New assets should spur Ovintiv

Article Excerpt

Ovintiv recently increased its presence in B.C.’s Montney region. Combined with its other high-quality properties and focus on cutting its drilling and other costs, the company is in a strong position to increase its cash flow. OVINTIV INC. $56 is a buy. The company (Toronto symbol OVV; Conservative Growth Portfolio, Resources sector; Shares outstanding: 261.1 million; Market cap: $14.6 billion; Price-to-sales ratio: 1.1; Dividend yield: 2.9%; TSINetwork Rating: Average; www.ovintiv.com) operates three core properties: Montney (B.C.), Permian (Texas) and Anadarko (Oklahoma). In addition to natural gas, these fields produce large amounts of oil and natural gas liquids. The fields should last between 10 years and 20 years. In January 2025, Ovintiv sold its Uinta properties in Utah for $1.9 billion (all amounts except share price and market cap in U.S. dollars). The cash helped fund its acquisition of certain assets in the Montney region from Paramount Resources Ltd. (Toronto symbol POU) for $2.31 billion. In the three months ended March 31, 2025, Ovintiv’s production rose 2.5%, to…