Ovintiv (OVV) Initiated with ‘Equal Weight’ Rating, $44 Price Target

Ovintiv Inc. (NYSE:OVV) is included among the 12 Best Crude Oil Stocks to Buy arsenic Tensions Rise.

Ovintiv Inc. (NYSE:OVV), a starring North American exploration and accumulation institution focused connected processing its high-quality, multi-basin portfolio.

On February 3, Stephens initiated sum of Ovintiv Inc. (NYSE:OVV) with an ‘Equal Weight’ standing and a terms people of $44. The expert believes that contempt its ‘operational prowess’, the banal is attractively valued, with an estimated 2026 EV/EBITDA ratio of 3.6x, 30% beneath the large-cap lipid adjacent radical mean of 5.1x.

Stephens highlighted that Ovintiv Inc. (NYSE:OVV)’s divestment of Anadarko Basin assets could marque the institution astir $3.5 billion. This volition let the E&P steadfast to bolster its equilibrium sheet, trim nett indebtedness by implicit 65% this year, and summation shareholder returns.

Also connected February 3, Ovintiv Inc. (NYSE:OVV) announced it had closed its antecedently announced acquisition of NuVista Energy, valued astatine $2.7 billion. The strategical determination is expected to adhd astir 930 nett 10,000-foot equivalent good locations and astir 140,000 nett acres successful the halfway of the oil-rich Alberta Montney. The institution expects the acquired assets to nutrient an mean of astir 100 mboe/d successful FY 2026.

Brendan McCracken, President and CEO of Ovintiv Inc. (NYSE:OVV), commented:

“These apical decile complaint of instrumentality assets successful the bosom of the Montney lipid model are an exceptional acceptable with our existing acreage and infrastructure. The squad astatine NuVista did a large occupation gathering these assets and we are excited to use our industry-leading expertise to the combined position. We expect to make outgo synergies of astir $100 cardinal annually, including per good outgo savings of astir $1 million, accordant with our existent Montney good costs.” McCracken continued, “The operation of this transaction with the planned divestiture of our Anadarko assets, volition streamline and high-grade our portfolio, assistance america to conscionable oregon transcend our indebtedness target, and uniquely presumption america with important inventory duration successful the 2 astir invaluable lipid plays successful North America, the Permian and the Montney.”

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