OVV changes
Pick any two versions below to diff them.
- Price
- $72.62 → $63.47(−12.6%)
- Discount category
- Close to intrinsic value → Below intrinsic value
- Next earnings
- Nov 3, 2026 → Feb 3, 2027
- Next earnings is estimate
- No → Yes
- About
- Ovintiv produces oil, natural gas liquids (NGLs) and natural gas in two main areas: the Permian Basin in Texas and the Montney in Alberta and British Columbia, Canada. It is based in Denver and its shares trade in New York and Toronto. Production averaged removed: 615 added: 631 thousand barrels of oil equivalent per day in removed: Q2 added: Q3 2026, with removed: 206 added: 204 thousand barrels per day of oil and condensate. In 2026, Ovintiv bought NuVista Energy, a Montney producer, for about $2.8 billion in cash and shares, and it sold its Anadarko assets in Oklahoma for $3.0 billion. added: In October 2026, it agreed to buy Logan Energy, another Montney producer, for about $890 million in cash, including debt. It returns 50% to 100% of its annual free cash flow to shareholders through dividends and share buybacks.
- Thesis
- The market prices Ovintiv for the risk of lower oil prices and for weak Canadian natural gas prices. Its realized oil and condensate price before hedges was $97.50 per barrel in Q2 added: 2026 and $84.89 in Q3 2026, which is high by historical standards, so investors expect free cash flow to fall when oil prices fall. Its realized natural gas price was only removed: $1.71 per thousand cubic feet, 59% of the NYMEX removed: price, added: price in Q2 2026 and 83% in Q3 2026, because most of its gas comes from the Montney in Canada. The large changes to the portfolio in 2026, the NuVista removed: purchase and added: purchase, the Anadarko removed: sale, added: sale and the planned Logan purchase, also make the results harder to compare. For the gap to close, three things must be true. Ovintiv must meet its 2026 guidance of 630 to 645 thousand barrels of oil equivalent per day for capital of $2.25 billion to $2.35 billion. It must return more than 60% of 2026 free cash flow to shareholders, as it expects, and keep net debt near removed: 0.6 added: 0.7 times adjusted removed: EBITDA. added: EBITDA after it pays for Logan. Its new drilling locations in the Permian and the Montney must keep its well costs low and its inventory deep. The removed: Q3 2026 report on November 3, 2026 gives the next test. added: Logan purchase is expected to close early in Q1 2027. The 2027 capital plan, expected with the Q4 2026 report in February 2027, shows the plan for next year. If these checks pass, the gap can close over the next three to five quarters. The main reason it may not close is a fall in oil prices, which Ovintiv cannot control.
- Risks
- Results depend on oil and natural gas prices, which Ovintiv cannot control. The realized oil added: and condensate price before hedges removed: was $97.50 added: fell to $84.89 per barrel in removed: Q2 2026. added: Q3 2026 from $97.50 in Q2. A large fall in oil prices reduces free cash flow, share buybacks and the value of its reserves. Most of Ovintiv's natural gas comes from Canada, where prices are low. Its realized gas price added: before hedges was 59% of NYMEX in Q2 added: 2026 and 83% in Q3 2026. Pipeline limits or more supply can keep Canadian gas prices low. added: A third-party midstream outage in the Montney lowers Ovintiv's Q4 2026 guidance for Montney liquids. Ovintiv must replace the oil and gas it produces. It depends on new drilling locations, small land deals and low well costs. Weaker wells or higher costs reduce returns. Ovintiv operates in the United States and Canada. Changes in tariffs, trade rules or environmental rules in either country can increase costs or limit sales.
