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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

Ovintiv (OVV - Free Report) came out with quarterly earnings of $1.74 per share, missing the Zacks Consensus Estimate of $1.91 per share. This compares to earnings of $1.02 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of -8.90%. A quarter ago, it was expected that this energy company would post earnings of $1.85 per share when it actually produced earnings of $2, delivering a surprise of +8.11%.

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

Ovintiv, which belongs to the Zacks Oil and Gas - Exploration and Production - Canadian industry, posted revenues of $3.01 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 28.21%. This compares to year-ago revenues of $2.32 billion. The company has topped consensus revenue estimates four times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Ovintiv shares have added about 54.4% since the beginning of the year versus the S&P 500's gain of 9.6%.

What's Next for Ovintiv?While Ovintiv has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Ovintiv was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.36 on $2.09 billion in revenues for the coming quarter and $7.08 on $9.13 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Oil and Gas - Exploration and Production - Canadian is currently in the bottom 3% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Canadian Natural Resources (CNQ - Free Report) , another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 6.

This oil and natural gas company is expected to post quarterly earnings of $1.43 per share in its upcoming report, which represents a year-over-year change of +180.4%. The consensus EPS estimate for the quarter has been revised 32% lower over the last 30 days to the current level.

Canadian Natural Resources' revenues are expected to be $9.25 billion, up 47.2% from the year-ago quarter.

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.

Key Takeaways OVV is set to report Q2 2026 earnings on July 23; consensus sees EPS of $1.99 and revenues of $2.4B.OVV expects lower oil output, while plant turnarounds and higher royalties may pressure results.Ovintiv may benefit from strong well productivity, lower spending and higher free cash flow support. Ovintiv Inc. (OVV - Free Report) is set to release second-quarter results on July 23. The Zacks Consensus Estimate for earnings is pegged at $1.99 per share on revenues of $2.4 billion.

Let us delve into the factors that might have influenced OVV’s performance in the to-be-reported quarter. Before that, it is worth taking a look at the company’s performance in the last reported quarter.

Highlights of OVV’s Q1 Earnings & Surprise HistoryIn the last reported quarter, the Denver, CO-based oil and gas exploration and production company beat the consensus mark, driven by higher plant condensate, natural gas liquids and natural gas production volumes and higher average realized natural gas prices. OVV reported adjusted earnings per share of $2, beating the Zacks Consensus Estimate of $1.85. Total revenues of $2.5 billion beat the Zacks Consensus Estimate by 6.5%, fueled by higher product and service revenues. The company’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, missing in one, delivering an average surprise of 13.6%.

This is depicted in the chart below:

Trend in OVV’s Estimate RevisionThe Zacks Consensus Estimate for second-quarter 2026 earnings witnessed a downward movement of 7% in the past seven days. The estimated figure indicates 95.1% year-over-year growth. The Zacks Consensus Estimate for revenues also implies a rise of about 1.4% from the year-ago period.

Factors to Consider Ahead of OVV’s Q2 ResultsOvintiv has a well-established presence in some of North America’s highest-quality basins, primarily the Montney, Anadarko and the Permian Basin. The company's acreage includes a premium inventory of high-quality, liquids-rich locations with an attractive mix of drilled but uncompleted wells, which can be quickly brought into production.

Ovintiv's second-quarter 2026 results could face pressure from lower production, as management expects oil and condensate output to decline sequentially to around 203,000 barrels per day from the first quarter's 225,000 barrels per day. The Montney business is likely to remain a drag due to planned plant turnarounds and higher royalty rates, which will reduce reported net volumes despite healthy underlying operations. The company also acknowledged uncertainty surrounding global supply-demand fundamentals and maintained a conservative stay-flat production strategy instead of pursuing higher output. Additionally, higher diesel costs and a normalization of transportation and processing expenses after one-time first-quarter benefits could weigh on margins and profitability in the quarter to be reported.

But on a bullish note, Ovintiv could still deliver an earnings beat, supported by strong well productivity in both the Permian and Montney, continued operational efficiencies and lower capital spending. Management expects higher commodity prices to boost free cash flow, while cost savings from the NuVista integration and resilient production performance are likely to partially offset royalty-related volume headwinds. The Zacks Consensus Estimate for second-quarter revenues is expected to have increased from the year-ago quarter’s $2.32 billion. Our model also projects that the company’s second-quarter operating expenses will be $1.6 billion, a sharp decline from the year-ago quarter’s $1.8 billion.

What Does Our Model Predict for OVV?Our proven model does not predict an earnings beat for Ovintiv this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, this is not the case here.

Earnings ESP of OVV: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, for this company is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

OVV’s Zacks Rank: OVV currently carries a Zacks Rank #3.

Stocks With the Favorable CombinationHere are some firms from the energy space that you may want to consider, as they have the right combination of elements to post an earnings beat this reporting cycle.

Baker Hughes Company (BKR - Free Report) has an Earnings ESP of +1.34% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Baker Hughes is scheduled to release earnings on July 26. The Zacks Consensus Estimate for BKR’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 14.6%. Valued at around $55.5 billion, BKR’s shares have gained 40.4% in a year.

