NuVista Energy : Q1 2023 Financial Statements

CONSOLIDATED INTERIM FINANCIAL STATEMENTS

As at, and for the three months ended:

March 31, 2023 and 2022

NUVISTA ENERGY LTD.

Consolidated Interim Statements of Financial Position (Unaudited)

			March 31		December 31
($Cdn thousands)	Note		2023		2022
Assets
Current assets
Cash and cash equivalents	3	$	65,598	$	41,890
Accounts receivable and prepaid expenses			146,162	$	196,678
Financial derivative assets	17		24,305		37,925
Other receivable			11,087		7,063
			247,152		283,556
Financial derivative assets	17		2,374		40,633
Other asset			9,500		-
Exploration and evaluation assets	4		25,676		18,307
Property, plant and equipment	5		2,500,802		2,380,205
Right-of-use assets	6		96,724		98,965
Total assets		$	2,882,228	$	2,821,666
Liabilities
Current liabilities
Accounts payable and accrued liabilities		$	193,292	$	185,129
Current portion of other liabilities	16		14,909		15,375
Current portion of lease liabilities	10		6,103		5,908
Current portion of asset retirement obligations	11		9,500		9,950
			223,804		216,362
Long-term debt	8		-		-
Senior unsecured notes	9		183,631		215,392
Other liabilities	16		-		1,540
Lease liabilities	10		109,263		110,822
Asset retirement obligations	11		76,367		81,731
Financial derivative liabilities	17		3,384		-
Deferred tax liability			279,182		260,326
Total liabilities			875,631		886,173
Shareholders' equity
Share capital	12		1,179,915		1,183,769
Contributed surplus			66,734		65,963
Retained earnings			759,948		685,761
Total Shareholders' equity			2,006,597		1,935,493
Total liabilities and shareholders' equity		$	2,882,228	$	2,821,666
Subsequent events	8,9,12,17
Commitments	20

See accompanying notes to the consolidated interim financial statements.

NuVista Energy Ltd.

Q1 2023 Consolidated Interim Financial Statements | 2

NUVISTA ENERGY LTD.

Consolidated Interim Statements of Earnings and Comprehensive Income (Unaudited)

			Three months ended March 31
($Cdn thousands, except per share amounts)	Note		2023		2022
Revenues
Petroleum and natural gas sales	14	$	390,163	$	381,827
Royalties			(51,496)		(33,308)
Revenue from petroleum and natural gas sales			338,667		348,519
Realized loss on financial derivatives	17		(9,090)		(45,215)
Unrealized loss on financial derivatives	17		(55,263)		(55,336)
Other income	11		-		5,605
Total revenue, other income and gain (loss) on risk management contracts			274,314		253,573
Expenses
Operating			75,041		65,259
Transportation			26,454		27,469
General and administrative			5,709		5,033
Share-based compensation	16		1,523		5,858
Financing costs	18		11,279		12,252
Depletion, depreciation and amortization	5,6		61,556		48,030
Gain on property disposition	7		(13,592)		(1,280)
			167,970		162,621
Earnings before taxes			106,344		90,952
Current income tax expense			6,391		-
Deferred income tax expense			19,244		20,697
Total income tax expense		$	25,635	$	20,697
Net earnings and comprehensive income		$	80,709	$	70,255
Net earnings per share	13
Basic		$	0.37	$	0.31
Diluted		$	0.36	$	0.30

See accompanying notes to the consolidated interim financial statements.

NuVista Energy Ltd.

Q1 2023 Consolidated Interim Financial Statements | 3

NUVISTA ENERGY LTD.

Consolidated Interim Statements of Changes in Shareholders' Equity (Unaudited)

		Three months ended March 31
($Cdn thousands)	Note	2023		2022
Share capital	12
Balance, January 1	$	1,183,769	$	1,228,275
Issued for cash on exercise of stock options		716		4,221
Contributed surplus transferred on exercise of stock options		334		1,747
Conversion of restricted share awards		164		10
Conversion of performance share awards		658		38
Repurchase of shares for cancellation		(5,726)		-
Balance, end of period	$	1,179,915	$	1,234,291
Contributed surplus
Balance, January 1	$	65,963	$	68,337
Share-based compensation		4,224		2,016
Transfer to share capital on exercise of stock options		(334)		(1,747)
Conversion of restricted share awards		(164)		(10)
Conversion of performance share awards		(658)		(38)
Share-based compensation - tax withholdings settled in cash		(2,685)		-
Tax deduction on excess value of share awards		388		3,673
Balance, end of period	$	66,734	$	72,231
Retained earnings
Balance, January 1	$	685,761	$	139,205
Repurchase of shares for cancellation		(6,522)		-
Net earnings		80,709		70,255
Balance, end of period	$	759,948	$	209,460
Total shareholders' equity	$	2,006,597	$	1,515,982

See accompanying notes to the consolidated interim financial statements.

NuVista Energy Ltd.

Q1 2023 Consolidated Interim Financial Statements | 4

NUVISTA ENERGY LTD.

Consolidated Interim Statements of Cash Flows (Unaudited)

	Three months ended March 31
($Cdn thousands)	Note	2023		2022
Cash provided by (used in)
Operating activities
Net earnings	$	80,709	$	70,255
Items not requiring cash from operations:
Other income	11	-		(5,605)
Depletion, depreciation and amortization	5,6	61,556		48,030
Gain on property disposition	7	(13,592)		(1,280)
Share-based compensation	16	3,529		1,716
Unrealized loss on financial derivatives		55,263		55,336
Deferred income tax expense		19,244		20,697
Accretion	11	755		720
Asset retirement expenditures	11	(9,693)		(5,568)
Change in non-cash working capital	19	17,450		(21,859)
Cash provided by operating activities		215,221		162,442
Financing activities
Issuance of share capital on exercise of stock options		716		4,221
Share-based compensation - tax withholdings settled with cash		(2,685)		-
Payment on lease liabilities		(1,364)		(1,215)
Repurchase of shares		(12,248)		-
Decrease of long-term debt		-		(38,926)
Repayment of senior unsecured notes		(32,159)		-
Cash used in financing activities		(47,740)		(35,920)
Investing activities
Property, plant and equipment expenditures	5	(188,501)		(118,872)
Exploration and evaluation expenditures	4	(7,369)		(1,092)
Other asset expenditures		(9,500)		-
Proceeds on property disposition	7	26,000		-
Change in non-cash working capital	19	35,597		(6,558)
Cash used in investing activities		(143,773)		(126,522)
Change in cash and cash equivalents		23,708		-
Cash and cash equivalents, beginning of period		41,890		-
Cash and cash equivalents, end of period	$	65,598	$	-
Cash interest paid	$	11,321	$	12,155
See accompanying notes to the consolidated interim financial statements.

NuVista Energy Ltd.

Q1 2023 Consolidated Interim Financial Statements | 5