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Ovintiv

DB:PCD1
Snowflake Description

Undervalued average dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
PCD1
DB
CA$974M
Market Cap
  1. Home
  2. DE
  3. Energy
Company description

Ovintiv Inc., together with its subsidiaries, engages in the exploration, development, production, and marketing of natural gas, oil, and natural gas liquids. The last earnings update was 38 days ago. More info.


Add to Portfolio Compare Print
  • Ovintiv has significant price volatility in the past 3 months.
PCD1 Share Price and Events
7 Day Returns
2.7%
DB:PCD1
18.1%
DE Oil and Gas
7.3%
DE Market
1 Year Returns
-92.8%
DB:PCD1
21.9%
DE Oil and Gas
-17.7%
DE Market
PCD1 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Ovintiv (PCD1) 2.7% -75.3% -88.7% -92.8% -95.7% -95.5%
DE Oil and Gas 18.1% -15.9% -28.7% 21.9% -25.6% 137.4%
DE Market 7.3% -17.9% -25.8% -17.7% -25.6% -29%
1 Year Return vs Industry and Market
  • PCD1 underperformed the Oil and Gas industry which returned 21.9% over the past year.
  • PCD1 underperformed the Market in Germany which returned -17.7% over the past year.
Price Volatility
PCD1
Industry
5yr Volatility vs Market

Value

 Is Ovintiv undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Ovintiv to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Ovintiv.

DB:PCD1 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 10 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 10.5%
Perpetual Growth Rate 10-Year DE Government Bond Rate -0.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:PCD1
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate -0.4%
Equity Risk Premium S&P Global 5.4%
Oil and Gas Unlevered Beta Simply Wall St/ S&P Global 0.81
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.808 (1 + (1- 21%) (1190.08%))
5.961
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
2
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= -0.39% + (2 * 5.44%)
10.49%

Discounted Cash Flow Calculation for DB:PCD1 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Ovintiv is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

DB:PCD1 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 10.49%)
2020 211.17 Analyst x12 191.12
2021 -637.33 Analyst x6 -522.06
2022 296.00 Analyst x2 219.44
2023 999.50 Analyst x2 670.64
2024 835.00 Analyst x1 507.07
2025 737.79 Est @ -11.64% 405.50
2026 676.80 Est @ -8.27% 336.67
2027 636.85 Est @ -5.9% 286.72
2028 609.79 Est @ -4.25% 248.47
2029 590.93 Est @ -3.09% 217.93
Present value of next 10 years cash flows $2,561.00
DB:PCD1 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $590.93 × (1 + -0.39%) ÷ (10.49% – -0.39%)
$5,410.20
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $5,410.20 ÷ (1 + 10.49%)10
$1,995.19
DB:PCD1 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $2,561.00 + $1,995.19
$4,556.19
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $4,556.19 / 259.82
$17.54
DB:PCD1 Discount to Share Price
Calculation Result
Exchange Rate USD/CAD
(Reporting currency to currency of TSX:OVV)
1.407
Value per Share
(CAD)
= Value per Share in USD x Exchange Rate (USD/CAD)
= $17.54 x 1.407
CA$24.68
Non-primary Listing Adjustment Factor 1 share in DB:PCD1 represents 0.67442x of TSX:OVV
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.67442x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (CAD) x Listing Adjustment Factor
= CA$ 24.68 x 0.67442
€16.64
Value per share (EUR) From above. €16.64
Current discount Discount to share price of €2.32
= -1 x (€2.32 - €16.64) / €16.64
86.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Ovintiv is available for.
Intrinsic value
>50%
Share price is €2.32 vs Future cash flow value of €16.64
Current Discount Checks
For Ovintiv to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Ovintiv's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Ovintiv's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Ovintiv's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Ovintiv's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:PCD1 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in USD $0.90
TSX:OVV Share Price ** TSX (2020-03-30) in CAD CA$3.44
TSX:OVV Share Price converted to USD reporting currency Exchange rate (CAD/ USD) 0.711 $2.44
Europe Oil and Gas Industry PE Ratio Median Figure of 105 Publicly-Listed Oil and Gas Companies 5.67x
Germany Market PE Ratio Median Figure of 400 Publicly-Listed Companies 16.36x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Ovintiv.

