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NuVista Energy (TSE:NVA)
TSX:NVA

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
Production and Reserves
NuVista reported a production beat and a strong reserve report, replacing 150% on a PDP basis, which is encouraging for investors.
Profitability
NuVista's management added $0.25 in value for every dollar spent, indicating strong profitability.
Negative Factors
Infrastructure Delays
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., an oil and natural gas company, engages in the exploration, development, and production of oil and natural gas reserves in the Western Canadian Sedimentary Basin. It primarily focuses on the condensate rich Montney formation in the Wapiti area of the Alberta Deep Basin. The company was incorporated in 2003 and is headquartered in Calgary, Canada.
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.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
1.24B1.22B1.26B1.75B885.29M424.64M
Gross Profit
807.83M788.15M804.36M1.34B819.33M48.35M
EBIT
281.03M245.40M513.69M880.64M471.14M-239.52M
EBITDA
830.47M733.47M767.13M1.07B562.80M-38.84M
Net Income Common Stockholders
382.10M305.72M367.68M631.04M264.67M-197.88M
Balance SheetCash, Cash Equivalents and Short-Term Investments
2.68M0.000.0041.89M-122.03M-125.96M
Total Assets
3.58B3.45B3.06B2.82B2.39B2.16B
Total Debt
281.44M288.07M305.05M332.12M541.26M706.36M
Net Debt
278.77M288.07M305.05M290.23M663.29M832.32M
Total Liabilities
1.15B1.10B943.02M886.17M956.17M1.00B
Stockholders Equity
2.43B2.35B2.12B1.94B1.44B1.16B
Cash FlowFree Cash Flow
201.83M105.98M160.14M428.64M50.74M-32.91M
Operating Cash Flow
685.02M600.25M721.34M844.82M338.58M147.20M
Investing Cash Flow
-511.58M-499.58M-531.59M-442.09M-176.26M-201.43M
Financing Cash Flow
-170.77M-100.67M-231.65M-360.83M-162.32M54.23M

NuVista Energy Technical Analysis

Technical Analysis Sentiment
Positive
Last Price14.19
Price Trends
50DMA
12.66
Positive
100DMA
12.74
Positive
200DMA
12.52
Positive
Market Momentum
MACD
0.53
Negative
RSI
67.17
Neutral
STOCH
80.32
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:NVA, the sentiment is Positive. The current price of 14.19 is above the 20-day moving average (MA) of 12.98, above the 50-day MA of 12.66, and above the 200-day MA of 12.52, indicating a bullish trend. The MACD of 0.53 indicates Negative momentum. The RSI at 67.17 is Neutral, neither overbought nor oversold. The STOCH value of 80.32 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:NVA.

NuVista Energy Peers Comparison

Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
TSNVA
74
Outperform
$2.81B7.5016.78%-15.57%-12.73%
57
Neutral
$7.06B3.04-3.49%5.80%0.53%-50.39%
BTBTE
$1.27B5.638.02%4.01%
$1.91B5.6130.45%
$1.99B1.8548.97%22.95%
$1.49B12.7915.22%8.56%
66
Neutral
C$2.20B20.388.83%-7.83%-45.69%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:NVA
NuVista Energy
14.19
0.60
4.42%
BTE
Baytex Energy
1.65
-1.95
-54.17%
ATHOF
Athabasca Oil
3.83
0.03
0.79%
PRMRF
Paramount Resources
14.01
2.04
17.04%
FRHLF
Freehold Royalties
9.04
-0.46
-4.84%
TSE:IPCO
International Petroleum Corporation
20.14
1.54
8.28%

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
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.