1. Ovintiv reports robust first quarter results boosting free cash flow. 2. Successful integration of Montney assets is ongoing for cost synergies. 3. Full year production guidance set at 595-615 MBOE/d with robust investments. 4. Resumed share buybacks expected to utilize $146 million in Q2 2025. 5. Quarterly dividend of $0.30 per share declared for June 2025.
Strong quarterly performance and ongoing asset integration support OVV's financial health.
Positive financial updates and confirmed dividends can increase investor confidence and lead to price appreciation.
Immediate effects expected due to earnings announcements and dividend declarations impacting investor sentiment.
DENVER, May 6, 2025 /PRNewswire/ - Ovintiv Inc. (NYSE: OVV) (TSX: OVV) ("Ovintiv" or the "Company") today announced its first 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 May 7, 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 strong first quarter results continue to build our track record of driving operational excellence to maximize free cash flow," said Ovintiv President and CEO, Brendan McCracken. "We have seamlessly integrated the newly acquired Montney assets into our existing operations and our team is well on its way to achieving the targeted $1.5 million per well cost reduction synergies. Our business was built using mid-cycle prices of $55 WTI and $2.75 NYMEX. This was purposeful to ensure we can continue to generate superior returns and free cash flow throughout the cycle. The recent volatility has validated our choice of maintenance level investment in 2025. We are maintaining our capital investment plans today, but we have full flexibility to lower capital and will do so if commodity prices deteriorate."
The Company issued its second quarter 2025 guidance and reiterated its full year guidance. Full year production volumes are expected to average 595 to 615 MBOE/d, with full year capital investment of $2.15 billion to $2.25 billion.
| Metric | 2Q 2025 | Full Year 2025 |
|---|---|---|
| Total Production (MBOE/d) | 585 – 605 | 595 – 615 |
| Oil & Condensate (Mbbls/d) | 202 – 208 | 202 – 208 |
| NGLs (C2 - C4) (Mbbls/d) | 87 – 92 | 87 – 92 |
| Natural Gas (MMcf/d) | 1,775 – 1,825 | 1,825 – 1,875 |
| Capital Investment (Millions) | $550 – $600 | $2,150 – $2,250 |
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.
The Company's share buyback program was temporarily paused in the fourth quarter of 2024 to recover the transaction proceeds differential between the Montney acquisition and the Uinta divestiture of $377 million. By the end of the first quarter, approximately $368 million was redirected to debt reduction from the buyback pause. The Company has resumed share buybacks in the second quarter and expects to repurchase approximately $146 million after recovering the remaining transaction proceeds differential of $9 million. In April, the Company repurchased approximately 1.2 million shares of common stock for $40 million, at an average price of $32.40 per share.
Ovintiv had approximately $3.5 billion in total liquidity as of March 31, 2025, which included available credit facilities of $3.5 billion, available uncommitted demand lines of $92 million, and cash and cash equivalents of $8 million, net of outstanding commercial paper of $85 million.
On May 6, 2025, Ovintiv's Board declared a quarterly dividend of $0.30 per share of common stock payable on June 30, 2025, to shareholders of record as of June 13, 2025.
Permian production averaged 217 MBOE/d (81% liquids) in the first quarter. The Company had 53 net wells turned in line ("TIL"). In 2025, Ovintiv plans to invest approximately $1.2 billion to $1.3 billion in the play to bring on 130 to 140 net wells.
Montney production averaged 272 MBOE/d (23% liquids) in the first quarter. The Company had 18 net wells TIL. In 2025, Ovintiv plans to invest approximately $575 million to $625 million in the play to bring on 75 to 85 net wells.
Anadarko production averaged 91 MBOE/d (55% liquids) in the first quarter. The Company had ten net wells TIL. In 2025, Ovintiv plans to invest approximately $300 million to $325 million in the play to bring on 25 to 35 net wells.
Today, the Company released its 20th annual Sustainability Report, highlighting its progress and performance on several key initiatives related to the environment, social responsibility, and corporate governance.
"2024 marked another year of strong strategic execution as we continued to provide the safe, affordable, and secure energy that fuels the world," said McCracken. "Our Sustainability Report reflects the tremendous efforts of our team to innovate, drive continuous improvement, and be a responsible producer while generating durable returns for our shareholders."
Ovintiv's sustainability report can be found on the Company's website at Home – Ovintiv.
A conference call and webcast to discuss the Company's first quarter results will be held at 8:00 a.m. MT (10:00 a.m. ET) on May 7, 2025.
To join the conference call without operator assistance, you may register and enter your phone number at https://emportal.ink/4gNVVu0 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.
Ovintiv reports in U.S. dollars unless otherwise noted. Production, sales, and reserves estimates are reported on an after-royalties basis, unless otherwise noted. Unless otherwise specified or the context otherwise requires, references to "Ovintiv," "we," "its," "our" or to "the Company" includes reference to subsidiaries of and partnership interests held by Ovintiv Inc. and its subsidiaries.
Please visit Ovintiv's website and Investor Relations page at www.ovintiv.com and investor.ovintiv.com, where Ovintiv often discloses important information about the Company, its business, and its results of operations.