Ovintiv posts Q2 EPS of $1.18, raises FY production outlook
Overview
Ovintiv Q2 production exceeds guidance, raising full-year production outlook
Company lowers full-year capital investment guidance by $50 mln at midpoint
Ovintiv returns $223 mln to shareholders via dividends and buybacks
Outlook
Ovintiv raises full-year production guidance to 600-620 MBOE/d
Company lowers full-year capital guidance to $2.125 bln-$2.175 bln
Ovintiv expects $1.65 bln free cash flow in 2025
Company assumes $60 WTI and $3.75 NYMEX for H2 2025
Result Drivers
STRONG WELL PERFORMANCE - Ovintiv attributes increased production guidance to strong well performance across its portfolio
MONTNEY ASSETS INTEGRATION - Rapid integration of Montney assets contributed to increased production and capital efficiency
ENHANCED CAPITAL EFFICIENCY - Reduced expected capital investment and operating costs, per CEO Brendan McCracken
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 EPS |
| $1.18 |
|
Q2 Net Income |
| $307 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 19 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the oil & gas exploration and production peer group is "buy"
Wall Street's median 12-month price target for Ovintiv Inc is $54.50, about 26.6% above its July 24 closing price of $39.99
The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 7 three months ago
Press Release: ID:nCNWJQzGRa
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