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, /PRNewswire/ -- Ovintiv Inc. (NYSE: OVV) (TSX: OVV) today provided an update on its 2026 ground game acquisition program. On a year-to-date basis, the Company has entered into over 60 transactions, which will result in the addition of approximately 41,000 net acres of land across its Montney and Permian assets for a total acquisition cost of approximately $460 million. The transactions will add 240 net 10,000-foot equivalent well locations to Ovintiv's drilling inventory (190 base locations and 50 upside locations). The assets are being acquired at an attractive valuation of approximately $11,000 per net acre, and approximately $1.3 million to $1.7 million per well location, when adjusted for minimal production volumes from the assets.

Ovintiv Announces Permian and Montney Inventory Additions In the Permian, Ovintiv is acquiring approximately 21,000 net acres of land and 120 total well locations (80 base locations and 40 upside locations) in the Midland basin for approximately $230 million.

In the Montney, Ovintiv is acquiring approximately 20,000 net acres of land and 120 total well locations (110 base locations and 10 upside locations) in the liquids-rich Alberta oil window for approximately $230 million.

Following these transactions, the Company will have added approximately 500 net 10,000-foot equivalent well locations year-to-date, with the inclusion of 260 locations from organic inventory enhancement.

Ovintiv expects the remaining transactions to close before the end of the year.

Important information
Ovintiv reports in U.S. dollars unless otherwise noted. Production estimates are reported on an after-royalties basis, unless otherwise noted. Unless otherwise specified or the context otherwise requires, references to "Ovintiv," "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 the 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.

ADVISORY REGARDING FORWARD-LOOKING STATEMENTS – This news release contains forward-looking statements or information (collectively, "forward-looking statements") within the meaning of applicable securities legislation, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, except for statements of historical fact, that relate to the anticipated future activities, plans, inventory additions, strategies, objectives or expectations of the Company are forward-looking statements. When used in this news release, the use of words and phrases such as "anticipates," "acquiring", "believes," "continue," "could," "estimates," "expects," "focused on," "forecast," "guidance," "intends," "maintain," "may," "opportunities," "outlook," "plans," "potential," "strategy," "targets," "will," "would" and other similar terminology are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words or phrases. Without limiting the generality of the foregoing, forward-looking statements contained in this news release include: expectations that the acquisition program will support the achievement of Ovintiv's expected inventory additions; the expected closing of the various transactions; and the expected timing of such closings.

The forward-looking statements provided in this news release are based upon a number of material factors and assumptions that Ovintiv has made in respect thereof as of the date of this news release, including, without limitation: future commodity prices and basis differentials; the Company's ability to consummate any pending acquisitions (including the transactions described herein); the ability of the Company to access credit facilities and capital markets; the availability of attractive commodity or financial hedges and the enforceability of risk management programs; the Company's ability to capture and maintain gains in productivity and efficiency; the ability for the Company to generate cash returns; expectations of plans, strategies and objectives of the Company, including anticipated production volumes and capital investment; the Company's ability to manage cost inflation and expected cost structures, including expected operating, transportation, processing and labor expenses; the outlook of the oil and natural gas industry generally, including impacts from changes to the geopolitical environment; and projections made in light of, and generally consistent with, the Company's historical experience and its perception of historical industry trends; and the other assumptions contained herein. Although the Company believes the expectations represented by its forward-looking statements are reasonable based on the information available to it as of the date such statements are made, forward-looking statements are only predictions and statements of our current beliefs and there can be no assurance that such expectations will prove to be correct.

All forward-looking statements contained in this news release are made as of the date of this news release and, except as required by law, the Company undertakes no obligation to update publicly or revise any forward-looking statements. The forward-looking statements contained or incorporated by reference in this news release, and all subsequent forward-looking statements attributable to the Company, whether written or oral, are expressly qualified by these cautionary statements.

The reader should carefully read the risk factors described in the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of the Company's most recent Annual Report on Form 10-K, Quarterly Report on Form 10-Q, and in other filings with the SEC or Canadian securities regulators, for a description of certain risks that could, among other things, cause actual results to differ from these forward-looking statements. Other unpredictable or unknown factors not discussed in this new release could also have material adverse effects on forward-looking statements.

