November 4, 2025, NuVista entered into a definitive arrangement agreement (the "Arrangement Agreement") with Ovintiv Inc. ("Ovintiv") and Ovintiv Canada ULC ("Ovintiv Canada") under which Ovintiv Canada will acquire all of the issued and outstanding common shares of NuVista (the "NuVista Shares") not already owned by Ovintiv or its affiliates (the "Transaction"). The cash and share transaction values NuVista at approximately $3.8 billion, including the assumption of NuVista's net debt.
The proposed Transaction has been unanimously approved by our Board of Directors, which recommends that NuVista shareholders vote in favor of the special resolution to approve the Transaction. A special meeting of shareholders is expected to be held early in the first quarter of 2026, with the Transaction anticipated to close in the first quarter of 2026, subject to the satisfaction of customary closing conditions, including regulatory approvals under the Competition Act and the Investment Canada Act.
We are incredibly proud to have reached this agreement for our shareholders, which represents a 15-year high in our share price. The cash and highly liquid share consideration provides shareholders with near-term value certainty while allowing continued upside participation in a larger, investment-grade producer with exposure to two of North America's leading resource plays: the Montney and the Permian.
Further details with respect to the Arrangement will be included in the information circular (the "Circular") to be mailed to the NuVista shareholders in connection with the special meeting of shareholders. A copy of the Arrangement Agreement is, and the Circular will be, filed on NuVista's SEDAR+ profile and available for viewing at www.sedarplus.ca.
Please note that our updated corporate presentation will be available at www.nuvistaenergy.com on November 11, 2025. NuVista's management's discussion and analysis, condensed consolidated interim financial statements for the three and nine months ended September 30, 2025 and notes thereto, will be filed on SEDAR+ (www.sedarplus.ca) on November 11, 2025 and can also be obtained at www.nuvistaenergy.com.
FINANCIAL AND OPERATING HIGHLIGHTS
Three months ended September 30
Nine months ended September 30
($ thousands, except otherwise stated)
2025
2024
% Change
2025
2024
% Change
FINANCIAL
Petroleum and natural gas revenues
258,554
301,406
(14
)
897,276
933,780
(4
)
Cash provided by operating activities
97,690
150,249
(35
)
401,394
464,422
(14
)
Adjusted funds flow(3)
143,511
139,478
3
469,669
415,137
13
Per share, basic(6)
0.73
0.68
7
2.35
2.01
17
Per share, diluted(6)
0.73
0.67
9
2.34
1.98
18
Net earnings
36,547
59,823
(39
)
229,153
206,566
11
Per share, basic
0.19
0.29
(34
)
1.15
1.00
15
Per share, diluted
0.19
0.29
(34
)
1.14
0.99
15
Total assets
3,674,441
3,339,971
10
Net capital expenditures(1)
141,103
118,433
19
376,250
427,786
(12
)
Net debt(3)
310,270
261,898
18
OPERATING
Daily Production
Natural gas (MMcf/d)
244.7
297.2
(18
)
284.1
296.6
(4
)
Condensate (Bbls/d)
20,739
26,204
(21
)
22,396
25,398
(12
)
NGLs (Bbls/d)
6,160
7,735
(20
)
7,108
7,395
(4
)
Total (Boe/d)
67,680
83,475
(19
)
76,850
82,228
(7
)
Condensate & NGLs weighting
40
%
41
%
38
%
40
%
Condensate weighting
31
%
31
%
29
%
31
%
Average realized selling prices(5)
Natural gas ($/Mcf)
3.17
1.92
65
3.55
2.41
47
Condensate ($/Bbl)
86.69
95.51
(9
)
89.30
98.20
(9
)
