Oil and gas producer Ovintiv reports Q4 earnings of $946 mln

Overview

• Oil and gas producer's Q4 net earnings were $946 mln

• Company returned over $600 mln to shareholders via dividends and buybacks

Outlook

• Ovintiv plans 2026 capital program of $2.25 to $2.35 bln

• Company expects 2026 production volumes of 620 to 645 MBOE/d

• Ovintiv to return at least 75% of 2026 Free Cash Flow to shareholders

Result Drivers

• NUVISTA ACQUISITION - Acquisition of NuVista Energy added 100 MBOE/d of production and significant land assets

• LOW PRODUCTION COSTS - Q4 upstream operating expenses were at the low end of Co's guidance

Company press release: ID:nPnNNsV4a

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 19 "strong buy" or "buy", 4 "hold" and 1 "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 $55.00, about 8.2% above its February 23 closing price of $50.83

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 7 three months ago

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