| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 80 | 20.8x | 17.3x | Top tier | |
Growth | 34 | 6.0% | 7.1% | Bottom tier | |
Quality | 70 | 9.5% | 4.5% | Top tier | |
Safety | 72 | 1.4x | 2.6x | Top tier | |
Capital Return | 96 | 1.65% | 0.06% | Top tier | |
Momentum | 99 | 68.2% | -1.6% | Top tier | |
Sentiment | 63 | 12 | 3 | Around median |
The floor: what the company is worth if growth stopped today
65% of today's price is what a buyer pays for growth that has not happened yet.
10-year US Treasury yield 4.96% as of 2026-10-22. Estimates computed from company data and analyst targets, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Ovintiv Inc. is a North American energy exploration and production company that derives its revenue from the sale of oil and condensate, natural gas, and natural gas liquids. Its operational drivers are concentrated in Permian and Montney, where it relies on multi-layer development from shared pads, optimized re-entry timing, Simulfrac technology, wet sand, and surfactants, in addition to artificial intelligence and automation tools to improve production and reduce downtime and costs.
In fiscal Q2 2026, revenue reached $3.0 billion and net income was $456 million, equivalent to a calculated net income margin of approximately 15.2% and earnings per share of $1.62. These results represent a clear improvement from fiscal Q1 2026, when the company recorded revenue of $2.5 billion, a net loss of $630 million, and negative earnings per share of $2.35; the twelve months ended in fiscal 2026 recorded revenue of $9.9 billion and net income of $920 million.
Average production in fiscal Q2 2026 was approximately 615 thousand barrels of oil equivalent per day, including 206 thousand barrels per day of oil and condensate, while Permian oil and condensate production reached 127 thousand barrels per day. The company generated free cash flow of $682 million and cash flow per share of $4.46, and returned approximately 63% of free cash flow to shareholders through share repurchases and base dividends, while reducing net debt to $2.995 billion and leverage to 0.6 times.
The analyst consensus rates OVV a “Buy,” with an average price target of $72.10, which is above the high end of the 52-week range of $67.44, while the target range extends from $55 to $85 compared with an annual trading range of $35.47 to $67.44. The approximately $30 spread in targets reflects a meaningful divergence in estimates of the impact of commodity prices and the sustainability of productivity and cash flow gains; therefore, the positive consensus does not eliminate the risks of oil and gas volatility or the possibility that some fiscal Q2 2026 gains may not recur.
Figures in the text are as of 2026-08-29; the live price is shown at the top of the page.
Ovintiv’s revenue in fiscal Q2 2026 was approximately $3.0 billion, net income was $456 million, and earnings per share were $1.62. Free cash flow was $682 million, while cash flow per share reached $4.46, and both exceeded consensus estimates according to management. Average production was 615 thousand barrels of oil equivalent per day, including 206 thousand barrels per day of oil and condensate.
Permian performance has exceeded the type curve since the beginning of fiscal 2026 due to strong new wells and improved base production. Permian oil and condensate production reached approximately 127 thousand barrels per day during fiscal Q2 2026, prompting the company to raise the sustainable rate to 125 thousand barrels per day. Accordingly, it raised its full fiscal 2026 oil and condensate guidance to 210–212 thousand barrels per day without adding capital or activity.
The company has completed approximately 400 wells in Permian using surfactants since fiscal 2019, and this treatment achieved an approximately 9% improvement in oil productivity at a cost of approximately $100 thousand per well. It also uses Simulfrac, wet sand, and completion-stage design, alongside artificial intelligence and automation to optimize artificial lift, reduce downtime, and flatten well declines. In Montney, average completion speed has exceeded 4,900 feet per day since the beginning of fiscal 2026, and a Simulfrac test recorded more than seven thousand feet per day.
Automated analysis for informational purposes only — not investment advice.
Ovintiv reduced net debt by approximately $3.4 billion in fiscal Q2 2026 using proceeds from the Anadarko divestiture and a portion of free cash flow. Net debt at the end of the quarter was $2.995 billion, with leverage of 0.6 times, which contributed to Fitch upgrading the rating to BBB from BBB-. The company returned approximately 63% of free cash flow during the quarter through share repurchases and base dividends and targets more than 60% for the full fiscal 2026.
Montney gas volumes came under pressure during fiscal Q2 2026 because of planned outages at processing plants, although the company completed those outages during the quarter. Higher condensate prices also increase royalties, prompting it to forecast production of between 80 and 85 thousand barrels per day in Montney during the second half of fiscal 2026. Cash flow remains sensitive to oil and gas prices, while the recurrence of approximately $40 million in sulfur revenue recorded in the same quarter cannot be guaranteed.
The company estimates that it has approximately 15 years of premium inventory in Permian and approximately 20 years of premium oil inventory in Montney. Since fiscal 2023, it has added more than 3,200 drilling locations across the two regions at an average cost of $1.4 million per net 10-thousand-foot location, without issuing shares that dilute shareholder ownership or placing significant pressure on the balance sheet. In fiscal 2026, it effectively replaced the annual drilling program locations in both assets, while it has converted only approximately 130 locations so far out of 900 potential locations associated with the Paramount and NuVista assets in Montney.