HF Sinclair Corporation (DINO - Free Report) currently has an Earnings ESP of +11.69% and a Zacks Rank #2. It is scheduled to release earnings on July 28.

Notably, the Zacks Consensus Estimate for DINO’s 2026 earnings indicates year-over-year growth of about 103%. Valued at around $16 billion, DINO’s shares have surged 99.6% in a year.

NOV Inc. (NOV - Free Report) has an Earnings ESP of +19.69% and a Zacks Rank #2 at present. It is scheduled to release earnings on July 28.

The Zacks Consensus Estimate for NOV’s 2026 earnings indicates year-over-year growth of about 33.9%. Valued at around $7 billion, NOV’s shares rose 53.6% in a year.

On July 07, 2026, Ovintiv Inc (OVV) shares rose 3.1% today, with the stock currently priced at $54.97. The shares have seen a 52-week high of $63.46 and a low o

Ovintiv's stronger execution, cleaner balance sheet and Permian-Montney focus support its rally, but stretched expectations may warrant patience.

Efficiency, Best-in-Class Inventory, and Clean Balance Sheet Delivering Superior Returns

Highlights:

Generated first quarter cash from operating activities of $1.1 billion, Non-GAAP Cash Flow of $1.2 billion and Non-GAAP Free Cash Flow of $634 million after capital expenditures of $605 million Produced average first quarter volumes of 679 thousand barrels of oil equivalent per day ("MBOE/d"), at the high end of company guidance across all products including 225 thousand barrels per day ("Mbbls/d") of oil and condensate, 100 Mbbls/d of other NGLs (C2 to C4) and 2,124 million cubic feet per day ("MMcf/d") of natural gas Closed the acquisition of NuVista Energy Ltd., adding approximately 100 MBOE/d of production, 930 net 10,000-foot equivalent well locations, and approximately 140,000 net acres of land for approximately $2.8 billion Closed the sale of the Company's Anadarko assets in April for total cash proceeds of approximately $2.85 billion after preliminary closing adjustments Redeemed the Company's $700 million, 5.65% senior notes due May 15, 2028, on April 20, 2026, using proceeds from the Anadarko divestiture; annualized interest savings to total approximately $40 million Net Debt of less than $3.3 billion as of April 30, 2026; approximately 40% lower than one year prior Resumed share buybacks in March with the repurchase of approximately 1.5 million shares for total consideration of approximately $84 million; year-to-date share buybacks as of April 30, 2026, totaled 3.2 million shares for total consideration of $180 million Released the 2025 Sustainability Report on the Company's website , /PRNewswire/ - Ovintiv Inc. (NYSE: OVV) (TSX: OVV) ("Ovintiv" or the "Company") today announced its first quarter 2026 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 12, 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 First Quarter 2026 Financial and Operating Results (CNW Group/Ovintiv Inc.) "We've built a track record of leading execution efficiency and disciplined capital allocation and now we've combined those strengths with best-in-class inventory depth in the two best E&P assets, and a clean balance sheet," said Ovintiv President and CEO, Brendan McCracken. "With the enhanced stability of our business today, we are intensely focused on efficient execution and profitability. Our strong first quarter continues to demonstrate differentiated results that reflect the moat we have created through disciplined portfolio management and stacked innovation."

First Quarter 2026 Financial and Operating Results

Reported first quarter net loss of $630 million, or $2.35 per share diluted, including non-cash ceiling test impairments of $1.2 billion, after tax, or $4.30 per share diluted; impairment primarily driven by a weaker SEC 12-month trailing oil price relative to the previous quarter Recognized a net loss on risk management in revenues of $63 million, before tax Generated cash from operating activities of $1.1 billion and Non-GAAP Cash Flow of $1.2 billion First quarter average total production volumes were approximately 679 MBOE/d, including 225 Mbbls/d of oil and condensate, 100 Mbbls/d of other NGLs (C2 to C4) and 2,124 MMcf/d of natural gas; all products were at the high end of guidance First quarter capital investment of $605 million was at the low end of the guidance range of $600 million to $650 million First quarter upstream operating expense of $3.71 per BOE, upstream transportation and processing costs of $7.53 per BOE, production, mineral and other taxes of $1.30 per BOE, or 3.6% of upstream product revenue; costs were at the low end of guidance on a combined basis. Including the impact of hedges, first quarter average realized price for oil and condensate was $70.14 per barrel (98% of WTI), $18.12 per barrel for other NGLs, and $3.24 per Mcf (64% of NYMEX) for natural gas, resulting in a total average realized price of $36.08 per BOE 2026 Guidance
The Company issued its second quarter 2026 guidance and reiterated its full year guidance. Full year production volumes are expected to average 620 to 645 MBOE/d, with full year expected capital investment of $2.25 billion to $2.35 billion.

