Ovintiv Q3 profit rises on higher energy prices, lower costs
Ovintiv Q3 profit rises on higher energy prices, lower costs
Overview
US oil and gas producer reported Q3 net earnings of $549 mln and EPS of $1.99
Company generated $680 mln in free cash flow and $1.1 bln in operating cash
Ovintiv agreed to acquire Logan Energy and completed $457 mln in acreage acquisitions
Outlook
Ovintiv maintains full-year 2026 production guidance at 630–645 MBOE/d
Company expects full-year 2026 capital investment of $2.25 bln to $2.35 bln
Ovintiv expects full-year 2026 shareholder returns to exceed 60% of Non-GAAP Free Cash Flow
Result Drivers
HIGHER REALIZED PRICES - Co said higher realized prices for oil, condensate and NGLs contributed to Q3 results
PRODUCTION VOLUMES - Q3 production averaged 631 MBOE/d, with growth in natural gas output offsetting lower oil and condensate volumes
COST CONTROL - Q3 capital investment was below the midpoint of guidance, and upstream operating expenses declined year-over-year
Company press release: ID:nPn6sdQYJa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 EPS |
| $1.99 |
|
Q3 Net Income |
| $549 mln |
|
Q3 Capex |
| $563 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 22 "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 $77.50, about 16.7% above its November 3 closing price of $66.43
The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 9 three months ago
Reuters Recommended Reads
Nov 2 - Diamondback Energy Q3 revenue beats on higher oil output
Nov 3 - Matador Q3 adjusted EPS and net income beat estimates on record production
Nov 3 - Talos Energy Q3 revenue beats analyst expectations
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(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.)