$OVV

Canadian Oilfield Services Stocks Slip as WCSB Drilling Activity Climbs, RBC Says

Canadian oilfield services stocks fell 5% over the past week even as drilling activity in the Western Canadian Sedimentary Basin climbed further above historical levels, RBC Capital Markets analysts said in a note on Tuesday.The WCSB rig count rose by six week over week to 227, up 40 rigs from a year earlier and 35 above the five-year average. The Q3 average of 220 rigs is well ahead of RBC's forecast of 201.Private operators accounted for most of the increase, adding five rigs during the week, while large exploration and production companies producing over 75,000 barrels of oil equivalent per day added two.Montney activity increased by four rigs to 39, led by ARC Resources (ARC) and Ovintiv (OVV) with six rigs each, followed by Tourmaline Oil with five. Precision Drilling (PDS) remained the largest contractor in the play with 21 rigs, or 54% of the total.Heavy oil drilling also rose by four rigs to 68, led by Canadian Natural Resources (CNQ) with 13 rigs and Cenovus Energy (CVE) with 10. Duvernay activity edged up one rig to 18, while oil sands drilling slipped by two rigs to six.Despite stronger drilling activity, Canadian oilfield services stocks under RBC coverage declined 5% during the week.CES Energy Solutions posted the smallest loss, down 1.2%, followed by Calfrac Well Services, down 2.7%, and Pulse Seismic, down 3.7%.Trican Well Service, Precision Drilling (PDS) and Enerflex (EFXT) were the weakest performers, falling 6.5%, 7.4% and 9.8%, respectively.RBC's Canadian oilfield services coverage group has gained 28.7% year to date, compared with a 41.3% gain for the S&P/TSX Capped Energy Index.The bank forecast Canadian exploration and production companies under its coverage will generate pre-dividend free cash flow of $7.2 billion Canadian dollars ($5.12 billion) in 2026 and $7.8 billion in 2027, while reinvesting 64% and 62% of cash flow, respectively.

Energy Stocks Poised for Gains as Oil, Gas Outlook Improves, UBS Says

UBS maintained its bullish outlook for oil and natural gas, saying it expects 2027 prices to top what the current futures price would suggest even as volatility prompted it to stress-test energy stocks under multiple price scenarios, the bank said in a note on Tuesday.The analysis looked at oil prices ranging from $55-$65 per barrel for Brent crude and corresponding WTI prices of about $51-$61/bbl, along with natural gas prices between $2.75 and $4.25 per million British thermal units.UBS assumed companies would keep spending and production levels unchanged across all scenarios.UBS said current share prices for US oil and gas producers imply investors are expecting WTI crude prices in the low $60s/bbl and natural gas prices of about $3.50/MMBtu in 2027.In a scenario where Brent crude averages $75/bbl and natural gas averages $3.75/MMBtu, UBS believes the sector appears undervalued. Based on historical valuation levels, the bank estimates energy stocks could have over 20% upside.The bank also said energy company valuations are highly sensitive to changes in commodity prices. A $10/bbl move in oil prices and a $0.50 change in natural gas prices would have a significant impact on companies' cash flow and valuations.UBS added that if oil prices fall below $60/bbl and natural gas prices below $3/MMBtu many producers would likely reduce drilling activity and production.Despite higher oil prices since the recent conflict began, energy stocks have lagged the broader market. The S&P 500 Energy Index has gained 8% but has underperformed the broader S&P 500 by about 3 percentage points.Front-month WTI crude prices have risen 22%, while contracts for 2027 delivery are up 15%. Longer-dated natural gas prices, however, have fallen 10%.Among the companies UBS follows, SM Energy (SM) and Chord Energy (CHRD) have posted the strongest gains since the conflict began, while Liberty Energy (LBRT), Comstock Resources (CRK) and Gulfport Energy (GPOR) have been the weakest performers.Smaller and mid-sized oil producers have generally outperformed their larger peers, UBS said.UBS maintained its preferred exploration and production stocks as Ovintiv (OVV), Devon Energy (DVN) and Antero Resources (AR), while naming National Energy Services Reunited (NESR) as its top pick among oilfield services companies.Price: $29.40, Change: $-0.90, Percent Change: -2.97%

