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Ovintiv (OVV) Revises Guidance for Q2 and Full-Year 2023
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Ovintiv Inc. (OVV - Free Report) made significant updates to its production and capital spending guidance for the second quarter of 2023 and the full year.These revisions are a result of the timely closure of the $4.275 billion acquisition of core Midland Basin assets and the $875 million sale of Bakken shale assets. Ovintiv's revised projections emphasize its commitment to delivering exceptional results that align with its position as an industry leader.
Ovintiv's Revised Guidance for Q2
The company expects a total production of 520,000-540,000 barrels of oil equivalent per day (boe/day) in the second quarter of 2023. It also anticipates oil and condensate output in the range of 175,000-179,000 barrels per day (bbl/day), and capital spending in the band of $670-$710 million during the same time frame.
Revised Full-Year Production and Capital Spending Guidance
Ovintiv has also updated its full-year production and capital spending guidance to reflect the evolving market conditions. The company now expects production in the range of 521,000-546,000 boe/day. The oil and condensate output is estimated to be between 186,000 bbl/day and 196,000 bbl/day. Ovintiv now projects capital expenditure of $2.68-$2.98 billion.
Notably, the company’s previous guided range was 520,000-545,000 boe/day for production and 185,000-195,000 bbl/day for oil and condensate output. The earlier projection for capital spending was in the band of $2.6-$2.9 billion.
Outlook for Fiscal 2024
Ovintiv aims to achieve a total company oil and condensate production of more than 200,000 bbl/day for fiscal 2023. It also anticipates total capital spending of $2.1-$2.5 billion during the same time frame.
Ovintiv's Strategic Moves
OVV has strategically placed itself to optimize its operations and leverage growth opportunities in the ever-evolving energy market. The recent acquisition of core Midland Basin assets demonstrates the company's proactive approach to portfolio expansion. By capitalizing on its newly acquired assets, Ovintiv is expected to enhance its overall production capacity and achieve ambitious targets.
Conclusion
Ovintiv’s revised guidance underscores its commitment to providing reliable, sustainable and value-driven solutions in the energy sector. It also highlights the company’s ability to adapt to changing market conditions.
Evolution Petroleum: EPM is worth approximately $265.82 million. EPM currently pays a dividend of 48 cents per share, or 6.01% on an annual basis.
The company currently has a forward P/E ratio of 7.23. In comparison, its industry has an average forward P/E of 18.10, which means EPM is trading at a discount to the group.
Eni: E is valued at around $49.97 billion. In the past year, its shares have risen 7.7%.
E currently pays dividends of $1.29 per share, or 4.60%, on an annual basis. E's payout ratio currently sits at 21% of earnings.
Archrock: AROC is valued at around $1.56 billion. It delivered an average earnings surprise of 8.34% for the last four quarters and its current dividend yield is 6.02%.
Archrock is a provider of natural gas contract compression services and aftermarket services of compression equipment.
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Ovintiv (OVV) Revises Guidance for Q2 and Full-Year 2023
Ovintiv Inc. (OVV - Free Report) made significant updates to its production and capital spending guidance for the second quarter of 2023 and the full year.These revisions are a result of the timely closure of the $4.275 billion acquisition of core Midland Basin assets and the $875 million sale of Bakken shale assets. Ovintiv's revised projections emphasize its commitment to delivering exceptional results that align with its position as an industry leader.
Ovintiv's Revised Guidance for Q2
The company expects a total production of 520,000-540,000 barrels of oil equivalent per day (boe/day) in the second quarter of 2023. It also anticipates oil and condensate output in the range of 175,000-179,000 barrels per day (bbl/day), and capital spending in the band of $670-$710 million during the same time frame.
Revised Full-Year Production and Capital Spending Guidance
Ovintiv has also updated its full-year production and capital spending guidance to reflect the evolving market conditions. The company now expects production in the range of 521,000-546,000 boe/day. The oil and condensate output is estimated to be between 186,000 bbl/day and 196,000 bbl/day. Ovintiv now projects capital expenditure of $2.68-$2.98 billion.
Notably, the company’s previous guided range was 520,000-545,000 boe/day for production and 185,000-195,000 bbl/day for oil and condensate output. The earlier projection for capital spending was in the band of $2.6-$2.9 billion.
Outlook for Fiscal 2024
Ovintiv aims to achieve a total company oil and condensate production of more than 200,000 bbl/day for fiscal 2023. It also anticipates total capital spending of $2.1-$2.5 billion during the same time frame.
Ovintiv's Strategic Moves
OVV has strategically placed itself to optimize its operations and leverage growth opportunities in the ever-evolving energy market. The recent acquisition of core Midland Basin assets demonstrates the company's proactive approach to portfolio expansion. By capitalizing on its newly acquired assets, Ovintiv is expected to enhance its overall production capacity and achieve ambitious targets.
Conclusion
Ovintiv’s revised guidance underscores its commitment to providing reliable, sustainable and value-driven solutions in the energy sector. It also highlights the company’s ability to adapt to changing market conditions.
Zacks Rank and Key Picks
Currently, OVV carries a Zacks Rank #3 (Hold).
Some better-ranked stocks for investors interested in the energy sector are Evolution Petroleum (EPM - Free Report) , sporting a Zacks Rank #1 (Strong Buy), and Eni (E - Free Report) and Archrock (AROC - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Evolution Petroleum: EPM is worth approximately $265.82 million. EPM currently pays a dividend of 48 cents per share, or 6.01% on an annual basis.
The company currently has a forward P/E ratio of 7.23. In comparison, its industry has an average forward P/E of 18.10, which means EPM is trading at a discount to the group.
Eni: E is valued at around $49.97 billion. In the past year, its shares have risen 7.7%.
E currently pays dividends of $1.29 per share, or 4.60%, on an annual basis. E's payout ratio currently sits at 21% of earnings.
Archrock: AROC is valued at around $1.56 billion. It delivered an average earnings surprise of 8.34% for the last four quarters and its current dividend yield is 6.02%.
Archrock is a provider of natural gas contract compression services and aftermarket services of compression equipment.