2026 Guidance

2Q 2026

Full Year 2026

Total Production (MBOE/d)

610 – 635

620 – 645

Oil & Condensate (Mbbls/d)

200 – 205

205 – 212

NGLs (C2 to C4) (Mbbls/d)

75 – 80

80 – 85

Natural Gas (MMcf/d)

2,000 – 2,100

2,000 – 2,100

Capital Investment ($ Millions)

$550 – $600

$2,250 – $2,350

Shareholder Returns
First quarter shareholder returns totaled approximately $169 million, consisting of share buybacks of approximately $84 million, or approximately 1.5 million shares of common stock, and base dividend payments of approximately $85 million. As of April 30, 2026, year to date share buybacks totaled $180 million, or approximately 3.2 million shares of common stock.

Continued Balance Sheet Focus
Ovintiv had approximately $2.8 billion in total liquidity as of March 31, 2026, which included available credit facilities of $3.4 billion, available uncommitted demand lines of $162 million, and cash and cash equivalents of $26 million, net of outstanding commercial paper of $824 million. The Company's Net Debt was approximately $6.4 billion of March 31, 2026.

Following the receipt of proceeds from the Anadarko disposition on April 9, 2026, Ovintiv repaid the balance under its Term Credit Agreement and the facility was terminated. The Company also 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.

As of April 30, 2026, Ovintiv's Net Debt was less than $3.3 billion and Net Debt to Adjusted EBITDA was less than 0.8 times using twelve-month trailing EBITDA as of March 31, 2026.

The Company remains committed to maintaining a strong balance sheet and is currently rated investment grade by four credit rating agencies.

Dividend Declared
On May 11, 2026, Ovintiv's Board declared a quarterly dividend of $0.30 per share of common stock payable on June 30, 2026, to shareholders of record as of June 15, 2026.

Asset Highlights

Permian
Permian production averaged 221 MBOE/d (79% liquids) in the first quarter with 34 net wells turned in line ("TIL"). In 2026, Ovintiv plans to invest 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. 2026 oil and condensate production is expected to average 117 to 123 Mbbls/d and natural gas production is expected to average 270 to 295 MMcf/d.

Montney  
Montney production averaged 365 MBOE/d (27% liquids) in the first quarter with 26 net wells TIL. In 2026, Ovintiv plans to invest approximately $875 million to $925 million in the play to run approximately 6 rigs and bring on an expected 130 to 140 net wells. 2026 oil and condensate production is expected to average 80 to 84 Mbbls/d and natural gas production is expected to average 1.7 to 1.8 Bcf/d.

2025 Sustainability Report Released
Today, the Company released its 21st annual Sustainability Report, highlighting its progress and performance on several key sustainability initiatives.

"We take our role as a responsible producer seriously," said McCracken. "We are proud of our track record of integrating tangible actions into our business that allow us to deliver superior returns to our shareholders while continuing to make progress on sustainability outcomes."

Key Sustainability Highlights

Achieved greater than 85% of the Company's goal to reduce Scope 1 & 2 greenhouse gas (GHG) emissions intensity by 50% by 2030, relative to 2019 levels Continued advancing Ovintiv's safety culture through collective dedication to serious injury prevention with the expansion of the Leading with Safety program and the introduction of Safe Decision-Making training Announced investment in the Ovintiv Tool Hub at Northwestern Polytechnic, supporting skilled-trades training and equipping students with practical experience for the workforce Announced the retirement of current Board Chair and the unanimous election of a new Chair, Steven Nance Welcomed a new independent director, Gregory Hill, in January 2026, adding a wealth of energy industry and leadership experience to the Board, maintaining an ongoing Board refreshment process Ovintiv's sustainability report can be found on the Company's website at Download Sustainability Report – Ovintiv.

For additional information, please refer to the First 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 first quarter 2026 results will be held at 8:00 a.m. MT (10:00 a.m. ET) on May 12, 2026.

To join the conference call without operator assistance, you may register and enter your phone number at https://emportal.ink/4aQ9VDs 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 March 31)

1Q 2026

1Q 2025

Capital Expenditures (1) ($ millions)

605

617

Oil (Mbbls/d)

141.8

150.5

NGLs – Plant Condensate (Mbbls/d)

83.5

55.2

Oil & Plant Condensate (Mbbls/d)

225.3

205.7

NGLs – Other (Mbbls/d)

99.6

88.7

Total Liquids (Mbbls/d)

324.9

294.4

Natural gas (MMcf/d)

2,124

1,764

Total production (MBOE/d)

678.9

588.3

1) Including capitalized directly attributable internal costs.

First Quarter Financial Summary

(for the period ended March 31)

($ millions)

1Q 2026

1Q 2025

Cash From (Used In) Operating Activities

Deduct (Add Back):

Net change in other assets and liabilities

Net change in non-cash working capital

1,056

(14)

(169)

873

(11)

(120)

Non-GAAP Cash Flow (1)

1,239

1,004

Non-GAAP Cash Flow (1)

1,239

1,004

Less: Capital Expenditures (2)

605

617

Non-GAAP Free Cash Flow (1)

634

387

Net Earnings (Loss) Before Income Tax

Before-tax (Addition) Deduction:

Unrealized gain (loss) on risk management

Impairments

Non-operating foreign exchange gain (loss)

(827)

(53)

(1,485)

2

(193)

(46)

(730)

87

Adjusted Earnings (Loss) Before Income Tax

Income tax expense (recovery)