DB:PCD1 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSX:OVV Share Price ÷ EPS (both in USD)

= 2.44 ÷ 0.90

2.73x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Ovintiv is good value based on earnings compared to the Europe Oil and Gas industry average.
  • Ovintiv is good value based on earnings compared to the Germany market.
Price based on expected Growth
Does Ovintiv's expected growth come at a high price?
Raw Data
DB:PCD1 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 2.73x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts
1.1%per year
Europe Oil and Gas Industry PEG Ratio Median Figure of 65 Publicly-Listed Oil and Gas Companies 0.17x
Germany Market PEG Ratio Median Figure of 254 Publicly-Listed Companies 1.2x

*Line of best fit is calculated by linear regression .

DB:PCD1 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 2.73x ÷ 1.1%

2.44x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Ovintiv is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Ovintiv's assets?
Raw Data
DB:PCD1 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in USD $38.22
TSX:OVV Share Price * TSX (2020-03-30) in CAD CA$3.44
TSX:OVV Share Price converted to USD reporting currency Exchange rate (CAD/ USD) 0.711 $2.44
Germany Oil and Gas Industry PB Ratio Median Figure of 6 Publicly-Listed Oil and Gas Companies 0.94x
Germany Market PB Ratio Median Figure of 574 Publicly-Listed Companies 1.43x
DB:PCD1 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSX:OVV Share Price ÷ Book Value per Share (both in USD)

= 2.44 ÷ 38.22

0.06x

* Primary Listing of Ovintiv.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Ovintiv is good value based on assets compared to the DE Oil and Gas industry average.
X
Value checks
We assess Ovintiv's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Oil and Gas industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Oil and Gas industry average (and greater than 0)? (1 check)
  5. Ovintiv has a total score of 5/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Ovintiv expected to perform in the next 1 to 3 years based on estimates from 10 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
1.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Ovintiv expected to grow at an attractive rate?
  • Ovintiv's earnings growth is expected to exceed the low risk savings rate of -0.4%.
Growth vs Market Checks
  • Ovintiv's earnings growth is positive but not above the Germany market average.
  • Ovintiv's revenues are expected to decrease over the next 1-3 years, this is below the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:PCD1 Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:PCD1 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts 1.1%
DB:PCD1 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 10 Analysts -8%
Europe Oil and Gas Industry Earnings Growth Rate Market Cap Weighted Average 13%
Europe Oil and Gas Industry Revenue Growth Rate Market Cap Weighted Average 2.1%
Germany Market Earnings Growth Rate Market Cap Weighted Average 14.3%
Germany Market Revenue Growth Rate Market Cap Weighted Average 4.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:PCD1 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:PCD1 Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2024-12-31
2023-12-31
2022-12-31 2,134 530
2021-12-31 6,015 2,041 70 7
2020-12-31 6,199 2,308 321 7
2020-03-30
DB:PCD1 Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-12-31 7,013 2,921 234
2019-09-30 6,623 2,750 1,270
2019-06-30 6,340 2,879 1,160
2019-03-31 5,769 2,448 673
2018-12-31 5,457 2,300 1,069
2018-09-30 5,166 2,110 -190
2018-06-30 4,558 1,582 65
2018-03-31 4,218 1,325 547
2017-12-31 3,892 1,050 827
2017-09-30 3,737 880 775
2017-06-30 3,740 709 798
2017-03-31 3,497 574 -134

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Ovintiv's earnings are expected to grow by 1.1% yearly, however this is not considered high growth (20% yearly).
  • Ovintiv's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:PCD1 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below

