Insiders Are Buying NuVista Energy

Nov. 3.13 | About: NuVista Energy (NUVSF)

In this article, I will feature one energy company that has seen intensive insider buying during the last 30 days. Intensive insider buying can be defined by the following three criteria:

  1. The stock is purchased by three or more insiders within one month.
  2. The stock is sold by no insiders in the month of intensive purchasing.
  3. At least two purchasers increase their holdings by more than 10%.

NuVista Energy (OTC:NUVSF), an independent oil and natural gas company, engages in the exploration for and the development and production of oil and natural gas reserves in Canada.

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Insider buying during the last 30 days

Here is a table of NuVista Energy's insider-trading activity during the last 30 days by insider.

Name Title Trade Date Shares Purchased Public Offering Current Ownership Increase In Shares
Ronald Eckhardt Director Oct 28 37,500 Yes 50,800 shares +282.0%
Jonathan Wright CEO Oct 28 6,250 Yes 154,665 shares +4.2%
Grant Zawalsky Director Oct 28 18,343 Yes 89,566 shares +25.8%
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There have been 62,093 shares purchased by insiders during the last 30 days.

Insider buying by calendar month

Here is a table of NuVista Energy's insider-trading activity by calendar month.

Month Insider buying / shares Insider selling / shares
October 2013 62,093 0
September 2013 0 0
August 2013 0 0
July 2013 0 0
June 2013 6,000 10,500
May 2013 6,165 23,715
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There have been 74,258 shares purchased and there have been 34,215 shares sold by insiders during the past six months. The month of October has seen the most insider buying.

Financials

NuVista reported the second-quarter financial results on August 12 with the following highlights:

Revenue $46.4 million
Funds from operations $19.0 million
Net loss $7.4 million
Net debt $95.9 million
Production 17,799 boe/d
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Outlook

NuVista's capital spending for the full-year 2013 is anticipated to be between $210 million and $220 million. Average production forecast for the year is at a range of 16,250 Boe/d to 17,000 Boe/d, trending towards the top half of the guidance range. Production for the third quarter of 2013 is forecasted to be relatively flat with the second quarter with a range of 17,000 - 17,750 Boe/d. Fourth quarter production is expected to be between 17,500 Boe/d and 18,500 Boe/d. Funds from operations for the year are forecasted to be between $70 million and $75 million.

Competition

NuVista's competitors include Tourmaline Oil (OTCPK:TRMLF), and Whitecap Resources (OTC:SPGYF). Here is a table comparing these companies.

Company NUVSF TRMLF SPGYF
P/E N/A 80.8 38.4
Dividend yield N/A N/A 5.2%
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Only Whitecap Resources pays a dividend currently.

Here is a table of these competitors' insider-trading activities during the last six months.

Company Insider buying / shares Insider selling / shares
TRMLF 67,100 560,333
SPGYF 117,570 2,842,571
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Only NuVista has seen intensive insider buying during the last 30 days.

Conclusion

There have been three different insiders buying NuVista and there have not been any insiders selling NuVista during the last 30 days. Two of these three insiders increased their holdings by more than 10%.

There are four analyst buy ratings, three neutral ratings, and zero sell ratings with an average price target of $8.86. NuVista has a book value of $5.45 per share. I believe the stock could be a good pick at the book value based on the intensive insider buying.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.