CALGARY, ALBERTA–(Marketwired – June 13, 2016) –
NOT FOR DISSEMINATION IN THE UNITED STATES, FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF UNITED STATES SECURITY LAW
NuVista Activity Ltd. (“NuVista” or the “Company”) (TSX:NVA) is admiring to advertise a cardinal of key accomplish that accept been taken to admission growth, value, and clamminess for the of 2016 and 2017. These accommodate the auction of our W6 Deep Basin Non-Montney Asset, the adjustment of chief apart addendum (“Senior Notes”), and the accession of our spending plans. These steps, calm with contempo deepening of article band prices, acquiesce us to accommodate a profitable, absolutely adjourned advance plan for 2016 and 2017 while advancement a able antithesis sheet.
W6 Deep Basin Non-Montney Asset Auction (“W6 Assets”)
NuVista has entered into a absolute acquirement and auction acceding for the denial of our W6 Sweet Cretaceous (Non-Montney) accustomed gas assets in the Wapiti breadth south of Grande Prairie in barter for $70 actor in banknote (before adjustments) calm with assertive Wapiti breadth Montney lands. Gain from the disposition will initially be acclimated to accord absolute coffer indebtedness.
The metrics associated with the bald non-Montney assets are abbreviated as follows:
Closing of the transaction is advancing to be on June 17, 2016 and is accountable to accepted closing conditions. RBC Basic Markets acted as absolute banking adviser to NuVista on this transaction.
Senior Apart Debt Financing
NuVista has entered into an acceding to abode five-year Chief Addendum in the bulk of $70 actor with Magnetar Capital, a ample cardinal investor. The advertisement amount is 9.875%, and there are no aliment or banking covenants. The accepted gain of the placement, net of all costs will be about $67 actor which will initially be acclimated to accord absolute coffer indebtedness. Closing of this transaction is advancing to be on or afore June 30, 2016 and is codicillary aloft closing of the asset auction and the amendments to our acclaim adeptness declared below. CIBC Basic Markets acted as absolute banking adviser to NuVista on this transaction.
Borrowing Abject Redetermination
NuVista has completed the anniversary redetermination of our borrowing abject with our syndicate of lenders. After adjustments to anniversary for the arising of the Chief Addendum as able-bodied as the denial of W6 assets, NuVista’s borrowing abject will be set at $200 actor able July 1, 2016. After giving aftereffect to these affairs NuVista will accept about $110 actor fatigued on our revised $200 actor acclaim facility.
2016 Angle and Guidance
The cardinal accomplish categorical in this columnist absolution will accredit NuVista to accommodate a absolutely adjourned advance plan into 2017. Reinvesting a allocation of the W6 Asset auction gain into conduct added Montney wells will acquiesce us to advance a basal abridgement to our 2016 assembly advice while accretion 2016 cashflow advice and all-embracing liquidity. By the end of 2016, we apprehend the bald assembly volumes will be absolutely replaced with college netback Montney production. NuVista will admission Wapiti Montney conduct action from the accepted akin of one rig, to two rigs able immediately. Added than 95% of NuVista’s assembly is accepted to appear from the Wapiti Montney by the end of this year. For 2016 and 2017, we will aerate advance while advancement a arrangement of debt to funds breeze from operations a or beneath our ambition best of 2x and captivation debt almost flat.
NuVista’s Lath of Admiral has accustomed an aggrandized basic spending account for 2016 in the ambit of $165 – $175 actor (approximately $100 million, net of the denial proceeds). After accounting for the reinvestment and the auction of W6 Non-Montney assets, we ahead 2016 assembly to boilerplate in the ambit of 23,500 – 24,500 Boe/d. Our advice for funds from operations for 2016 is added to a ambit of $110 – $120 actor at Band Pricing. The above-mentioned advice is across-the-board of an advancing three to four anniversary bulb abeyance for aliment at the SemCams K3 gas plant, and notified TCPL outages which accept a accumulated abounding year 2016 appulse of about 500-750 Boe/d. NuVista continues to account from the use of bulb activity arrangement which we accept put in abode with breadth midstreamers in adjustment to aerate breeze adaptability during outages.
NuVista will abide to focus carefully aloft antithesis breadth backbone in 2017. With article prices continuing to recover, we ahead added value-driven advance and spending adaptability with a abbreviation debt to cashflow ratio. Our accepted angle for 2017 spending is in the ambit of $140 – $180 million, with the low end of the ambit based on accepted Band Pricing, and the aerial end based on US$60/Bbl WTI and $3.00/GJ AECO. Based on this range, 2017 assembly is accepted to boilerplate 26,000 – 29,000 Boe/d which represents 10-20% advance per allotment over 2016 guidance. Added authoritativeness on our 2017 affairs will disentangle as we arch appear our anniversary account aeon in the abatement of 2016.
Given our top affection assets and a administration accession focused aloft adamant improvement, NuVista will abide to optimize after-effects in the convalescent article amount environment. We would like to acknowledge our staff, contractors, and suppliers for their connected adherence and delivery, and we acknowledge our lath of admiral and our shareholders for their advice and abutment as we body an anytime added admired approaching for NuVista.
This columnist absolution is not an action of balance for auction in the United States. The balance of NuVista may not be offered or awash in the United States absent allotment or an absolution from registration. The balance of NuVista will not be about offered in the United States. The balance of NuVista accept not been or will not be registered beneath the U.S. Balance Act or any accompaniment aegis laws.
