Ovintiv Inc. (OVV) Valuation Update - Aug 20

[dan_s]

OVV closed at $49.55 on Friday, August 19

I have updated my forecast/valuation model for OVV and finished my review of the Company's update profile.
I have increased my valuation by $3.00 to $93.00.

TipRanks: "In the last 3 months, 11 ranked analysts set 12-month price targets for OVV. The average price target among the analysts is $68.00. The 11 price targets range from $51 to $100."

Why the increased valuation?
> Q2 results beat my forecast.
> There has been a BIG improvement in the balance sheet and they will reach and surpass all of their debt reduction goals this year.
> More cash will be returned to shareholders going forward in the form of higher dividends and stock repurchases.
> I love the production mix (over 506,000 Boepd in 2022) with ~65% natural gas and NGLs. < OVV should be classified as a "gasser".
> Bad Hedges expire at year-end 2022: Q1 2023 free cash flow from operations should exceed $1.5 billion if ngas averages $9.00 for the quarter.

Bottomline: OVV is a potential double that pays high dividends.

The updated profile and forecast model will be posted to the EPG website later today.