UBS Adjusts Price Target on Ovintiv to $74 From $71, Maintains Buy Rating

Ovintiv Inc (OVV) has an average rating of buy and mean price target of $72.81, according to analysts polled by FactSet.(covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://finwires.com/en/contact)Price: $60.04, Change: $-0.04, Percent Change: -0.07%

Global Oil Prices Retreat as US-Iran Ceasefire Eases Supply Fears, TPH Says

Global oil prices pulled back from a spike late last week, as easing geopolitical tensions following a pause in direct US-Iran strikes outweighed fresh friction in the Bab el-Mandeb Strait and ongoing disruptions to key Middle Eastern trade routes, according to TPH Energy Research in a Monday note.Matt Portillo, analyst at TPH Energy, said Brent crude futures hovered at about $88.20 per barrel, retreating from a peak of $96.80/bbl hit on Friday.The pullback follows optimism surrounding potential peace talks and indications that further immediate escalation has been averted.However, energy markets remain on edge. TPH analysts said that while US and Iranian officials have paused hostilities, Saudi-Houthi tensions escalated last week.The Houthis implemented a naval blockade in the Bab el-Mandeb Strait, targeted two Saudi oil tankers, and launched strikes at Saudi oil infrastructure, which were successfully defended, following a retaliatory strike by Riyadh.Flows through key regional arteries remain complicated. Transits through the Strait of Hormuz are significantly depressed, and about 4 to 4.5 million barrels per day of Yanbu oil exports must be rerouted.TPH said two Chinese tankers laden with Saudi crude recently managed to transit the Strait, market participants are grappling with logistical bottlenecks, as fully laden Very Large Crude Carriers are unable to pass through the Suez Canal, forcing alternative routes that more than double transit times.Portillo said as the corporate earnings season kicks into gear, energy executives and investors are parsing industry results for deeper insights into the macroeconomic landscape across upstream and oilfield services sectors.On the oilfield services front, recent commentary from Halliburton (HAL) and Liberty Energy (LBRT) indicates that analyst expectations for pressure pumping price gains were overly optimistic, pointing instead to more modest growth.Meanwhile, upbeat commentary on deepwater markets from Halliburton and SLB (SLB) continues to reinforce a broader industry preference for international exposure over North American onshore Lower 48 plays.On the upstream gas front, early results from EQT (EQT), Range Resources (RRC), and Ovintiv (OVV) highlighted a growing focus on longer-term supply and demand dynamics through the coming decade.Though near-term market fundamentals face lingering headwinds looking toward 2027, long-only investor interest has begun to pick up.TPH analysts highlighted that both EQT and RRC have maintained a prudent stance on supply growth as new demand sources develop. A primary catalyst for outperformance last week was EQT's announcement of a 10-year supply agreement to power generation facilities, linked to PJM power market pricing rather than local in-basin benchmarks.Price: $32.58, Change: $-0.78, Percent Change: -2.35%

Ovintiv Positioned for Valuation Upside as Portfolio Strength, Returns Improve, RBC Says

Ovintiv (OVV) is positioned for potential valuation expansion as its streamlined portfolio, strong execution, resource depth and improving shareholder returns create a favorable setup, RBC Capital said in a Friday note.The analysts said Ovintiv's Q2 performance supported its outlook, citing production of 614,600 barrels of oil equivlent per day, Permian outperformance, net debt below $3 billion and a 5,000-barrel-per-day increase in its Permian oil and condensate production run rate to about 125,000 barrels per day.Ovintiv plans to return more than 60% of free cash flow to shareholders through dividends and share buybacks in 2026, with continued strong free cash flow generation expected from its asset base and operational execution, according to the note.RBC said the company trades at a discount to peers despite its balance sheet, inventory depth and shareholder returns, with potential S&P/TSX Composite Index inclusion offering additional demand support.RBC maintained its outperform rating on the stock and raised its price target to $85 from $70.Ovintiv shares were down over 2% in Monday trading.Price: $61.43, Change: $-1.70, Percent Change: -2.69%

RBC Raises Price Target on Ovintiv to $85 From $70, Keeps Outperform Rating

Ovintiv (OVV) has an average rating of buy and mean price target of $72.12, according to analysts polled by FactSet.(covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://finwires.com/en/contact)

