Tudor, Pickering, Holt on Tuesday maintained a buy rating on the shares of Ovintiv (OVV.TO, OVV) with a US$69.00 price target following first-quarter results from the oil and gas producer.
"OVV posted a solid Q1 beat, headlined by $1.24B cash flow pre-WC coming in ~7.5% better vs. consensus, comparing to TPHe/Street $1.21B/$1.15B, with expenses and liquids realizations contributing to the delta vs. our model. On ops, 679mboepd total and 225mbopd crude and condensate compared to TPHe/Street 676/673 and 227/223, respectively, with $605MM capex slightly better vs. TPHe/Street $626MM/$631MM and solidifying the FCF beat. Compared to our model, the production beat owed roughly evenly to both Permian (221mboepd vs. TPHe/Street 218/217; at least partially TIL-driven at first blush, 34 vs. TPHe 32) and Montney (365mboepd vs. TPHe/Street 361/363, despite fewer TILs at 26 vs. TPHe 34), which more than offset the divested Anadarko (93mboepd vs. TPHe/Street 97/93)," analyst Jeoffrey Lambujon wrote.
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Price: $80.32, Change: $-0.55, Percent Change: -0.68%