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Ovintiv Inc OVV

Alternate Symbol(s):  T.OVV

Ovintiv Inc. is an oil and natural gas exploration and production company. The Company is focused on the development of its multi-basin portfolio of top tier oil and natural gas assets located in the United States and Canada. Its operations also include the marketing of oil, natural gas liquids (NGLs) and natural gas. Its segments include USA Operations, Canadian Operations, and Market Optimization. USA Operations segment includes the exploration for, development of, and production of oil, NGLs, natural gas and other related activities within the United States. Canadian Operations segment includes the exploration for, development of, and production of oil, NGLs, natural gas and other activities within Canada. Market Optimization segment is primarily responsible for the sale of the Company’s production to third-party customers and enhancing the associated netback price. The segment’s activities also include third-party purchases and sales of product to provide operational flexibility.


NYSE:OVV - Post by User

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Post by Margin321on Sep 17, 2023 1:06pm
585 Views
Post# 35640362

Hedges - OVV versus CVE

Hedges - OVV versus CVE

Don't forget that Cenovus made decision to largely end hedging in April 2022 after their disastrous one quarter near billion dollar (970 million)  hedging losses in Q1 2022. . They have less than 10 mm barrels a day hedged for blending operations but really minimal. So the increase in oil price will show up in financial performance very quickly.

That is somewhat different than Ovintiv which changed their strategy but still protects near term downside a quarter or  two ahead. OVV and has 80% of production hedged at upside of $84 through Q2 2024. That is still a great high margin price for OVV, but they will show some hedging losses with oil price at current or higher point. That difference is one reason I favor CVE over OVV right now for new money going to energy sector.

However OVV may prove happier than CVE if there is a collapse in oil price although the downside is fully protected only below about $65 which seems unlikely at this point.


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