Mr. Jonathan Wright reports

NUVISTA ENERGY LTD. ANNOUNCES RECORD QUARTERLY PRODUCTION AND RECORD RETURN OF CAPITAL TO SHAREHOLDERS

NuVista Energy Ltd. had record-setting quarterly production and made share repurchases in the fourth quarter of 2023.

Production for the quarter ended Dec. 31, 2023, achieved a new record for NuVista, reaching a field-estimated 85,900 barrels of oil equivalent per day, well above the company's fourth-quarter guidance range of 82,000 to 84,000 boe/d. This production included approximately 31 per cent condensate, 9 per cent natural gas liquids and 60 per cent natural gas. The increased production is the result of strong performance from the new wells in the 2023 development program across all assets, coupled with continued success in the debottlenecking of NuVista and third party mid-stream facilities. Full-year 2023 production is estimated to be approximately 77,200 boe/d, above the previous guidance range of 76,000 to 77,000 boe/d.

In the fourth quarter, progress on the company's return of capital to shareholders was significant with a record total of $103-million deployed as promised toward return of capital (shares repurchased on normal course issuer bid and share-based compensation settled with cash). In 2023 in total the company repurchased and subsequently cancelled 15.3 million common shares, bringing the total to 28.8 million common shares since inception of the share repurchase program in mid-2022, with a weighted average price of $11.85 per share.

NuVista is pleased to note that, during 2023, it added 15.5 gross sections (98-per-cent working interest) of land in its Wapiti area, most of which closed in the fourth quarter. This low-risk and well-delineated land is located directly adjacent to existing NuVista land and infrastructure, and adds to the company's inventory of high-quality locations. Additionally, it enhances land configuration efficiency, and optimizes pipeline and field facility utilization for growth beyond 100,000 boe/d. These land acquisitions are expected to lead to immediate reserves additions, and to augment drilling locations planned for the 2024 and 2025 program.

With fourth-quarter activity as expected, and the aforementioned land acquisitions, net capital expenditures (1) for 2023 have been increased from the originally expected $475-million to approximately $520-million. Net debt (2) for year-end 2023 is estimated to be $180-million, well below the company soft ceiling of approximately $350-million. The net debt ceiling ensures that, based on current production levels, the company's net-debt-to-adjusted-funds-flow ratio (2) remains comfortably below 1.0 times in a stress test price environment of $45 (U.S.) per barrel WTI (West Texas Intermediate) oil and $2.00 (U.S.) per million British thermal units NYMEX (New York Mercantile Exchange) natural gas. NuVista exited 2023 with $17-million drawn on its $450-million covenant-based credit facility.

Drilling, completion and pipeline operations have resumed efficiently after a well-earned Christmas break for the company's crews. At Wapiti, two rigs are drilling on a six-well pad in Elmworth, after which they will move to Pipestone South and Gold Creek. In addition, the company has begun completion operations at a 12-well pad in Pipestone North. The new co-generation unit at NuVista's Wembley gas plant in the Pipestone North area was commissioned and has started up smoothly in the fourth quarter of 2023, with commissioning of the gas plant heat utilization portion continuing as planned. The project was built in partnership with the company's gas plant working interest partners and five indigenous nations on whose traditional territories NuVista operates. The investment in the co-generation project was facilitated by the Alberta Indigenous Opportunities Corp., and the project benefitted from the Alberta Environment and Parks' industrial energy efficiency, and carbon capture utilization and storage (IEE CCUS) grant program. The project is expected to provide stable and predictable revenues to the nations while reducing NuVista's costs and carbon emissions.

Production for the first quarter of 2024 is expected to be in the range of 77,000 to 80,000 boe/d, followed by a significant ramp-up of production through the remainder of the year as new pads are brought on-line. This first-quarter guidance includes an allowance for the shut-in of existing adjacent wells during the fraccing of new wells. Guidance for 2024 is reaffirmed at 83,000 to 87,000 boe/d of production and approximately $500-million of capital expenditures.

NuVista looks forward to releasing its full financial results for the quarter and year ended Dec. 31, 2023, prior to the opening of markets on Feb. 29, 2024.

Notes

(1) Net capital expenditures is a non-GAAP (generally accepted accounting principles) measures.

(2) Net debt and net-debt-to-adjusted-funds-flow ratio are capital management measures.

Basis of presentation

Unless otherwise noted, the financial data presented in this news release have been prepared in accordance with Canadian generally accepted accounting principles (GAAP) also known as international financial reporting standards (IFRS). The reporting and measurement currency is the Canadian dollar. National Instrument 51-101 -- Standards of Disclosure for Oil and Gas Activities includes condensate within the product type of natural gas liquids. NuVista has disclosed condensate values separate from natural gas liquids (NGL) herein as NuVista believes it provides a more accurate description of NuVista's operations and results therefrom.

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

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