All data from Ovintiv Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:PCD1 Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2024-12-31
2023-12-31
2022-12-31 1.75 1.75 1.75 1.00
2021-12-31 0.17 2.86 -3.54 11.00
2020-12-31 1.27 4.72 -1.13 12.00
2020-03-30
DB:PCD1 Past Financials Data
Date (Data in USD Millions) EPS *
2019-12-31 0.90
2019-09-30 5.21
2019-06-30 5.14
2019-03-31 3.29
2018-12-31 5.57
2018-09-30 -0.98
2018-06-30 0.34
2018-03-31 2.81
2017-12-31 4.25
2017-09-30 3.98
2017-06-30 4.23
2017-03-31 -0.73

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Ovintiv is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Ovintiv's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Europe market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Ovintiv has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Ovintiv performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Ovintiv's growth in the last year to its industry (Oil and Gas).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Ovintiv has delivered over 20% year on year earnings growth in the past 5 years.
  • Ovintiv's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Ovintiv's 1-year earnings growth is negative, it can't be compared to the Europe Oil and Gas industry average.
Earnings and Revenue History
Ovintiv's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Ovintiv Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:PCD1 Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 7,013.00 234.00 394.00
2019-09-30 6,623.00 1,270.00 219.00
2019-06-30 6,340.00 1,160.00 175.00
2019-03-31 5,769.00 673.00 190.00
2018-12-31 5,457.00 1,069.00 90.00
2018-09-30 5,166.00 -190.00 204.00
2018-06-30 4,558.00 65.00 226.00
2018-03-31 4,218.00 547.00 152.00
2017-12-31 3,892.00 827.00 179.00
2017-09-30 3,737.00 775.00 189.00
2017-06-30 3,740.00 798.00 214.00
2017-03-31 3,497.00 -134.00 268.00
2016-12-31 3,122.00 -944.00 204.00
2016-09-30 2,646.00 -1,275.00 251.00
2016-06-30 3,075.00 -2,828.00 195.00
2016-03-31 3,211.00 -3,837.00 202.00
2015-12-31 3,830.00 -5,165.00 214.00
2015-09-30 5,645.00 -4,355.00 209.00
2015-06-30 6,618.00 -312.00 238.00
2015-03-31 7,376.00 1,569.00 261.00
2014-12-31 7,647.00 3,392.00 291.00
2014-09-30 7,188.00 2,943.00 319.00
2014-06-30 6,295.00 324.00 351.00
2014-03-31 6,691.00 783.00 343.00
2013-12-31 5,858.00 236.00 351.00
2013-09-30 6,040.00 407.00 365.00
2013-06-30 5,673.00 -1,025.00 373.00
2013-03-31 4,420.00 -3,237.00 385.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Ovintiv has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Ovintiv used its assets less efficiently than the Europe Oil and Gas industry average last year based on Return on Assets.
  • Ovintiv has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).
X
Past performance checks
We assess Ovintiv's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Oil and Gas industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Ovintiv has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Ovintiv's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Ovintiv's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Ovintiv's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Ovintiv's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Ovintiv's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Ovintiv Company Filings, last reported 2 months ago.

