#Sustainability #United States #Denver #Ovintiv #Montney

Ovintiv Reports First Quarter 2025 Financial Results

On May 6, 2025, Ovintiv Inc. released its financial and operational results for the first quarter of 2025, reflecting a robust performance driven by strategic investments in maintenance and operational excellence. Despite facing a net loss, the company emphasized its ability to generate significant cash flow.

Key Financial Highlights

Ovintiv's operating activities generated an impressive cash flow of $873 million, alongside a Non-GAAP Cash Flow of $1,004 million and a Non-GAAP Free Cash Flow of $387 million, following capital expenditures totaling $617 million. This positive cash generation comes in contrast to a net loss recorded at $159 million, attributed in part to a non-cash ceiling test impairment of $557 million.

Average total production reached approximately 588 thousand barrels of oil equivalent per day (MBOE/d), exceeding the midpoint of the company’s guidance range. This included 206 Mbbls/d of oil and condensate and 1,764 million cubic feet per day (MMcf/d) of natural gas. Notably, the integration of the newly acquired Montney assets has enhanced production capabilities and operational efficiency.

Strategic Investments and Growth Plans

Ovintiv is committed to maintaining its capital investment levels while allowing flexibility to reduce spending if commodity prices decline. In 2025, the company is focused on its ambitious plan to optimize production levels, targeting an average production volume between 595 to 615 MBOE/d throughout the year.

Commitment to Sustainability

A highlight of Ovintiv’s report is its dedication to sustainability, demonstrating significant strides towards environmental responsibility. The company achieved over a 45% reduction in Scope 1 and 2 greenhouse gas emissions intensity since 2019, with ongoing goals to reach a 50% reduction by 2030. Additionally, the release of the 2024 Sustainability Report underscores its commitment to social responsibility, governance, and community initiatives, including a notable $10.2 million sponsorship supporting children's hospitals in their operational regions.

Shareholder Returns and Financial Management

In keeping with its capital allocation framework, Ovintiv has reiterated its commitment to returning over 50% of post-dividend Non-GAAP Free Cash Flow to shareholders. The company's share buyback program has returned to activity in the second quarter, following a temporary pause to address transaction proceeds from its recent acquisitions and divestitures.

The company reported a total liquidity position of approximately $3.5 billion as of March 31, indicating a strong financial foundation moving forward. Furthermore, Ovintiv maintains an investment-grade rating and a long-term leverage target intended to bolster financial stability despite the volatility in commodity markets.

Outlook and Guidance

As Ovintiv transitions into the second quarter of 2025, it remains steadfast in its operational excellence strategies. The company anticipates robust financial performance while reinforcing its commitment to sustainable practices.

Eligible investors and analysts can tune into the upcoming conference call scheduled for May 7, 2025, at 8:00 AM MT, where more details regarding the first quarter results will be shared. For complete financial details, stakeholders are encouraged to visit Ovintiv’s Investor Relations webpage.

In conclusion, while Ovintiv navigates the complexities of the energy sector, its proactive strategies in cash flow management, production enhancement, and sustainability initiatives position it favorably for ongoing success in 2025 and beyond.