A Business at a Glance
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Ovintiv Inc.
OVV
$16.4B
Mkt Cap
$63.13
+2.83%
Ovintiv Inc. (OVV) has a current P/E ratio of 13.2, compared to its historical median P/E of 5.7. The stock is currently considered Expensive based on its historical valuation range.
Ovintiv Inc. (OVV) has a 5-year average return on invested capital (ROIC) of 16.2%. This indicates strong capital allocation and a potential competitive advantage.
Ovintiv Inc. (OVV) has a market capitalization of $17.8B. It is classified as a large-cap stock.
Yes, Ovintiv Inc. (OVV) pays a dividend with a trailing twelve-month yield of 1.77%. The company also returns capital through share buybacks, with a buyback yield of 2.19%.
Based on historical P/E analysis, Ovintiv Inc. (OVV) appears expensive. The current P/E of 13.2 is 131% above its historical median of 5.7. The estimated fair value CAGR (P/E method) is 9.9%.
Ovintiv Inc. (OVV) operates in the Crude Petroleum & Natural Gas industry, within the Energy sector.
Ovintiv Inc. (OVV) reported annual revenue of $8.9 billion in its most recent fiscal year, based on SEC EDGAR filings.
Ovintiv is a leading North American oil and natural gas exploration and production company focused on developing a multi-basin portfolio of high-quality assets located in the United States and Canada, with all reserves and production in North America as of December 31, 2025. The company operates through two reportable segments: USA Operations, which includes the Permian in west Texas and Anadarko in west-central Oklahoma, and Canadian Operations, which includes the Montney in Western Canada. Ovintiv's business model centers on exploration, development, and production of oil, NGLs, and natural gas, combined with marketing and optimization activities to capture additional value. The company pursues a disciplined capital allocation strategy focused on high-quality assets with flexible capital programs that can be quickly optimized in response to commodity price changes, enabling it to preserve excess cash flows for shareholder returns and balance sheet strength. Ovintiv's competitive positioning is anchored by contiguous positions in the two largest remaining undeveloped oil basins in North America—the Permian and the Montney—and the company emphasizes execution excellence through continuous innovation and technology to enhance well productivity, reduce costs, and improve returns while minimizing environmental impact. The company generates durable cash returns to shareholders through the commodity price cycle by maximizing returns via innovation-driven efficiency gains, leveraging optionality from its multi-basin and multi-product portfolio, building flexibility into commercial agreements, and actively managing commodity price risk.
【Strong cash generation and shareholder returns】 Management expects to realize significant annualized interest savings from debt repayment completed since the start of 2026, including over $80 million from recent note repayments and credit facility paydowns. The company anticipates maintaining full-year production guidance despite higher royalty rates in Canadian operations, with strong performance in both the Permian and Montney expected to offset volumes lost to royalties, and capital guidance remains unchanged as operational efficiencies are expected to largely offset additional cost inflation. Management expects margin improvement in 2026 driven by lower lease operating expense, production and mineral taxes, and interest expense, while transportation and processing costs will increase due to greater Montney weighting and enhanced market access. The company continues to prioritize maximizing capital efficiency and free cash flow generation, with activity cadence expected to be fairly ratable for the rest of the year across both major assets.
| Metric | Target | Period |
|---|---|---|
| Annualized interest savings | over $80 million | 2026 |
| Oil and condensate production | 205,000 to 212,000 barrels per day | Full year 2026 |
| Montney natural gas production | 1.75-1.85 Bcf per day | Full year 2026 |
| Pro forma 2026 total Montney production | approximately 400,000 BOE per day | 2026 |
| Montney oil and condensate production (pro forma) | 85,000 barrels per day | 2026 |
| Annualized free cash flow synergies from NuVista | about $100 million | 2026 onwards |
| Expected rate of return on NuVista assets | 55% | 2026 |
Annualized interest savings (2026): “We expect to realize over $80 million of annualized interest savings from the debt we've repaid since the start of the year.”
Oil and condensate production (Full year 2026): “we are maintaining our full-year production guidance, including 205,000 to 212,000 barrels per day of oil and condensate.”
