Wells Fargo Raises Ovintiv (OVV) PT to $42, Cites Superior Montney Assets from NuVista Energy Acquisition

1 month ago 17

Maham Fatima

Tue, November 25, 2025 astatine 7:27 AM CST 2 min read

Ovintiv Inc. (NYSE:OVV) is 1 of the most undervalued NYSE stocks to bargain close now. On November 18, Wells Fargo expert Hanwen Chang raised the firm’s terms people connected Ovintiv to $42 from $38 and kept an Equal Weight standing connected the shares. This upgrade was announced arsenic Chang noted that the NuVista Energy acquisition provides Ovintiv with superior Montney assets, boosting productivity and unlocking the imaginable for implicit 5% lipid maturation without important midstream superior expenditure.

Earlier this month, connected November 5, Ovintiv signed a definitive statement to get Canadian institution NuVista Energy for ~$2.7 cardinal (CAD 3.8 billion) successful a cash-and-stock transaction. Ovintiv already holds 9.6 percent of NuVista’s outstanding shares, which it obtained successful a backstage transaction astatine CAD 16 per share. The full information for the remaining NuVista shares is structured arsenic a blend of 50% currency and 50% Ovintiv communal stock. The full acquisition terms for NuVista is ~CAD 17.8 per share.

Wells Fargo Raises Ovintiv (OVV) PT to $42, Cites Superior Montney Assets from NuVista Energy Acquisition

The acquisition is centered connected high-quality assets successful the halfway of the Alberta Montney. The woody provides Ovintiv with ~930 nett 10,000-foot equivalent good locations and ~140,000 nett acres, with astir 70% of the acreage being undeveloped and straight adjacent to Ovintiv’s existing operations. The NuVista assets are projected to nutrient an mean of 100,000 barrels of lipid equivalent a time adjacent year, which includes astir 25,000 barrels per time of lipid and condensate. This infrastructure is expected to let Ovintiv’s Montney lipid and condensate volumes to turn implicit 5% per twelvemonth for the adjacent 3-5 years.

Ovintiv Inc. (NYSE:OVV) explores, develops, produces, and markets earthy gas, oil, and earthy state liquids successful North America.

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Disclosure: None. This nonfiction is primitively published at Insider Monkey.