Energy Prospectus

My current valuation of OVV is $90.00 At the time of this post, OVV was trading at $44.60

Is Ovintiv Inc. (TSE:OVV) Trading At A 49% Discount?
Simply Wall St
Tue, July 19, 2022 at 7:11 AM

Recommendation Rating: Their DCF valuation is $109.61
Buy

In this article we are going to estimate the intrinsic value of Ovintiv Inc. (TSE:OVV) by taking the expected future cash flows and discounting them to their present value. Our analysis will employ the Discounted Cash Flow (DCF) model. There's really not all that much to it, even though it might appear quite complex.

We generally believe that a company's value is the present value of all of the cash it will generate in the future. However, a DCF is just one valuation metric among many, and it is not without flaws.

Read article here: https://finance.yahoo.com/news/ovintiv- ... 48392.html

Note that they don't include OVV's 2022 FCF, which should be over $2.8 Billion. Their estimated FCF for 2023 looks reasonable and beyond 2023 is looks conservative (based on declining production and much lower oil and gas prices than we have today).

Zacks Industry Outlook Highlights Canadian Natural Resources, Ovintiv, Crescent Point Energy and Enerplus

Chicago, IL – July 19, 2022 – Today, Zacks Equity Research discusses Canadian Natural Resources CNQ, Ovintiv OVV, Crescent Point Energy CPG and Enerplus ERF.

Industry: Oil & Gas E&P - Canadian

Link: https://www.zacks.com/commentary/195338 ... -ep-stocks

A major tailwind in the form of high oil and natural gas prices is likely to position the Zacks Oil and Gas - Exploration and Production - Canadian industry for substantial gains for the remainder of this year. Building on this bullish narrative, there is significant upside in upstream firms like Canadian Natural Resources, Ovintiv, Crescent Point Energy and Enerplus. With an all-round improvement in efficiency and cost structure, these companies should experience impressive revenue and cash flow growth.

An upstream operator, Ovintiv (formerly known as Encana) holds attractive oil and gas production portfolio in three major North American unconventional basins: Montney, Anadarko and the Permian. Following the Newfield acquisition in 2019, the company has achieved higher liquids focus, greater scale and cost synergies. Ovintiv has also done a commendable job of cutting its expenses in a disciplined manner, which should boost free cash flow generation.

Headquartered in Denver, CO, Ovintiv has a projected earnings growth rate of 87.6% for this year. OVV's expected EPS growth rate for three to five years is currently 37.7%, which compares favorably with the industry's growth rate of 28.3%. Ovintiv, a Zacks Rank #3 stock, has seen its shares go up 66.1% in a year.
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You can find my recent profile on Ovintiv under the Sweet 16 tab on the EPG website.