Montney natural gas production (Full year 2026): “1.75-1.85 Bcf per day of natural gas”
“Next year, we expect our pro forma 2026 total Montney production to average about 400,000 BOE per day, including 85,000 barrels per day of oil and condensate and 1.75 Bcf per day of natural gas.”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call, Q2 FY2025 Earnings Call, Q1 FY2025 Earnings Call
| Segment | 2021 | 2022 | 2023 | 2024 | 2025 | % of Total |
|---|---|---|---|---|---|---|
Product Revenue | — | $4.54B | $4.45B | $4.56B | $3.42B | 50% |
Operating Segments | $3.37B | $4.54B | $4.44B | $4.55B | $3.41B | 50% |
Natural Gas Gathering and Processing, and Other | — | — | $7M | $8M | $32M | 0% |
Natural Gas Gathering and Processing | $10M | $5M | $7M | $8M | — | — |
Product Revenues Including Sale of Product Purchased from Third Parties | $5.64B | $7.96B | $7.04B | — | — | — |
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 9.1B | 8.9B | 9.2B | 10.9B | 12.5B | 8.7B |
| Net Income | 771M | 1.2B | 1.1B | 2.1B | 3.6B | 1.4B |
| EPS | $3.29 | $4.78 | $4.21 | $7.90 | $14.08 | $5.32 |
| Free Cash Flow | 1.7B | 1.5B | 1.4B | 1.4B | 2.0B | 1.6B |
| ROIC | 14.7% | 6.8% | 8.0% | 16.8% | 35.3% | 14.0% |
| Gross Margin | - | 16.4% | 21.2% | 29.9% | 34.3% | 22.6% |
| Debt/Equity | 0.56 | 0.57 | 0.61 | 0.64 | 0.58 | 1.13 |
| Dividends/Share | $1.11 | $1.20 | $1.20 | $1.15 | $0.95 | $0.47 |
| Operating Income | 466M | 1.1B | 1.6B | 2.9B | 3.9B | 1.5B |
| Operating Margin | 5.1% | 12.7% | 17.3% | 26.3% | 30.9% | 17.5% |
| ROE | 6.7% | 11.5% | 10.9% | 23.1% | 57.0% | 31.8% |
| Shares Outstanding | 283M | 260M | 267M | 264M | 258M | 266M |
| Metric | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | ||||||||||
| Revenue | 4.4B | 5.9B | 6.7B | 6.1B | 8.7B | 12.5B | 10.9B | 9.2B | 8.9B | 9.1B |
| Gross Margin | 29.8% | 31.2% | 16.2% | -82.2% | 22.6% | 34.3% | 29.9% | 21.2% | 16.4% | N/A |
| R&D | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A | 254M | 157M | 489M | 395M | 442M | 422M | 393M | 365M | 331M | 350M |
| EBIT | 1.1B | 1.7B | 598M | -5.4B | 1.5B | 3.9B | 2.9B | 1.6B | 1.1B | 466M |
| Op. Margin | 24.0% | 28.5% | 8.9% | -88.7% | 17.5% | 30.9% | 26.3% | 17.3% | 12.7% | 5.1% |
| Net Income | 827M | 1.1B | 234M | -6.1B | 1.4B | 3.6B | 2.1B | 1.1B | 1.2B | 771M |
| Net Margin | 18.6% | 18.0% | 3.5% | -100.2% | 16.4% | 29.2% | 19.2% | 12.3% | 13.9% | 8.5% |
| Non-Recurring | 404M | 5.0M | 141M | 90M | 14M | 0 | 0 | 27M | 39M | 2.0M |
| Returns on Capital | ||||||||||
| ROIC | N/A | 18.7% | 3.1% | -45.0% | 14.0% | 35.3% | 16.8% | 8.0% | 6.8% | 14.7% |
| ROE | N/A | 15.1% | 2.7% | -88.6% | 31.8% | 57.0% | 23.1% | 10.9% | 11.5% | 6.7% |
| ROA | N/A | 13.9% | 1.3% | -33.9% | 9.9% | 25.0% | 11.9% | 5.7% | 6.3% | 3.5% |
| Cash Flow | ||||||||||
| Op. Cash Flow | 1.1B | 2.3B | 2.9B | 1.9B | 3.1B | 3.9B | 4.2B | 3.7B | 3.7B | 3.8B |
| Free Cash Flow | -746M | 325M | 295M | 159M | 1.6B | 2.0B | 1.4B | 1.4B | 1.5B | 1.7B |
| Owner Earnings | 107M | 982M | 867M | -10M | 1.8B | 2.6B | 2.2B | 1.4B | 1.4B | 1.6B |
| CapEx | 1.8B | 2.0B | 2.6B | 1.7B | 1.5B | 1.8B | 2.7B | 2.3B | 2.1B | 2.1B |
| Maint. CapEx | 833M | 1.3B | 2.0B | 1.8B | 1.2B | 1.1B | 1.8B | 2.3B | 2.2B | 2.2B |
| Growth CapEx | 963M | 703M | 611M | 0 | 329M | 718M | 919M | 13M | 0 | 0 |
