Ovintiv receives approval to renew share buyback program

DENVER - Ovintiv Inc. (NYSE:OVV) (TSX:OVV), a $10.47 billion market cap energy company currently trading at $40.65, announced Monday it has received regulatory approval from the Toronto Stock Exchange (TSX) to renew its normal course issuer bid (NCIB), allowing the company to purchase up to 22,287,709 common shares. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value metrics, with a "GOOD" overall Financial Health score.

The share repurchase program will run from October 3, 2025, through October 2, 2026, representing 10 percent of Ovintiv’s public float as of September 26, 2025.

Purchases will be made on the open market through the TSX, New York Stock Exchange, and other designated exchanges at market prices, as well as through other means permitted by stock exchange rules and securities laws.

The company has also renewed its automatic share purchase plan, enabling share purchases during periods when Ovintiv would typically be restricted from buying due to regulatory limitations or self-imposed blackout periods.

Daily purchases through the TSX will be limited to 46,314 common shares, except for block purchase exceptions, based on the average daily trading volume of 185,256 shares for the six months ended August 31, 2025.

Under its existing NCIB that expires October 2, 2025, Ovintiv has purchased 7,836,011 common shares at a weighted average price of US$38.80 per share.

The company stated in the press release that this action aligns with its capital allocation framework, which returns at least 50 percent of post-base dividend non-GAAP free cash flow to shareholders.

Ovintiv also noted it has renewed its exemption order from Canadian regulators, allowing repurchases through U.S. marketplaces in excess of the 5 percent maximum typically allowed under Canadian securities laws.

In other recent news, Ovintiv Inc. reported strong second-quarter earnings, which surpassed analyst expectations. The company achieved earnings of $1.18 per share, exceeding the projected $0.98 per share by $0.20. Ovintiv generated $1.01 billion in cash from operating activities and reported $392 million in non-GAAP free cash flow after capital expenditures of $521 million. Additionally, the company raised its full-year production guidance while reducing its capital expenditure forecasts, with second-quarter production averaging 615 thousand barrels of oil equivalent per day, exceeding its guidance across all product categories.

In a separate development, Morgan Stanley downgraded Ovintiv from Overweight to Equalweight, adjusting its price target from $52.00 to $48.00. This decision was influenced by Ovintiv’s 11% outperformance compared to its oil exploration and production peers, attributed to solid execution and capital efficiency improvements. Despite the downgrade, the company’s recent earnings performance and revised production guidance highlight its ongoing operational strength.

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