OVV - 1Q26 Wrap; Strong Quarter with Efficiency Gains Evident but Overshadowed by ROC Tweak, 2Q Guide

Research evidence excerpt

OVV - 1Q26 Wrap; Strong Quarter with Efficiency Gains Evident but Overshadowed by ROC Tweak, 2Q Guide

Truist Securities

Equity Research Report May 12, 2026

ENERGY: Exploration & Production Ovintiv Inc. (OVV)

OVV - 1Q26 Wrap; Strong Quarter with Efficiency Gains Evident Gabe Daoud

212-303-4193 but Overshadowed by ROC Tweak, 2Q Guide

Gabe.Daoud@truist.com

Frankie DiGiovanna Following 1Q26 earnings, we are updating our model for OVV. Key themes discussed

212-326-3158 include their revision on their return of capital framework, capital allocation, the integration of

Francis.DiGiovanna@truist.com NuVista, improving efficiencies and productivity gains (i.e. via surfactants), and the current

macro environment. Contemplating recent M&A activity in the Montney (i.e. Shell / Arc

Eric Look acquisition) and the price / multiple paid, we believe OVV is attractive from a valuation

212-303-4174 perspective given their Montney exposure and recent expansion via the NuVista acquisition.

Eric.Look@truist.com We reiterate our Buy Rating and revise our PT to $70/shr ($72/shr prior).

Despite a favorable print the equity succumbed to bearish views around the tweak to the

Stock Rating BUY ROC framework and 2Q guide, underperforming the XOP by 233 bps on the day. We’ve

Unchanged argued since our launch, parking excess FCF on the balance sheet makes sense at cyclical

high oil prices, and we reiterate OVV will still return more absolute dollars than originally

Price Target $70.00 envisioned, but alas the message failed to stick. Beyond that, some quibbles emerged

↓ with the 2Q guide as investors digest the Montney royalty impact and hot capex (FY26

from capex guide left unchanged), but even here the net impact is positive as higher royalties =

$72.00 higher revenue given elevated oil prices.