NVA NuVista Energy Ltd

NuVista Energy Ltd. ("NuVista" or the "Company") (TSX: NVA) is pleased to announce strong financial and operating results for the three months ended March 31, 2024, and to provide an update on several key strategic initiatives. The quality and composition of our asset base has allowed us to continue to deliver strong returns despite commodity prices, particularly natural gas, declining temporarily in the first quarter. The first quarter had a higher phasing of capital spending as is normal for the busy winter drilling and construction season, as we made significant investments in new high-return wells and infrastructure projects to support our production growth. We continued to return capital to shareholders under our existing Normal Course Issuer Bid ("NCIB") and we also successfully amended and renewed our three year covenant-based credit facility.

First Quarter 2024 Financial Highlights

During the first quarter of 2024, NuVista:

• Generated adjusted funds flow(1) of $135.4 million ($0.65/share, basic(4));
• Achieved net earnings of $35.8 million ($0.17/share, basic);
• Maintained a strong operating netback(3) at $21.85/Boe and corporate netback(3) at $18.58/Boe, supported by strong condensate pricing;
• Executed a successful capital expenditures(2) program, investing $187.9 million in well and facility activities including the drilling of 9 gross (9.0 net) wells and the completion of 18 gross (18.0 net) wells in our condensate rich Wapiti Montney asset base. During the first quarter, we also progressed several of our infrastructure projects including the expansion of our Elmworth compressor station;
• Exited the quarter with net debt(1) of $261.2 million, resulting in a favorable net debt to annualized first quarter adjusted funds flow(1) ratio of 0.5x;
• Improved our financial flexibility through the successful renewal of our $450 million three year covenant-based credit facility, provided by our existing bank syndicate. Maturity was extended to May 7, 2027; and
• Repurchased and subsequently cancelled 1.3 million common shares, for an aggregate cost of $15.1 million or $11.25 per share under the terms of our current NCIB. Since the inception of our NCIB in mid-2022, we have repurchased and subsequently cancelled 30.1 million common shares for an aggregate cost of $356.3 million or $11.83 per share.

Notes:
(1)	Each of "adjusted funds flow", "net debt" and "net debt to annualized first quarter adjusted funds flow" are capital management measures. Reference should be made to the section entitled "Non-GAAP and Other Financial Measures" in this press release.
(2)	"Capital expenditures" is a non-GAAP financial measure that does not have any standardized meaning under IFRS Accounting Standards and therefore may not be comparable to similar measures presented by other companies where similar terminology is used. Reference should be made to the section entitled "Non-GAAP and Other Financial Measures" in this press release.
(3)	Each of "operating netback" and "corporate netback" are non-GAAP financial ratios that do not have any standardized meaning under IFRS Accounting Standards and therefore may not be comparable to similar measures presented by other companies where similar terminology is used. Reference should be made to the section entitled "Non-GAAP and Other Financial Measures" in this press release.
(4)	"Adjusted funds flow per share" is a supplementary financial measure. Reference should be made to the section entitled "Non-GAAP and Other Financial Measures" in this press release.

Excellence in Operations

During the first quarter of 2024, NuVista:

• Produced 80,042 Boe/d, meeting the top end of our guidance range of 77,000 – 80,000 Boe/d and reflecting a 12% increase in production from the first quarter of 2023. The production composition for the first quarter was 30% condensate, 9% NGLs and 61% natural gas;
• Exceeded production levels of approximately 90,000 Boe/d on a spot rate basis, which has successfully tested the design capacity (pre-debottlenecking) in Wapiti and Pipestone;
• Continued with a stable and consistent capital program, utilizing two drilling rigs and one completion crew;
• Successfully completed a 12-well pad at Pipestone on budget and on time. Flowback is underway and the pad is expected to reach IP90 during the second quarter. Drilling and completion operations are on-going at two additional pads in Pipestone which are expected to be turned over to production mid-year;
• Drilled and completed two pads in Wapiti that include a 6-well pad in Elmworth and a 4-well pad in Gold Creek. Costs for these pads were 10% to 15% below budget and set new operational execution milestones for drilling and completion performance for each area. Both of these pads are expected to be brought online in the second quarter; and
• The two facility debottlenecking projects in Wapiti are progressing as planned and are expected to allow for up to 8,000 Boe/d of incremental productive capacity in the third quarter of 2024. The third party CSV Midstream Albright gas plant construction in the Pipestone area is on schedule with anticipated start up in late 2024 or early 2025. Once online, NuVista's facility capacity is expected to reach a corporate total of upwards of 105,000 Boe/d.

