Ovintiv Announces Renewal of Its Share Buy-Back Program Plan
Ovintiv Inc. Announces Share Buy-Back Program Renewal
Ovintiv Inc. (NYSE: OVV) has recently received approval for the renewal of its share buy-back program. This initiative aligns with the company’s commitment to returning value to its shareholders, emphasizing its capital allocation framework to provide at least half of its post-dividend Non-GAAP Free Cash Flow back to investors.
Renewal Details of the Buy-Back Program
The Toronto Stock Exchange has officially accepted Ovintiv's notice to renew its normal course issuer bid (NCIB). This program permits the purchase of up to 25,920,545 common shares over a 12-month period commencing soon. This total represents about 10 percent of the company's public float, according to the TSX's calculations.
Share purchases will be implemented through various platforms, including the Toronto Stock Exchange, New York Stock Exchange, and other select trading systems, reflecting the market price at the time of the acquisitions. Ovintiv is committed to honesty and compliance with the applicable trading regulations during this process.
Implementation of an Automatic Share Purchase Plan
To facilitate this buy-back initiative, Ovintiv has renewed its automatic share purchase plan (ASPP). This plan allows for share purchases even during times when the company typically would not be able to buy back shares due to regulatory constraints. The ASPP ensures that share buying instructions are provided to a designated broker during periods of trading freedom, allowing for smoother operations.
Operational Insights on Share Buying
The exact quantity of shares to be purchased and the timing will be determined at Ovintiv's discretion. In fact, the average trading volume over recent months stood at around 110,556 shares. Consequently, daily acquisitions will be set at a maximum of 27,639 shares, ensuring regulatory compliance at all times.
Performance of Previous Share Buy-Backs
During the current NCIB, Ovintiv has successfully acquired a notable number of common shares, with the quantity purchased exceeding 12 million. This accomplishment reflects the company’s strong position in the market and a commitment to shareholder value.
Previously, Ovintiv received special permission from Canadian regulators, allowing them to repurchase shares on U.S. marketplaces, boosting their capacity to buy back shares significantly. This additional flexibility enables the company to maintain a very proactive stance regarding its share buy-back program.
Market Impact and Strategic Planning
Market analysts view this share buy-back plan as an essential strategy, reinforcing the company’s fiscal responsibility and enhancing shareholder value. With the renewed commitment to repurchasing shares, Ovintiv showcases its strong cash flow management capabilities while navigating through market fluctuations.
Understanding the Broader Picture
Ovintiv’s buy-back strategies are part of a larger narrative focused on maximizing shareholder returns in conjunction with a robust operational model. By continuing to return capital to shareholders, Ovintiv aims to strengthen investor confidence and support its long-term growth objectives.
The combined effort of disciplined financial practices and strategic buy-back programs aligns with Ovintiv's corporate philosophy. It not only encourages investment but also underlines the company's intent on delivering consistent value to its stakeholders.
Frequently Asked Questions
What is Ovintiv's recent share buy-back program?
Ovintiv has renewed its normal course issuer bid that allows the company to repurchase up to approximately 25.9 million common shares over 12 months.
How does the automatic share purchase plan work?
The automatic share purchase plan allows Ovintiv to continue making repurchases even during regulatory restrictions, providing more flexibility for share acquisitions.
What has been the impact of the previous buy-back program?
Under its previous buy-back program, Ovintiv repurchased over 12 million shares at an average price, indicating a strong commitment to enhancing shareholder value.
Which stock exchanges are involved in the buy-back process?
Purchases will be made on the Toronto Stock Exchange, New York Stock Exchange, and other designated markets both domestically and internationally.
How does Ovintiv plan to fund the buy-back program?
Ovintiv plans to utilize a portion of its post-dividend Non-GAAP Free Cash Flow to fund the share repurchase program, ensuring financial sustainability while returning value to shareholders.
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