OVV Earnings Prediction
The chart below shows how OVV performed 10 days before and after its earnings report, based on data from the past quarters. Typically, OVV sees a +0.16% change in stock price 10 days leading up to the earnings, and a +0.18% change 10 days following the report. On the earnings day itself, the stock moves by -2.12%. This data can give you a slight idea of what to expect for the next quarter's release.
OVV Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
2.20B
-25.08%
-0.68%
Gross Margin
40.26%
-6.87%
-8.42%
Operating Margin
18.40%
-28.49%
-15.79%
Net Margin
23.09%
66.71%
50.13%
EPS
1.92
30.61%
51.18%
No Data Available
OVV Earnings Analysis
Ovintiv Inc. Corporation (OVV.N) Earnings Conference Call
Positive
Earnings Exceed Expectations: 1. Strong Earnings Performance: Ovintiv reported net earnings of $507 million, translating to $1.92 per share, and cash flow of $978 million or $3.70 per share, both exceeding consensus estimates.
Free Cash Flow Performance: 2. Robust Free Cash Flow Generation: The company generated free cash flow of $440 million in Q3 2024, which was higher than the previous quarter despite lower oil prices, and is on track to generate an additional $200 million in free cash flow for the year.
Production Volume Surge: 3. Increased Production Volumes: Third quarter oil and condensate volumes averaged approximately 212,000 barrels per day, with total production reaching about 593,000 barrels of equivalent per day, surpassing the high end of guidance.
Shareholder Return Strategy: 4. Significant Shareholder Returns: Ovintiv returned 60% of its second quarter free cash flow to shareholders through dividends and share buybacks, totaling $240 million, which represents a competitive cash return yield of approximately 9%.
Debt Repayment Strategy: 5. Debt Reduction Progress: The company repaid $210 million in debt during the quarter, bringing total debt down to $5.88 billion, with a trailing leverage ratio of 1.2x, and plans to direct an additional $150 million towards debt reduction in Q4.
Negative
Production Guidance Decline: 1. Declining Production Guidance: Despite a production beat in Q3, the company expects fourth quarter production to average only 575,000 to 595,000 BOEs per day, which is a decrease from previous expectations.
Capital Investment Constraints: 2. High Capital Investment: The third quarter capital investment was approximately $538 million, which is at the bottom end of the guidance range, indicating limited flexibility for future investments.
Rising Debt Concerns: 3. Increased Debt Levels: Total debt at the end of Q3 stood at $5.88 billion, with a leverage ratio of 1.2x, suggesting a concerning level of indebtedness relative to cash flow generation.
Shareholder Return Concerns: 4. Limited Shareholder Returns: Although the company returned $240 million to shareholders, this represents only a competitive cash return yield of approximately 9%, which may not satisfy all investor expectations.
Uinta Production Limitations: 5. Operational Challenges in the Uinta: The Uinta's production of 29,000 barrels per day is consistent with expected run rates, but it indicates a lack of growth potential compared to other segments, limiting overall company expansion.
