Ovintiv Inc. (OVV) Update - May 21

[dan_s]

A much improved balance sheet is just one of the reasons that I think OVV has a good chance of being a double for us.

Ovintiv Closes Eagle Ford Asset Sale and Announces Early Redemption of Outstanding Notes

Highlights:

Closed previously announced Eagle Ford asset sale

Issued notice to fully redeem outstanding 2022 notes in June of 2021

Announced intention to fully redeem outstanding 2021 notes at par in mid-August

DENVER, May 19, 2021 /PRNewswire/ - Ovintiv Inc. (NYSE: OVV) (TSX: OVV) today closed its previously announced Eagle Ford asset sale. The proceeds from this sale, combined with those recently received from the Duvernay asset sale, will be used for debt reduction.

In addition, the Company today announced that it has issued a notice to the trustee of its 5.75% notes due 2022 to redeem the entire $600 million aggregate principal amount. The outstanding 2022 notes will be redeemed, pursuant to their terms and conditions, on June 18, 2021. The Company also expects to redeem the entire $518 million aggregate principal amount of its outstanding 3.90% notes due 2021 at par in mid-August.

The combined redemption of the 2021 and 2022 notes represents approximately $1.1 billion of debt retirement for Ovintiv. Once redeemed, over $50 million of annualized interest expense will be removed from the Company's cost structure. The Company's next debt maturity is not until July of 2024.

"Today's Eagle Ford asset sale continues our track record of delivery and allows us to meaningfully accelerate debt reduction," said Ovintiv CEO, Doug Suttles. "With these proceeds, in combination with our strong free cash flow generation, we now expect to reach our debt target of $4.5 billion by the end of this year. Our priorities today are clear - reduce debt, maintain scale, drive efficiencies, and return cash to shareholders."

[Orindakid]

I picked up a few hundred shares in March 2020 at 2.57, looking for a 10 bagger not a double. Makes up for some of my losses.

[dan_s]

A double from today's closing price is possible for OVV so you have a shot at a "Twenty Bagger".