Further information on Ovintiv Inc. is available on the Company's website, www.ovintiv.com, or by contacting:

SOURCE Ovintiv Canada ULC

Key Takeaways Ovintiv posted Q2 EPS below estimates, while revenues rose 30% YoY and beat expectations.OVV increased operating cash flow, closed its Anadarko asset sale and returned $429M to shareholders.Ovintiv reaffirmed 2026 capital spending and updated production guidance while issuing the Q3 outlook. Ovintiv Inc. (OVV - Free Report) reported second-quarter 2026 adjusted earnings per share of $1.74, which missed the Zacks Consensus Estimate of $1.91 due to decreased year-over-year production volumes, increased expenses and lower average realized natural gas prices. However, the bottom line increased from the year-ago level of $1.02, driven by higher natural gas volumes and higher average realized oil prices.

The Denver, CO-based oil and gas exploration and production company’s total revenues of $3 billion increased 30% from the year-ago quarter’s figures. The top line also beat the Zacks Consensus Estimate by 28.2%. The outperformance was driven by higher product and service revenues.

On July 23, 2026, Ovintiv's board of directors declared a quarterly dividend of 30 cents per share, which will be paid on Sept. 29 to its shareholders of record as of Sept. 15.

First-quarter shareholder returns totaled $429 million, consisting of share buybacks of $345 million and base dividend payments of $84 million.

During the quarter, the company closed the sale of its Anadarko assets for total cash proceeds of about $2.82 billion after preliminary closing adjustments and transaction costs.

OVV’s Q2 Production & PricesTotal second-quarter production was 614,600 barrels of oil equivalent per day (BOE/d) compared with 615,300 BOE/d in the prior-year period. The figure marginally missed our prediction of 615,000 BOE/d.

Natural gas production increased to 1,959 million cubic feet per day (MMcf/d) in the second quarter of 2026 from 1,851 MMcf/d in the prior-year quarter. However, the figure lagged our estimate of 2,001 MMcf/d.

Total liquids production decreased to 288.2 thousand barrels per day (Mbbls/d) in the second quarter of 2026 from 306.7 Mbbls/d in the prior-year quarter. However, the figure beat our prediction of 283 Mbbls/d.

In the second quarter of 2026, natural gas contributed approximately 53.1%, and liquids accounted for about 46.9% of the total production.

Ovintiv's realized natural gas price was $1.99 per thousand cubic feet compared with the year-ago level of $2.38. However, the realized oil price increased substantially to $91.53 per barrel from $65.23 in the prior-year quarter.

OVV’s Costs, Capex & Balance SheetTotal expenses of $2 billion increased 11.7% from the year-ago quarter’s figure of $1.8 billion. Moreover, the figure was higher than our projection of $1.6 billion.

Ovintiv’s cash from operating activities in the quarter under review was $1.6 billion, compared to the year-ago figure of $1 billion.

OVV's capital investments were $574 million compared with $521 million in the year-ago period. The company generated a non-GAAP free cash flow of $682 million in the reported quarter.

As of June 30, OVV had cash and cash equivalents worth $700 million and long-term debt of $3.7 billion. Its debt-to-capitalization was 24.3%.

OVV’s Asset PerformanceIn the second quarter of 2026, average production from the Permian Basin reached approximately 231 MBOE/d, with liquids making up 78% of the total. A total of 38 net wells were brought online during the period. For the full year 2026, capital spending in this region is projected to be between $1.325 billion and $1.375 billion, supporting the development of around five rigs and 125-135 net wells.

From the Montney play, second-quarter output averaged 374 MBOE/d, with liquids contributing about 27% of the volume. The company turned in 40 net wells during the quarter. Full-year 2026 capital expenditures for Montney are expected to be between $875 million and $925 million, supporting the development of six rigs and 130-140 net well additions.

OVV’s Q3 & 2026 GuidanceOvintiv revised its full-year 2026 guidance while issuing third-quarter projections. The company expects full-year production volumes to average between 630 and 645 MBOE/d, including oil and condensate production of 210 to 212 Mbbls/d, NGL production of 83 to 85 Mbbls/d and natural gas production of 2 to 2.1 Bcf/d. Ovintiv’s 2026 capital investment remains unchanged in the range of $2.25 billion to $2.35 billion, reflecting its continued focus on disciplined capital allocation and operational efficiency.

For the third quarter of 2026, this Zacks Rank #3 (Hold) company expects production between 615 and 640 MBOE/d with capital spending of $550 million to $600 million.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Important Earnings at a GlanceWhile we have discussed OVV’s second-quarter results in detail, let us take a look at three other key reports in this space.

Halliburton Company (HAL - Free Report) reported second-quarter 2026 adjusted net income per share of 55 cents, marginally beating the Zacks Consensus Estimate of 54 cents. The outperformance was backed by year-over-year revenue growth. However, the bottom line was flat compared with the prior-year level. Meanwhile, the company’s second-quarter revenues of $5.7 billion were up 3.7% year over year and beat the Zacks Consensus Estimate of $5.5 billion. The outperformance was driven by higher revenues in both segments of the company — the Completion and Production segment and the Drilling and Evaluation segment.

