Mr. Jonathan Wright reports

NUVISTA ENERGY LTD. ANNOUNCES RECORD QUARTERLY PRODUCTION AND POSITIVE THIRD QUARTER 2023 FINANCIAL AND OPERATING RESULTS AND PROVIDES 2024 GUIDANCE

NuVista Energy Ltd. had strong financial and operating results for the three and nine months ending Sept. 30, 2023. The company continues to invest in a disciplined manner in new high-return wells to fill and optimize existing facilities. New well production results continue to meet and exceed expectations, driving NuVista's production to new highs. At the same time as achieving record production, NuVista made significant progress in returning capital to shareholders under its existing normal course issuer bid (the 2023 NCIB) while continuing to reduce debt.

Third quarter 2023 operational and financial highlights

During the third quarter of 2023, NuVista:

• Produced a record average of 80,382 boe/d (barrels of oil equivalent per day), meeting its guidance expectations and reflecting a 17-per-cent increase in production from the third quarter of 2022. The production composition for the third quarter was richer than expected at 33 per cent condensate, 8 per cent NGLs (natural gas liquids) and 59 per cent natural gas, and this included approximately 3,500 boe/d of planned and unplanned mid-stream and NuVista downtime;
• Generated adjusted funds flow of $202-million (94 cents/share, basic) and delivered $91.2-million of free adjusted funds flow;
• Achieved net earnings of $110.3-million (51 cents/share, basic);
• Executed a successful capital expenditures program, investing $110-million in well and facility activities, including the drilling of 16 gross (16 net) wells and the completion of 11 gross (10.5 net) wells in NuVista's condensate-rich Wapiti Montney asset base;
• Exited the quarter with net debt of $150.2-million, a 43-per-cent reduction from the third quarter of 2022 and 13 per cent lower than year end 2022, resulting in a favourable net debt to annualized third quarter adjusted funds flow ratio of 0.2 times;
• Repurchased and subsequently cancelled 3.4 million NuVista shares for an aggregate cost of $42.5-million under the terms of the company's 2023 NCIB. Year-to-date, NuVista has repurchased and subsequently cancelled 8.1 million shares, bringing the total to 21.6 million shares since inception of the share repurchase program in mid-2022, with a weighted average price of $11.73 per share;
• Continued to make significant progress in advancing the company's environment, social and governance (ESG) efforts, as demonstrated by the release of the company's 2022 ESG report, which is available on NuVista's website. Importantly, the report highlights the company's continued achievements in reducing methane and greenhouse gas (GHG) emissions;
• Recognized as part of the TSX30 for the second consecutive year. The TSX30 recognizes the 30 top-performing companies on the Toronto Stock Exchange (TSX) over the prior three-year period. NuVista placed a very compelling second place over all.

Excellence in operations

NuVista is pleased to provide another operational update that demonstrates excellence in operations and proves the continuing emergence of new opportunities in the company's expansive resource base. A total of nine pads will have been brought on production by the end of 2023. Cost and production performance have been strong and predictable. In addition, successful testing of new zones has allowed NuVista to enter the planning stage for additional projects that it expects to underpin growth beyond the company's existing outlook of 100,000 boe/d.

NuVista achieved a quarterly production record of just over 80,000 boe/d with peak day rates of approximately 85,000 boe/d. Infrastructure capacity in the area has become tight, but staged expansions are currently in progress with expected on stream dates beginning in the second quarter of 2024 and running through to the second quarter of 2025. These are expected to bring the company's total capacity to over 105,000 boe/d over that period.

