Full Year Capital Guidance Lowered; Production Guidance Increased

Highlights:

   -- Generated cash from operating activities of $1,013 million, Non-GAAP Cash 
      Flow of $913 million and Non-GAAP Free Cash Flow of $392 million after 
      capital expenditures of $521 million 
 
   -- Second quarter production was above the guidance range on every product 
      with average total production volumes of 615 thousand barrels of oil 
      equivalent per day ("MBOE/d"), including 211 thousand barrels per day 
      ("Mbbls/d") of oil and condensate, 96 Mbbls/d of other NGLs (C2 to C4) 
      and 1,851 million cubic feet per day ("MMcf/d") of natural gas 
 
   -- Reduced Net Debt by $217 million during the quarter to approximately 
      $5.31 billion 
 
   -- Returned $223 million to shareholders through the combination of base 
      dividend payments and share buybacks 
 
   -- Raised full year production guidance to a range of 600 MBOE/d to 620 
      MBOE/d, including oil and condensate of 205 Mbbls/d to 209 Mbbls/d and 
      natural gas of 1,825 MMcf/d to 1,875 MMcf/d 
 
   -- Full year capital guidance range lowered to $2.125 billion to $2.175 
      billion, $50 million lower at the midpoint 

DENVER, July 24, 2025 /PRNewswire/ - Ovintiv Inc. (NYSE: OVV) (TSX: OVV) ("Ovintiv" or the "Company") today announced its second quarter 2025 financial and operating results. The Company plans to hold a conference call and webcast at 8:00 a.m. MT (10:00 a.m. ET) on July 25, 2025. Please see dial-in details within this release, as well as additional details on the Company's website at www.ovintiv.com under Presentations and Events -- Ovintiv.

"Our second quarter results are a reflection of the quality of the business we have built," said Ovintiv President and CEO, Brendan McCracken. "Strong well performance across our portfolio, the rapid integration of our new Montney assets and enhanced capital efficiency have enabled us to reduce our expected 2025 capital investment and operating costs while increasing our full year production guidance. As a result, assuming commodity prices of $60 WTI and $3.75 NYMEX for the second half of the year, we now expect to generate $1.65 billion of Free Cash Flow, up $150 million from our previous estimate."

Second Quarter 2025 Financial and Operating Results

   -- The Company recorded net earnings of $307 million, or $1.18 per diluted 
      share of common stock, including net gains on risk management in revenues 
      of $87 million, before tax. 
 
   -- Cash from operating activities was $1,013 million, Non-GAAP Cash Flow was 
      $913 million, and capital investment totaled approximately $521 million, 
      resulting in $392 million of Non-GAAP Free Cash Flow. 
 
   -- Second quarter average total production volumes were approximately 
      615 MBOE/d, including 211 Mbbls/d of oil and condensate, 96 Mbbls/d of 
      other NGLs (C2 to C4) and 1,851 MMcf/d of natural gas. 
 
   -- Upstream operating expense was $3.84 per barrel of oil equivalent 
      ("BOE"). Upstream transportation and processing costs were $7.62 per BOE. 
      Production, mineral and other taxes were $1.31 per BOE, or 4.1% of 
      upstream revenue. These costs were below the midpoint of guidance on a 
      combined basis. 
 
   -- Excluding the impact of hedges, second quarter average realized prices 
      were $63.28 per barrel for oil and condensate (99% of WTI), $18.28 per 
      barrel for other NGLs (C2 to C4) and $2.24 per thousand cubic feet 
      ("Mcf") for natural gas (65% of NYMEX) resulting in a total average 
      realized price of $31.32 per BOE. 
 
   -- Including the impact of hedges, the average realized prices for oil and 
      condensate was $63.77 (100% of WTI), the average realized price for other 
      NGLs (C2 to C4) was unchanged, and the average realized price for natural 
      gas was $2.38 per Mcf (69% of NYMEX) resulting in a total average 
      realized price of $31.91 per BOE. 

Guidance

The Company issued its third quarter 2025 guidance and increased its full year production guidance while reducing expected capital investment. Full year production volumes are now expected to average 600 to 620 MBOE/d, with full year expected capital investment of $2.125 billion to $2.175 billion.

