03:30 PM EDT, 05/08/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

Our 12-month target of $57, up $4, reflects a 4.6x multiple of EV to projected 2024 EBITDA, slightly above OVV's historical average. We lift our 2024 EPS estimate by $0.08 to $6.36 and cut 2025's by $1.79 to $6.91. Q1 EPS of $1.43 vs. $1.82 was in line with consensus. Q1 revenue (~$2.4B) fell 8% Y/Y and 26% sequentially, driven by weaker Market Optimization segment revenues (-36%). Q1 production (~574k boe/d) grew 12% Y/Y, but fell 5% sequentially due to weaker crude oil volumes (-12%). OVV revised its 2024 production guide, with expected production to be in range of ~568k boe/d at the mid-point (vs. prior mid-point of 560k boe/d), while keeping its capex guide intact (mid-point of $2.3B vs. $2.7B in 2023). We see OVV with free cash flow in range of $1.9B in 2024 (vs. $1.1B in 2023) and $1.8B in 2025. Based on OVV's guide on use of cash (50% to shareholders/50% towards debt), we estimate OVV could reduce debt levels by 15% in 2024 (total debt was $5.8B in 2023), if it so chose, assuming energy prices hold.