In the Wapiti area, a six-well pad on the Gold Creek block was drilled in record time, testing full co-development of the Middle Montney with the emerging zone -- the Lower Montney. The wells all averaged 1,975 boe/d (55 per cent condensate) each over the first 30 days of production (IP30). The three Lower Montney wells on the pad exhibited strong deliverability and particularly high condensate rates, averaging over 2,200 boe/d and 63 per cent condensate each. This result drives the expansion of the Gold Creek infrastructure capacity in 2024 and reinforces the exceptional economics in this area of growing well inventory. Additionally, a five-well pad was drilled on the Bilbo block, including one infill pilot well in the C zone, drilled between two legacy wells, which have produced for almost a decade from the B zone immediately below. The infill well has produced an IP30 of 1,200 boe/d (67 per cent condensate), versus the pad average IP30 of 1,400 boe/d (52 per cent condensate) per well. This is a highly encouraging initial result regarding future infill opportunities on the block, showing depletion from the two legacy wells below the infill is well within acceptable economic bounds.

NuVista has continued to achieve very favourable results in the Pipestone area. The company has just finished drilling a 12-well pad that will be completed in early 2024. Drilling costs for this pad were the best achieved in the area in 2023 at $830 per horizontal metre, which is 10 per cent below the 2023 area average. Production results continue to meet or exceed the company's expectations in a highly repeatable fashion.

The Lower Montney at Pipestone also continues to show significant improvements in productivity on NuVista's latest pads. Changes to the completion design have driven a 70-per-cent increase in IP90 (average production for the first 90 days) from the company's 2023 vintage Lower Montney wells as compared with its 2022 Lower Montney wells. This reinforces the company's continued confidence in multizone co-development as it continues across the block.

Balance sheet strength and return of capital to shareholders

NuVista remains focused on its disciplined and value-adding growth strategy, prioritizing low net debt levels and providing significant shareholder returns. The company is committed to returning approximately 75 per cent of free adjusted funds flow (FAFF) to shareholders. With net debt already well below its defined soft ceiling level, NuVista regards the remaining 25 per cent of FAFF as going to net debt only temporarily, since this dry powder allows the company to take advantage of potential opportunities for tuck-in acquisitions, facility repurchases or other value-adding items.

At the end of the third quarter, NuVista's net debt was $150.2-million, well below the company's soft ceiling of approximately $350-million, and its net debt to annualized third quarter adjusted funds flow ratio was 0.2 times. The net debt ceiling ensures that based on current production levels, the company's net debt to adjusted funds flow ratio remains comfortably below 1.0 times in a stress test price environment of $45 (U.S.)/bbl (barrel) WTI (West Texas Intermediate) oil and $2 (U.S.)/MMBtu (million British thermal units) NYMEX (New York Mercantile Exchange) natural gas.

NuVista continues to believe that the best method for return of capital to shareholders is initially to repurchase shares, however, the company will re-evaluate over the next year as its growth plan proceeds. This evaluation will consider commodity prices, the economic and tax environment, and will include all options, including continued disciplined growth of facility capacity, share repurchases and dividend payments.

Environment, social and governance (ESG) update

In September, 2023, NuVista proudly published its 2022 ESG report, underscoring its accomplishments in achieving specific targets and advancing continuing projects to support its commitment to ESG objectives. Notably, in 2022, the company exceeded expectations by achieving a 34-per-cent reduction in CO2e (carbon dioxide equivalent) emission intensity from its 2020 baseline, surpassing the company's target of a 20-per-cent reduction by 2025. Additionally, NuVista's methane emission intensity decreased by 86 per cent compared with its 2012 benchmark. As part of the company's continuous efforts to improve its emissions performance, NuVista is on schedule with the construction of the Wembley Gas Plant cogeneration project, scheduled to commence operations in early 2024. NuVista's dedication to social and governance issues is also prominently featured in its 2022 ESG report, as the company has surpassed its donation targets to the communities in which it lives and operates, and made significant progress in the company's first nations initiatives.

The 2022 ESG report is available and can be accessed on the company's website.

