National Bank Financial on Thursday maintained its outperform rating on the shares of Ovintiv (OVV.TO, OVV) while raising its price target to US$59.00 from US$57.00 after the company acquired oil and gas producing properties in Western Canada's Montney shale field from Paramount Resources (POU.TO) for US$2.38 billion, while selling its assets in Colorado's Uinta Basin for US$2 billion.

"This morning, Ovintiv announced it had entered into two significant transactions, acquiring certain Montney assets from POU for US$2.377 billion ($3.325 billion CAD), while also entering into an agreement to sell its Uinta asset for US$2 billion. The acquisition, which will be funded entirely with cash (a combination of the cash proceeds from the Uinta disposition and cash on hand), provides OVV with approximately 70 mboe/d of incremental production in the Alberta Montney (~25 mbbl/d of oil and condy), in addition to 109,000 net acres (80% undeveloped) and approximately 600 premium locations (900 total net well locations). The disposition sees OVV dispose of almost all of their Uinta basin assets, including ~29 mboe/d of oil and condensate production (~37 mboe/d of total production in Q3/24) and 126,000 net acres of land. We maintain our Outperform rating but are increasing our target price to US$59 (from US$57)." analyst Travis Wood wrote.

(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)

Price: 62.67, Change: +3.55, Percent Change: +6.00