Ovintiv Inc. (OVV) Update - May 23
Posted: Tue May 23, 2023 9:32 am
OVV was trading at $36.23 this morning. My current valuation is $64.00. TipRanks' consensus price target is $52.00
April 3: Ovintiv to Acquire Core Midland Basin Assets (~75,000 Boepd) and sell Bakken Assets (~37,000 Boepd)
> Acquisition to cost $3,125 million cash + 32.6 million shares of OVV to Sellers
> Sale to $825 million cash to Ovintiv
Both deals are expected to close in June.
Net impact should increase Ovintiv's production to ~550,000 Boepd in Q3 2023 (~209,500 bpd of oil and ~82,000 bpd of NGLs).
The Acquisition also adds a lot of running room; over 1,000 (~800 "Premium") HZ well locations in the Permian Basin.
Based on my forecast, Ovintiv's operating cash flow should go over $1Billion in Q3 and Q4.
DENVER, May 16, 2023 /PRNewswire/ - Ovintiv Inc. (NYSE: OVV) (TSX: OVV) (the "Company") today announced that it has priced an offering (the "Notes Offering") of $600,000,000 in aggregate principal amount of 5.650% senior notes due 2025 (the "2025 Notes"), $700,000,000 in aggregate principal amount of 5.650% senior notes due 2028 (the "2028 Notes"), $600,000,000 in aggregate principal amount of 6.250% senior notes due 2033 (the "2033 Notes") and $400,000,000 in aggregate principal amount of 7.100% senior notes due 2053 (the "2053 Notes", and together with the 2025 Notes, the 2028 Notes and the 2033 Notes, the "Notes"). The price to the public for the Notes is 99.994% of the principal amount for the 2025 Notes, 99.973% of the principal amount for the 2028 Notes, 99.793% of the principal amount for the 2033 Notes and 99.796% of the principal amount for the 2053 Notes.
The Company intends to use the net proceeds from the Notes Offering to finance a portion of the cash consideration for the pending acquisition of substantially all of the leasehold interest and related assets of Black Swan Oil & Gas, PetroLegacy Energy and Piedra Resources, which are portfolio companies of funds managed by EnCap Investments L.P., in a cash and stock transaction valued at approximately $4.275 billion (the "Pending Acquisition"). The Notes Offering is expected to close on May 31, 2023, subject to customary closing conditions.
The closing of the Notes Offering is not contingent on the closing of the Pending Acquisition.
April 3: Ovintiv to Acquire Core Midland Basin Assets (~75,000 Boepd) and sell Bakken Assets (~37,000 Boepd)
> Acquisition to cost $3,125 million cash + 32.6 million shares of OVV to Sellers
> Sale to $825 million cash to Ovintiv
Both deals are expected to close in June.
Net impact should increase Ovintiv's production to ~550,000 Boepd in Q3 2023 (~209,500 bpd of oil and ~82,000 bpd of NGLs).
The Acquisition also adds a lot of running room; over 1,000 (~800 "Premium") HZ well locations in the Permian Basin.
Based on my forecast, Ovintiv's operating cash flow should go over $1Billion in Q3 and Q4.
DENVER, May 16, 2023 /PRNewswire/ - Ovintiv Inc. (NYSE: OVV) (TSX: OVV) (the "Company") today announced that it has priced an offering (the "Notes Offering") of $600,000,000 in aggregate principal amount of 5.650% senior notes due 2025 (the "2025 Notes"), $700,000,000 in aggregate principal amount of 5.650% senior notes due 2028 (the "2028 Notes"), $600,000,000 in aggregate principal amount of 6.250% senior notes due 2033 (the "2033 Notes") and $400,000,000 in aggregate principal amount of 7.100% senior notes due 2053 (the "2053 Notes", and together with the 2025 Notes, the 2028 Notes and the 2033 Notes, the "Notes"). The price to the public for the Notes is 99.994% of the principal amount for the 2025 Notes, 99.973% of the principal amount for the 2028 Notes, 99.793% of the principal amount for the 2033 Notes and 99.796% of the principal amount for the 2053 Notes.
The Company intends to use the net proceeds from the Notes Offering to finance a portion of the cash consideration for the pending acquisition of substantially all of the leasehold interest and related assets of Black Swan Oil & Gas, PetroLegacy Energy and Piedra Resources, which are portfolio companies of funds managed by EnCap Investments L.P., in a cash and stock transaction valued at approximately $4.275 billion (the "Pending Acquisition"). The Notes Offering is expected to close on May 31, 2023, subject to customary closing conditions.
The closing of the Notes Offering is not contingent on the closing of the Pending Acquisition.