A rebound in oil prices since late August has made it a great time to invest in energy stocks. But not all all energy stocks are great buys. If you're looking for an undervalued oil stocks that offers strong growth potential, then look no further than Ovintiv Inc. (NYSE:OVV).Ovintiv Inc. (OVV) is an independent oil and gas producer that explores and churns out oil and natural gas from diverse assets in the United States and Canada. Due to the buyout of Newfield Exploration in 2019, Ovintiv has become one of the more significant upstream players in the North American E&P landscape.
Only a few years ago, natural gas made up about 95% of OVV's output. However, the company has successfully repositioned its asset base and transitioned to crude, which is more profitable. A considerable portion of the firm's output comes from three positions in North America.
This includes Montney in British Columbia and Alberta, Anadarko Basin in Oklahoma, and the Permian Basin in New Mexico. Its portfolio also includes acreage in North Dakota's Bakken Shale, plus Eagle Ford in Texas. These are some of the most cost-advantaged shales in North America, with substantial opportunities for profitable drilling at current commodity prices.