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NuVista Energy (TSE:NVA)
TSX:NVA
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NuVista Energy (NVA) AI Stock Analysis

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NuVista Energy

(TSX:NVA)

Rating:74Outperform
Price Target:
NuVista Energy demonstrates strong financial performance with effective cost management and reduced debt levels. Its valuation appears attractive, indicating potential for price appreciation. While technical indicators suggest some caution in the short term, the company's record reserves and robust production growth offer a positive long-term outlook.
Positive Factors
Financial Performance
NuVista's management added $0.25 in value for every dollar spent, indicating strong profitability.
Growth Potential
NuVista is one of the few E&P companies with 'permission to grow,' supported by top-quartile production rates and superior Montney results.
Negative Factors
Infrastructure Challenges
Despite a delay in third-party infrastructure, there was no change to guidance, which should please investors.

NuVista Energy (NVA) vs. iShares MSCI Canada ETF (EWC)

NuVista Energy Business Overview & Revenue Model

Company DescriptionNuVista Energy Ltd. (NVA) is a Canadian energy company engaged in the exploration, development, and production of oil and natural gas. Operating primarily in the Western Canadian Sedimentary Basin, the company focuses on its core Montney properties in the Alberta Deep Basin. NuVista Energy leverages advanced technologies and strategic asset management to optimize production and enhance resource recovery, striving to deliver sustainable growth and shareholder value.
How the Company Makes MoneyNuVista Energy generates revenue primarily through the sale of oil, natural gas, and natural gas liquids that it extracts from its properties. The company's key revenue streams include the production and sale of these commodities in both domestic and international markets. NuVista's earnings are influenced by the prevailing market prices of oil and natural gas, its production volumes, and operational efficiencies. Strategic partnerships and joint ventures with other energy companies and service providers can also impact revenue by facilitating access to new technologies, expertise, and markets, thereby optimizing production capabilities and cost management.

NuVista Energy Financial Statement Overview

Summary
NuVista Energy exhibits strong operational performance with solid margins and a healthy balance sheet. Revenue has slightly decreased, but effective cost management keeps profitability stable. The reduction in debt enhances financial stability, though attention is needed on cash flow management due to declining Free Cash Flow.
Income Statement
75
Positive
NuVista Energy has shown a slight decrease in revenue in the latest year, with a Total Revenue of $1.215 billion compared to $1.263 billion the previous year. Gross Profit Margin remains robust, indicating effective cost management. The Net Profit Margin declined slightly, reflecting a drop in profitability. The absence of EBIT in the latest report is notable, but EBITDA remains strong, suggesting good operational performance.
Balance Sheet
80
Positive
The company's Debt-to-Equity ratio has improved, indicating a lower reliance on debt to finance operations, which reduces financial risk. The Return on Equity remains healthy, demonstrating effective use of shareholder funds. The Equity Ratio suggests a strong capital structure, with a significant portion of assets financed through equity.
Cash Flow
70
Positive
Operating Cash Flow remains strong, but Free Cash Flow has decreased, reflecting higher capital expenditures. The Free Cash Flow to Net Income Ratio indicates that the company generates sufficient cash to cover its net income. However, the Free Cash Flow Growth Rate has declined, which could impact future flexibility.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.22B1.26B1.75B885.29M424.64M
Gross Profit788.15M804.36M1.34B819.33M48.35M
EBITDA733.47M767.13M1.07B562.80M-38.84M
Net Income305.72M367.68M631.04M264.67M-197.88M
Balance Sheet
Total Assets3.45B3.06B2.82B2.39B2.16B
Cash, Cash Equivalents and Short-Term Investments0.000.0041.89M-122.03M-125.96M
Total Debt288.07M305.05M332.12M541.26M706.36M
Total Liabilities1.10B943.02M886.17M956.17M1.00B
Stockholders Equity2.35B2.12B1.94B1.44B1.16B
Cash Flow
Free Cash Flow105.98M160.14M428.64M50.74M-32.91M
Operating Cash Flow600.25M721.34M844.82M338.58M147.20M
Investing Cash Flow-499.58M-531.59M-442.09M-176.26M-201.43M
Financing Cash Flow-100.67M-231.65M-360.83M-162.32M54.23M

NuVista Energy Technical Analysis

Technical Analysis Sentiment
Negative
Last Price13.84
Price Trends
50DMA
14.28
Negative
100DMA
13.23
Positive
200DMA
12.96
Positive
Market Momentum
MACD
-0.15
Positive
RSI
40.06
Neutral
STOCH
36.23
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:NVA, the sentiment is Negative. The current price of 13.84 is below the 20-day moving average (MA) of 14.46, below the 50-day MA of 14.28, and above the 200-day MA of 12.96, indicating a neutral trend. The MACD of -0.15 indicates Positive momentum. The RSI at 40.06 is Neutral, neither overbought nor oversold. The STOCH value of 36.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:NVA.

NuVista Energy Peers Comparison

Overall Rating
UnderperformOutperform
Sector (44)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
TSATH
80
Outperform
$2.75B5.8630.45%15.99%1134.34%
TSNVA
74
Outperform
$2.75B7.4316.78%-15.57%-12.73%
TSBTE
74
Outperform
$1.94B6.568.02%3.42%10.55%
TSPOU
69
Neutral
$3.06B1.9948.97%2.81%2.95%351.05%
TSFRU
69
Neutral
$2.13B13.1515.22%8.35%-1.62%12.60%
67
Neutral
C$2.49B23.518.83%-7.83%-45.69%
44
Neutral
AU$1.41B-6.62-23.02%6.14%5.33%-26.92%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:NVA
NuVista Energy
14.08
0.56
4.14%
TSE:BTE
Baytex Energy
2.69
-2.25
-45.56%
TSE:POU
Paramount Resources
21.55
6.40
42.24%
TSE:ATH
Athabasca Oil
5.52
0.12
2.22%
TSE:FRU
Freehold Royalties
13.25
0.34
2.65%
TSE:IPCO
International Petroleum Corporation
22.43
2.06
10.11%

NuVista Energy Corporate Events

Business Operations and StrategyFinancial Disclosures
NuVista Energy Reports Record Reserves and Strong 2024 Financial Results
Positive
Mar 5, 2025

NuVista Energy Ltd. reported record reserves and strong financial results for the year ending December 31, 2024, with significant growth in production and reserves. The company achieved its highest-ever annual average production, increased capital expenditures, and maintained a strong financial position with low net debt. NuVista also expanded its natural gas portfolio by adding LNG sales and was recognized as part of the TSX30 for the third consecutive year, ranking sixth overall.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Apr 23, 2025