Ovintiv's Extreme Uncertainty Limits the Investment Case

Ovintiv is engaged in the development, exploration, production, and marketing of hydrocarbons in Canada and the U.S. The company’s core assets include prime real estate in the Permian, Eagle Ford, Montney, and Duvernay resource plays. These are among the most cost-advantaged shales in North America, with substantial opportunities for profitable drilling at current commodity prices. The company has around 20,000 total drilling locations in its inventory, which could take decades to work through. Half of these locations are designated as "premium" and are expected to yield wells that meet or exceed current type curves. Therefore, management doesn't have to worry about running out of high-graded inventory anytime soon.