Two thousand twenty-three guidance update

NuVista continues to produce with best-day facility capacity of approximately 85,000 boe/d and well deliverability that exceeds this figure. Facilities in all areas are performing well, however the company did incur planned and unplanned mid-stream and NuVista outages (including for expansion tie-in work) in October, which totalled an approximately 1,000 boe/d reduction to the fourth quarter production average. Guidance for the fourth quarter of 2023 is set at 82,000 boe/d to 84,000 boe/d. Full-year guidance is tightened to 76,000 boe/d to 77,000 boe/d from 76,000 boe/d to 78,000 boe/d.

As a result of mild fall weather and free adjusted funds flow well ahead of expectations, NuVista has moved the completion and facilities work on the recently drilled Bilbo 5-well pad from the first quarter of 2024 into the fourth quarter of 2023. This schedule adjustment smooths out crew and equipment schedules for maximum efficiency, and significantly reduces winter frac water heating costs, leading to expected savings of approximately 10 per cent, or $2.5-million. Net capital expenditure guidance for 2023 is therefore changed to approximately $475-million from the previous $450-million ceiling.

With low net debt levels and approximately 85 per cent of the company's planned capital expenditures completed for the year, NuVista has the flexibility in the fourth quarter to focus on the acceleration of return of capital to shareholders. As such, the company expects to more than double the progress on its 2023 return of capital, as compared with the third quarter, to over $100-million in the fourth quarter, assuming Nov. 8, strip prices.

Two thousand twenty-four plan has been set

In 2024, NuVista plans to drill, complete and tie in seven pads (approximately 40 wells), which is in line with 2023 activity levels, and they will be split evenly between the Pipestone and Wapiti areas. All pads are located immediately adjacent to existing development, so the company carries a high level of predictability, once again, on the outcome of its capital expenditure program. Capital per well is budgeted to be flat versus 2023 levels, on a length-adjusted basis. NuVista currently expects its execution performance to continue trending positively, offsetting any mild inflation.

Several facility debottlenecking and expansion projects are continuing through 2024 in the Wapiti area to enhance corporate facility capacity, in stages, to over 95,000 boe/d by year-end. Subsequently, in Pipestone North, NuVista will be adding capacity to reach a corporate total of approximately 105,000 boe/d facility capacity with the startup of the CSV Midstream Albright gas plant prior to the second quarter of 2025.

NuVista's board of directors has approved a capital expenditure budget of approximately $500-million for 2024, which, when coupled with the planned facility capacity expansions, leads to 2024 production guidance of 83,000 boe/d to 87,000 boe/d.

NuVista intends to continue its record of carefully directing free adjusted funds flow toward a prudent balance of 75-per-cent return to shareholders and 25-per-cent debt reduction in 2024, while investing in production growth until the company's existing facilities are filled and debottlenecked to maximum efficiency. NuVista has an exceptional business plan that targets production levels reaching a plateau of approximately 100,000 boe/d in 2025. As NuVista continues to add to its proven inventory of wells, the company is in the early planning stages of adding more capacity to facilitate a plateau production level of approximately 110,000 boe/d, and thereby extend its prudent growth well through 2026 and beyond.

NuVista possesses top-quality assets, supported by a management team dedicated to continuous improvement. With a strong balance sheet and ample liquidity, the company is prepared to deliver significant value for its shareholders. NuVista will continue to adjust to the environment in order to maximize the value of its asset base and ensure the long-term sustainability of its business. NuVista would like to thank its staff, contractors and suppliers for their continued dedication and delivery, and the company thanks its board of directors and shareholders for their continued guidance and support.

Please note that the company's corporate presentation will be available at the company's website on Nov. 8, 2023. NuVista's management's discussion and analysis, condensed consolidated interim financial statements for the three and nine months ended Sept. 30, 2023, and notes thereto, will be filed on SEDAR+ under NuVista Energy on Nov. 8, 2023, and can also be accessed on NuVista's website.

Production split for boe/d amounts referenced in the press release are as shown in the associated table.

We seek Safe Harbor.