Ovintiv (OVV) is beginning to show the benefits of its portfolio simplification efforts, with improved operational efficiency, stronger well performance and a sharper-than-expected reduction in debt, UBS Securities said.

The brokerage said in a Monday note that Ovintiv's Q1 results beat expectations on cash flow per share, while production came in at the high end of guidance and capital spending was at the low end of the range.

UBS said Montney operations are already delivering meaningful per-well savings, while Permian wells are performing above the 2025 average.

The investment firm added that the company's improved debt position supports higher shareholder returns than previously expected, and said Ovintiv remains its "Top E&P Pick."

UBS has a buy rating on the stock, with a $75 price target.

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