Ovintiv Inc. (OVV) Update - August 18

[dan_s]

Ovintiv (formerly EnCana) has a lot of upside for us. I finished my review of the updated profile and we will be publishing it tomorrow morning. My current valuation is $57.00.

At the time of this post OVV is trading for $23.70.

TipRanks: "In the last 3 months, 14 ranked analysts set 12-month price targets for OVV. The average price target among the analysts is $39.95. The most recent update is from John Gerdes at MKM Partners on 7/29/2021 who rates it a BUY with a price target of $54.00."

Ovintiv can maintain their current production rate of ~550,000 Boepd by reinvesting only 50% of their cash flow from operations. They will continue to pay down debt and increase their dividends going forward.

Higher natural gas and NGL prices are more than offsetting the recent dip in crude oil prices. Plus, with a high percentage of 2H 2021 oil hedged the impact of oil price movements have little impact on their realized oil prices.