Key Takeaways Ovintiv posted Q4 EPS of $1.39, beating estimates as output and gas prices rose.Revenues fell 1.9% Y/Y to $2.1B on lower oil volumes and weaker realized oil prices.OVV closed the NuVista buy, sold Anadarko assets and plans up to 75% FCF returns in 2026.Ovintiv Inc. (OVV) reported fourth-quarter 2025 adjusted earnings per share of $1.39, which beat the Zacks Consensus Estimate of 98 cents. The bottom line also increased from the year-ago level of $1.35. The outperformance was driven by higher p ...

Group 1 - The article discusses the analysis of oil and gas companies, specifically Ovintiv and Paramount Resources, focusing on their balance sheets, competitive positions, and development prospects [1] - The author emphasizes the cyclical nature of the oil and gas industry, highlighting the importance of patience and experience in navigating this sector [2] - The investing group, Oil & Gas Value Research, seeks undervalued oil companies and out-of-favor midstream companies, providing a platform for investors to share ideas and discuss recent information [2] Group 2 - The author has a beneficial long position in the shares of PRMRF CVE, indicating a personal investment interest in the companies discussed [3] - The article does not provide specific investment recommendations, urging investors to conduct their own research and review company filings [4] - Seeking Alpha clarifies that past performance does not guarantee future results and that the views expressed may not reflect the opinions of the platform as a whole [5]

Ovintiv (NYSE:OVV) Q4 2025 Earnings call February 24, 2026 10:00 AM ET Company ParticipantsBrendan McCracken - President and CEOCorey Code - CFOGreg Givens - EVP and COOGreg Pardy - Managing Director and Head of Global Energy ResearchJason Verhaest - Director of Investor RelationsJosh Silverstein - Managing DirectorKevin MacCurdy - Managing DirectorLloyd Byrne - Managing Director, Equity ResearchNeil Mehta - Head of Americas Natural Resources Equity ResearchPhillip Jungwirth - Managing DirectorNone - Compan ...

Ovintiv (NYSE:OVV) Q4 2025 Earnings call February 24, 2026 10:00 AM ET Company ParticipantsBrendan McCracken - President and CEOCorey Code - CFOGreg Givens - EVP and COOGreg Pardy - Managing Director and Head of Global Energy ResearchJason Verhaest - Director of Investor RelationsJosh Silverstein - Managing DirectorKevin MacCurdy - Managing DirectorLloyd Byrne - Managing Director, Equity ResearchNeil Mehta - Head of Americas Natural Resources Equity ResearchPhillip Jungwirth - Managing DirectorConference Ca ...

Ovintiv (NYSE:OVV) Q4 2025 Earnings call February 24, 2026 10:00 AM ET Speaker14Good day, ladies and gentlemen, and thank you for standing by. Welcome to Ovintiv's 2025 fourth quarter and year-end results conference call. As a reminder, today's call is being recorded. At this time, all participants are in a listen-only mode. Following the presentation, we will conduct a question-and-answer session. Members of the investment community will have the opportunity to ask questions and can join the queue at any t ...

Disclaimers and Non-GAAP Definitions For convenience, references in this presentation to "Ovintiv", "OVV", the "Company", "we", "us" and "our" may, where applicable, refer only to or include any relevant direct and indirect subsidiary entities and partnerships ("Subsidiaries") of Ovintiv Inc., and the assets, activities and initiatives of such Subsidiaries. The terms "include", "includes", "including" and "included" are to be construed as if they were immediately followed by the words "without limitation", ...