Balance Sheet Strength and Return of Capital to Shareholders

At the end of the first quarter, our net debt was $261.2 million, well below our soft ceiling of approximately $350 million, and our net debt to annualized first quarter adjusted funds flow ratio was 0.5x. The net debt ceiling ensures that based on current production levels, 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 Company's common shares pursuant to our current NCIB. The remaining free adjusted funds flow may be allocated towards debt reduction, land acquisitions, infrastructure repurchases, or selective mergers and acquisitions that add value for shareholders.

2024 Guidance Update

As demonstrated above, we continue to execute according to our plans, with well and facility outperformance in several areas. Weekly production has reached a new record of 88,000 Boe/d, completion activities as well as planned third party and Company operated infrastructure expansion projects will cause production outages through the second quarter. The production impact to the second quarter is expected to be approximately 6,500 Boe/d. Second quarter production guidance has therefore been set at 80,000 – 83,000 Boe/d. We continue to expect monthly volumes to reach over 90,000 Boe/d at some point in the second half of 2024.

Our outlook for the full year of 2024 still anticipates excellent well economics with sub one-year payouts, and significant free adjusted funds flow despite the temporary reduction in natural gas prices. As our adjusted funds flow is primarily driven by condensate pricing, we are making no changes to our capital plans at this time, which allow us to maintain the efficiencies of steady 2-drill-rig execution. We re-affirm our 2024 full year production and capital expenditure guidance ranges of 83,000 – 87,000 Boe/d and $500 million, respectively.

We intend to continue our track record of carefully directing free adjusted funds flow towards a prudent balance of capital return to shareholders and debt reduction, while investing in high return growth projects. NuVista's top quality asset base, deep inventory, and management's relentless focus on value maximization has surfaced the opportunity to grow beyond existing midstream commitments, so advanced planning towards 115,000 Boe/d is currently underway. We will continue to closely monitor and adjust to the environment in order to maximize the value of our asset base and ensure the long-term sustainability of our business. We would like to thank our staff, contractors, and suppliers for their continued dedication and delivery, and we thank our Board of Directors and our shareholders for their continued guidance and support.

Please note that our corporate presentation will be available at www.nuvistaenergy.com on May 7, 2024. NuVista's management's discussion and analysis, condensed consolidated interim financial statements for the three months ended March 31, 2024 and notes thereto, will be filed on SEDAR+ (www.sedarplus.ca) on May 7, 2024 and can also be obtained at www.nuvistaenergy.com.