Halliburton reported second-quarter capital expenditure of $235 million. As of June 30, 2026, the company had approximately $2 billion in cash/cash equivalents and $7.1 billion in long-term debt, representing a debt-to-capitalization of 39%.

Liberty Energy Inc. (LBRT - Free Report) reported a second-quarter 2026 adjusted net profit of 9 cents per share, beating the Zacks Consensus Estimate of 7 cents. The outperformance was driven by the company’s focus on AI-driven technology advancements and strong operational execution. However, the bottom line decreased from the year-ago quarter’s profit of 12 cents due to increased year-over-year costs and expenses. LBRT's revenues totaled $1.2 billion, which beat the Zacks Consensus Estimate of $1.1 billion. The top line also increased from the prior-year quarter’s $1 billion by 14%, supported by record utilization and a modest pricing uplift along with higher product sales.

As of June 30, Liberty Energy had approximately $555.4 million in cash and cash equivalents. The pressure pumper’s long-term debt of $1.3 billion represented a debt-to-capitalization of 39.5%.

Houston, TX-based oil and gas storage and transportation company Kinder Morgan Inc. (KMI - Free Report) reported second-quarter 2026 adjusted earnings of 37 cents per share, beating the Zacks Consensus Estimate of 31 cents by 19.35%. Earnings increased 32.1% from 28 cents in the year-ago quarter. Revenues increased 10.8% year over year to $4.48 billion from the prior year’s figure of $4.04 billion. Revenues surpassed the consensus estimate of $4.29 billion by 4.43%.

Cash flow from operations was $1.96 billion in the quarter. Meanwhile, free cash flow was $978 million and free cash flow after dividends reached $313 million. As of June 30, 2026, KMI reported $89 million in cash and cash equivalents. Net debt stood at $32.03 billion at quarter-end.

Ovintiv Inc. (OVV) Q2 2026 Earnings Call July 24, 2026 11:00 AM EDT

Company Participants

Jason Verhaest
Brendan McCracken - President, CEO & Director
Corey Code - Executive VP & CFO
Gregory Givens - Executive VP & COO

Conference Call Participants

Neil Mehta - Goldman Sachs Group, Inc., Research Division
Greg Pardy - RBC Capital Markets, Research Division
Neal Dingmann - William Blair & Company L.L.C., Research Division
Arun Jayaram - JPMorgan Chase & Co, Research Division
Douglas George Blyth Leggate - Wolfe Research, LLC
Gabe Daoud - Truist Securities, Inc., Research Division
Scott Gruber - Citigroup Inc., Research Division
Christopher Baker - Evercore ISI Institutional Equities, Research Division
John Annis - Texas Capital Securities, Research Division
Kevin MacCurdy - Pickering Energy Partners Insights
Phillip Jungwirth - BMO Capital Markets Equity Research

Presentation

Operator

Good day, ladies and gentlemen, and thank you for standing by. Welcome to Ovintiv's 2026 Second Quarter Results Conference Call. As a reminder, today's call is being recorded. [Operator Instructions] Please be advised that this conference call may not be recorded or rebroadcast without the expressed consent of Ovintiv.

I would now like to turn the conference call over to Jason Verhaest from Investor Relations. Please go ahead, Mr. Verhaest.

Jason Verhaest

Thanks, Joanna, and welcome, everyone, to our second quarter '26 conference call. This call is being webcast, and the slides are available on our website at ovintiv.com. Please take note of the advisory regarding forward-looking statements at the beginning of our slides and in our disclosure documents filed on EDGAR and SEDAR+. Following prepared remarks, we will be available to take your questions.

I will now turn the call over to our President and CEO, Brendan McCracken.

