Nuvista Energy targets return of 75% of free adjusted funds flow to shareholders

The company said, “At the end of the third quarter, our net debt was $261.9 million, resulting in a net debt to annualized third quarter adjusted funds flow ratio of 0.5x, which supports our strong financial position. The net debt level is also well below the $350 million limit set by management, to ensure that our net debt to adjusted funds flow ratio remains comfortably below 1.0x in a stress test price environment of US$45/Bbl WTI oil and US$2.00/MMBtu NYMEX natural gas. We remain focused on our disciplined value-adding growth strategy, balanced with providing significant shareholder returns. We continue to believe the best way to return capital to shareholders is through the repurchase of shares, although we will continue to consider other options in tandem with our longer term, high return growth plans. This evaluation will consider commodity prices, the economic and tax environment, and will include all options including share repurchases and dividend payments. Presently, our Board has set a target of returning approximately 75% of free adjusted funds flow to shareholders through the repurchase of the NuVista’s common shares pursuant to our NCIB programs.”