Ovintiv Inc. (OVV) Update - March 11

[dan_s]

I hope to finish updating our profile on Ovintiv today. My goal is to have all of the Sweet 16 companies' profiles and valuations updated for my new oil & gas price deck by the middle of next week.

From TipRanks 3/8/2022: "BofA analyst Doug Leggate downgraded Ovintiv to Neutral from Buy with a price target of $73, up from $60. He revised his oil outlook 2022 and 2023 EPS estimates up by about 28% and 24%, respectively, and raised price targets across the board, but "high graded" sector exposure with six E&P names being lowered to Neutral given a combination of strong share performance and elevated commodity risk."

I think "downgraded" must be a typo because OVV was trading at $49.75 on March 8.

My valuation of OVV as of today, based on the assumptions that WTI will average $100/bbl and HH ngas will average $4.25/MMBtu this year is $76/share.

OVV should generate over $3 billion of FCF from operations this year. It pays a dividend that I expect it to increase quite a bit this year.