Brendan McCracken
President, CEO & Director

Thanks, Jason. Good morning, everybody, and thank you for joining us. Our second quarter results demonstrate the strength of our durable return strategy and the business

Increasing Share Buybacks; Full Year Production Guidance Raised; Capital Guidance Unchanged

Highlights:

Generated second quarter cash from operating activities of $1.6 billion, Non-GAAP Cash Flow of approximately $1.3 billion and Non-GAAP Free Cash Flow of $682 million after capital expenditures of $574 million Produced average second quarter volumes of 615 thousand barrels of oil equivalent per day ("MBOE/d"), including oil and condensate volumes of 206 thousand barrels per day ("Mbbls/d"), above the high end of company guidance, along with 82 Mbbls/d of other NGLs (C2 to C4) and 1,959 million cubic feet per day ("MMcf/d") of natural gas Closed the sale of the Company's Anadarko assets for total cash proceeds of approximately $2.82 billion after preliminary closing adjustments and transaction costs Net Debt of $2.995 billion as of June 30, 2026, Net Debt to Adjusted EBITDA of 0.6x Returned approximately 63% of second quarter Non-GAAP Free Cash Flow to shareholders via share repurchases of approximately $345 million (6.1 million shares) and dividend payments of $84 million Full year 2026 shareholder returns expected to exceed 60% of Non-GAAP Free Cash Flow, up from 45% year-to-date Revised full year 2026 guidance to reflect higher expected oil and condensate production for the same capital investment; representing 4% production per share growth , /PRNewswire/ -- Ovintiv Inc. (NYSE: OVV) (TSX: OVV) ("Ovintiv" or the "Company") today announced its second quarter 2026 financial and operating results. The Company plans to hold a conference call and webcast at 9:00 a.m. MT (11:00 a.m. ET) on July 24, 2026. 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.

Ovintiv Reports Second Quarter 2026 Financial and Operating Results "Our second quarter results continued to demonstrate industry-leading performance across the board driven by our stacked innovation approach," said Ovintiv President and CEO, Brendan McCracken. "Our company is positioned with a deep inventory of superior-return drilling locations, a fortified balance sheet, and leading edge well costs and oil productivity performance. The outcomes of our strategic execution are reflected in our results. Halfway through the year, we've generated more than $1.3 billion of Free Cash Flow, organically replaced our full-year 2026 drilling locations in both the Permian and the Montney, and are set to grow oil production per share by 4% with no increase to activity or capital expenditure."

Second Quarter 2026 Financial and Operating Results

Reported second quarter net earnings of $456 million, or $1.62 per share diluted, which included a loss on the divestiture of the Company's Anadarko assets of $337 million, before tax Recognized a net gain on risk management in revenues of $122 million, before tax Generated cash from operating activities of $1.6 billion and Non-GAAP Cash Flow of approximately $1.3 billion Second quarter average total production volumes were approximately 615 MBOE/d, including 206 Mbbls/d of oil and condensate, 82 Mbbls/d of other NGLs (C2 to C4) and 1,959 MMcf/d of natural gas Second quarter capital investment of $574 million was at the midpoint of the guidance range of $550 million to $600 million Reported second quarter upstream operating expense of $3.25 per BOE, upstream transportation and processing costs of $9.47 per BOE, production, mineral and other taxes of $1.43 per BOE, or 3.5% of upstream product revenue Excluding the impact of hedges, second quarter average realized price for oil and condensate was $97.50 per barrel (105% of WTI), $21.67 per barrel for other NGLs, and $1.71 per Mcf (59% of NYMEX) for natural gas, resulting in a total average realized price of $41.00 per BOE Including the impact of hedges, second quarter average realized price for oil and condensate was $91.22 per barrel (98% of WTI), $21.67 per barrel for other NGLs, and $1.99 per Mcf (69% of NYMEX) for natural gas, resulting in a total average realized price of $39.79 per BOE 2026 Guidance
The Company issued its third quarter 2026 guidance and revised its full year guidance. Full year production volumes are expected to average 630 MBOE/d to 645 MBOE/d, driven by increases in oil and condensate and NGL volumes. Full year expected capital investment is unchanged at $2.25 billion to $2.35 billion.

2026 Guidance

3Q 2026

Full Year 2026

Total Production (MBOE/d)

615 – 640

630 – 645

Oil & Condensate (Mbbls/d) 

205 – 210

210 – 212

NGLs (C2 to C4) (Mbbls/d)

75 – 80

83 – 85

Natural Gas (MMcf/d)

2,000 – 2,100

2,025 – 2,075

Capital Investment ($ Millions)

$550 – $600

$2,250 – $2,350

Shareholder Returns
Ovintiv's shareholder return framework commits to returning 50% to 100% of annual Non-GAAP Free Cash Flow to shareholders via the combination of base dividend payments and share buybacks.

Second quarter shareholder returns totaled approximately $429 million, or approximately 63% of Non-GAAP Free Cash Flow, consisting of share buybacks of approximately $345 million, or approximately 6.1 million shares of common stock, and base dividend payments of approximately $84 million.

