An investment organization strategies to launch a proxy fight at Ovintiv Inc., arguing the oil-and-gasoline producer need to alter its expending and increase governance to boost the company’s share cost.
Kimmeridge Energy Management Co. will nominate a few candidates, like its founder Ben Dell, to Ovintiv’s board Tuesday, Kimmeridge officials said. It holds a 2.5% stake valued at about $100 million in Ovintiv, which has a marketplace benefit of $4.4 billion.
Denver-primarily based Ovintiv creates oil and all-natural gas. Formerly identified as Encana Corp., it has considerable property in the Permian and Anadarko basins and Canada’s Montney area. Tiny and midsize producers have been damage by the intense fall in crude-oil rates in current several years and have been below pressure from traders to produce far more consistent money flows.
An Ovintiv spokeswoman explained the business is targeted on developing sustainable value for investors. “We have created major free funds stream for each of the last three yrs and we’re coming into this year with solid momentum,” she mentioned.
Kimmeridge running associate Mark Vivianoundefinedsaid in an job interview that Ovintiv has underperformed its peers, which he blamed on a board that he suggests has restricted experience in shale.