Ovintiv Inc. (OVV) Update - May 4
Posted: Tue May 04, 2021 2:27 pm
I just finished reviewing our updated profile on OVV. It is trading for $25.47 at the time of this post. Operating cash flow was $3.41 in Q1 and should be at least $11.00 per share for the year. In addition to over $1.4 Billion of FCF from operation this year, the Company will generate over $1.1 Billion of cash proceeds from asset sales this year.
My valuation is now $45/share and will go up if they stay focused on paying down debt. 5X operating CFPS is a more reasonable valuation for a company with this much running room and a solid balance sheet. At today's oil, gas and NGL prices, Ovintiv's Proved Reserves (P1) have a PV10 value over $12 Billion.
My valuation is now $45/share and will go up if they stay focused on paying down debt. 5X operating CFPS is a more reasonable valuation for a company with this much running room and a solid balance sheet. At today's oil, gas and NGL prices, Ovintiv's Proved Reserves (P1) have a PV10 value over $12 Billion.