ADVISORIES REGARDING OIL AND GAS INFORMATION
This account absolution contains the appellation barrels of oil agnate (“Boe”). Accustomed gas is adapted to a Boe application six thousand cubic anxiety of gas to one of oil. Boes may be misleading, decidedly if acclimated in isolation. The aloft about-face ratios are based on an activity adequation about-face adjustment primarily applicative at the burner tip and does not represent a bulk adequation at the wellhead. As well, accustomed than the bulk arrangement based on the accepted amount of awkward oil to accustomed gas is decidedly altered from the 6:1 activity adequation ratio, application a about-face arrangement on a 6:1 abject may be ambiguous as an adumbration of value.
The estimates of affluence and approaching net acquirement for alone backdrop may not reflect the aforementioned aplomb akin as estimates of affluence and approaching net acquirement for all properties, due to the furnishings of aggregation.
ADVISORY REGARDING FORWARD-LOOKING INFORMATION AND STATEMENTS
This columnist absolution contains advanced statements and advanced advice (collectively, “forward-looking statements”) aural the acceptation of applicative balance laws. The use of any of the words “will”, “expects”, “believe”, “plans”, “potential” and agnate expressions are advised to assay advanced statements. Added decidedly and after limitation, this columnist absolution contains advanced attractive statements, apropos to the advancing net gain from the auction of the W6 Assets, the closing date of the auction of the W6 Assets, funds from operations, assembly estimates and affluence for the W6 Assets, the closing date for the arising of the Chief Notes, approaching amounts fatigued on our acclaim adeptness and debt to funds breeze from operations ratio, advancing assembly outages; our affairs with account to reinvestment of the W6 Asset Auction proceeds, conduct plans, 2016 and 2017 assembly volumes, management’s appraisal of NuVista’s approaching strategy, plans, opportunities and operations, forecast, approaching funds from operations and added banking results, article amount expectations and AECO exposure, the timing, allocation and adeptness of NuVista’s basic affairs and the after-effects therefrom, advancing abeyant and advance opportunities associated with NuVista’s asset abject and industry conditions.
By their nature, advanced statements are based aloft assertive assumptions and are accountable to abundant risks and uncertainties, some of which are aloft NuVista’s control, including the accomplishment of the closing altitude to the affairs declared herein and on the agreement and timing contemplated, the appulse of accepted bread-and-er conditions, industry conditions, accepted and approaching article prices, bill and absorption rates, approaching royalties, approaching operating costs, the blunder of assets estimates, the accomplishment of absolute wells, the success acquired in conduct new wells, the capability of approaching basic expenditures in accustomed out planned activities, antagonism from added industry participants, availability of able cadre or casework and conduct and accompanying equipment, banal bazaar volatility, furnishings of adjustment by authoritative agencies including changes in ecology regulations, tax laws and royalties; the adeptness to admission acceptable basic from centralized sources and coffer and disinterestedness markets; and including, after limitation, those risks advised beneath “Risk Factors” in our Anniversary Advice Form.
This columnist absolution additionally contains future-oriented banking advice and banking angle advice (collectively, “FOFI”) about our -to-be after-effects of operations, debt levels and funds from operations, all of which are accountable to the aforementioned assumptions, accident factors, limitations, and abilities as set alternating above. Readers are cautioned that the assumptions acclimated in the alertness of such information, although advised reasonable at the time of preparation, may prove to be estimated and, as such, disproportionate assurance should not be placed on FOFI and advanced statements. NuVista’s absolute results, accomplishment or accomplishment could alter materially from those bidding in, or adumbrated by, these advanced statements and FOFI, or if any of them do so, what allowances NuVista will acquire therefrom. NuVista has included the advanced statements and FOFI in this columnist absolution in adjustment to accommodate readers with a added complete angle on NuVista’s approaching operations and such advice may not be adapted for added purposes. NuVista disclaims any ambition or obligation to amend or alter any advanced statements, whether as a aftereffect of new information, approaching contest or otherwise, except as appropriate by law.
Within this new release, references are fabricated to agreement frequently acclimated in the oil and accustomed gas industry. Administration uses “funds from operations” and “debt to funds breeze from operations” to assay operating accomplishment and leverage. These agreement do not accept any connected acceptation assigned by GAAP and accordingly may not be commensurable with the adding of agnate measures for added entities.
Funds from operations is based on banknote breeze from operating activities as per the account of banknote flows afore changes in non-cash alive capital, asset retirement expenditures, agenda receivable allowance or accretion and ecology remediation expenses. Funds from operations as presented is not advised to represent operating banknote breeze or operating profits for the aeon nor should it be beheld as an another to banknote breeze from operating activities, per the account of banknote flows, net balance (loss) or added measures of banking accomplishment affected in accordance with GAAP. For added capacity on non-GAAP measures including a adaptation to GAAP measures accredit to our Management’s Discussion and Analysis.
Cash costs accommodate costs accompanying to royalties, operating, transportation, accepted and authoritative and absorption charges. For the abounding year of 2016, NuVista’s absolute banknote costs are accepted to boilerplate about $18.00/Boe. For 2017, absolute banknote costs are accepted to boilerplate about $17.30/Boe.
All references to funds from operations throughout this columnist absolution are based on funds from operating activities afore changes in non-cash alive capital, asset retirement expenditures, agenda receivable allowance or accretion and ecology remediation expenses. Funds from operations per allotment is affected based on the abounding boilerplate cardinal of accepted shares outstanding constant with the adding of net accident per share. Operating netback equals the absolute of revenues including accomplished banking acquired gains/losses beneath royalties, busline and operating costs affected on a Boe basis. Funds from operations netback is operating netback beneath accepted and administrative, belted banal units and absorption costs affected on a Boe basis.
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