- Balance sheet
- Cash: removed: $700M added: $176M Debt: removed: $3.7B added: $3.6B Net debt: removed: $3.0B added: $3.4B Net debt / EBITDA: removed: 0.6× added: 0.7× (low) Undrawn credit line: $3.5B Debt due within 12 months: $0.0M Ovintiv cut its debt in 2026 with the money from the Anadarko sale. Long-term debt was removed: $3.70 added: $3.59 billion at removed: June added: September 30, 2026, down from $5.20 billion at December 31, 2025, and no debt was due within one year. added: In Q3 2026, Ovintiv bought back about $109 million of its senior notes in the market. Cash removed: was added: fell to $176 million at September 30, 2026, from $700 removed: million. added: million at June 30, 2026, after land purchases and share buybacks. Net debt was removed: $2.995 added: $3.41 billion, or about removed: 0.6 added: 0.7 times adjusted EBITDA, as the company states it. Total liquidity was about removed: $4.4 added: $3.8 billion, with $3.5 billion of available credit facilities, removed: $159 added: $141 million of uncommitted demand lines and the cash. Ovintiv removed: redeemed $700 added: plans to pay for the Logan purchase, about $890 million removed: of notes due 2028 on April 20, 2026. added: including debt, with cash and short-term borrowings early in Q1 2027. Its policy is to return 50% to 100% of annual free cash flow to shareholders. The figures leave out interest cover because the first removed: half added: nine months of 2026 included added: a net loss in Q1 and losses on the Anadarko sale. As of removed: Jun added: Sep 30, 2026.
- Checkpoints
- Nov 3, 2026: Q3 2026 results: production and shareholder returns. removed: Pending. added: Passed. Watch: Production within the Q3 guidance of 615 to 640 thousand barrels of oil equivalent per day and higher buybacks pass; lower production or lower shareholder returns fail. added: Outcome: Production was 631 thousand barrels of oil equivalent per day, and buybacks rose to $386 million from $345 million in Q2 2026. Feb added: 3, 2027 (estimate): Q4 2026 results: 2027 capital plan. Pending. Watch: A 2027 plan with flat or lower capital and steady oil production passes; higher capital for the same production fails. added: Q1 2027 (estimate): Logan Energy purchase closes. Pending. Watch: A close early in Q1 2027 with net debt near 0.7 times adjusted EBITDA and no cut to buybacks passes; a delay or a cut to shareholder returns fails.
- Recent events
- added: Nov 3, 2026: Ovintiv reported Q3 2026 results. Net earnings were $549 million, or $1.99 per share. Cash from operations was $1.1 billion and free cash flow was $680 million. Production of 631 thousand barrels of oil equivalent per day was within guidance. Ovintiv returned $467 million, about 69% of free cash flow, with $386 million of buybacks and $81 million of dividends, and it kept its 2026 guidance. Net debt rose to $3.4 billion, or 0.7 times adjusted EBITDA, after $457 million of land purchases. Oct 26, 2026: Ovintiv agreed to buy Logan Energy for about $890 million in cash, including debt. added: The deal adds about 420 net well locations in the Montney and is expected to close early in Q1 2027. Oct 1, 2026: Ovintiv received approval from the Toronto Stock Exchange to renew its normal course issuer bid. It can buy back up to 26,973,037 shares from October 5, 2026 to October 4, 2027. Aug 26, 2026: Ovintiv said that it had made more than 60 small land deals in 2026 to add about 41,000 net acres in the Permian and the Montney for about $460 million. The deals add 240 net well locations, and with its own inventory work it added about 500 locations in 2026. Jul 23, 2026: Ovintiv reported Q2 2026 results. Net earnings were $456 million, or $1.62 per share, after a $337 million loss on the Anadarko sale. Cash from operations was $1.6 billion and free cash flow was $682 million. Production of 615 thousand barrels of oil equivalent per day beat the high end of guidance. Ovintiv bought back $345 million of shares and raised its 2026 production guidance with no change to capital. Apr 20, 2026: Ovintiv redeemed all $700 million of its 5.650% notes due 2028. It expects interest savings of about $40 million a year. Apr 9, 2026: Ovintiv closed the sale of its Anadarko assets in Oklahoma for $3.0 billion in cash. It used the money to reduce debt, and the CEO said that the sale reached the company's debt target. Feb 3, 2026: Ovintiv completed the purchase of NuVista Energy, a Montney producer, in a cash and stock deal worth about $2.8 billion. It issued about 30.1 million shares and paid about $1.2 billion in cash.