Ovintiv Inc. (OVV) Update - Apr 4

[dan_s]

I have updated my forecast/valuation model for OVV for the impact of the Midland Basin Acquisitions and the Williston Basin Sale.

My valuation increases by $5 to $63. < I value high-quality "running room" and the Midland Basin Acq adds a lot of very high-quality drilling locations. It also will add 75,000 Boepd of current production (60,000 oil and condensate) offset by the Bakken asset sale of 37,000 Boepd. In addition to a net production increase of 38,000 Boepd, it improves OVV's production mix and reduces lease operating expense per boe.

Five high respected energy sector analysts have already updated their price targets.
RBC Capital 4/4/2023 $55.00
Truist Financ 4/4/2023 $56.00
BMO Capital 4/4/2023 $38.00
Bank of Amer 4/3/2023 $63.00
Siebert W S 4/3/2023 $64.00

At the time of this post, OVV was trading at $38.86