DB:PCD1 Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 9,930.00 6,974.00 231.00
2019-09-30 9,921.00 7,024.00 138.00
2019-06-30 10,015.00 7,052.00 167.00
2019-03-31 10,360.00 6,799.00 479.00
2018-12-31 7,447.00 4,198.00 1,102.00
2018-09-30 6,494.00 4,198.00 615.00
2018-06-30 6,497.00 4,198.00 336.00
2018-03-31 6,776.00 4,198.00 433.00
2017-12-31 6,728.00 4,197.00 756.00
2017-09-30 6,965.00 4,197.00 889.00
2017-06-30 6,783.00 4,198.00 395.00
2017-03-31 6,525.00 4,198.00 523.00
2016-12-31 6,126.00 4,198.00 845.00
2016-09-30 6,232.00 4,198.00 766.00
2016-06-30 4,907.00 5,690.00 293.00
2016-03-31 5,505.00 5,402.00 222.00
2015-12-31 6,167.00 5,333.00 289.00
2015-09-30 6,719.00 6,128.00 352.00
2015-06-30 7,817.00 6,112.00 496.00
2015-03-31 9,517.00 7,216.00 2,030.00
2014-12-31 9,685.00 7,340.00 368.00
2014-09-30 9,498.00 6,086.00 6,974.00
2014-06-30 6,929.00 6,121.00 2,658.00
2014-03-31 5,234.00 6,328.00 2,162.00
2013-12-31 5,147.00 7,124.00 2,643.00
2013-09-30 5,413.00 7,649.00 3,258.00
2013-06-30 5,308.00 7,633.00 2,916.00
2013-03-31 4,702.00 7,659.00 2,878.00
  • Ovintiv's level of debt (70.2%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (75.8% vs 70.2% today).
  • Debt is well covered by operating cash flow (41.9%, greater than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 1.9x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess Ovintiv's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Ovintiv has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Ovintiv's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
15.34%
Current annual income from Ovintiv dividends. Estimated to be 15.38% next year.
If you bought €2,000 of Ovintiv shares you are expected to receive €307 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Ovintiv's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.7%).
  • Ovintiv's dividend is above the markets top 25% of dividend payers in Germany (4.97%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:PCD1 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below
Europe Oil and Gas Industry Average Dividend Yield Market Cap Weighted Average of 68 Stocks 9.1%
Germany Market Average Dividend Yield Market Cap Weighted Average of 323 Stocks 3.9%
Germany Minimum Threshold Dividend Yield 10th Percentile 1%
Germany Bottom 25% Dividend Yield 25th Percentile 1.7%
Germany Top 25% Dividend Yield 75th Percentile 5%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:PCD1 Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2024-12-31
2023-12-31
2022-12-31 0.42 4.00
2021-12-31 0.36 15.00
2020-12-31 0.38 14.00
2020-03-30
DB:PCD1 Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2020-02-20 0.375 9.227
2019-10-31 0.375 1.884
2019-07-31 0.375 1.699
2019-04-30 0.375 1.425
2019-02-28 0.375 1.042
2018-11-01 0.300 0.888
2018-08-01 0.300 0.490
2018-05-01 0.300 0.465
2018-02-15 0.300 0.529
2017-11-08 0.300 0.491
2017-05-02 0.300 0.596
2017-02-16 0.300 0.537
2016-11-03 0.300 0.491
2016-07-21 0.300 0.624
2016-05-03 0.300 0.790
2016-02-24 0.300 1.028
2015-11-12 1.400 5.766
2015-07-24 1.400 3.834
2015-05-12 1.400 2.483
2015-02-25 1.400 2.280
2014-11-12 1.400 1.998
2014-07-24 1.400 1.350
2014-05-13 1.400 1.214
2014-02-13 1.400 1.327
2013-11-05 1.400 1.532
2013-07-24 4.000 4.552
2013-04-23 4.000 4.439
2013-02-14 4.000 4.259
2012-10-24 4.000 3.908
2012-07-25 4.000 3.591
2012-04-25 4.000 3.927
2012-02-17 4.000 4.122
2011-10-20 4.000 4.148
2011-07-21 4.000 3.445
2011-04-20 4.000 2.515
2011-02-10 4.000 2.442
2010-10-20 4.000 2.725
2010-07-21 4.000 2.740
2010-04-21 4.000 2.492
2010-02-11 4.000 2.481
2009-12-09 4.000 2.499
2009-07-23 8.000 3.039
2009-04-22 8.000 3.163

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have fallen over the past 10 years.
Current Payout to shareholders
What portion of Ovintiv's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.4x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.4x coverage).
X
Income/ dividend checks
We assess Ovintiv's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Ovintiv afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Ovintiv has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Ovintiv's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Doug Suttles
COMPENSATION $12,570,394
AGE 58
TENURE AS CEO 6.8 years
CEO Bio