Ovintiv Price Target Raised to $85 at RBC

RBC Capital Markets raised its price target on Ovintiv (OVV.TO, OVV) to $85 from $70.Analyst Greg Pardy maintained an Outperform rating on the dual-listed natural gas company following its Q2 results."In our eyes, Ovintiv's streamlined portfolio, resource depth and enhanced shareholder returns point toward relative multiple expansion and continued share price appreciation," Pardy said in a note to clients."Ongoing solid performance, like what we saw in the second-quarter, along with potential S&P/TSX index inclusion, could accelerate this dynamic," the analyst said.(covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://finwires.com/en/contact)

Ovintiv Q2 Production Edges Lower, Lifts Full-Year Output Outlook

Ovintiv (OVV) reported Q2 earnings Thursday, showing total production of 614,600 barrels of oil equivalent per day, compared with 615,300 boe/d a year earlier.Oil production dropped to 123,000 b/d for the quarter ended June 30, down from 142,000 b/d a year earlier, the company said.Natural gas production rose to 1,959 million cubic feet per day for the quarter ended June 30, up from 1,851 MMcf/d in the year-ago period.Oil and plant condensate production edged down to 205,800 b/d, compared with 211,200 b/d.Plant condensate output increased to 82,800 b/d, up from 69,200 b/d for the same quarter last year, while other natural gas liquids production declined to 82,400 b/d, down from 95,500 b/d a year earlier.Total liquids production fell to 288,200 b/d from 306,700 b/d in the year-ago quarter, according to the company.Ovintiv raised its full-year 2026 production outlook to 630,000 boe/d to 645,000 boe/d while keeping planned capital investment unchanged at $2.25 billion to $2.35 billion.The full year guidance includes 210,000 b/d to 212,000 b/d of oil and condensate, 83,000 b/d to 85,000 b/d of natural gas liquids and 2.025 Bcf/d to 2.075 Bcf/d of natural gas.In the Permian, Ovintiv produced 231,000 boe/d in Q2, with liquids accounting for 78% of volumes, and turned 38 net wells in line. The company plans to bring 125 to 135 net wells online.Montney production averaged 374,000 boe/d in the second quarter, with liquids making up 27% of output, while the company turned 40 net wells in line. Ovintiv plans to bring 130 to 140 net wells online this year.

Ovintiv Q2 Adjusted Earnings Rise

Ovintiv Inc (OVV) reported Thursday Q2 adjusted earnings of $491 million, up from $265 million a year earlier.

Earnings Flash (OVV) Ovintiv Posts Q2 Adjusted EPS $1.74, vs. FactSet Est of $1.94

Ovintiv Well Performance Continues to Outpace 2025 Type Curve, UBS Says

Ovintiv (OVV) well performance in the Midland and Montney continues to trend above the 2025 type curve, supporting oil and condensate production at the midpoint of guidance despite headwinds from royalty volumes and plant turnarounds, UBS said in a note emailed Monday.UBS said volumes should climb back toward the higher end of guidance in H2, with potential upside if Permian volumes hold near recent levels.UBS said Ovintiv's balance sheet has improved significantly following debt reduction from Anadarko divestiture proceeds, which should allow the company to accelerate its share buyback pace and sustain elevated shareholder returns into next year.UBS maintained its buy rating and decreased the price target to $71 from $75.Price: $58.55, Change: $+0.76, Percent Change: +1.32%

