Ovintiv lifts 2026 production outlook, keeps capex unchanged
Ovintiv lifts 2026 production outlook, keeps capex unchanged
Overview
US oil and gas producer's Q2 net earnings reached $456 mln
Company raised full-year 2026 production guidance, capital investment unchanged
Returned $429 mln to shareholders in Q2 via buybacks and dividends
Outlook
Ovintiv raises 2026 production guidance to 630-645 MBOE/d, up from prior forecast
Company maintains 2026 capital investment guidance at $2.25 bln to $2.35 bln
Ovintiv expects 2026 shareholder returns to exceed 60% of Non-GAAP Free Cash Flow
Result Drivers
HIGHER OIL OUTPUT - Q2 oil and condensate production exceeded the high end of company guidance, supporting results
STRONG REALIZED OIL PRICES - Realized oil and condensate prices rose to $91.22/bbl from $63.77/bbl a year earlier, boosting revenue
ASSET SALE IMPACT - Anadarko asset sale generated $2.82 bln in cash proceeds but resulted in a $337 mln pre-tax loss
Company press release: ID:nCNW4SqSMa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 EPS |
| $1.62 |
|
Q2 Net Income |
| $456 mln |
|
Q2 Capex |
| $574 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 20 "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 $70.00, about 14% above its July 23 closing price of $61.39
The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 9 three months ago
Reuters Recommended Reads
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)