FINANCIAL AND OPERATING HIGHLIGHTS
	Three months ended March 31
($ thousands, except otherwise stated)	2024		2023		% Change
FINANCIAL
Petroleum and natural gas revenues	309,024		390,163		(21	)
Cash provided by operating activities	147,893		215,221		(31	)
Adjusted funds flow (3)	135,413		207,464		(35	)
Per share, basic (6)	0.65		0.95		(32	)
Per share, diluted (6)	0.64		0.91		(30	)
Net earnings	35,769		80,709		(56	)
Per share, basic	0.17		0.37		(54	)
Per share, diluted	0.17		0.36		(53	)
Total assets	3,134,976		2,882,228		9
Net capital expenditures (1)	187,856		169,870		11
Net debt (3)	261,171		168,985		55
OPERATING
Daily Production
Natural gas (MMcf/d)	292.8		253.3		16
Condensate (Bbls/d)	24,220		22,885		6
NGLs (Bbls/d)	7,022		6,113		15
Total (Boe/d)	80,042		71,209		12
Condensate & NGLs weighting	39	%	41	%
Condensate weighting	30	%	32	%
Average realized selling prices (5)
Natural gas ($/Mcf)	3.08		7.02		(56	)
Condensate ($/Bbl)	95.10		101.31		(6	)
NGLs ($/Bbl) (4)	27.23		39.30		(31	)
Netbacks ($/Boe)
Petroleum and natural gas revenues	42.43		60.88		(30	)
Realized loss on financial derivatives	(0.18	)	(1.42	)	(87	)
Royalties	(4.47	)	(8.04	)	(44	)
Transportation expense	(4.47	)	(4.13	)	8
Net operating expense (2)	(11.51	)	(11.71	)	(2	)
Operating netback (2)	21.85		35.58		(39	)
Corporate netback (2)	18.58		32.36		(43	)
SHARE TRADING STATISTICS
High ($/share)	12.11		12.67		(4	)
Low ($/share)	9.59		10.42		(8	)
Close ($/share)	11.88		10.93		9
Common shares outstanding (thousands of shares)	206,332		218,764		(6	)

NOTES:
(1)	Non-GAAP financial measure that does not have any standardized meaning under IFRS Accounting Standards and therefore may not be comparable to similar measures presented by other companies where similar terminology is used. Reference should be made to the section entitled "Specified Financial Measures".
(2)	Non-GAAP ratio that does not have any standardized meaning under IFRS Accounting Standards and therefore may not be comparable to similar measures presented by other companies where similar terminology is used. Reference should be made to the section entitled "Specified Financial Measures".
(3)	Capital management measure. Reference should be made to the section entitled "Specified Financial Measures".
(4)	Natural gas liquids ("NGLs") include butane, propane and ethane revenue and sales volumes, and sulphur revenue.
(5)	Product prices exclude realized gains/losses on financial derivatives.
(6)	Supplementary financial measure. Reference should be made to the section entitled "Specified Financial Measures".

Advisories Regarding Oil and Gas Information

BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf: 1 Bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. As the value ratio between natural gas and crude oil based on the current prices of natural gas and crude oil is significantly different from the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value.

Any references in this press release to initial production rates are useful in confirming the presence of hydrocarbons, however, such rates are not determinative of the rates at which such wells will continue production and decline thereafter and are not indicative of long-term performance or ultimate recovery. While encouraging, readers are cautioned not to place reliance on such rates in calculating the aggregate production for NuVista.

This press release contains certain oil and gas metrics, which do not have standardized meanings or standard methods of calculation and therefore such measures may not be comparable to similar measures used by other companies and should not be used to make comparisons. Such metrics have been included herein to provide readers with additional measures to evaluate NuVista's performance; however, such measures are not reliable indicators of NuVista's future performance and future performance may not compare to NuVista's performance in previous periods and therefore such metrics should not be unduly relied upon. Management uses these oil and gas metrics for its own performance measurements and to provide security holders with measures to compare the NuVista's operations over time. Readers are cautioned that the information provided by these metrics, or that can be derived from the metrics presented in this presentation, should not be relied upon for investment or other purposes.

Basis of presentation

Unless otherwise noted, the financial data presented in this news release has been prepared in accordance with Canadian generally accepted accounting principles ("GAAP") also known as International Financial Reporting Standards ("IFRS").

Natural gas liquids are defined by National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities" to include ethane, butane, propane, pentanes plus and condensate. Unless explicitly stated in this press release, references to "NGL" refers only to ethane, butane and propane and references to "condensate" refers to only to condensate and pentanes plus. NuVista has disclosed condensate and pentanes plus values separately from ethane, butane and propane values as NuVista believes it provides a more accurate description of NuVista's operations and results therefrom.