Energy Stocks Remain Undervalued Despite Long-Term Oil, Gas Outlook, UBS Says

UBS maintained a positive long-term outlook for crude oil and natural gas, saying energy stocks remain undervalued despite improving commodity fundamentals, the firm said in a note on Monday.UBS continues to expect stronger 2027 crude oil and natural gas prices than implied by current forward strips of $71 per barrel for West Texas Intermediate and $3.35 per million British thermal units for Henry Hub.The firm assessed producers across scenarios ranging from $55-$65/bbl Brent, $51-$81/bbl WTI and $2.75-$4.25/MMBtu Henry Hub.Using an 8% free cash flow-to-enterprise value yield and a 5.5x enterprise value-to-EBITDA sector midpoint, UBS estimates exploration and production stocks currently reflect $60 WTI and $3.50 Henry Hub for 2027.Under a $75 Brent and $3.75 Henry Hub scenario, oil producers would generate an average 12.2% free cash flow-to-enterprise value yields and trade at 3.9x enterprise value-to-EBITDA.Gas producers, excluding Comstock Resources (CRK), would generate an average 11.5% free cash flow-to-enterprise value yield and trade at 4.6x enterprise value-to-EBITDA, UBS said.The same commodity deck would leave year-end 2027 net debt-to-EBITDA at about 0.2x to 0.3x if companies maintain current capital return programs.UBS said those valuations remain below the historical 4.5x to 6.5x range, implying more than 20% upside to the 5.5x midpoint.A $10/bbl move in crude oil and a $0.50/MMBtu change in Henry Hub prices would shift average free cash flow-to-enterprise value yields by 450 to 480 basis points.Enterprise value-to-EBITDA multiples could move 0.5x to 0.7x or more, particularly for gas producers, UBS said.UBS kept capital spending and production assumptions unchanged, although WTI prices below $60/bbl and Henry Hub prices below $3/MMBtu would likely prompt exploration and production companies to reduce both investment and output.Since the conflict began, the S&P 500 Energy Index has gained 1.3% but has trailed the broader S&P 500 by 8%. During the same period, front-month WTI has risen 16%, the 2027 WTI forward strip has gained 15%, while the 2027 Henry Hub strip has fallen 10.3%, UBS said.UBS said energy-sector valuations have weakened since the conflict began despite stronger long-term oil prices, with APA (APA) and Chord Energy (CHRD) leading gains, while Comstock Resources, Weatherford International (WFRD) and Gulfport Energy (GPOR) have posted the weakest performance.UBS continues to favor Ovintiv (OVV), Devon Energy (DVN) and Antero Resources (AR) among exploration and production companies, while National Energy Services Reunited remains its top oilfield services pick.Price: $12.87, Change: $-0.37, Percent Change: -2.79%

Canadian Rig Activity Eases While Sector Outlook Remains Firm, RBC Says

Canadian drilling activity softened as the Western Canadian Sedimentary Basin rig count fell to 204, while sector fundamentals remained resilient, RBC Capital Markets said in a Tuesday note.The firm said its Canadian oilfield services coverage group remains up 31% year to date, outperforming the S&P/TSX Capped Energy Index, which has advanced 26.3% over the same period.CES Energy Solutions led the group with a 4.8% gain, while Pason Systems slipped 0.8% and Enerflex declined 3%, making them the top three performers, RBC said.Precision Drilling was the weakest performer, falling 8.2%. Ensign Energy Services dropped 4.6% and Trican Well Service lost 4.1%, rounding out the bottom three performers, the note said.RBC said the Q2 average rig count reached 165, exceeding its estimate of 143. Private operators added one rig over the week, while large exploration and production companies reduced activity by one rig.The Montney rig count increased by three week over week to 39. Ovintiv (OVV) led operators with six rigs, followed by Tourmaline with five, while Precision Drilling remained the top contractor with 23 rigs, ahead of Ensign with seven and Savanna with five, RBC said.The Duvernay rig count declined by one week over week to 14. Whitecap Resources led operators with three rigs, followed by Canadian Natural Resources with two, while Ensign Energy Services remained the top driller with six rigs, ahead of Precision Drilling and Savanna, each with two.The Viking rig count fell by three week over week to two. Teine Energy operated both active rigs, while Ensign Energy Services and Savanna each drilled one rig, according to the note.The Oil Sands rig count declined by four week over week to 10. Cenovus Energy (CVE) led operators with four rigs, while CNOOC and Canadian Natural Resources each ran two. Precision Drilling remained the leading contractor with eight rigs.RBC said Canadian exploration and production companies are on track to generate $6.9 billion in pre-dividend free cash flow in 2026 and $6.4 billion in 2027 using futures strip pricing.RBC expects producers to reinvest 64% of cash flow in 2026 and 67% in 2027, compared with the five-year trailing average of 64%.Price: $23.81, Change: $-0.71, Percent Change: -2.88%

Falling Oil, Energy Stocks Create Opportunity for Longer-Term Investment, RBC Says

The cooling of tensions between the US and Iran has prompted a selloff in oil and also energy stocks, but with lasting peace still not secured, there are opportunities for investors with a longer-term view, RBC Capital Markets said on Thursday.Oil producers in Canada will be shielded to an extent from falling prices thanks to price-sensitive royalty structures and a roughly 5% weakening of the country's dollar since early May.The note said that when the Canadian dollar falls in price by one US cent, that alone can offset a $1 drop in WTI for Canadian light and WCS prices.Among Canadian energy stocks, RBC said it favors oil and condensate-focused producers with strong execution capability, strong balance sheets and capital discipline.RBC says that the likelihood of "further military flareups" in the Middle East, including Israeli strikes in southern Lebanon, could prompt more investment to bolster energy security among both oil producer and consumer countries.It highlighted Suncor Energy (SU), Canadian Natural Resources (CNQ), PrairieSky Royalty and Ovintiv (OVV), as examples of such companies, with an outperform rating on all four.