As of June 30, 2026, year-to-date shareholder returns totaled approximately $598 million, or approximately 45% of Non-GAAP Free Cash Flow, consisting of share buybacks of approximately $429 million, or approximately 7.6 million shares of common stock, and base dividend payments of approximately $169 million. Ovintiv expects full year 2026 shareholder returns to total more than 60% of Non-GAAP Free Cash Flow.

Continued Balance Sheet Focus
As of June 30, 2026, Ovintiv's Net Debt was $2.995 billion and Net Debt to Adjusted EBITDA was approximately 0.6 times. The Company had approximately $4.4 billion in total liquidity, which included available credit facilities of $3.5 billion, available uncommitted demand lines of $159 million, and cash and cash equivalents of $700 million. 

Ovintiv redeemed its $700 million, 5.65% senior notes due May 15, 2028, on April 20, 2026. Annualized interest savings from the note redemption are expected to total approximately $40 million.  

Dividend Declared
On July 23, 2026, Ovintiv's Board declared a quarterly dividend of $0.30 per share of common stock payable on September 29, 2026, to shareholders of record as of September 15, 2026.

Asset Highlights
Permian
Permian production averaged 231 MBOE/d (78% liquids) in the second quarter with 38 net wells turned in line ("TIL"). Full year 2026 capital investment is expected to total approximately $1.325 billion to $1.375 billion in the play to run approximately 5 rigs and bring on an expected 125 to 135 net wells. For the second half of the year, oil and condensate production is expected to average approximately 125 Mbbls/d and natural gas production is expected to average 280 to 305 MMcf/d.

Montney  
Montney production averaged 374 MBOE/d (27% liquids) in the second quarter with 40 net wells TIL. Full year 2026 capital investment is expected to total approximately $875 million to $925 million in the play to run approximately 6 rigs and bring on an expected 130 to 140 net wells. For the second half of the year, oil and condensate production is expected to average 80 to 85 Mbbls/d and natural gas production is expected to average 1.7 to 1.8 Bcf/d.

For additional information, please refer to the Second Quarter 2026 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 Document Library – Ovintiv.

Conference Call Information
A conference call and webcast to discuss the Company's second quarter 2026 results will be held at 9:00 a.m. MT (11:00 a.m. ET) on July 24, 2026.

To join the conference call without operator assistance, you may register and enter your phone number at https://emportal.ink/4jChG1W 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 2026

2Q 2025

Capital Expenditures (1) ($ millions)

574

521

Oil (Mbbls/d)

123.0

142.0

NGLs – Plant Condensate (Mbbls/d)

82.8

69.2

Oil & Plant Condensate (Mbbls/d)

205.8

211.2

NGLs – Other (Mbbls/d)

82.4

95.5

Total Liquids (Mbbls/d)

288.2

306.7

Natural gas (MMcf/d)

1,959

1,851

Total production (MBOE/d)

614.6

615.3

1) Including capitalized directly attributable internal costs.

Second Quarter Financial Summary

(for the period ended June 30)

($ millions)

2Q 2026

2Q 2025

Cash From (Used In) Operating Activities

Deduct (Add Back):

Net change in other assets and liabilities

Net change in non-cash working capital

1,632

(4)

380

1,013

(11)

111

Non-GAAP Cash Flow (1)

1,256

913

Non-GAAP Cash Flow (1)

1,256

913

Less: Capital Expenditures (2)

574

521

Non-GAAP Free Cash Flow (1)

682

392

Net Earnings (Loss) Before Income Tax

Before-tax (Addition) Deduction:

Unrealized gain (loss) on risk management

Non-operating foreign exchange gain (loss)

Gain (loss) on divestitures, net

539

190

(31)

(337)

399

54

(3)

-

Adjusted Earnings (Loss) Before Income Tax

Income tax expense (recovery)

717

226

348

83

Non-GAAP Adjusted Earnings (1)

491

265

1)

Non-GAAP Cash Flow, Non-GAAP Free Cash Flow and Non-GAAP Adjusted Earnings are non-GAAP measures as defined in Note 1.

2)

Including capitalized directly attributable internal costs.