709

172

496

126

Non-GAAP Adjusted Earnings (1)

537

370

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 March 31)

1Q 2026

1Q 2025

Liquids ($/bbl)

WTI

71.93

71.42

Realized Liquids Prices

Oil

70.78

71.79

NGLs – Plant Condensate

69.06

66.22

Oil & Plant Condensate

70.14

70.30

NGLs – Other

18.12

23.21

Total NGLs

41.35

39.71

Natural Gas

NYMEX ($/MMBtu)

5.04

3.65

Realized Natural Gas Price ($/Mcf)

3.24

3.16

Cost Summary

(for the period ended March 31)

($/BOE)

1Q 2026

1Q 2025

Production, mineral and other taxes

1.30

1.64

Upstream transportation and processing

7.53

7.36

Upstream operating

3.71

3.89

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

1.31

1.36

Debt to EBITDA (1)

($ millions, except as indicated)

March 31, 2026

December 31, 2025

Long-Term Debt, including Current Portion

6,398

5,202

Net Earnings (Loss)

771

1,242

Add back (Deduct):

   Depreciation, depletion and amortization

2,195

2,179

   Interest

383

376

   Income tax expense (recovery)

(635)

(472)

EBITDA

2,714

3,325

Debt to EBITDA (times)

2.4

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)

March 31, 2026

December 31, 2025

Long-Term Debt, including Current Portion

6,398

5,202

Net Earnings (Loss)

771

1,242

Add back (Deduct):

   Depreciation, depletion and amortization

   Impairments

2,195

1,675

2,179

920

   Accretion of asset retirement obligation

29

28

   Interest

383

376

   Unrealized (gains) losses on risk management

1

(6)

   Foreign exchange (gain) loss, net

19

31

   Other (gains) losses, net

(72)

(46)

   Income tax expense (recovery)

(635)

(472)

Adjusted EBITDA

4,366

4,252

Debt to Adjusted EBITDA (times)

1.5

1.2

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

Hedge Details(1) as of March 31, 2026

Oil and
Condensate
Hedges ($/bbl)

2Q 2026

3Q 2026

4Q 2026

1Q 2027

2Q 2027

3Q 2027

4Q 2027

WTI Fixed Price
Swaps

4 Mbbls/d

$62.86

4 Mbbls/d

$63.29

4 Mbbls/d

$63.59

0

-

0

-

0

-

0

-

WTI 3-Way Options
Call Strike

Put Strike

Sold Put Strike

51 Mbbls/d

$70.65

$61.25

$51.08

51 Mbbls/d

$70.89

$59.28

$50.10

41 Mbbls/d

$70.23

$57.25

$50.13

30 Mbbls/d

$75.50

$59.11

$50.00

0

-

-

-

0

-

-

-

0

-

-

-

WTI Collars

Call Strike

Put Strike

1 Mbbls/d

$69.01

$57.33

1 Mbbls/d

$69.01

$57.33

1 Mbbls/d

$69.01

$57.33

0

-

-

0

-

-

0

-

-

0

-

-

Natural Gas

Hedges ($/Mcf)

2Q 2026

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

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

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

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)

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

133 MMcf/d

$2.31

152 MMcf/d

$2.28

118 MMcf/d

$2.31

100 MMcf/d

$2.00

119 MMcf/d

$2.00

119 MMcf/d

$2.00

106 MMcf/d

$2.00

AECO Collars

Call Strike

Put Strike

10 MMcf/d

$2.19

$1.72

10 MMcf/d

$2.19

$1.72

3 MMcf/d

$2.19

$1.72

0

-

-

0

-

-

13 MMcf/d

$2.40

$1.79

20 MMcf/d

$2.40

$1.79

NuVista Cash Flow
Deduction ($MM)(2)

$30

$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 the Company's 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. The forecasted April 30, 2026, Net Debt to Adjusted EBITDA is calculated using Net Debt as at April 30, 2026, divided by the 12-month trailing EBITDA as at March 31, 2026. Adjusted EBITDA, Debt to 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 first 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:

(888) 525-0304 

Media contact:

(403) 645-2252

SOURCE Ovintiv Inc.

Ovintiv (OVV - Free Report) came out with quarterly earnings of $2 per share, beating the Zacks Consensus Estimate of $1.85 per share. This compares to earnings of $1.42 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +8.25%. A quarter ago, it was expected that this energy company would post earnings of $0.98 per share when it actually produced earnings of $1.39, delivering a surprise of +41.84%.

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

Ovintiv, which belongs to the Zacks Oil and Gas - Exploration and Production - Canadian industry, posted revenues of $2.53 billion for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 9.80%. This compares to year-ago revenues of $2.38 billion. The company has topped consensus revenue estimates four times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Ovintiv shares have added about 47.6% since the beginning of the year versus the S&P 500's gain of 8.1%.

What's Next for Ovintiv?While Ovintiv has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Ovintiv was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.36 on $2.31 billion in revenues for the coming quarter and $7.59 on $9.22 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Oil and Gas - Exploration and Production - Canadian is currently in the top 10% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

One other stock from the broader Zacks Oils-Energy sector, Prairie Operating Co. (PROP - Free Report) , is yet to report results for the quarter ended March 2026. The results are expected to be released on May 14.

