Ovintiv Inc. (OVV) Update - June 28
Posted: Wed Jun 28, 2023 10:56 am
During the week before I start writing the newsletter I take a hard look at all of the companies in our three model portfolios; especially the Sweet 16.
Last week Ovintiv struck me as not getting the "love" it deserves. It is a large-cap that should be drawing a lot of attention from The Wall Street Gang.
At the time of this post, it was trading at $35.11.
> First Call (Reuters) price target is $53.45
> TipRanks' average price target is $49.73, with the two most recently updated price targets (6/12) $61 by Truist Financial and $62 by Mizuho Securities.
> My current valuation of $63 is based on just 4X annualized operating cash flow per share.
> Ovintiv should generate over $1 billion of free cash flow this year and the Midland Basin Acquisition that closed June 12th should increase operating cash flow to approximately $1.2 billion per quarter.
> It pays a decent dividend and it has a stock repurchase program underway.
Read this article: https://finance.yahoo.com/news/ovintiv-proven-reserves-valued-10-155521398.html
If you are bullish on the long-term outlook for natural gas (like I am) then you should take a hard look at OVV. Its production mix after the Midland Basin Acquisition should be approximately 47% natural gas, 15% NGLs and 38% crude oil & condensate.
Last week Ovintiv struck me as not getting the "love" it deserves. It is a large-cap that should be drawing a lot of attention from The Wall Street Gang.
At the time of this post, it was trading at $35.11.
> First Call (Reuters) price target is $53.45
> TipRanks' average price target is $49.73, with the two most recently updated price targets (6/12) $61 by Truist Financial and $62 by Mizuho Securities.
> My current valuation of $63 is based on just 4X annualized operating cash flow per share.
> Ovintiv should generate over $1 billion of free cash flow this year and the Midland Basin Acquisition that closed June 12th should increase operating cash flow to approximately $1.2 billion per quarter.
> It pays a decent dividend and it has a stock repurchase program underway.
Read this article: https://finance.yahoo.com/news/ovintiv-proven-reserves-valued-10-155521398.html
If you are bullish on the long-term outlook for natural gas (like I am) then you should take a hard look at OVV. Its production mix after the Midland Basin Acquisition should be approximately 47% natural gas, 15% NGLs and 38% crude oil & condensate.