Mr. Douglas James Suttles, also known as Doug, has been the Chief Executive Officer of Ovintiv Inc. (Formerly known as Encana Corporation) since June 10, 2013 and also served as its President. Mr. Suttles served as the President of Operations for Alaska of BP plc since January 1, 2007. From March 2011 until June 2013, Mr. Suttles was an independent businessman. He is a seasoned executive, with 30 years of oil and gas leadership experience. He has led oil and gas businesses in numerous countries and consistently delivered strong results. Mr. Suttles served as Chief Operating Officer of BP Exploration & Production Inc from January 2009 until March 2011. He served as President of BP Exploration (Alaska), Inc. from December 2006 to December 2008. He served as Vice-President for North Sea operations and President of BP’s Trinidadian oil business. Mr. Suttles worked eight years with BP in Alaska, where he had leadership roles in the North Sea region and in Trinidad. He is a Director of American Petroleum Institute, American Exploration & Production Council, Independent Petroleum Association of America and National Association of Manufacturers. He has been a Director at Ovintiv Inc. since June 10, 2013. Mr. Suttles was an engineer with Exxon from 1983 to 1988. Mr. Suttles served as Director of NEOS GeoSolutions from March 2011 until June 2013. He served as a Director at NEOS GeoSolutions, Inc. from March 2011 until June 2013. He served as a Director at Ceres, Inc. until June 2013. He is a 2008 recipient of the University of Texas Mechanical Engineering Distinguished Alumni Award. He holds a B.S. in Mechanical Engineering from the University of Texas, Austin.

CEO Compensation
  • Doug's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Doug's remuneration is higher than average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the Ovintiv management team in years:

0.8
Average Tenure
52
Average Age
  • The average tenure for the Ovintiv management team is less than 2 years, this suggests a new team.
Management Team

Doug Suttles

TITLE
CEO & Director
COMPENSATION
$13M
AGE
58
TENURE
6.8 yrs

Mike McAllister

TITLE
President
COMPENSATION
$5M
AGE
60
TENURE
0.5 yrs

Corey Code

TITLE
Executive VP & CFO
COMPENSATION
$2M
AGE
45
TENURE
0.8 yrs

Renee Zemljak

TITLE
Executive Vice President of Midstream
COMPENSATION
$3M
AGE
54
TENURE
10.3 yrs

David Hill

TITLE
Executive Vice President of Land & Exploration
COMPENSATION
$3M
AGE
57

Greg Givens

TITLE
Executive VP & COO
AGE
45
TENURE
0.5 yrs

Steve Campbell

TITLE
Senior Vice President of Investor Relations
AGE
50

Joanne Alexander

TITLE
Executive VP
AGE
52
TENURE
5.2 yrs

Simon Scott

TITLE
Vice-President of Communications

Brendan McCracken

TITLE
Executive Vice President of Corporate Development & External Relations
AGE
43
TENURE
0.5 yrs
Board of Directors Tenure

Average tenure and age of the Ovintiv board of directors in years:

6.9
Average Tenure
66
Average Age
  • The tenure for the Ovintiv board of directors is about average.
Board of Directors

Clayton Woitas

TITLE
Independent Chairman of the Board
COMPENSATION
$400K
AGE
70
TENURE
6.7 yrs

Doug Suttles

TITLE
CEO & Director
COMPENSATION
$13M
AGE
58
TENURE
6.8 yrs

Suzanne Nimocks

TITLE
Independent Director
COMPENSATION
$240K
AGE
60
TENURE
10.2 yrs

Bruce Waterman

TITLE
Independent Director
COMPENSATION
$245K
AGE
68
TENURE
9.8 yrs

Tom Ricks

TITLE
Independent Director
COMPENSATION
$219K
AGE
66
TENURE
1 yrs

Fred Fowler

TITLE
Independent Director
COMPENSATION
$225K
AGE
73
TENURE
10 yrs

Peter Dea

TITLE
Independent Director
COMPENSATION
$235K
AGE
65
TENURE
9.8 yrs

Brian Shaw

TITLE
Independent Director
COMPENSATION
$225K
AGE
65
TENURE
7 yrs

Howard Mayson

TITLE
Independent Director
COMPENSATION
$235K
AGE
66
TENURE
5.8 yrs

Lee McIntire

TITLE
Independent Director
COMPENSATION
$225K
AGE
70
TENURE
5.3 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Ovintiv individual insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
24. Mar 20 Buy Douglas Suttles Individual 23. Mar 20 23. Mar 20 5,000 €2.28 €11,406
19. Mar 20 Buy Howard Mayson Individual 19. Mar 20 19. Mar 20 8,000 €2.53 €20,237
18. Mar 20 Buy Thomas Ricks Individual 18. Mar 20 18. Mar 20 50,000 €1.98 €99,212
11. Mar 20 Buy Brendan McCracken Individual 11. Mar 20 11. Mar 20 3,000 €2.70 €8,108
10. Mar 20 Buy Michael McAllister Individual 09. Mar 20 09. Mar 20 2,745 €3.49 €9,581
09. Mar 20 Buy Howard Mayson Individual 09. Mar 20 09. Mar 20 4,000 €3.14 €12,569
11. Mar 20 Buy Douglas Suttles Individual 11. Mar 20 11. Mar 20 5,000 €2.56 €12,777
09. Mar 20 Buy Brian Shaw Individual 09. Mar 20 09. Mar 20 10,000 €2.71 €26,463
09. Mar 20 Buy Bruce Waterman Individual 09. Mar 20 09. Mar 20 55,000 €2.57 €141,455
09. Mar 20 Buy Joanne Alexander Individual 09. Mar 20 09. Mar 20 3,000 €3.88 €11,626
09. Mar 20 Buy Douglas Suttles Individual 09. Mar 20 09. Mar 20 10,000 €3.50 €29,240
06. Mar 20 Buy Douglas Suttles Individual 06. Mar 20 06. Mar 20 1,500 €7.55 €11,326
06. Mar 20 Buy Brendan McCracken Individual 06. Mar 20 06. Mar 20 5,000 €7.35 €36,737
05. Mar 20 Buy Fred Fowler Individual 05. Mar 20 05. Mar 20 10,000 €8.58 €85,824
05. Mar 20 Buy David Hill Individual 05. Mar 20 05. Mar 20 1,000 €8.49 €8,493
10. Mar 20 Buy Thomas Ricks Individual 09. Mar 20 09. Mar 20 65,000 €3.55 €177,979
09. Mar 20 Buy David Hill Individual 09. Mar 20 09. Mar 20 1,000 €2.62 €2,624
09. Mar 20 Buy Corey Code Individual 09. Mar 20 09. Mar 20 5,000 €3.58 €17,890
06. Mar 20 Buy Douglas Suttles Individual 05. Mar 20 05. Mar 20 4,500 €8.89 €39,204
28. Feb 20 Buy Michael Williams Individual 28. Feb 20 28. Feb 20 3,490 €9.71 €33,893
26. Feb 20 Buy Douglas Suttles Individual 26. Feb 20 26. Feb 20 3,000 €11.58 €34,294
28. Feb 20 Buy Douglas Suttles Individual 28. Feb 20 28. Feb 20 2,000 €9.39 €18,786
25. Feb 20 Buy Douglas Suttles Individual 25. Feb 20 25. Feb 20 3,000 €12.89 €37,200
25. Feb 20 Buy Michael McAllister Individual 25. Feb 20 25. Feb 20 2,600 €12.66 €32,909
27. Feb 20 Buy Thomas Ricks Individual 27. Feb 20 27. Feb 20 25,000 €9.75 €243,858
24. Feb 20 Buy Thomas Ricks Individual 21. Feb 20 21. Feb 20 15,500 €14.61 €226,454
24. Feb 20 Buy Douglas Suttles Individual 24. Feb 20 24. Feb 20 5,000 €13.53 €67,669
09. Mar 20 Buy Howard Mayson Individual 09. Mar 20 09. Mar 20 4,000 €3.14 €12,569
09. Mar 20 Buy David Hill Individual 09. Mar 20 09. Mar 20 1,000 €2.62 €2,624
09. Mar 20 Buy Corey Code Individual 09. Mar 20 09. Mar 20 5,000 €3.58 €17,885
09. Mar 20 Buy Joanne Alexander Individual 09. Mar 20 09. Mar 20 3,000 €3.88 €11,627
09. Mar 20 Buy Douglas Suttles Individual 09. Mar 20 09. Mar 20 10,000 €3.50 €29,240
09. Mar 20 Buy Brian Shaw Individual 09. Mar 20 09. Mar 20 10,000 €2.71 €26,461
09. Mar 20 Buy Bruce Waterman Individual 09. Mar 20 09. Mar 20 55,000 €2.58 €141,641