Production split for Boe/d amounts referenced in the news release are as follows:

Reference	Total Boe/d	Natural Gas%		Condensate%		NGLs%
Q1 2024 production - actual	80,042	60	%	31	%	9	%
Q1 2024 production guidance	77,000 – 80,000	61	%	30	%	9	%
Q2 2024 production guidance	80,000 – 83,000	61	%	30	%	9	%
2024 annual production guidance	83,000 – 87,000	61	%	30	%	9	%

Advisory regarding forward-looking information and statements

This press release contains forward-looking statements and forward-looking information (collectively, "forward-looking statements") within the meaning of applicable securities laws. The use of any of the words "will", "expects", "believe", "plans", "potential" and similar expressions are intended to identify forward-looking statements. More particularly and without limitation, this press release contains forward looking statements, including but not limited to:

• our expectations with respect to our 2024 full year outlook, well economics, free adjusted funds flow and capital expenditures;
• our 2024 full year production and capital expenditures guidance ranges;
• NuVista's ability to continue directing free adjusted funds flow towards a prudent balance of return of capital to shareholders and debt reduction, while investing in high return growth projects;
• the anticipated allocation of free adjusted funds flow;
• that 75% of NuVista's free adjusted funds flow will be put towards the repurchase of the Company's common shares pursuant to the NCIB, while the balance will be allocated to debt reduction, land acquisitions, infrastructure repurchases and selective mergers and acquisitions;
• the anticipated impacts of NuVista's and third party's expansion projects, including scheduled power outages on Q2 2024 production;
• NuVista's ability to grow beyond existing midstream commitments and current plans to support production levels of 115,000 Boe/day;
• that production will exceed 90,000 Boe/day consistently in the second half of 2024;
• the anticipated timing of infrastructure debottlenecking and expansion projects in 2024 and 2025 and the anticipated benefits thereof;
• that NuVista's facility capacity will reach a corporate total of approximately 105,000 Boe/d once all planned infrastructure projects are online;
• our assumption that current production levels have tested the design and capacity of our infrastructure in our Wapiti and Pipestone areas;
• the anticipated timing that the production will be brought online for our 6-well pad at Elmworth and 4-well pad at Gold Creek and results thereof;
• that our soft ceiling net debt of $350 million will allow our current production levels to be sustainable and maintain an adjusted funds flow ratio below 1.0x in a stress test price environment of US$45/Bbl WTI oil and US$2.00/MMBtu NYMEX natural gas;
• our plan to continue to maintain an efficient drilling program by employing 2-drill-rig execution;
• guidance with respect to 2024 full year production mix;
• guidance with respect to second quarter 2024 production and production mix;
• future commodity prices;
• our future focus, strategy, plans, opportunities and operations; and
• other such similar statements.

The future acquisition of our common shares pursuant to a share buyback (including through our normal course issuer bid), if any, and the level thereof is uncertain. Any decision to acquire common shares pursuant to a share buyback will be subject to the discretion of the Board of Directors and may depend on a variety of factors, including, without limitation, the Company's business performance, financial condition, financial requirements, growth plans, expected capital requirements and other conditions existing at such future time including, without limitation, contractual restrictions and satisfaction of the solvency tests imposed on the Company under applicable corporate law. There can be no assurance of the number of common shares that the Company will acquire pursuant to a share buyback, if any, in the future.

By their nature, forward-looking statements are based upon certain assumptions and are subject to numerous risks and uncertainties, some of which are beyond NuVista's control, including the impact of general economic conditions, industry conditions, current and future commodity prices and inflation rates; the impact of ongoing global events, including Middle East and European tensions, with respect to commodity prices, currency and interest rates, anticipated production rates, borrowing, operating and other costs and adjusted funds flow; the timing, allocation and amount of capital expenditures and the results therefrom; anticipated reserves and the imprecision of reserve estimates; the performance of existing wells; the success obtained in drilling new wells; the sufficiency of budgeted capital expenditures in carrying out planned activities; access to infrastructure and markets; competition from other industry participants; availability of qualified personnel or services and drilling and related equipment; stock market volatility; effects of regulation by governmental agencies including changes in environmental regulations, tax laws and royalties; the ability to access sufficient capital from internal sources and bank and equity markets; that we will be able to execute our 2024 drilling plans as expected; our ability to carry out our 2024 production and capital guidance as expected and including, without limitation, those risks considered under "Risk Factors" in our Annual Information Form.

Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. NuVista's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements, or if any of them do so, what benefits NuVista will derive therefrom. NuVista has included the forward-looking statements in this press release in order to provide readers with a more complete perspective on NuVista's future operations and such information may not be appropriate for other purposes. NuVista disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

This press release also contains financial outlook and future oriented financial information (together, "FOFI") relating to NuVista including, without limitation, free adjusted funds flow in 2024, capital expenditures in 2024, DCET costs, and net debt to adjusted funds flow targets, which are based on, among other things, the various assumptions disclosed in this press release including under "Advisory regarding forward-looking information and statements" and including assumptions regarding benchmark pricing as it relates to free adjusted funds flow and the 2024 capital allocation framework. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on FOFI. NuVista's actual results, performance or achievement could differ materially from those expressed in, or implied by, these FOFI, or if any of them do so, what benefits NuVista will derive therefrom. NuVista has included the FOFI in order to provide readers with a more complete perspective on NuVista's future operations and such information may not be appropriate for other purposes.

These forward-looking statements and FOFI are made as of the date of this press release and NuVista disclaims any intent or obligation to update any forward-looking statements and FOFI, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities law.

Non-GAAP and other financial measures

This press release uses various specified financial measures (as such terms are defined in National Instrument 52-112 – Non-GAAP Disclosure and Other Financial Measures Disclosure ("NI 52-112")) including "non-GAAP financial measures", "non-GAAP ratios", "capital management measures" and "supplementary financial measures" (as such terms are defined in NI 52-112), which are described in further detail below. Management believes that the presentation of these non-GAAP measures provides useful information to investors and shareholders as the measures provide increased transparency and the ability to better analyze performance against prior periods on a comparable basis.

(1) Non-GAAP financial measures

NI 52-112 defines a non-GAAP financial measure as a financial measure that: (i) depicts the historical or expected future financial performance, financial position or cash flow of an entity; (ii) with respect to its composition, excludes an amount that is included in, or includes an amount that is excluded from, the composition of the most directly comparable financial measure disclosed in the primary financial statements of the entity; (iii) is not disclosed in the financial statements of the entity; and (iv) is not a ratio, fraction, percentage or similar representation.

These non-GAAP financial measures are not standardized financial measures under IFRS Accounting Standards and might not be comparable to similar measures presented by other companies where similar terminology is used. Investors are cautioned that these measures should not be construed as alternatives to or more meaningful than the most directly comparable GAAP measures as indicators of NuVista's performance. Set forth below are descriptions of the non-GAAP financial measures used in this press release.

• Capital expenditures

Capital expenditures are equal to cash used in investing activities, excluding changes in non-cash working capital, other asset expenditures, power generation expenditures, proceeds on property dispositions and costs of acquisitions. NuVista considers capital expenditures to represent its organic capital program and a useful measure of cash flow used for capital reinvestment.

Three months ended March 31
($ thousands)	2024		2023
Cash used in investing activities	(166,027	)	(143,773	)
Changes in non-cash working capital	(23,509	)	(35,597	)
Other asset expenditures	—		9,500
Power generation expenditures	1,680		—
Proceeds on property disposition	—		(26,000	)
Capital expenditures	(187,856	)	(195,870	)

• Net capital expenditures

Net capital expenditures are equal to cash used in investing activities, excluding changes in non-cash working capital, other asset expenditures, and power generation expenditures. The Company includes funds used for property acquisitions or proceeds from property dispositions within net capital expenditures as these transactions are part of its development plans. NuVista considers net capital expenditures to represent its organic capital program inclusive of capital spending for acquisition and disposition proposes and a useful measure of cash flow used for capital reinvestment.

