Ovintiv (OVV.TO) has kept its Sector Perform rating and US$53 price target, RBC Capital Markets said in a Friday note previewing OVV's Q4 after market close on Wednesday, February 26, and its deleveraging progress.

RBC noted the company will also release its 2025 budget in conjunction with its quarterly and full-year results. The bank's 2025 outlook factors in total production of 618,900 boe/d (in-line with FactSet consensus at 617,900 boe/d) amid $2.2 billion in gross capital spending (2% below consensus at $2.25 billion).

In its Q4 preview, RBC sees strong production of 585,500 barrels of oil equivalent per day, versus the Street at 583,300 boe/d, and oil and liquids production of 298,000 barrels per day versus the Street at 299,400 bbl/d.

RBC sees a cash flow of US$3.45 per share, compared to the Street estimate of $3.62, and sees capital spending at $550 million, compared with the Street projection of US$549 million.

Ovintiv's share price was down 0.5% at last look Monday to US$61.37 on the TSX.