Core Insights - Ovintiv reported revenue of $2.15 billion for the quarter ended December 2025, a decrease of 1.9% year-over-year, with an EPS of $1.39, up from $1.35 in the previous year [1] - The revenue exceeded the Zacks Consensus Estimate of $1.95 billion by 10.21%, while the EPS surpassed the consensus estimate of $0.98 by 42.46% [1] Financial Performance - Ovintiv's shares have returned +23.3% over the past month, outperforming the Zacks S&P 500 composite's +1.8% change [3] - The company currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3] Production Volumes - Total production volumes of oil and plant condensate reached 208.7 million barrels, exceeding the six-analyst average estimate of 208.02 million barrels [4] - NGLs-Other production totaled 97.2 million barrels, surpassing the average estimate of 95.53 million barrels [4] - Total production volumes amounted to 623.4 million barrels of oil equivalent, slightly above the six-analyst average estimate of 619.89 million barrels of oil equivalent [4] - Natural gas production was reported at 1905 million cubic feet, closely matching the average estimate of 1905.97 million cubic feet [4] - Oil production totaled 140.9 million barrels, exceeding the three-analyst average estimate of 139.91 million barrels [4] - NGLs production reached 165 million barrels, above the average estimate of 163.81 million barrels [4] - Combined oil and NGLs production was 305.9 million barrels, compared to the three-analyst average estimate of 303.71 million barrels [4] - Canadian operations produced 304.6 million barrels of oil equivalent, slightly below the average estimate of 306.89 million barrels [4] - USA operations produced 318.8 million barrels of oil equivalent, exceeding the average estimate of 314.16 million barrels [4] Revenue Breakdown - Revenues from Canadian operations were $747 million, surpassing the average estimate of $706.65 million and reflecting a year-over-year increase of 17.3% [4] - Revenues from USA operations were $1.36 billion, significantly lower than the average estimate of $1.2 billion, representing a year-over-year decline of 51.7% [4] - Corporate and other revenues were reported at $36 million, compared to the average estimate of -$42.16 million, indicating a year-over-year change of -164.3% [4]

分组1 - Ovintiv reported quarterly earnings of $1.39 per share, exceeding the Zacks Consensus Estimate of $0.98 per share, and showing an earnings surprise of +42.46% [1] - The company posted revenues of $2.15 billion for the quarter, surpassing the Zacks Consensus Estimate by 10.21%, although this is a slight decrease from $2.19 billion year-over-year [2] - Ovintiv shares have increased by approximately 29.1% since the beginning of the year, significantly outperforming the S&P 500's gain of 0.9% [3] 分组2 - The current consensus EPS estimate for the upcoming quarter is $0.92 on revenues of $1.98 billion, and for the current fiscal year, it is $3.79 on revenues of $8.37 billion [7] - The Zacks Industry Rank for Oil and Gas - Exploration and Production - Canadian is currently in the bottom 6% of over 250 Zacks industries, indicating potential underperformance compared to higher-ranked industries [8]