Canadian Oilfield Services Stocks Slip 1% Over Week as WCSB Activity Climbs, RBC Says

The Western Canadian Sedimentary Basin rig count increased by nine over the week to 209, reaching 55 above year-ago levels and surpassing RBC Capital Markets' second-quarter forecast of 143 rigs, RBC Capital Markets said in a Tuesday note.The 209-rig count sits 34 above the five-year average, while the quarter-to-date average of 162 has surpassed RBC's second-quarter forecast of 143 rigs, according to the note.Private operators added three rigs over the week, while large exploration and production companies producing more than 75,000 barrels of oil equivalent per day increased activity by six rigs, RBC said.Montney activity rose by one rig to 36. Ovintiv (OVV) operated six rigs, and Tourmaline ran five, while Precision (PDS) held 22 rigs, or 61% of the total, followed by Ensign with seven rigs, or 19%, and Savanna with four rigs.Duvernay activity declined by one rig to 15. Canadian Natural Resources (CNQ), Paramount, and Whitecap each operated two rigs, while Ensign led drillers with five rigs, or 33% of total activity, followed by Fox and Jomax with two rigs each, RBC added.Heavy oil drilling increased by five rigs to 52. Canadian Natural Resources operated 12 rigs, Spur six and Cenovus (CVE) five, while Precision controlled 24 rigs, or 46% of activity, ahead of Ensign's nine rigs and Savanna's five rigs.Oil sands activity fell by two rigs to 14. Cenovus operated six rigs, while CNOOC and Canadian Natural Resources each ran two.RBC expects covered producers to generate $7.6 billion of pre-dividend free cash flow in both 2026 and 2027 while reinvesting 62% and 63% of cash flow, below the five-year average of 64%.Canadian oilfield services stocks declined 1% over the week. Enerflex (EFXT) gained 8.3%, Calfrac advanced 2.9%, and Trican added 2.2%, while Precision (PDS) fell 3.2%, Ensign lost 4.1%, and Pason dropped 5.2%, the note said.RBC's Canadian oilfield services coverage group has gained 34.8% so far in 2026, outperforming the S&P/TSX Capped Energy Index, which has advanced 30.6% over the same period.Price: $24.55, Change: $-0.70, Percent Change: -2.77%

Ovintiv Could Be on Track for Upward Revaluation Based on Strong Performance, RBC Says

The depth of North American oil and gas producer Ovintiv's (OVV) position Montney basin in Canada, its streamlined portfolio, robust balance sheet and strong shareholder returns can lead to a favorable re-valuation, RBC Capital Markets said in a research note on Monday.Ovintiv has little apparent appetite to add debt to its balance sheet, or to dedicate itself to large mergers and acquisitions, following the transformation of its portfolio. The company appears content with its acreage in Montney and the Permian basin.On the other hand, it looks poised to execute its "ground game" through small acquisitions in both basins here and there, RBC said.The company has also streamlined the structure of its overheads and is working on lowering transportation, processing and operating costs.Its potential inclusion in the S&P/TSX index has been a recurrent question for the company and if realized, it could open up the stock to a broader bid in Canada, RBC believes.Ovintiv is adhering to a 2026 mid-point capital spending plan of $2.3 billion or a production outlook of 620,000 to 645,000 boed, which includes 205,000-212,000 bbl/d of oil and condensate.RBC acknowledged the company's efforts to refine operations through the use of proprietary data, machine learning and stacked innovation.RBC reaffirmed its outperform rating on Ovintiv and its one-year price target of $70 per share.

