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By: Jon Costello
Note: Dollar references are to Canadian dollars unless otherwise specified.
NuVista Energy (NVA:CA) is the best way for investors to gain exposure to the Western Canada condensate growth story. The company operates in the Montney and is the second-largest independent condensate producer in the Western Canadian Sedimentary Basin after ARC Resources (ARX:CA), though it is the largest independent condensate producer in the Montney.
Source: NuVista Energy July 2025 Corporate Presentation.
The company’s 89,516 boe/d of production in the first quarter was split 62% dry natural gas, 28% condensate, and 10% NGLs. Condensate production has remained steady at 28% of the total mix over recent quarters. Importantly, high-value condensate output increased from 26% of the production mix to 28%.
NVA’s Montney drilling inventory is enhanced by the presence of multiple producing zones. The company believes its drilling inventory spans 25 years, even though its proved and probable reserve life index is currently approximately 15 years.
Source: NuVista Energy July 2025 Corporate Presentation.
NVA results in recent years show that its strong position in the Montney allows it to produce and replace its reserves at a relatively low cost. The company can therefore generate attractive returns on capital as a gas and liquids operator compared to its peers.