Realized Pricing Summary (Including the impact of realized gains (losses) on risk management)

(for the period ended June 30)

2Q 2026

2Q 2025

Liquids ($/bbl)

WTI

92.79

63.74

Realized Liquids Prices

Oil

91.53

65.23

NGLs – Plant Condensate

90.74

60.79

Oil & Plant Condensate

91.22

63.77

NGLs – Other

21.67

18.28

Total NGLs

56.29

36.14

Natural Gas

NYMEX ($/MMBtu)

2.90

3.44

Realized Natural Gas Price ($/Mcf)

1.99

2.38

Cost Summary

(for the period ended June 30)

($/BOE)

2Q 2026

2Q 2025

Production, mineral and other taxes

1.43

1.31

Upstream transportation and processing

9.47

7.62

Upstream operating

3.25

3.84

Administrative, excluding long-term incentive, restructuring, transaction and legal costs

1.28

1.19

Debt to EBITDA (1) 

($ millions, except as indicated)

June 30, 2026

December 31, 2025

Long-Term Debt, including Current Portion

3,695

5,202

Net Earnings (Loss)

920

1,242

Add back (Deduct):

   Depreciation, depletion and amortization

2,158

2,179

   Interest

388

376

   Income tax expense (recovery)

(644)

(472)

EBITDA

2,822

3,325

Debt to EBITDA (times)

1.3

1.6

1) Debt to EBITDA is a non-GAAP measure as defined in Note 1.

Debt to Adjusted EBITDA (1)

($ millions, except as indicated)

June 30, 2026

December 31, 2025

Long-Term Debt, including Current Portion

3,695

5,202

Net Earnings (Loss)

920

1,242

Add back (Deduct):

   Depreciation, depletion and amortization

   Impairments

2,158

1,675

2,179

920

   Accretion of asset retirement obligation

28

28

   Interest

388

376

   Unrealized (gains) losses on risk management

(135)

(6)

   Foreign exchange (gain) loss, net

   (Gain) loss on divestitures, net

20

337

31

-

   Other (gains) losses, net

(72)

(46)

   Income tax expense (recovery)

(644)

(472)

Adjusted EBITDA

4,675

4,252

Debt to Adjusted EBITDA (times)

0.8

1.2

1) Debt to Adjusted EBITDA is a non-GAAP measure as defined in Note 1.

Net Debt to Adjusted EBITDA (1) 

($ millions, except as indicated)

June 30, 2026

December 31, 2025

Long-Term Debt, including Current Portion

3,695

5,202

Less:

   Cash and cash equivalents

700

35

Net Debt

2,995

5,167

Adjusted EBITDA

4,675

4,252

Net Debt to Adjusted EBITDA (times)

0.6

1.2

1) Net Debt to Adjusted EBITDA is a non-GAAP measure as defined in Note 1.

Hedge Details(1) as of June 30, 2026 

Oil and Condensate Hedges ($/bbl)

3Q 2026

4Q 2026

1Q 2027

2Q 2027

3Q 2027

4Q 2027

WTI Fixed Price Swaps

4 Mbbls/d

$61.67

4 Mbbls/d

$61.93

0

-

0

-

0

-

0

-

WTI 3-Way Options
Call Strike

Put Strike

Sold Put Strike

51 Mbbls/d

$70.87

$59.26

$50.08

41 Mbbls/d

$70.21

$57.22

$50.10

40 Mbbls/d

$85.56

$59.34

$50.00

10 Mbbls/d

$112.53

$60.00

$50.00

0

-

-

-

0

-

-

-

WTI Collars

Call Strike

Put Strike

1 Mbbls/d

$67.79

$56.32

1 Mbbls/d

$67.79

$56.32

0

-

-

0

-

-

0

-

-

0

-

-

Natural Gas Hedges ($/Mcf)

3Q 2026

4Q 2026

1Q 2027

2Q 2027

3Q 2027

4Q 2027

NYMEX Fixed Price Swaps

20 MMcf/d

$4.07

20 MMcf/d

$4.07

0

-

0

-

0

-

0

-

NYMEX 3-Way Options
Call Strike

Put Strike

Sold Put Strike

450 MMcf/d

$5.92

$3.33

$2.58

450 MMcf/d

$5.92

$3.33

$2.58

300 MMcf/d

$5.04

$3.50

$2.50

200 MMcf/d

$4.49

$3.50

$2.50

200 MMcf/d

$4.49

$3.50

$2.50

200 MMcf/d

$4.49

$3.50

$2.50

NYMEX Collars

Call Strike

Put Strike

95 MMcf/d

$5.27

$3.75

95 MMcf/d

$5.27

$3.75

15 MMcf/d

$4.72

$3.50

15 MMcf/d

$4.72

$3.50

15 MMcf/d

$4.72

$3.50

15 MMcf/d

$4.72

$3.50

AECO Nominal Basis Swaps

338 MMcf/d

($1.25)

338 MMcf/d

($1.25)

260 MMcf/d

($1.17)

260 MMcf/d

($1.17)

260 MMcf/d

($1.17)

