Ovintiv Inc OVV

Is OVV a better place to be....

[TouchDown12]

Hi BB, Just trying to diverisify my CDN O&G holdings by buying OVV. Is it more of a US NG play (assets, infrastruture, land, production) then a CDN play? I am very concerned with Ottawa's perception of an industry recovery with a Federal election coming shortly. I am trying to take some of my wins in CDN (BIR, CR, etc.) and lower the poltical headline risk (even though the biz of my CDN O&G holdings is very strong). If not OVV; what other US NG plays are like a BIR or TOU in CDA? Please share your ideas if you don't mind. Trying to learn quick of US equals. TD12

[Grandcentral]

Hey TD12 - I bought some OVV today. Here is an article that might help with a few other NG names. GLTA https://oilprice.com/Energy/Natural-Gas/Natural-Gas-Stocks-Still-Have-Major-Upside.html  

[TouchDown12]

HI Grandcentral. Thanks so much for the info... i'll reaserach this weekend. Bought some OVV this AM since it was falling so feel good about long-term hold. You worried about anything after Q2 release? Market seems impatient. TD12

[Grandcentral]

TD12 - the TERM "Hedging losses" is a risk, and how they are perceived. Hedging losses are the new 'flaw' with O and Gs according to the bears and shorts - these are not real 'losses' - I personally don't see them that way - they are only called losses because commodity prices are trading higher then when they were sold. When I sell a stock for a 20% profit, but the

[Margin321]

Super post.  It is hard to remember that there were some periods of negative oil and gas prices early last year when covid shut down everything.  Locking in survival of the company was not necessarily a bad plan.  Their realized prices will go up, just slower than the spot prices. And if spot prices start to drop, their relaized prices will be higher than spot proces (for a while

[Margin321]

OVV also made strong point that the hedges were at a high level partly because of their high debt level, which could have put them at risk if oil prices dropped below their hedged price.  As the debt is paid down tto lower level hey will hedge less and relalize more of market price in favorable times.  With lower debt they will need less protection.