This company is expected to post quarterly earnings of $0.15 per share in its upcoming report, which represents a year-over-year change of +104.3%. The consensus EPS estimate for the quarter has been revised 21.3% lower over the last 30 days to the current level.

Prairie Operating Co.'s revenues are expected to be $87.18 million, up 541.5% from the year-ago quarter.

Ovintiv Inc (NYSE:OVV) on Monday posted upbeat first-quarter earnings.

Ovintiv reported quarterly earnings of $2.00 per share which beat the analyst consensus estimate of $1.83 per share. The company reported quarterly sales of $2.532 billion which beat the analyst consensus estimate of $2.430 billion.

Ovintiv shares fell 0.9% to trade at $58.59 on Tuesday.

These analysts made changes to their price targets on Ovintiv following earnings announcement.

Barclays analyst Betty Jiang maintained Ovintiv with an Overweight rating and raised the price target from $62 to $68. Scotiabank analyst Kevin Fisk maintained the stock with a Sector Outperform and raised the price target from $65 to $67. Considering buying OVV stock? Here’s what analysts think:

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2 Canadian Mid-Cap Dividend Payers Energized For GrowthOvintiv NYSE: OVV said its first-quarter 2026 results reflected stronger operational execution, a recently reshaped portfolio and a significantly lower debt balance following asset transactions completed early in the year.

President and CEO Brendan McCracken told investors that the company has moved into what he described as a more stable phase after expanding its drilling inventory, integrating recently acquired NuVista assets and selling its Anadarko assets. He said Ovintiv has increased its Permian and Montney drilling inventory by more than 3,200 locations since 2023 without diluting shareholders, while also improving returns on invested capital and reducing debt.

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“We have fundamentally de-risked our business and positioned ourselves to deliver durable returns for many years to come,” McCracken said.

Debt Reduction and Cash Flow Highlight Quarter Chief Financial Officer Corey Code said Ovintiv’s balance sheet is “now stronger than it has been in a decade.” As of April 30, the company’s net debt was less than $3.3 billion, or below 0.8 times leverage. Code said the company has no remaining long-term debt maturities before 2030 and expects more than $80 million in annualized interest savings from debt repaid since the start of the year.

Ovintiv reported first-quarter cash flow per share of $4.62, which Code said beat consensus estimates by about 6%. Free cash flow totaled $634 million. Capital investment was $605 million, at the low end of the company’s guidance range, and total per-unit costs also came in at the low end of guidance.

The company delivered production at the high end of its guidance ranges across each product category, including oil and condensate production of about 225,000 barrels per day.

Ovintiv recorded a $1.2 billion after-tax non-cash ceiling test impairment, which resulted in a loss for the quarter. Code said the impairment was driven by weaker oil prices in the first quarter lowering the SEC 12-month trailing price. At current strip pricing, he said the company does not expect further impairments.

Shareholder Returns Framework Adjusted for Higher Oil Prices McCracken said Ovintiv has returned $3.7 billion to shareholders since introducing its shareholder return framework in 2021, including $2.4 billion through share buybacks and $1.3 billion through base dividends.

In March, the company committed to returning 50% to 100% of free cash flow through dividends and buybacks. McCracken said Ovintiv entered 2026 expecting to allocate at least 75% of free cash flow to shareholder returns. However, with oil prices higher than expected, the company now expects to be in the 50% to 75% range if prices remain elevated, while using the environment to further accelerate net debt reduction.

He said Ovintiv still expects shareholder returns this year to exceed its original plan on an absolute dollar basis. If oil prices retreat, McCracken said the company would have capacity to be more opportunistic with buybacks and could return to the 75% or higher range.

In response to an analyst question, McCracken said the company continues to evaluate its intrinsic value using a long-held mid-cycle assumption of $55 WTI, which he said implies about $4 billion of cash flow for the business.

Montney Integration and Royalty Impacts Chief Operating Officer Greg Givens said the company’s Montney well productivity in the first quarter was tracking above 2026 type curves. Ovintiv reached its target of 85,000 barrels per day in the first month after closing the NuVista acquisition, and Givens said the acquired assets are now fully integrated into the company’s Montney operations.

Givens said higher commodity prices are raising royalty rates in Canada because of the sliding-scale royalty structure. He said that while gross volumes are unchanged, higher royalties reduce reported net volumes. However, higher prices also lift revenue.

As an example, Givens said that if condensate prices averaged $90 per barrel for the year, Ovintiv would see a 5,000-barrel-per-day reduction in reported net volumes but a 40% increase in revenues. He called the trade-off “a good problem to have.”

Montney production in the second quarter is expected to be at the low end of full-year guidance due to royalty effects and planned plant turnarounds. Still, Givens said well performance from both legacy and acquired NuVista assets remains strong.

The company also highlighted natural gas price diversification in Canada. Givens said Ovintiv’s first-quarter Montney gas price realization was 175% of AECO, and the company is exposed to AECO pricing on less than 20% of its 2026 Canadian gas volumes. A JKM-linked contract for 100 million cubic feet per day began during the quarter, and Givens said it would be worth about $60 million for the rest of the year at current strip pricing.