| D&A | 833M | 1.3B | 2.0B | 1.8B | 1.2B | 1.1B | 1.8B | 2.3B | 2.2B | 2.2B |
| CapEx/OCF | N/A | 85.9% | 89.9% | 91.6% | 48.5% | 47.4% | 65.9% | 61.9% | 58.8% | 55.7% |
| Capital Allocation | ||||||||||
| Dividends Paid | 57M | 56M | 102M | 97M | 122M | 239M | 307M | 316M | 308M | 315M |
| Dividend Yield | N/A | 0.6% | 1.7% | 4.1% | 1.9% | 2.1% | 2.9% | 2.7% | 3.0% | 1.8% |
| Share Buybacks | 0 | 250M | 1.3B | 0 | 111M | 719M | 426M | 597M | 307M | 391M |
| Buyback Yield | 0.0% | 5.4% | 25.0% | N/A | 1.4% | 6.1% | 3.9% | 6.0% | 3.1% | 2.2% |
| Stock-Based Comp | 110M | 46M | 39M | 71M | 138M | 202M | 101M | 22M | 41M | 48M |
| Debt Repayment | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Balance Sheet | ||||||||||
| Net Debt | -704M | 3.1B | 8.5B | 8.2B | 5.6B | 4.5B | 6.7B | 6.2B | 6.2B | 6.4B |
| Cash & Equiv. | 719M | 1.1B | 190M | 10M | 195M | 5.0M | 3.0M | 42M | 35M | 26M |
| Long-Term Debt | N/A | 3.7B | 7.0B | 6.4B | 4.8B | 3.2B | 5.5B | 4.9B | 4.4B | 5.5B |
| Debt/Equity | N/A | 0.56 | 0.88 | 2.15 | 1.13 | 0.58 | 0.64 | 0.61 | 0.57 | 0.56 |
| Interest Coverage | 2.9 | 4.8 | 1.6 | -14.5 | 4.5 | 12.4 | 8.1 | 3.8 | 3.0 | 1.2 |
| Equity | N/A | 7.4B | 9.9B | 3.8B | 5.1B | 7.7B | 10.4B | 10.3B | 11.2B | 11.6B |
| Total Assets | N/A | 15.3B | 21.5B | 14.5B | 14.1B | 15.1B | 20.0B | 19.3B | 20.4B | 22.3B |
| Total Liabilities | N/A | 7.9B | 11.6B | 10.6B | 9.0B | 7.4B | 9.6B | 8.9B | 9.2B | 10.7B |
| Intangibles | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Retained Earnings | N/A | 435M | 421M | -5.8B | -4.5B | -1.1B | 697M | 1.5B | 2.4B | 1.7B |
| Working Capital | N/A | 660M | -563M | -1.2B | -1.2B | -1.1B | -1.1B | -1.3B | -1.3B | -1.4B |
| Current Assets | 253M | 2.7B | 1.9B | 1.2B | 1.6B | 1.7B | 1.7B | 1.4B | 1.5B | 1.8B |
| Current Liabilities | N/A | 2.0B | 2.4B | 2.4B | 2.7B | 2.8B | 2.8B | 2.7B | 2.8B | 3.2B |
| Per Share Data | ||||||||||
| EPS | 4.25 | 5.57 | 0.90 | -23.47 | 5.32 | 14.08 | 7.90 | 4.21 | 4.78 | 3.29 |
| Owner EPS | 0.55 | 5.12 | 3.33 | -0.04 | 6.77 | 9.88 | 8.49 | 5.27 | 5.51 | 5.63 |
| Book Value | N/A | 38.80 | 38.19 | 14.77 | 19.06 | 29.77 | 39.29 | 38.66 | 43.09 | 40.88 |
| Cash Flow/Share | 5.40 | 11.98 | 11.23 | 7.29 | 11.76 | 14.97 | 15.79 | 13.92 | 14.06 | 10.49 |
| Dividends/Share | 0.30 | 0.30 | 0.38 | 0.38 | 0.47 | 0.95 | 1.15 | 1.20 | 1.20 | 1.11 |
| Shares Out. | 194.6M | 191.9M | 260.0M | 259.8M | 266.2M | 258.3M | 263.9M | 267.2M | 259.8M | 282.7M |
| Valuation | ||||||||||
| P/E Ratio | N/A | 4.3 | 21.4 | N/A | 5.7 | 3.2 | 5.3 | 8.9 | 7.9 | 19.2 |
| P/FCF | N/A | 14.1 | 17.0 | 20.1 | 5.0 | 5.8 | 7.8 | 7.1 | 6.6 | 10.5 |
| EV/EBIT | N/A | 4.2 | 19.4 | N/A | 8.2 | 4.1 | 6.0 | 10.1 | 13.8 | 52.1 |
| Price/Book | N/A | 0.6 | 0.5 | 0.8 | 1.6 | 1.5 | 1.1 | 1.0 | 0.9 | 1.5 |
| Price/Sales | N/A | 1.5 | 0.9 | 0.4 | 0.8 | 0.9 | 1.0 | 1.3 | 1.1 | 2.0 |
| FCF Yield | N/A | 7.1% | 5.9% | 5.0% | 19.8% | 17.3% | 12.9% | 14.1% | 15.3% | 9.5% |
| Market Cap | 0 | 4.6B | 5.0B | 3.2B | 8.1B | 11.8B | 11.0B | 10.0B | 9.9B | 17.8B |
| Avg. Price | 0.00 | 47.24 | 22.64 | 9.13 | 24.75 | 43.99 | 39.87 | 43.13 | 39.04 | 63.13 |
| Year-End Price | 0.00 | 23.93 | 19.25 | 12.33 | 30.48 | 45.51 | 41.82 | 37.54 | 37.97 | 63.13 |
Ovintiv Inc. passes 4 of 9 quality checks, suggesting mixed fundamentals.
