4. Ovintiv Inc. (NYSE:OVV)
Number of Hedge Fund Holders: 51
P/E Ratio: 5.77
Ovintiv Inc. (NYSE:OVV) is a North American energy producer that primarily focuses on optimizing its oil and gas assets to maximize both efficiency and profitability. With operations spanning key regions such as the Permian, Montney, and Anadarko, the company has curated a robust inventory of premium drilling locations while maintaining a disciplined approach to capital management.
Ovintiv Inc. (NYSE:OVV) displayed strong financial and operational performance in Q4 ended December 31, 2024. The company generated free cash flow of approximately $1.7 billion for the full year, up 50% year-over-year, while returning over $900 million to shareholders through dividends and buybacks. It maintained capital spending discipline, achieving a cash flow per share of $3.86, beating consensus estimates by 7%.
One of the company’s major accomplishments was the acquisition of Montney assets from Paramount Resources Ltd, in 2024. The $2.3 billion deal added 70,000 barrels of oil equivalent per day (Mboe/d) and 900 high-quality drilling locations, significantly expanding Ovintiv Inc. (NYSE:OVV)’s premium oil and condensate inventory. The divestiture of Uinta assets is expected to drive long-term free cash flow growth, with 2025 projections showing an increase of $300 million based on prevailing market rates.
Ovintiv Inc. (NYSE:OVV)’s focus remains on operational efficiency to secure a strong position in the energy sector. It aims to leverage design innovations and drilling advancements to lower costs and enhance output. The disciplined capital allocation and a focus on high-return assets make the company a strong competitor for the 7 Best Cheap Energy Stocks to Invest in Now.