Permian Performance and Technology Focus Givens said Ovintiv’s Permian operations continued to outperform in the first quarter, with average oil and condensate production of 126,000 barrels per day. He said recent wells are exceeding the company’s 2026 type curve.

Management emphasized what it called “stacked innovation” as a driver of capital efficiency. Givens said Ovintiv has pumped surfactants in more than 300 Permian wells since 2019 and observed a 9% improvement in oil productivity versus comparable untreated wells. He said the company believes surfactants account for roughly half of the type curve improvement seen in its Permian assets since 2022, at a cost of about $100,000 per well.

Givens said other contributors include cube development, reoccupation approaches, stage architecture and the use of artificial intelligence trained on Ovintiv’s proprietary data. He said the company has improved Permian oil productivity per foot by more than 10% since 2023 while the broader basin has faced a 2% annual decline.

Asked whether the productivity gains represent accelerated production or higher recovery, Givens said Ovintiv believes they point to higher recovery. He cited the persistence of the uplift over several years and geochemistry work showing different oil composition from surfactant-treated wells.

Full-Year Outlook Held Steady Ovintiv is maintaining its full-year production guidance, including 205,000 to 212,000 barrels per day of oil and condensate. Code said strong performance in the Permian and Montney is expected to offset volumes lost to higher Canadian royalties.

For the second quarter, Ovintiv expects production of about 623,000 barrels of oil equivalent per day, including approximately 203,000 barrels per day of oil and condensate. Capital spending is expected to be about $575 million.

Code said the company is not seeing significant inflationary pressure on its 2026 capital program outside of higher diesel costs, and expects operational efficiencies to largely offset any additional cost inflation. Ovintiv’s capital guidance remains unchanged.

McCracken said the company has the ability to grow production in both the Permian and Montney but is currently maintaining a stay-flat program while watching commodity market signals. “We’re saying today we’re going to be patient and watch the macro unfold a little bit longer here,” he said.

About Ovintiv NYSE: OVVOvintiv Inc is a North American energy company focused on the exploration, development and production of oil, natural gas and natural gas liquids. Formerly known as Encana Corporation, the company rebranded as Ovintiv in January 2020 and established its headquarters in Denver, Colorado. Ovintiv's upstream portfolio spans multiple unconventional resource plays, reflecting a strategy centered on high-return projects and disciplined capital allocation.

The company's core business activities include the acquisition and development of acreage in major shale basins across the United States and Canada.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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Key Takeaways OVV beat Q1 earnings and revenue estimates as production and natural gas prices increased.Ovintiv completed the $2.7B NuVista acquisition, adding 100 MBOE/d and new drilling inventory.OVV reaffirmed 2026 production and capital spending guidance after strong Q1 execution. Ovintiv Inc. (OVV - Free Report) reported first-quarter 2026 adjusted earnings per share of $2, which beat the Zacks Consensus Estimate of $1.85. The bottom line also increased from the year-ago level of $1.42. The outperformance was driven by higher plant condensate, natural gas liquids and natural gas production volumes and higher average realized natural gas prices.

The Denver, CO-based oil and gas exploration and production company’s total revenues of $2.5 billion increased 6.5% from the year-ago quarter’s figures. The top line also beat the Zacks Consensus Estimate by 9.8%. The outperformance was driven by higher product and service revenues.

On May 11, 2026, Ovintiv's board of directors declared a quarterly dividend of 30 cents per share, which will be paid on June 30, to its shareholders of record as of June 15.

First-quarter shareholder returns totaled $169 million, consisting of share buybacks of $84 million and base dividend payments of $85 million.

During the quarter, the company completed the $2.7 billion acquisition of NuVista Energy Ltd., adding roughly 100 MBOE/d of production, about 930 net equivalent well locations and nearly 140,000 net acres of land.

OVV’s Q1 Production & PricesTotal first-quarter production was 678,900 barrels of oil equivalent per day (BOE/d) compared with 588,300 BOE/d in the prior-year period. The figure beat our prediction of 675,000 BOE/d.

Natural gas production increased to 2,124 million cubic feet per day (MMcf/d) in the first quarter of 2026 from 1,764 MMcf/d in the prior-year quarter. Additionally, the figure beat our estimate of 2,115 MMcf/d.

Total liquids production increased to 324.9 thousand barrels per day (Mbbls/d) in the first quarter of 2026 from 294.4 Mbbls/d in the prior-year quarter. Furthermore, the figure beat our prediction of 323 Mbbls/d.

In the first quarter of 2026, natural gas contributed approximately 52.1%, and liquids accounted for about 47.9% of the total production.

Ovintiv's realized natural gas price was $3.24 per thousand cubic feet compared with the year-ago level of $3.16. The realized oil price decreased to $70.78 per barrel from $71.79 in the prior-year quarter.

OVV’s Costs, Capex & Balance SheetTotal expenses of $3.3 billion increased 33.2% from the year-ago quarter’s figure of $2.5 billion. Moreover, the figure was higher than our projection of $1.7 billion.

