Ovintiv to sell some assets for $250M; moves up shareholder returns to Q3

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Ovintiv (NYSE:OVV) said on Wednesday it agreed to sell some assets in the Uinta and Bakken basins for ~$250M, while the company also plans to accelerate the doubling of its cash returns to shareholders.

The Uinta Basin assets to be sold include ~3K gross vertical wells, and the Bakken assets include ~88 wells.

Starting immediately instead of at the start of Q4, Ovintiv (OVV) said it will increase its returns to shareholders to 50% of the previous quarter's non-GAAP free cash flow after base dividends.

"These transactions continue our track record of portfolio optimization, and this means we will double our cash returns to shareholders starting now," Ovintiv (OVV) CEO Brendan McCracken said.

Ovintiv (OVV) is benefiting from "a stunning efficiency campaign that has seen a 50% reduction in GHG emissions, a 44% increase in dividends, and an estimated 35% free cash yield for FY 2023," Benjamin Halliburton writes in a bullish analysis posted on Seeking Alpha.

Comments

[maphead]

Effing cha-ching!

[Jamm Systems]

... and naturally the stock is down 6% on the news. What an epic energy correction!

I sold a while back, but am right here right now adding back a small position. Will try to average in, because energy technicals can't get any uglier than now. I hope for this to be one of my biggest positions over time.

OVV, DXN, PXD- all very shareholder friendly, I can't see how they won't outperform once oil markets stabilize.

[AAJetMan]

What impact will this have on the dividend?

[DHinton]

Listening to shareholders. Excellent!!