Ovintiv Inc. (OVV) Update - August 25
Posted: Tue Aug 25, 2020 9:49 am
Ovintiv is the New Encana. I added it to the Sweet 16 on 5/18/2019.
It should be drawing a lot more attention because of its production mix.
Q2 production was 1,550,000 mcfpd, 146,500 bpd of crude oil and 131,767 bpd of NGL. < Natural gas production in 2021 should be over 1.6 Bcf per day.
Near-term upside is coming from the BIG INCREASE in natural gas and NGL prices.
Morgan Stanley published a new report on Ovintiv on 8/21/20 with a price target of $14.75. OVV is trading at $11.70 today.
~82% of their 2H 2020 gas is hedged at ~$2.50. For 2021 they only have ~20% hedged at ~$2.60, so lots of upside if HH gas averaged $3.00 next year.
It should be drawing a lot more attention because of its production mix.
Q2 production was 1,550,000 mcfpd, 146,500 bpd of crude oil and 131,767 bpd of NGL. < Natural gas production in 2021 should be over 1.6 Bcf per day.
Near-term upside is coming from the BIG INCREASE in natural gas and NGL prices.
Morgan Stanley published a new report on Ovintiv on 8/21/20 with a price target of $14.75. OVV is trading at $11.70 today.
~82% of their 2H 2020 gas is hedged at ~$2.50. For 2021 they only have ~20% hedged at ~$2.60, so lots of upside if HH gas averaged $3.00 next year.