Ovintiv (OVV) well performance in the Midland and Montney continues to trend above the 2025 type curve, supporting oil and condensate production at the midpoint of guidance despite headwinds from royalty volumes and plant turnarounds, UBS said in a note emailed Monday.

UBS said volumes should climb back toward the higher end of guidance in H2, with potential upside if Permian volumes hold near recent levels.

UBS said Ovintiv's balance sheet has improved significantly following debt reduction from Anadarko divestiture proceeds, which should allow the company to accelerate its share buyback pace and sustain elevated shareholder returns into next year.

UBS maintained its buy rating and decreased the price target to $71 from $75.

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