The Panic-Proof Portfolio (Stockchase Research) Ovintiv OVV-T TOP PICK Feb 07, 2023

Not a great company to own in the energy space.
Value trap where you can get better assets.
Lean on inventory with weak prospects.

Well run company with strong management team. Large asset base in shale plays. Excellent return on capital. Expecting further growth in energy sector. Business generating large amounts of cash flow. Would recommend buying. 

As a predictive question it is of course difficult. OVV is quite cheap and producing nice free cash flow. Positive momentum has returned to the sector. It has room for further dividend hikes. We would be comfortable holding for a while. 
Unlock Premium - Try 5i Free

They refocused operations on the Montney and are pushing strong into the US (Utah, the Permian Basis). It's been rangebound like all energy stocks since 2022, but the free cash-flow yield is a high 15%. They have quality assets, but are in no-man's land (changing the company name and pushing in the US) and not a focus for Canadian energy investor and lacks the scale of US peers. That said, is a good operator run by a good CEO. Not his preferred energy name.

Natural gas (59%) play in the US. Went off the radar of Canadian investors. Good deal here. Q1 free cashflow beat by 16%, lower operating expenses, modestly higher liquids. Buybacks. At 3.8x, cheaper than peers at 5.5x. Decent production, flat cashflow per share. Balance sheet a bit more indebted than peers.