Ovintiv (OVV) Benefitted from Increase in Production

Patient Capital Management, a value investing firm, released its “Patient Capital Opportunity Equity Strategy” third quarter 2023 investor letter. A copy of the same can be downloaded here. During the quarter the strategy returned -6.0% net of fees compared to the S&P 500’s -3.3% return. As the quarter demonstrated, the markets are uncertain. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.

Patient Capital Management highlighted stocks like Ovintiv Inc. (NYSE:OVV) in the third quarter 2023 investor letter. Based in Denver, Colorado, Ovintiv Inc. (NYSE:OVV) is an oil and gas exploration and production company. On November 1, 2023, Ovintiv Inc. (NYSE:OVV)  stock closed at $47.64 per share. One-month return of Ovintiv Inc. (NYSE:OVV) was 8.54%, and its shares lost 6.86% of their value over the last 52 weeks. Ovintiv Inc. (NYSE:OVV) has a market capitalization of $13 billion.

Patient Capital Management made the following comment about Ovintiv Inc. (NYSE:OVV) in its Q3 2023 investor letter:

“Ovintiv Inc. (NYSE:OVV) reversed its trend from the first half of the year climbing 25.6% in the quarter as commodity prices caught a bid. The company is benefiting from increases in production due to improved well productivity across its portfolio combined with a lower level of maintenance capex. 40% of oil and 50% of gas exposure is hedge for the next twelve months providing insulation from fluctuations in commodity prices. Ovintiv continues to allocate 50% of post-dividend free cash flow (FCF) to debt paydown, and 50% to shareholder returns via either dividends or buybacks.”

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Ovintiv Inc. (NYSE:OVV) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 24 hedge fund portfolios held Ovintiv Inc. (NYSE:OVV) at the end of second quarter which was 35 in the previous quarter.

We discussed Ovintiv Inc. (NYSE:OVV) in another article and shared the list of stocks whose price targets were recently raised by analysts. In addition, please check out our hedge fund investor letters Q3 2023 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.