06. Mar 20 Buy Brendan McCracken Individual 06. Mar 20 06. Mar 20 5,000 €7.34 €36,720
27. Feb 20 Buy Douglas Suttles Individual 27. Feb 20 27. Feb 20 2,000 €9.80 €19,598
27. Feb 20 Buy Thomas Ricks Individual 27. Feb 20 27. Feb 20 25,000 €9.75 €243,858
26. Feb 20 Buy Douglas Suttles Individual 26. Feb 20 26. Feb 20 3,000 €11.58 €34,294
28. Feb 20 Buy Michael McAllister Individual 28. Feb 20 28. Feb 20 3,400 €9.93 €33,755
28. Feb 20 Buy Douglas Suttles Individual 28. Feb 20 28. Feb 20 2,000 €7.00 €14,004
28. Feb 20 Buy Michael Williams Individual 28. Feb 20 28. Feb 20 3,490 €9.72 €33,919
25. Feb 20 Buy Michael McAllister Individual 25. Feb 20 25. Feb 20 2,600 €12.65 €32,886
25. Feb 20 Buy Douglas Suttles Individual 25. Feb 20 25. Feb 20 3,000 €12.89 €37,194
24. Feb 20 Buy Douglas Suttles Individual 24. Feb 20 24. Feb 20 5,000 €13.53 €67,669
24. Feb 20 Buy Thomas Ricks Individual 21. Feb 20 21. Feb 20 15,500 €14.61 €226,454
04. Nov 19 Buy Michael McAllister Individual 01. Nov 19 01. Nov 19 960 €18.34 €17,609
29. Nov 19 Buy Corey Code Individual 29. Nov 19 29. Nov 19 2,000 €17.93 €35,850
23. Aug 19 Buy Corey Code Individual 23. Aug 19 23. Aug 19 2,000 €18.25 €36,503
23. Aug 19 Buy Corey Code Individual 23. Aug 19 23. Aug 19 2,000 €18.24 €36,483
12. Jun 19 Buy Corey Code Individual 12. Jun 19 12. Jun 19 2,000 €21.51 €43,026
23. May 19 Buy Corey Code Individual 23. May 19 23. May 19 2,160 €26.87 €58,028
29. Nov 19 Buy Corey Code Individual 29. Nov 19 29. Nov 19 2,000 €17.92 €35,844
07. Aug 19 Buy Fred Fowler Individual 07. Aug 19 07. Aug 19 5,000 €17.81 €89,048
07. Aug 19 Buy Douglas Suttles Individual 07. Aug 19 07. Aug 19 1,200 €17.98 €21,571
06. Aug 19 Buy Douglas Suttles Individual 06. Aug 19 06. Aug 19 2,000 €18.71 €37,425
23. May 19 Buy Douglas Suttles Individual 23. May 19 23. May 19 2,000 €26.94 €53,815
04. Nov 19 Buy Michael McAllister Individual 01. Nov 19 01. Nov 19 960 €18.36 €17,625
01. Nov 19 Buy Douglas Suttles Individual 01. Nov 19 01. Nov 19 2,500 €17.55 €43,884
01. Nov 19 Buy Howard Mayson Individual 01. Nov 19 01. Nov 19 2,000 €17.84 €35,477
01. Nov 19 Buy Suzanne Nimocks Individual 01. Nov 19 01. Nov 19 1,200 €17.60 €21,118
05. Sep 19 Buy Brian Shaw Individual 04. Sep 19 04. Sep 19 3,200 €20.23 €64,560
01. Nov 19 Buy Thomas Ricks Individual 01. Nov 19 01. Nov 19 12,500 €17.73 €221,655
13. Nov 19 Buy Margaret McKenzie Individual 12. Nov 19 12. Nov 19 4,400 €20.57 €90,382
08. Aug 19 Buy Russell Kimmitt Individual 08. Aug 19 08. Aug 19 400 €18.60 €7,438
01. Aug 19 Buy Howard Mayson Individual 01. Aug 19 01. Aug 19 1,000 €20.31 €20,313
17. Jun 19 Buy Suzanne Nimocks Individual 17. Jun 19 17. Jun 19 2,000 €21.23 €42,463
14. Jun 19 Buy Douglas Suttles Individual 14. Jun 19 14. Jun 19 1,000 €21.12 €21,119
12. Jun 19 Buy Corey Code Individual 12. Jun 19 12. Jun 19 2,000 €21.55 €43,102
12. Jun 19 Buy David Hill Individual 12. Jun 19 12. Jun 19 2,000 €21.29 €42,585
12. Jun 19 Buy Douglas Suttles Individual 12. Jun 19 12. Jun 19 1,000 €21.43 €21,432
10. Jun 19 Buy Russell Kimmitt Individual 10. Jun 19 10. Jun 19 400 €22.98 €9,194
06. Jun 19 Buy Bruce Waterman Individual 05. Jun 19 05. Jun 19 10,000 €22.49 €224,942
03. Jun 19 Buy Douglas Suttles Individual 03. Jun 19 03. Jun 19 1,000 €23.76 €23,763
31. May 19 Buy Russell Kimmitt Individual 31. May 19 31. May 19 200 €24.04 €4,807
13. May 19 Buy Michael McAllister Individual 13. May 19 13. May 19 1,130 €21.54 €24,345
01. May 19 Buy Russell Kimmitt Individual 01. May 19 01. May 19 200 €30.10 €6,021
04. Apr 19 Buy Russell Kimmitt Individual 04. Apr 19 04. Apr 19 200 €30.79 €6,158
02. Apr 19 Buy Russell Kimmitt Individual 02. Apr 19 02. Apr 19 200 €33.21 €6,642
02. Apr 19 Sell Steven Nance Individual 01. Apr 19 01. Apr 19 -3,200 €32.99 €-105,565
X
Management checks
We assess Ovintiv's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Ovintiv has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

