Aug. 19 at 10:33 PM
S&P Global Ratings raised its outlook on Ovintiv to Positive from Stable while affirming its BBB- issuer credit rating, citing significant debt reduction and stronger cash flow. Ovintiv cut net debt by nearly
$2.2 billion in the first half of 2026 to just under
$3 billion as of June 30, after selling its Anadarko assets for
$3 billion in April and using the proceeds to repay debt, including
$700 million of senior notes due 2028.
S&P expects Ovintiv to generate about
$3.6 billion in operating free cash flow this year, more than double the
$1.6 billion generated in 2025, supported by elevated oil prices amid the ongoing Iran war. Funds from operations to debt are expected to average about 150% in 2026-28, while debt-to-EBITDA should remain below 1x.
The Positive outlook reflects expectations that Ovintiv will keep net debt below its
$4 billion target and maintain positive discretionary cash flow.
$OVV