Ovintiv's Share Buy-Back Program Renews Commitment to Shareholders
Company Secures Approval for Renewed Normal Course Issuer Bid
Ovintiv Inc. (NYSE: OVV) has announced the renewal of its share buy-back program, having received the necessary regulatory approvals recently. This initiative aligns with Ovintiv's capital allocation strategy, which ensures a return of at least 50 percent of post-base dividend Non-GAAP Free Cash Flow to shareholders. The company remains committed to enhancing shareholder value through systematic returns on investment.
Details of the Share Buy-Back Program
The Toronto Stock Exchange ("TSX") has approved Ovintiv's intention to renew its normal course issuer bid ("NCIB"). This program allows the company to repurchase up to 22,287,709 common shares over a 12-month period spanning from October to October of the following year. This figure reflects 10 percent of the company's public float, as established by TSX regulations.
Purchasing Mechanism
Common shares will be acquired through open market transactions executed on the TSX and the New York Stock Exchange ("NYSE"), among other designated exchanges. Purchases will occur at the prevailing market prices, allowing for flexibility in acquisition during the designated periods. This buy-back program will also utilize the permitted means under stock exchange rules.
Automatic Share Purchase Plan
Furthermore, Ovintiv has implemented an automatic share purchase plan ("ASPP") to facilitate repurchases even during periods where the company might not typically be able to make purchases due to regulatory constraints. Under this plan, Ovintiv provides specific instructions to its designated broker during non-restricted periods, ensuring compliance with stock exchange regulations.
Projected Share Buy-Back Activity
The precise number of shares that Ovintiv will purchase and the timing of these purchases remain at the discretion of the company. Recent trading volume data indicated an average of 185,256 common shares traded daily on the TSX, resulting in a limit of 46,314 shares for daily acquisitions except when block purchase exceptions apply.
Under its previous NCIB, which was approved last year and allowed for the repurchase of 25,920,545 common shares, Ovintiv had already acquired 7,836,011 shares at an average price of $38.80 per share. This demonstrates the company’s proactive approach to utilizing its capital effectively.
To further enhance its strategy, Ovintiv also renewed its exemption order, the "NCIB Exemption," allowing it to repurchase shares beyond the 5 percent threshold of its outstanding share count on U.S. markets, thereby aligning with its capital strategy while remaining compliant with applicable regulations.
Future Outlook and Investor Confidence
Ovintiv's management emphasizes the importance of investor confidence and anticipates continued engagement through its strategic capital allocation. Prospective share purchases are designed to reflect Ovintiv’s commitment to its shareholders while adapting to market conditions and regulatory frameworks.
For more insights on this program and other corporate developments, investors are encouraged to visit Ovintiv's official website, where further details and operational updates are regularly posted.
Company Contact Information
For inquiries, investors can reach the company via:
Investor Contact: (888) 525-0304
Media Contact: (403) 645-2252
Frequently Asked Questions
What is the purpose of Ovintiv’s share buy-back program?
The share buy-back program is designed to enhance shareholder value by returning capital to investors and optimizing the capital structure.
How many shares can Ovintiv repurchase under the program?
Ovintiv is authorized to repurchase up to 22,287,709 common shares during the designated 12-month period.
What markets will share repurchases be conducted on?
The repurchases will take place on both the Toronto Stock Exchange and the New York Stock Exchange.
What is the automatic share purchase plan?
The ASPP allows Ovintiv to purchase shares during times when it cannot ordinarily do so, ensuring continuous compliance with regulations.
How has the previous NCIB performed?
Under the previous NCIB, Ovintiv successfully repurchased 7,836,011 common shares, reflecting its effective capital management strategy.