Ovintiv’s cash from operating activities in the quarter under review was $1.1 billion, compared to the year-ago figure of $873 million.

OVV's capital investments were $605 million compared with $617 million in the year-ago period. The company generated a non-GAAP free cash flow of $634 million in the reported quarter.

As of March 31, the company had cash and cash equivalents worth $26 million and long-term debt of $5.5 billion. Its debt-to-capitalization was 32.3%.

OVV’s Asset PerformanceIn the first quarter of 2026, average production from the Permian Basin reached approximately 221 MBOE/d, with liquids making up 79% of the total. A total of 34 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, first-quarter output averaged 365 MBOE/d, with liquids contributing about 27% of the volume. The company turned in 26 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 Q2 & 2026 GuidanceOvintiv reiterated its full-year 2026 guidance while issuing second-quarter projections. The company expects full-year production volumes to average between 620 and 645 MBOE/d, including oil and condensate production of 205 to 212 Mbbls/d, NGL production of 80 to 85 Mbbls/d, and natural gas production of 2 to 2.1 Bcf/d. Ovintiv forecasts a total 2026 capital investment in the range of $2.25 billion to $2.35 billion, reflecting its continued focus on disciplined capital allocation and operational efficiency.

For the second quarter of 2026, this Zacks Rank #2 (Buy) company expects production between 610 and 635 MBOE/d with capital spending of $550 million to $600 million. Management highlighted that strong first-quarter execution, enhanced inventory depth following the NuVista acquisition and a significantly improved balance sheet position support its confidence in maintaining the full-year outlook.

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 first-quarter results in detail, let us take a look at three other key reports in this space.

Northern Oil and Gas, Inc. (NOG - Free Report) reported first-quarter 2026 adjusted earnings per share of 74 cents, which beat the Zacks Consensus Estimate of 71 cents. The outperformance reflects strong production. However, the bottom line declined from the year-ago adjusted profit of $1.33 due to weaker natural gas prices and a 77% increase in operating expenses.

The Minnetonka, MN-based oil and gas exploration and production company reported oil and gas sales of $539.9 million, beating the Zacks Consensus Estimate of $511 million, supported by higher crude oil realizations. However, the top line decreased from the year-ago figure of $576.9 million. The year-over-year decline was mainly due to lower oil and gas sales during this quarter.

As of March 31, 2026, Northern Oil had $37 million in cash and cash equivalents. The company had a long-term debt of $2.6 billion, with a debt-to-capitalization of 58.8%.

Canadian Natural Resources Limited (CNQ - Free Report) reported first-quarter 2026 adjusted earnings per share of 85 cents, which beat the Zacks Consensus Estimate of 74 cents and increased from 81 cents in the year-ago quarter. The outperformance can be attributed to strong operational performance and higher realized natural gas prices.

Total revenues of $7.9 billion increased from $7.6 billion in the prior-year period, fueled by increased production volumes. Additionally, the figure beat the Zacks Consensus Estimate of $7.5 billion.

As of March 31, 2026, CNQ had cash and cash equivalents worth C$808 million and long-term debt of approximately C$16.5 billion, with a debt to capitalization of about 27%.

The Williams Companies, Inc. (WMB - Free Report) reported first-quarter 2026 adjusted earnings per share of 73 cents, which beat the Zacks Consensus Estimate of 65 cents. The bottom line increased from the year-ago period’s level of 60 cents, driven mainly by a 12.5% decrease in costs and expenses. Moreover, better-than-expected performance of its Transmission, Power & Gulf, Northeast G&P, West and Gas & NGL Marketing Services segments also contributed, with increases of 17.2%, 1.9%, 15.8% and 46.5%, respectively, from the year-ago quarter’s level.

The company’s revenues of $3 billion missed the Zacks Consensus Estimate of $3.3 billion. The figure decreased marginally by 0.6% from the year-ago quarter’s reported revenues. This can be attributed to lower service revenues tied to commodity contracts and an increased loss from commodity derivative instruments.

As of March 31, 2026, WMB had cash and cash equivalents of $950 million and a long-term debt of $30 billion, with a debt-to-capitalization of 66.5%.

Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the "long context," investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.

Even though momentum is a popular stock characteristic, it can be tough to define. Debate surrounding which are the best and worst metrics to focus on is lengthy, but the Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.

Below, we take a look at Ovintiv (OVV - Free Report) , a company that currently holds a Momentum Style Score of A. We also talk about price change and earnings estimate revisions, two of the main aspects of the Momentum Style Score.

It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Ovintiv currently has a Zacks Rank of #1 (Strong Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.

You can see the current list of Zacks #1 Rank Stocks here >>>

Set to Beat the Market? In order to see if OVV is a promising momentum pick, let's examine some Momentum Style elements to see if this energy company holds up.

Looking at a stock's short-term price activity is a great way to gauge if it has momentum, since this can reflect both the current interest in a stock and if buyers or sellers have the upper hand at the moment. It's also helpful to compare a security to its industry; this can show investors the best companies in a particular area.

