03:18 PM EDT, 10/04/2024 (MT Newswires) -- Ovintiv ( OVV ) is likely to post below-than-expected cash flow per share in Q3 due to weak natural gas prices and realizations, UBS said in an earnings preview emailed Friday.

UBS estimates cash flow per share of $3.44 versus the Street's estimate of $3.84.

Despite those factors, the investment firm said it looks for "continued operational and financial execution as the key positives."

UBS said it expects Q3 production of around 575,000 barrels of oil equivalents per day, down 3% quarter over quarter but above the midpoint of the company's guidance of 565,000 to 580,000.

UBS also estimates a debt reduction of more than $110 million in Q3, as well as a further debt reduction in Q4, "providing confidence [the company] can reduce balance sheet risk while also returning 50% of post base dividend [free cash flow] to shareholders," according to the note.

Ovintiv ( OVV ) previously expected share buybacks of about $162 million for Q3. UBS said it was modeling $140 million in Q4 buybacks.

UBS reiterated its buy rating and a 12-month price target of $57 on the company's stock.

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