Ovintiv Inc. (NYSE, TSX: OVV) has announced the renewal of its share buy-back program, which has received regulatory approvals. The company's normal course issuer bid (NCIB) has been renewed to purchase up to 25,920,545 common shares during the 12-month period commencing October 3, 2024, and ending October 2, 2025. This represents 10 percent of Ovintiv’s public float as of September 20, 2024.
Under the existing NCIB, Ovintiv purchased 12,747,485 common shares on the TSX, NYSE, and alternative trading systems at a weighted average purchase price of US$46.44 per common share during the 12-month period commencing October 3, 2023, and ending October 2, 2024.
Additionally, Ovintiv has renewed its automatic share purchase plan (ASPP), allowing it to purchase common shares under the NCIB when regulatory restrictions and customary self-imposed blackout periods are in place. The company has also obtained an exemption order from applicable Canadian regulators, permitting repurchases under the NCIB through the facilities of the NYSE and other United States-based trading systems in excess of 5 percent of Ovintiv’s outstanding number of shares.
The company's capital allocation framework returns at least 50 percent of post base dividend non-GAAP free cash flow to shareholders. All purchases made under the ASPP are included in computing the number of common shares purchased under the NCIB. The actual number of common shares that may be purchased under the NCIB and the timing of any such purchases will be determined by Ovintiv.
These actions indicate Ovintiv’s commitment to returning value to its shareholders and its confidence in its financial position. The market has reacted to these announcements by moving the company's shares 3.4% to a price of $38.24. If you want to know more, read the company's complete 8-K report here.