Ovintiv Inc., together with its subsidiaries, engages in the exploration, development, production, and marketing of natural gas, oil, and natural gas liquids. The company’s principal assets include Permian in west Texas and Anadarko in west-central Oklahoma; and Montney in northeast British Columbia and northwest Alberta. Its other upstream assets comprise Eagle Ford in south Texas, Bakken in North Dakota, and Uinta in central Utah; and Duvernay in west central Alberta, Wheatland in southern Alberta, Horn River in northeast British Columbia, and Deep Panuke in offshore Nova Scotia. The company was formerly known as Encana Corporation and changed its name to Ovintiv Inc. in January 2020. Ovintiv Inc. is based in Denver, Colorado.

Details
Name: Ovintiv Inc.
PCD1
Exchange: DB
Founded:
CA$624,389,873
259,821,141
Website: http://www.ovintiv.com
Address: Ovintiv Inc.
370 17th Street,
Suite 1700,
Denver,
Colorado, 80202,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSX OVV Common Shares The Toronto Stock Exchange CA CAD 13. Dec 1972
NYSE OVV Common Shares New York Stock Exchange US USD 13. Dec 1972
DB PCD1 Common Shares Deutsche Boerse AG DE EUR 13. Dec 1972
Number of employees
Current staff
Staff numbers
0
Ovintiv employees.
Industry
Oil and Gas Exploration and Production
Energy
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/03/30 21:22
End of day share price update: 2020/03/30 00:00
Last estimates confirmation: 2020/03/27
Last earnings filing: 2020/02/21
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.