NUVISTA ENERGY LTD. SIGNIFICANTLY REDUCES 2020 CAPITAL SPENDING

CALGARY, Alberta, March 16, 2020 (GLOBE NEWSWIRE) -- NuVista Energy Ltd. (“NuVista” or the “Company”) (TSX:NVA) announces that we have reduced our capital spending program for 2020 effective immediately in order to remain approximately in line with forecast adjusted funds flow, consistent with prior guidance.  Maintaining the strength of our balance sheet continues as the top priority after the sudden decline in oil prices associated with recent global events.

• Credit facility drawings will be managed to approximately $340 million by year end 2020 as a result of adjusted funds flow in excess of capital expenditures at WTI oil prices above $US 30/Bbl from the end of the first quarter onwards;
• Full year capital spending has been reduced from the prior guidance range of $300 - $330 million to no more than $240 million.  This represents a reduction of approximately 25% of full year 2020 capital, and a reduction of almost 40% in go-forward 2020 capital spending;
• First quarter capital spending has been reduced from $150 million to $135 million on the strength of reduced drilling and completions costs which were achieved for planned activities;
• Second quarter capital has been reduced from $50 million to $30 million; and
• Production for 2020 is expected to be in the range of 54,000 – 57,000 Boe/d as compared to the lower end of prior guidance at 57,000 Boe/d.

We have ample time to further assess 2020 spending levels through the spring breakup period where little activity occurs.  We will continue to monitor commodity prices and will finalize our post-spring breakup capital program late in the second quarter. We have the flexibility to reduce 2020 spending further, to below $200 million if commodity prices exhibit further signs of weakness.

Matching capital spending approximately to adjusted funds flow will maintain year end 2020 net debt near year end 2019 levels as planned.  NuVista forecasts to be approximately $400 million drawn on our $550 million credit facility at the end of March, after the first quarter winter drilling season peak spending period.  As a result, we have 15 new wells coming onstream through March and April, providing positive continued support to our credit facility.  The amount of bank debt drawn is expected to be reduced to approximately $340 million by year end 2020 as we begin to generate adjusted funds flow in excess of capital expenditures at prices above $US 30/Bbl WTI from the end of the first quarter onwards (with other commodity prices at the current strip level).