The following table provides a reconciliation between the non-GAAP measure of net capital expenditures to the most directly comparable GAAP measure of cash used in investing activities for the applicable periods:

Three months ended March 31
($ thousands)	2024		2023
Cash used in investing activities	(166,027	)	(143,773	)
Changes in non-cash working capital	(23,509	)	(35,597	)
Other asset expenditures	—		9,500
Power generation expenditures	1,680		—
Net capital expenditures	(187,856	)	(169,870	)

• Net operating expense

NuVista considers that any incremental gross costs incurred to process third party volumes at its facilities are offset by the applicable fees charged to such third parties. However, under IFRS Accounting Standards, NuVista is required to reflect operating costs and processing fee income separately on its consolidated statements of earnings and consolidated income. Management believes that net operating expense, calculated as gross operating expense less processing income and other recoveries, which are included in other income on the statement of income and comprehensive income, is a meaningful measure for investors to understand the net impact of the Company's operating activities.

The following table sets out net operating expense compared to the most directly comparable GAAP measure of operating expenses for the applicable periods:

Three months ended March 31
($ thousands)	2024		2023
Operating expense	86,799		75,041
Other income(1)	(2,969	)	—
Net operating expense	83,830		75,041

(1)	Excludes income generated through the third-party sale of electricity generated at NuVista's Cogeneration unit at the Wembley Gas Plant, which totaled $0.4 million in the three months ended March 31, 2024 (March 31, 2023 - nil).

(2) Non-GAAP ratios

NI 52-112 defines a non-GAAP ratio as a financial measure that: (i) is in the form of a ratio, fraction, percentage or similar representation; (ii) has a non-GAAP financial measure as one or more of its components; and (iii) is not disclosed in the financial statements of the entity. Set forth below is a description of the non-GAAP ratios used in this press release.

These non-GAAP ratios are not standardized financial measures under IFRS Accounting Standards and might not be comparable to similar measures presented by other companies where similar terminology is used. Investors are cautioned that these ratios should not be construed as alternatives to or more meaningful than the most directly comparable GAAP measures as indicators of NuVista's performance.

Per Boe disclosures for petroleum and natural gas revenues, realized gains/losses on financial derivatives, royalties, transportation expense, G&A expense, financing costs, and DD&A expense are non-GAAP ratios that are calculated by dividing each of these respective GAAP measures by NuVista's total production volumes for the period.

Non-GAAP ratios presented on a "per Boe" basis may also be considered to be supplementary financial measures (as such term is defined in NI 52-112).

• Operating netback and corporate netback ("netbacks"), per Boe

NuVista calculated netbacks per Boe by dividing the netbacks by total production volumes sold in the period. Each of operating netback and corporate netback are non-GAAP financial measures. Operating netback is calculated as petroleum and natural gas revenues including realized financial derivative gains/losses, less royalties, transportation expense and net operating expense. Corporate netback is operating netback less general and administrative expense, cash share-based compensation expense, financing costs excluding accretion expense, and current income tax expense.

Management believes both operating and corporate netbacks are key industry benchmarks and measures of operating performance for NuVista that assists management and investors in assessing NuVista's profitability, and are commonly used by other petroleum and natural gas producers. The measurement on a Boe basis assists management and investors with evaluating NuVista's operating performance on a comparable basis.

• Net operating expense, per Boe

NuVista has calculated net operating expense per Boe by dividing net operating expense by NuVista's production volumes for the period.

Management believes that net operating expense, calculated as gross operating expense less processing income and other recoveries, which are included in other income on the statement of income and comprehensive income, is a meaningful measure for investors to understand the net impact of the Company's operating activities. The measurement on a Boe basis assists management and investors with evaluating NuVista's operating performance on a comparable basis.

