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Ovintiv Inc OVV

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Morningstar’s Analysis

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1-Star Price

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5-Star Price

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Economic Moat

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Capital Allocation

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Ovintiv Making Progress on Debt-Reduction Initiatives

Analyst Note

| Dave Meats, CFA |

Ovintiv delivered total production of 538 thousand barrels of oil equivalent per day in the first quarter, which was 3% lower sequentially and 6% lower year over year. Crude and condensate volumes were 198 mbbls/d, at the midpoint of guidance issued near the end of the quarter (following the announcement of the firm’s Eagle Ford divestiture). This already incorporated the effects of Winter Storm Uri, which forced widespread shut-ins across several of the regions that Ovintiv operates in. The firm’s financial results were better than expected, with adjusted earnings per share coming in at $1.10 (FactSet consensus was $0.82). Non-GAAP free cash flow was $540 million, which was primarily deployed for debt reduction.

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Company Profile

Business Description

Ovintiv is an independent oil and gas producer with key assets in the Permian, Eagle Ford, Montney, and Duvernay areas. At the end of 2019, the company reported net proven reserves of 1,348 million barrels of oil equivalent. Net production averaged 543 thousand barrels of oil equivalent per day in 2020 at a ratio of 53% oil and natural gas liquids and 47% natural gas.

Contact
370 - 17th Street, Suite 1700
Denver, CO, 80202
T +1 303 623-2300
Sector Energy
Industry Oil & Gas E&P
Most Recent Earnings Mar 31, 2021
Fiscal Year End Dec 31, 2021
Stock Type Hard Assets
Employees 1,916

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