Ovintiv Inc. trades at 13.2x trailing earnings, compared to its 15-year median P/E of 5.7x, suggesting it is currently Expensive relative to its historical range. On a free-cash-flow basis, the stock trades at 11.9x vs a median of 7.4x. The company's 5-year average ROIC is 16.2% with a gross margin of 24.9%. Total shareholder yield (dividends + buybacks) is 4.0%. At current prices, the estimated annualized return to fair value is +33.3%.
Ovintiv Inc. (OVV) has a net profit margin of 13.9%. This is a healthy margin.
Ovintiv Inc. (OVV) generated $1.5 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
Ovintiv Inc. (OVV) has a debt-to-equity ratio of 0.57. This indicates moderate leverage.
Ovintiv Inc. (OVV) reported earnings per share (EPS) of $4.78 in its most recent fiscal year.
Ovintiv Inc. (OVV) has a return on equity (ROE) of 11.5%. This indicates moderate shareholder returns.
Ovintiv Inc. (OVV) has a 5-year average gross margin of 24.9%. This lower margin is typical of capital-intensive or commodity businesses.
The Ledger Terminal provides 9 years of financial data for Ovintiv Inc. (OVV), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
Ovintiv Inc. (OVV) has a book value per share of $43.09, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects to realize significant annualized interest savings from debt repayment completed since the start of 2026, including over $80 million from recent note repayments and credit facility paydowns. The company anticipates maintaining full-year production guidance despite higher royalty rates in Canadian operations, with strong performance in both the Permian and Montney expected to offset volumes lost to royalties, and capital guidance remains unchanged as operational efficiencies are expected to largely offset additional cost inflation. Management expects margin improvement in 2026 driven by lower lease operating expense, production and mineral taxes, and interest expense, while transportation and processing costs will increase due to greater Montney weighting and enhanced market access. The company continues to prioritize maximizing capital efficiency and free cash flow generation, with activity cadence expected to be fairly ratable for the rest of the year across both major assets.
Based on recent SEC filings and earnings calls, Ovintiv Inc. (OVV) has provided the following forward guidance: Annualized interest savings: over $80 million (2026); Oil and condensate production: 205,000 to 212,000 barrels per day (Full year 2026); Montney natural gas production: 1.75-1.85 Bcf per day (Full year 2026); Pro forma 2026 total Montney production: approximately 400,000 BOE per day (2026); Montney oil and condensate production (pro forma): 85,000 barrels per day (2026), plus 2 additional metrics.
Montney oil and condensate production (pro forma) (2026): “including 85,000 barrels per day of oil and condensate”
Annualized free cash flow synergies from NuVista (2026 onwards): “We expect to capture about $100 million in durable annualized free cash flow synergies.”
Expected rate of return on NuVista assets (2026): “Our analysis of the pro forma assets shows that at the current strip pricing, we expect the NuVista assets to generate a 55% rate of return in 2026.”