Ovintiv’s output rises

Article Excerpt

OVINTIV INC., $52.95, is a buy. The energy producer (Toronto symbol OVV; Shares outstanding: 243.6 million; Market cap: $12.8 billion; TSINetwork Rating: Average; Dividend yield: 2.6%) operates three core properties: Montney (B.C.), Anadarko (Oklahoma) and Permian (Texas). In addition to natural gas, these fields produce large amounts of oil and natural gas liquids. The company’s production in the fourth quarter of 2022 rose 3.0%, to 523,600 barrels a day (50% oil, 50% natural gas) from 508,200 a year earlier. As well, its realized price per barrel for oil and gas (combined) rose 18.2%. As a result, the company’s revenue in the quarter gained 5.6%, to $3.20 billion from $3.03 billion (all amounts except share price and market cap in U.S. dollars). Cash flow rose 27.2%, to $3.55 a share from $2.79. The stock trades at just 1.7 times the projected 2023 cash flow of $22.52 U.S. a share. The $1.00 dividend yields 2.6%. Ovintiv Inc. is a buy. buy. …