Ovintiv Shares Rise After Upgrade From Wells Fargo

Ovintiv's (OVV) shares were up more than 3% in Monday afternoon trading after Wells Fargo upgraded the company's stock to overweight from equalweight and raised its price target to $80 from $57.Trading volume stood at over 2.4 million shares against a daily average of more than 3.6 million.Price: $54.23, Change: $+1.82, Percent Change: +3.47%

Wells Fargo Upgrades Ovintiv to Overweight From Equalweight, Adjusts Price Target to $80 From $57

Ovintiv (OVV) has an average rating of buy and mean price target of $72.87, according to analysts polled by FactSet.(covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://finwires.com/en/contact)

Western Canada Rig Count Climbs to 200, Tops 5-Year Average by 31 Rigs, RBC Says

The WCSB rig count climbed to 200, its highest level this year, as drilling activity across Western Canada continued to outpace expectations, RBC Capital Markets said in a Tuesday note.Canadian oilfield services stocks declined 5% over the week, although the group remained up 34% year to date, compared with a 35.4% gain for the S&P/TSX Capped Energy Index, RBC said.Calfrac Well Services led weekly performance with a 5.0% gain, while Enerflex (EFXT) declined 3.7% and Pason Systems fell 4.4% over the same period, according to RBC.The rig count increased by 11 from the prior week to 200, standing 50 above year-ago levels. Activity also remained well above historical trends, with the count 31 rigs above the five-year average.RBC said drilling activity has exceeded expectations this quarter, with the quarter-to-date average rig count reaching 157 compared with its second-quarter forecast of 143.Private operators added four rigs over the week, while large producers with output above 75,000 barrels of oil equivalent per day increased activity by six rigs.Montney and Duvernay activity eased slightly over the week, with each region losing one rig to end at 35 and 16 active rigs, respectively. ARC Resources operated eight rigs in Montney, while Ovintiv (OVV) ran six and Tourmaline Oil managed four, RBC said.In Duvernay, Canadian Natural Resources (CNQ), Paramount Resources and Whitecap Resources each operated two rigs. Ensign Energy Services remained the largest drilling contractor in the play with five rigs, accounting for 31% of activity, according to RBC.Heavy oil activity strengthened over the week as the rig count increased by two to 47, while Cardium added one rig to six. Canadian Natural Resources led heavy oil drilling with 12 rigs, followed by Spur Petroleum with six and Tamarack Valley Energy with four.Canadian exploration and production companies under RBC coverage are expected to generate CA$8.4 billion ($5.99 billion) in pre-dividend free cash flow in 2026 and CA$8.8 billion in 2027. RBC expects operators to reinvest 60% of cash flow in both years, below the five-year average reinvestment rate of 64%.Commodity prices weakened during the period as the balance-of-2026 West Texas Intermediate strip fell 12.8% over the week to $74 per barrel and 22.1% over the month, while Brent declined 10.5% over the week to $78/bbl and 21.3% over the month, RBC said.Natural gas moved higher, with the balance-of-2026 Henry Hub strip gaining 1.7% over the week and 3.2% over the month to $3.57 per thousand cubic feet. However, the benchmark remained 15.1% below levels seen a year earlier, according to RBC.Provincial drilling activity continued to improve on an over-the-year basis. Alberta added 35 rigs and Saskatchewan gained 14, while British Columbia's rig count remained flat from a year earlier, RBC said.Price: $53.63, Change: $+0.13, Percent Change: +0.24%

Ovintiv Montney Depth, Strong Balance Sheet Support Re-Rating Opportunity, RBC Says

Ovintiv's (OVV) inventory depth in the Montney, "streamlined" asset portfolio, strong balance sheet and enhanced shareholder returns position the company for a "valuation re-rating" over time, RBC Capital Markets said in a report Tuesday.Ovintiv remains committed to its disciplined capital allocation strategy, maintaining its 2026 mid-point capital spending program of $2.3 billion and production outlook of 620,000 to 645,000 barrels of oil equivalent per day while retaining flexibility to pursue growth if commodity prices improve over the next 18 to 24 months, the report said.Ovintiv's plan to return 50% to 75% of free cash flow to shareholders in 2026 through dividends and buybacks, coupled with net debt falling to $3.3 billion below its $4 billion target and the potential for inclusion in the S&P/TSX index, enhances the company's financial flexibility and could drive additional investor demand for its shares, according to the report.The firm estimates Ovintiv could generate about $2.8 billion in free cash flow in 2026 and said the stock trades at a significant discount to North American peers despite its strong asset base and financial profile, according to the report.RBC maintained an outperform rating on Ovintiv with a price target of $70.Price: $56.28, Change: $-1.63, Percent Change: -2.81%