Production and Operations - As of December 31, 2025, USA Operations had total production averaging approximately 142.3 Mbbls/d of oil, 87.3 Mbbls/d of NGLs, and 515 MMcf/d of natural gas[54] - The USA Operations accounted for 64% of upstream production revenues and 64% of total proved reserves as of December 31, 2025[54] - In 2025, average daily production from the Permian region was approximately 118.6 Mbbls/d of oil, 52.5 Mbbls/d of NGLs, and 265 MMcf/d of natural gas[63] - The Anadarko region produced approximately 22.2 Mbbls/d of oil, 34.7 Mbbls/d of NGLs, and 246 MMcf/d of natural gas in 2025[66] - As of December 31, 2025, the total number of producing wells in the USA operations is 5,217 gross and 3,064 net, with 5,107 gross oil wells and 110 gross natural gas wells[59] - The total number of productive wells as of December 31, 2025, is 7,823 gross wells, with 4,976 net wells[117] Financial Performance - In 2025, total capital investment for USA Operations was approximately $1,537 million, with 151 net wells drilled primarily in the Permian[54] - The company reported production costs of $11.33 per BOE for total production in 2025[106] - The company’s capital investments for 2025 were $2,143 million, with $1,537 million in the U.S. and $606 million in Canada[94] - The company produced 224.3 MMBOE in 2025, with purchases of reserves totaling 311.8 MMBOE primarily from the Montney Acquisition and properties in Permian[98] - The company experienced a net increase of 268.0 MMBOE in proved reserves compared to 2024, driven by positive revisions and improved recovery techniques[97] Reserves and Acreage - As of December 31, 2025, the company's total proved reserves are 2,325.1 MMBOE, with 64% classified as proved developed reserves[94] - The company’s proved undeveloped reserves at the end of 2025 were 831.3 MMBOE, with no reserves expected to remain undeveloped for five years or more[101] - The established land position for USA Operations was approximately 720,000 net acres, including 132,000 net undeveloped acres[54] - The company’s acreage in the Permian region comprises approximately 193,000 net acres, while the Anadarko region has approximately 360,000 net acres[63][66] - The Company has 1.8 million net acres, with approximately 1.7 million net acres held by production[125] Strategic Focus and Innovation - The company focuses on maximizing returns through innovation and disciplined capital allocation strategies[44][45] - Ovintiv aims to enhance shareholder value by providing competitive returns while maintaining balance sheet strength[45] - The company is committed to sustainability and has published an annual Sustainability Report since 2005[49] Workforce and Culture - As of December 31, 2025, the company employed 1,465 employees, with 765 in the U.S. and 700 in Canada[139][140] - The average employee tenure is 10 years, with a voluntary turnover rate of approximately 4%[144] - The company hires an average of 13 new graduates and 44 interns per year over the past three years to support talent recruitment[142] - The company promotes workplace safety with comprehensive training programs and compliance with safety protocols[146] - The company fosters a culture of equity and inclusion, enhancing overall effectiveness and performance[145] Regulatory and Environmental Compliance - The company is subject to numerous federal, state, and provincial regulations affecting its operations, including drilling, production, and environmental assessments[150][161] - The company is subject to various environmental and occupational health and safety regulations, which could lead to significant costs and liabilities if not complied with[166][170] - Ovintiv has established monitoring and reporting programs to ensure compliance with environmental and regulatory standards[169] - The company maintains insurance coverage for environmental and occupational health risks, but is not fully insured against all such risks[170] Market and Economic Factors - As of December 31, 2025, commodity price fluctuations could result in unrealized gains or losses impacting pre-tax net earnings, with a 10% increase in oil prices potentially leading to a loss of $41 million[488] - Foreign exchange rate fluctuations could impact pre-tax net earnings, with a 10% increase in the Canadian dollar potentially resulting in a gain of $29 million[493] - As of December 31, 2025, Ovintiv had floating rate borrowings of $351 million, with a 1% change in interest rates affecting earnings by $4 million[495] - The company may enter into various derivative financial instruments to mitigate commodity price risk, governed by formal policies set by the Board of Directors[487] Acquisitions and Divestitures - The company announced a definitive agreement to sell its Anadarko assets for proceeds of $3.0 billion, expected to close in Q2 2026[55] - During 2025, the company divested its Uinta assets for proceeds of approximately $1.9 billion after closing adjustments[55] - The company completed an acquisition of Montney assets for approximately $2.274 billion, adding 109,000 net acres in the Alberta Montney region[71] Future Commitments - The Company is committed to deliver approximately 11.6 MMbbls of oil and NGLs and 34.7 Bcf of natural gas from 2026 to 2027 in the USA Operations[131] - In Canadian Operations, the Company is committed to deliver approximately 25.9 MMbbls of oil and NGLs and 572.5 Bcf of natural gas from 2026 to 2035[131] - The total transportation and processing commitments for USA and Canadian Operations amount to $6,256 million[132] - The Company expects to fulfill delivery commitments primarily from proved developed reserves, with longer-term commitments from proved undeveloped reserves[133]

