Ovintiv Inc. ( OVV Quick Quote OVV - Free Report) announced plans to bring down the methane intensity of its North America onshore operations by 33%, which is to be met by 2025.
The decision was approved by the company’s board of directors and will be directly associated with its annual incentive compensation programs for all employees beginning next year.
The proposed reduction will be compared with Ovintiv’s actual value of 0.15 metric tons CH
4 per thousand barrels of oil equivalent (CH 4/MBOE) from 2019, per reports. Moreover, the scaling down of its methane intensity to 0.10 metric tons CH 4/MBOE would contribute to the reduction of greenhouse gas emissions by 2025. The company’s planned reductions are included in its 16th annual sustainability report that marked Ovintiv’s environmental, social and governance goals.
Ovintiv is an independent energy producer, which explores, and churns out oil and natural gas from diverse assets located in the United States and Canada. The upstream company owns a multi-basin portfolio that covers the Montney Shale in Canada as well as the Anadarko and Permian basins located in Western Texas and Southeastern New Mexico.
The Denver-based company stated that it was an early adopter of primary disclosure frameworks under the Task Force on Climate-related financial disclosures and the Sustainability Accounting Standards Board. Notably, the methane reduction approach upholds the sustainable development goals of the United Nations and assists Ovintiv in sustainable development.
Notably, the company’s aim to reduce methane intensity through operational efficiencies will help reduce its carbon emissions. Ovintiv hopes to reach the target by 2025 to meet growing stakeholder expectations for transparency and continuous improvement.
Company Profile & Price Performance
Headquartered in Denver, Ovintiv is an independent energy producer. It engages in the exploration, development, production, and marketing of natural gas, oil and natural gas liquids.
The company’s shares have underperformed the
industry in the past three months. Its stock has gained 70.4% compared with the industry’s 82.4% growth.
Zacks Rank & Stocks to Consider
Ovintiv currently carries a Zack Rank #3 (Hold). Some better-ranked players in the energy space are
HighPoint Resources Corporation and DCP Midstream Partners. LP ( DCP Quick Quote DCP - Free Report) , each currently sporting a Zacks Rank #1 (Strong Buy), and Canadian Natural Resources Limited ( CNQ Quick Quote CNQ - Free Report) , carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here .
In the past 60 days, the Zacks Consensus Estimate for HighPoint Resources’ 2020 earnings has been raised by 17.4%.
DCP Midstream is expected to see earnings growth of 202.4% in 2021, while Canadian Natural Resources is likely to see earnings growth of 560.7% next year.
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