Topic: How To Invest

The Successful Investor Hotline – Friday, July 8, 2022

Article Excerpt

OVINTIV INC., $55.74, Toronto symbol OVV, is a buy for long-term gains. In 2020, Ovintiv became a U.S. company and changed its name from Encana Corp. (old symbol ECA). At the same time, investors received one share of Ovintiv for every five Encana shares they held. The new shares now trade on both the Toronto and New York exchanges under the “OVV” symbol. The company 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. Ovintiv has agreed to sell parts of its properties in Uinta (Utah) and Bakken (North Dakota) basins for $250 million (all amounts except share price in U.S. dollars). To put that in context, its cash flow was $1.04 billion, or $4.05 a share, in the three months ended March 31, 2022. The proceeds will let Ovintiv accelerate its plan to enhance shareholder returns. In the first half of 2022, it allocated 25%…

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