260 MMcf/d

($1.17)

AECO Fixed Price Swaps

152 MMcf/d

$2.26

118 MMcf/d

$2.30

100 MMcf/d

$2.00

219 MMcf/d

$1.78

219 MMcf/d

$1.78

106 MMcf/d

$2.00

AECO Collars

Call Strike

Put Strike

10 MMcf/d

$2.15

$1.69

3 MMcf/d

$2.15

$1.69

0

-

-

0

-

-

13 MMcf/d

$2.36

$1.76

20 MMcf/d

$2.36

$1.76

Waha Nominal Basis Swaps

0

-

50 MMcf/d

($1.98)

50 MMcf/d

($1.19)

0

-

0

-

0

-

Waha Fixed Price Swaps

50 MMcf/d

$0.74

50 MMcf/d

$1.77

0

-

0

-

0

-

0

-

NuVista Cash Flow Deduction ($MM)(2)

$34

$24

$16

$8

$12

$10

1)

Ovintiv also manages other key market basis differential risks for gas, oil and condensate.

2)

NuVista's financial hedge position at close of the acquisition was valued at ~$199 MM.  Those gains are booked as assets and realized into cash over time as they are settled but are not included in Non-GAAP Cash Flow.

Important information
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.

NI 51-101 Exemption
The Canadian securities regulatory authorities have issued a decision document (the "Decision") granting Ovintiv exemptive relief from the requirements contained in Canada's National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities ("NI 51-101").  As a result of the Decision, and provided that certain conditions set out in the Decision are met on an on-going basis, Ovintiv will not be required to comply with the Canadian requirements of NI 51-101 and the Canadian Oil and Gas Evaluation Handbook. The Decision permits Ovintiv to provide disclosure in respect of its oil and gas activities in the form permitted by, and in accordance with, the legal requirements imposed by the U.S. Securities and Exchange Commission ("SEC"), the Securities Act of 1933, the Securities and Exchange Act of 1934, the Sarbanes-Oxley Act of 2002 and the rules of the NYSE. The Decision also provides that Ovintiv is required to file all such oil and gas disclosures with the Canadian securities regulatory authorities on www.sedarplus.ca as soon as practicable after such disclosure is filed with the SEC.

NOTE 1: Non-GAAP Measures
Certain measures in this news release do not have any standardized meaning as prescribed by U.S. GAAP and, therefore, are considered non-GAAP measures. These measures may not be comparable to similar measures presented by other companies and should not be viewed as a substitute for measures reported under U.S. GAAP. These measures are commonly used in the oil and gas industry and/or by Ovintiv to provide shareholders and potential investors with additional information regarding the Company's liquidity and its ability to generate funds to finance its operations. For additional information regarding non-GAAP measures, see the Company's website. This news release contains references to non-GAAP measures as follows:

Non-GAAP Cash Flow is a non-GAAP measure defined as cash from (used in) operating activities excluding net change in other assets and liabilities, and net change in non-cash working capital. Non-GAAP Free Cash Flow is a non-GAAP measure defined as Non-GAAP Cash Flow in excess of capital expenditures, excluding net acquisitions and divestitures. Non-GAAP Adjusted Earnings is a non-GAAP measure defined as net earnings (loss) excluding non-cash items that management believes reduces the comparability of the Company's financial performance between periods. These items may include, but are not limited to, unrealized gains/losses on risk management, impairments, non-operating foreign exchange gains/losses, and gains/losses on divestitures. Income taxes includes adjustments to normalize the effect of income taxes calculated using the estimated annual effective income tax rate. In addition, valuation allowances and the effect of non-recurring discrete transactions are excluded in the calculation of income taxes. Net Debt is defined as long-term debt, including the current portion, less cash and cash equivalents. Adjusted EBITDA, Debt to EBITDA, Debt to Adjusted EBITDA (Leverage Target/Ratio) and Net Debt to Adjusted EBITDA are non-GAAP measures. EBITDA is defined as trailing 12-month net earnings (loss) before income taxes, depreciation, depletion and amortization, and interest. Adjusted EBITDA is EBITDA adjusted for impairments, accretion of asset retirement obligation, unrealized gains/losses on risk management, foreign exchange gains/losses, gains/losses on divestitures and other gains/losses. Debt to EBITDA is calculated as long-term debt, including the current portion, divided by EBITDA. Debt to Adjusted EBITDA is calculated as long-term debt, including the current portion, divided by Adjusted EBITDA. Net Debt to Adjusted EBITDA is calculated as Net Debt, divided by Adjusted EBITDA. Debt to Adjusted EBITDA and Net Debt to Adjusted EBITDA are non-GAAP measures monitored by management as indicators of the Company's overall financial strength. ADVISORY REGARDING OIL AND GAS INFORMATION – The conversion of natural gas volumes to barrels of oil equivalent (BOE) is on the basis of six thousand cubic feet to one barrel. BOE is based on a generic energy equivalency conversion method primarily applicable at the burner tip and does not represent economic value equivalency at the wellhead. Readers are cautioned that BOE may be misleading, particularly if used in isolation.

