Ovintiv to Report Q2 Earnings: What's in the Offing for the Stock?

Core Viewpoint - Ovintiv Inc. is expected to report second-quarter earnings on July 24, with estimates of $1.04 per share and revenues of $1.9 billion [1][7]. Group 1: Previous Quarter Performance - In the last reported quarter, Ovintiv exceeded earnings expectations with adjusted earnings per share of $1.42, surpassing the Zacks Consensus Estimate of $1.20 [2]. - Total revenues for the last quarter were $2.4 billion, beating the Zacks Consensus Estimate by 3.3%, driven by improved natural gas pricing and higher product and service sales [2]. - Ovintiv has consistently beaten earnings estimates in the past four quarters, achieving an average surprise of 27.8% [2]. Group 2: Estimate Revisions and Projections - The Zacks Consensus Estimate for second-quarter 2025 earnings has increased by 2% in the past week, although it indicates a 16.1% year-over-year decline [3]. - Revenue estimates for the second quarter suggest a decline of approximately 14.7% compared to the previous year [3]. - Ovintiv's natural gas volumes are projected to rise by 4.5% year-over-year to 1818 million cubic feet per day (MMcf/d) in Q2 [4][7]. Group 3: Operational Insights - The company anticipates higher natural gas volumes due to full gas systems in Western Canada, preparing for LNG Canada coming online [4]. - Revenues from Canadian operations are expected to reach $481.7 million, reflecting a 4.7% increase from the prior year [4]. - However, operating expenses are projected to increase significantly to $2.3 billion from $1.7 billion in the previous year [5][7]. Group 4: Earnings Prediction - The model predicts an earnings beat for Ovintiv, supported by a positive Earnings ESP of +7.28% and a Zacks Rank of 3 [6][8].