Financial Performance - Total revenues for 2025 were $8,908 million, a decrease of 2.67% from $9,152 million in 2024[2] - Net earnings for 2025 increased to $1,242 million, compared to $1,125 million in 2024, representing a growth of 10.43%[2] - Operating income for 2025 was $1,131 million, down from $1,579 million in 2024, reflecting a decline of 28.29%[2] - The company reported a comprehensive income of $1,438 million for 2025, compared to $852 million in 2024, indicating a significant increase[3] - Basic earnings per share for 2025 were $4.83, an increase from $4.25 in 2024[2] - Net earnings for 2025 reached $1,242 million, a significant increase from a loss of $159 million in 2024, with diluted earnings per share rising to $4.78 from $(0.61)[7] - Non-GAAP adjusted earnings for 2025 were $1,257 million, compared to $1,560 million in 2024, with diluted adjusted earnings per share at $4.84, down from $5.83[7] - Non-GAAP cash flow for 2025 totaled $3,785 million, slightly lower than $4,042 million in 2024, with diluted cash flow per share at $14.57 compared to $15.12[7] - Adjusted EBITDA for the year ended December 31, 2025, was significantly impacted by impairments totaling $920 million[34] - Net earnings for Q4 2025 reached $946 million, contributing to a year-to-date total of $1,242 million[38] - Adjusted EBITDA for Q4 2025 was $1,007 million, with a year-to-date total of $4,252 million[38] Assets and Liabilities - The total assets as of December 31, 2025, were $20,390 million, up from $19,254 million in 2024[4] - The company's long-term debt decreased to $4,392 million in 2025 from $4,853 million in 2024[4] - The company's long-term debt, including the current portion, stood at $5,202 million, resulting in a debt to capitalization ratio of 32%[36] - The debt to EBITDA ratio stands at 1.6 times, while the debt to adjusted EBITDA ratio is at 1.2 times[38] Production and Operations - Average production volumes for oil and NGLs in 2025 were 304.2 Mbbls/d, a slight decrease from 294.4 Mbbls/d in 2024[11] - Natural gas production averaged 1,862 MMcf/d in 2025, up from 1,764 MMcf/d in 2024, reflecting an increase in gas output[11] - The company reported a total production of 614.5 MBOE/d in 2025, compared to 588.3 MBOE/d in 2024, indicating overall growth in production[11] - Total production volumes for USA Operations were 315.3 MBOE/d in Q4 2025, down from 344.4 MBOE/d in Q4 2024, a decline of 8.5%[12] - Total oil production in USA operations for Q4 2025 was 142.3 Mbbls/d, down from 150.3 Mbbls/d in Q4 2024, reflecting a decline of 5.3%[21] - Total Canadian operations produced 0.4 Mbbls/d in Q4 2025, consistent with Q4 2024, indicating stable production levels[21] - Total production for Canadian Operations was 299.2 MBOE/d in Q4 2025, up from 240.6 MBOE/d in Q4 2024, marking a 24.3% increase[25] Capital Expenditures - Capital expenditures in 2025 totaled $2,147 million, a decrease from $2,303 million in 2024[5] - Total capital expenditures for USA operations in Q4 2025 were $1,537 million, a decrease of 18% compared to Q4 2024's $1,868 million[27] - Total capital expenditures for Canadian operations in Q4 2025 were $606 million, up from $428 million in Q4 2024, marking a 42% increase[27] - The total net capital investment for Q4 2025 was $2,757 million, reflecting a 10% increase from $2,501 million in Q4 2024[27] Market and Pricing - The average foreign exchange rate for 2025 was 1.398 C$ per US$1, compared to 1.370 C$ per US$1 in 2024, affecting revenue calculations[7] - The average price for USA Operations oil was $39.54 per BOE in Q4 2025, compared to $44.39 per BOE in Q4 2024, reflecting a decrease of 11.5%[16] - The total price per BOE for USA operations in 2025 was $39.54, down from $46.02 in 2024, reflecting a decline of about 14.0%[18] - The average oil price for USA operations was $65.66 per barrel in 2025, while for Canadian operations it was $63.17 per barrel, compared to $71.79 and $71.46 per barrel in 2024 respectively, indicating a decrease of approximately 8.5% and 11.6% year-over-year[18] - The total operations' oil and NGLs price per barrel in 2025 was $49.86, down from $56.14 in 2024, reflecting a decline of about 11.5%[19] Future Outlook - The company plans to continue focusing on operational efficiency and cost management to enhance profitability in the upcoming quarters[8] - Future guidance indicates a cautious outlook with expectations of stable production levels and continued investment in new technologies and market expansion strategies[8]