(3) Capital management measures

NI 52-112 defines a capital management measure as a financial measure that: (i) is intended to enable an individual to evaluate an entity's objectives, policies and processes for managing the entity's capital; (ii) is not a component of a line item disclosed in the primary financial statements of the entity; (iii) is disclosed in the notes to the financial statements of the entity; and (iv) is not disclosed in the primary financial statements of the entity.

NuVista has defined net debt, adjusted funds flow, and net debt to annualized first quarter adjusted funds flow ratio as capital management measures used by the Company in this press release.

• Adjusted funds flow

NuVista considers adjusted funds flow to be a key measure that provides a more complete understanding of the Company's ability to generate cash flow necessary to finance capital expenditures, expenditures on asset retirement obligations, and meet its financial obligations. NuVista has calculated adjusted funds flow based on cash flow provided by operating activities, excluding changes in non-cash working capital and asset retirement expenditures, as management believes the timing of collection, payment, and occurrence is variable and by excluding them from the calculation, management is able to provide a more meaningful performance measure of NuVista's operations on a continuing basis. More specifically, expenditures on asset retirement obligations may vary from period to period depending on the Company's capital programs and the maturity of its operating areas, while environmental remediation recovery relates to an incident that management doesn't expect to occur on a regular basis. The settlement of asset retirement obligations is managed through NuVista's capital budgeting process which considers its available adjusted funds flow.

A reconciliation of adjusted funds flow is presented in the following table:

Three months ended March 31
	2024		2023
Cash provided by operating activities	147,893		215,221
Asset retirement expenditures	6,450		9,693
Change in non-cash working capital	(18,930	)	(17,450	)
Adjusted funds flow	135,413		207,464

• Net debt and Net debt to annualized current quarter adjusted funds flow

Net debt is used by management to provide a more complete understanding of NuVista's capital structure and provides a key measure to assess the Company's liquidity. NuVista has calculated net debt based on accounts receivable and prepaid expenses, other receivable, accounts payable and accrued liabilities, long-term debt (credit facility) and senior unsecured notes and other liabilities. NuVista calculated annualized first quarter adjusted funds flow ratio by dividing net debt by the annualized adjusted funds flow for the first quarter.

The following is a summary of total market capitalization, net debt, annualized current quarter adjusted funds flow, and net debt to annualized current quarter adjusted funds flow:

	March 31, 2024			December 31, 2023
Basic common shares outstanding (thousands of shares)		206,332			207,584
Share price(1)	$	11.88		$	11.04
Total market capitalization	$	2,451,224		$	2,291,727
Accounts receivable and prepaid expenses		(152,480	)		(163,987	)
Inventory		(9,721	)		(20,705	)
Accounts payable and accrued liabilities		176,391			157,711
Current portion of other liabilities		14,951			14,082
Long-term debt (credit facility)		52,420			16,897
Senior unsecured notes		162,580			162,195
Other liabilities		17,030			17,358
Net debt (2)	$	261,171		$	183,551
Annualized current quarter adjusted funds flow	$	541,652		$	807,948
Net debt to annualized current quarter adjusted funds flow		0.5			0.2

(4) Supplementary financial measures

This press release may contain certain supplementary financial measures. NI 52-112 defines a supplementary financial measure as a financial measure that: (i) is intended to be disclosed on a periodic basis to depict the historical or expected future financial performance, financial position or cash flow of an entity; (ii) is not disclosed in the financial statements of the entity; (iii) is not a non-GAAP financial measure; and (iv) is not a non-GAAP ratio.

NuVista calculates: (i) "adjusted funds flow per share" by dividing adjusted funds flow for a period by the number of weighted average common shares of NuVista for the specified period and (ii) "adjusted funds flow per Boe" by dividing adjusted funds flow for a period by total production volumes sold in the specified period.

FOR FURTHER INFORMATION CONTACT:
Jonathan A. WrightCEO(403) 538-8501	Ivan J. CondicVP, Finance and CFO(403) 538-1945	Mike J. LawfordPresident and COO(403) 538-1936