11:13 AM EDT, 07/03/2025 (MT Newswires) -- (Adds comment and updates shares.)

NuVista Energy ( NUVSF ) late on Wednesday lowered its guidance for annual oil and gas production volumes, citing continued delays in commissioning of a third-party gas plant and other additional work.

Due to the commissioning delays and required work discovered during a gas plant turnaround, the company now expects annual volumes to average 83,000 barrels of oil equivalent per day this year, down from its prior forecast of 90,000 boe/d.

The impact is approximately 3,500 boe/d due to the gas-plant delay and 6,000 boe/d due to the turnaround delay. Both third-party facilities are expected to be fully operational by September.

Turnarounds take place once every four years and were planned in the annual budget. However, the gas-plant operator chose to proceed with the additional work to set the plant up for a major life extension, an increase in throughput and reliability improvement.

NuVista expects 43 new wells to be available for production by the end of the third quarter, setting up for fourth quarter volumes exceeding 100,000 boe/d as planned. As a result of the delays, second-quarter production averaged roughly 73,500 boe/d.

At current commodity price levels, NuVista expects to generate $150 million in free adjusted funds flow in the second half of the year, most of which will be directed to the share repurchase program.

National Bank of Canada maintained its sector-perform rating and $16.00 price target for NuVista shares following the guidance cut.

NuVista shares were last seen down $0.45 to $14.39 on the Toronto Stock Exchange.

Price: 14.38, Change: -0.46, Percent Change: -3.10