ADVISORY REGARDING FORWARD-LOOKING STATEMENTS – This news release contains forward-looking statements or information (collectively, "forward-looking statements") within the meaning of applicable securities legislation, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, except for statements of historical fact, that relate to the anticipated future activities, plans, strategies, objectives or expectations of the Company, including the third quarter and fiscal year 2026 guidance and expected free cash flow, the presence of recoverability of estimated reserves, the expectation of delivering sustainable durable returns to shareholders in future years, plans regarding share buybacks and debt reduction, and timing and expectations regarding capital efficiencies and well completion and performance, are forward-looking statements. When used in this news release, the use of words and phrases including "anticipates," "believes," "continue," "could," "estimates," "expects," "focused on," "forecast," "guidance," "intends," "maintain," "may," "opportunities," "outlook," "plans," "potential," "strategy," "targets," "will," "would" and other similar terminology are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words or phrases. Readers are cautioned against unduly relying on forward-looking statements which, are based on current expectations and by their nature, involve numerous assumptions that are subject to both known and unknown risks and uncertainties (many of which are beyond our control) that may cause such statements not to occur, or actual results to differ materially and/or adversely from those expressed or implied. These assumptions include, without limitation:  future commodity prices and basis differentials; the ability of the Company to access credit facilities and capital markets; the availability of attractive commodity or financial hedges and the enforceability of risk management programs; the Company's ability to capture and maintain gains in productivity and efficiency; the ability for the Company to generate cash returns and execute on its share buyback plan; expectations of plans, strategies and objectives of the Company, including anticipated production volumes and capital investment; the Company's ability to manage cost inflation and expected cost structures, including expected operating, transportation, processing and labor expenses; the outlook of the oil and natural gas industry generally, including impacts from war and changes to the geopolitical environment, including tariffs between the United States and Canada; and projections made in light of, and generally consistent with, the Company's historical experience and its perception of historical industry trends; and the other assumptions contained herein.

Although the Company believes the expectations represented by its forward-looking statements are reasonable based on the information available to it as of the date such statements are made, forward-looking statements are only predictions and statements of our current beliefs and there can be no assurance that such expectations will prove to be correct. All forward-looking statements contained in this news release are made as of the date of this news release and, except as required by law, the Company undertakes no obligation to update publicly, revise or keep current any forward-looking statements. The forward-looking statements contained or incorporated by reference in this news release, and all subsequent forward-looking statements attributable to the Company, whether written or oral, are expressly qualified by these cautionary statements.

The reader should carefully read the risk factors described in the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of the Company's most recent Annual Report on Form 10-K, Quarterly Report on Form 10-Q, and in other filings with the SEC or Canadian securities regulators, for a description of certain risks that could, among other things, cause actual results to differ from these forward-looking statements. Other unpredictable or unknown factors not discussed in this news release could also have material adverse effects on forward-looking statements.

Further information on Ovintiv Inc. is available on the Company's website, www.ovintiv.com, or by contacting:

Investor contact:

Media contact:

(888) 525-0304 

(403) 645-2252

SOURCE Ovintiv Inc.

The market expects Ovintiv (OVV - Free Report) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.

The earnings report, which is expected to be released on July 23, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.

While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.

Zacks Consensus EstimateThis energy company is expected to post quarterly earnings of $2.00 per share in its upcoming report, which represents a year-over-year change of +96.1%.

Revenues are expected to be $2.39 billion, up 3% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 11.73% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for Ovintiv?For Ovintiv, the Most Accurate Estimate is the same as the Zacks Consensus Estimate, suggesting that there are no recent analyst views which differ from what have been considered to derive the consensus estimate. This has resulted in an Earnings ESP of 0%.

On the other hand, the stock currently carries a Zacks Rank of #3.

So, this combination makes it difficult to conclusively predict that Ovintiv will beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Ovintiv would post earnings of $1.85 per share when it actually produced earnings of $2.00, delivering a surprise of +8.11%.

Over the last four quarters, the company has beaten consensus EPS estimates three times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Ovintiv doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.