Arun Jayaram's questions to Ovintiv Inc (OVV) leadership • Q3 2024
Question
Arun Jayaram of JPMorgan Chase & Co. asked about the implications of the upcoming LNG Canada startup for the Canadian gas market and Ovintiv's Montney position. He also requested commentary on the current A&D market and Ovintiv's ability to leverage its low-cost structure.
Answer
Executive Brendan McCracken stated that while LNG Canada is a long-term positive, its initial impact on AECO pricing might be transitory as operators have already drilled into the new capacity. On A&D, he noted that valuations have increased significantly, reinforcing the company's disciplined approach and the high hurdle rate for any potential acquisition.