Topic: How To Invest

The Successful Investor Hotline – Friday, November 15, 2024

Article Excerpt

OVINTIV INC., $61.74, Toronto symbol OVV, is a buy. The company operates four core properties: Montney (B.C.), Permian (Texas), Anadarko (Oklahoma) and Uinta (Utah). In addition to natural gas, these fields produce large amounts of oil and natural gas liquids. This week, Ovintiv agreed to acquire certain assets in the Montney region from Paramount Resources Ltd. (Toronto symbol POU) for $2.38 billion U.S. To put that cost in context, the company’s market cap is $16.1 billion (Canadian). The new properties will add 70,000 barrels a day (64% gas, 36% oil) to Ovintiv’s production. After it completes the purchase in the first quarter of 2025, the company expects its overall production will total 620,000 barrels a day. To help pay for this acquisition, Ovintiv has agreed to sell its Uinta properties for $2.0 billion U.S. It will fund the remaining $377 million U.S. with $196 million U.S. in new loans. The company will also suspend its share buyback program, which will free up $181 million…