 
                                     Prior Full Year   Updated Full Year 
                       3Q 2025E           2025E              2025E 
                    --------------  -----------------  ----------------- 
Total Production 
 (MBOE/d)             610 -- 630       595 -- 615         600 -- 620 
Oil & Condensate 
 (Mbbls/d)            202 -- 208       202 -- 208         205 -- 209 
NGLs (C2 - C4) 
 (Mbbls/d)             94 -- 98         87 -- 92           93 -- 96 
Natural Gas 
 (MMcf/d)           1,875 -- 1,925   1,825 -- 1,875     1,825 -- 1,875 
Capital Investment 
 (Millions)          $525 -- $575   $2,150 -- $2,250   $2,125 -- $2,175 
------------------  --------------  -----------------  ----------------- 
 

Returns to Shareholders

Ovintiv remains committed to its capital allocation framework, which is expected to return at least 50% of post base dividend Non-GAAP Free Cash Flow to shareholders through buybacks and/or variable dividends.

In the second quarter, the Company purchased for cancellation, approximately 4.1 million shares of common stock for consideration of approximately $146 million and paid dividends of $0.30 per share of common stock totaling $77 million. Share buybacks in the third quarter are expected to total approximately $158 million.

Continued Balance Sheet Focus

Ovintiv had approximately $3.2 billion in total liquidity as of June 30, 2025, which included available credit facilities of $3,350 million, available uncommitted demand lines of $132 million, and cash and cash equivalents of $20 million, net of outstanding commercial paper of $331 million.

Ovintiv reported Debt to EBITDA of 1.6 times and Non-GAAP Debt to Adjusted EBITDA of 1.2 times.

The Company remains committed to maintaining a strong balance sheet and is currently rated investment grade by four credit rating agencies. Ovintiv maintains a long-term leverage target of 1.0 times Non-GAAP Debt to Adjusted EBITDA at mid-cycle prices, with an associated long-term total debt target of $4.0 billion.

Dividend Declared

On July 24, 2025, Ovintiv's Board declared a quarterly dividend of $0.30 per share of common stock payable on September 29, 2025, to shareholders of record as of September 15, 2025.

Asset Highlights

Permian

Permian production averaged 215 MBOE/d (80% liquids) in the second quarter. The Company had 23 net wells turned in line ("TIL"). Full year capital investment in the play is expected to total approximately $1.20 billion to $1.25 billion to bring on 130 to 140 net wells.

Montney

Montney production averaged 300 MBOE/d (26% liquids) in the second quarter. The Company had 39 net wells TIL. Full year capital investment in the play is expected to total approximately $575 million to $625 million to bring on 75 to 85 net wells.

Anadarko

Anadarko production averaged 100 MBOE/d (59% liquids) in the second quarter. The Company had 11 net wells TIL. Full year capital investment in the play is expected to total approximately $290 million to $310 million to bring on 25 to 35 net wells.

For additional information on the Company's quarterly results, please refer to the Second Quarter 2025 Results Presentation available on Ovintiv's website, www.ovintiv.com under Presentations and Events -- Ovintiv. Supplemental Information, and Non-GAAP Definitions and Reconciliations, are available on Ovintiv's website under Financial Documents Library.

Conference Call Information

A conference call and webcast to discuss the Company's second quarter results will be held at 8:00 a.m. MT (10:00 a.m. ET) on July 25, 2025.

To join the conference call without operator assistance, you may register and enter your phone number at https://emportal.ink/3Pu99jK to receive an instant automated call back. You can also dial direct to be entered to the call by an Operator. Please dial 888-510-2154 (toll-free in North America) or 437-900-0527 (international) approximately 15 minutes prior to the call.

The live audio webcast of the conference call, including slides and financial statements, will be available on Ovintiv's website, www.ovintiv.com under Investors/Presentations and Events. The webcast will be archived for approximately 90 days.

Refer to Note 1 Non-GAAP measures and the tables in this release for reconciliation to comparable GAAP financial measures.

Capital Investment and Production

 
(for the period ended June 30)          2Q 2025  2Q 2024 
--------------------------------------  -------  ------- 
Capital Expenditures (1) ($ millions)       521      622 
                                        -------  ------- 
Oil (Mbbls/d)                             142.0    167.3 
NGLs -- Plant Condensate (Mbbls/d)         69.2     44.6 
--------------------------------------  -------  ------- 
Oil & Plant Condensate (Mbbls/d)          211.2    211.9 
--------------------------------------  -------  ------- 
NGLs -- Other (Mbbls/d)                    95.5     92.0 
--------------------------------------  -------  ------- 
Total Liquids (Mbbls/d)                   306.7    303.9 
--------------------------------------  -------  ------- 
Natural gas (MMcf/d)                      1,851    1,740 
--------------------------------------  -------  ------- 
Total production (MBOE/d)                 615.3    593.8 
--------------------------------------  -------  ------- 
 
 
(1)  Including capitalized directly attributable internal costs. 
 

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