NuVista Energy Gains on Rising Natural Gas Prices: Calgary MoverRebecca Penty
NuVista Energy Ltd., a Canadian natural gas producer, rose to the highest in a year-and-a-half as prices for the heating- and power-plant fuel climbed.
NuVista, based in Calgary, gained 3.4 percent to C$6.96 at the close in Toronto, the highest since September 2011. The company, focused on the Deep Basin area of central Alberta, is benefiting from North American gas prices that have doubled from a year ago, according to Matthew Taylor, an analyst at National Bank Financial in Calgary.
“Guys are playing the name for a gas trade right now,” Taylor, who rates the company the equivalent of a hold and owns no shares, said in a phone interview today. “On a relative basis, compared with some of the premium Deep Basin players like Tourmaline, people see value in NuVista right now.”
North American gas prices have “rocketed” since mid-February due to colder weather forecasts and as storage levels have lowered, Taylor said. U.S. gas prices traded on the New York Mercantile Exchange, which hit a decade low in April 2012, rose to a 20-month high in New York today on predictions cold weather will drive heating demand and as drilling falls.