For OVV, shares are up 3.75% over the past week while the Zacks Oil and Gas - Exploration and Production - Canadian industry is up 3.2% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 12.31% compares favorably with the industry's 13.05% performance as well.

While any stock can see a spike in price, it takes a real winner to consistently outperform the market. Shares of Ovintiv have increased 18.1% over the past quarter, and have gained 61.94% in the last year. On the other hand, the S&P 500 has only moved 7.88% and 25.61%, respectively.

Investors should also pay attention to OVV's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. OVV is currently averaging 4,165,046 shares for the last 20 days.

Earnings OutlookThe Zacks Momentum Style Score also takes into account trends in estimate revisions, in addition to price changes. Please note that estimate revision trends remain at the core of Zacks Rank as well. A nice path here can help show promise, and we have recently been seeing that with OVV.

Over the past two months, 4 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost OVV's consensus estimate, increasing from $4.74 to $8.27 in the past 60 days. Looking at the next fiscal year, 4 estimates have moved upwards while there have been no downward revisions in the same time period.

Bottom LineGiven these factors, it shouldn't be surprising that OVV is a #1 (Strong Buy) stock and boasts a Momentum Score of A. If you're looking for a fresh pick that's set to soar in the near-term, make sure to keep Ovintiv on your short list.

Key Takeaways OVV says recent Permian wells are outperforming its expected 2026 production targets.OVV has used surfactants in completions on 300 Permian wells since 2019, lifting oil output ~9%.OVV drills multiple wells per area, revisits sites, optimizes completions and uses AI to cut costs. Ovintiv Inc.’s (OVV - Free Report) Permian performance is increasingly being driven by how efficiently it develops its wells rather than simply the quality of its acreage. Many U.S. shale producers are seeing well productivity come under pressure as fields mature, but Ovintiv is reporting a different trend. The company said its recent Permian wells continue to outperform its expected 2026 production targets, suggesting that strong execution and operational improvements are helping boost results. The key question for investors is whether Ovintiv can continue delivering these stronger well outcomes consistently over time.

A major part of that effort is Ovintiv’s use of surfactants in completions. These chemical additives are designed to improve oil recovery from the rock, and Ovintiv has now applied them across more than 300 Permian wells since 2019. The company’s data shows roughly a 9% oil-productivity uplift versus comparable wells, at an added cost of about $100,000 per well. Investors should know that even a modest percentage gain can improve well economics when spread across a large drilling program, provided the uplift is durable.

The bigger takeaway is that surfactants are just one of the several tools Ovintiv is using to improve well performance in the Permian. The company is also applying techniques such as developing multiple wells from the same area, returning to existing locations for additional drilling, optimizing completion designs and using AI-powered analysis based on its operational data. Together, these approaches are aimed at producing more oil from each well while keeping drilling and completion costs under control. For investors, the key question is whether this combination of technologies and operating practices can continue delivering stronger well results in a basin where boosting productivity is becoming increasingly difficult.

Ovintiv is not the only upstream company trying to improve Permian well performance through better execution and technology. Other major Permian-focused producers are also using scale, improved completion designs and operational efficiencies to get more from each dollar spent in the basin.

Permian Operators Lean on Efficiency to Boost Returns

Diamondback Energy’s (FANG - Free Report) Permian strategy is focused on improving how efficiently it drills and completes wells across its large Midland Basin position. Diamondback Energy continues to use scale, better completion designs and operational discipline to lower costs and improve well results. Diamondback Energy’s use of technologies such as electric simul-frac also supports faster, more efficient completions. If Diamondback Energy continues to lower costs and improve well performance, it could strengthen cash flow generation and support shareholder returns even in a slower commodity-price environment.

Devon Energy’s (DVN - Free Report) Permian initiatives are centered on improving capital efficiency and well performance in the Delaware Basin, one of its most important growth areas. Devon Energy has been working to get more production from each dollar spent by refining drilling plans, completion designs and development timing. Devon Energy’s recent Delaware Basin improvements suggest that better execution is helping support stronger returns. The success of Devon Energy’s strategy will largely depend on its ability to translate operational improvements into higher returns and consistent production growth over the long term.

The Zacks Rundown on Ovintiv

Shares of Ovintiv have gained more than 38% over the past six months, breezing past the industry’s growth.

Image Source: Zacks Investment Research

OVV currently has an average brokerage recommendation of 1.44 on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 25 brokerage firms. 

Image Source: Zacks Investment Research

The chart below shows Ovintiv’s earnings over the past four quarters.

Image Source: Zacks Investment Research

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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Stock to Watch: Ovintiv (OVV - Free Report) Ovintiv Inc. is an independent energy producer, which explores and churns out oil and natural gas from diverse assets located in the United States and Canada. Previously known as Encana, the company rebranded and shifted its corporate domicile from Calgary, Canada to Denver, U.S.

OVV is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.

Momentum investors should take note of this Oils-Energy stock. OVV has a Momentum Style Score of B, and shares are up 1.7% over the past four weeks.

Five analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $1.48 to $8.15 per share. OVV also boasts an average earnings surprise of +13.6%.

With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, OVV should be on investors' short list.