Ovintiv Inc. (de) · NYSE:OVV
Ovintiv Inc. (de) — Q2 2025 Earnings Presentation
29 slides from Ovintiv Inc. (de)'s earnings presentation, Jul 25, 2025
Slide 1: 2Q25 Results Conference Call
2Q25 Results Conference Call 1
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation 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 Exc
Slide 3: Disclaimers and Non-GAAP Definitions
Disclaimers and Non-GAAP Definitions For convenience, references in this presentation to “Ovintiv”, “OVV”, the “Company”, “we”, “us” and “our” may, where applicable, refer only to or include any relevant direct and indirect subsidiary entities and partnerships (“Subsidiaries”) of Ovintiv Inc., and t
Slide 4: A Permian and Montney Oil Powerhouse
A Permian and Montney Oil Powerhouse Differentiated Oil Portfolio • Top performer anchored in the Permian & Montney, paired with stable, low- decline Free Cash FlowŦ in the Anadarko Position of Strength & Resiliency • Portfolio built on a $55/bbl WTI & $2.75/MMBtu NYMEX mid-cycle price Meaning
Slide 5: Durable Returns Strategy
Durable Returns Strategy 10-20Years 1 Inventory Depth & Quality Premium Oil Inventory in Each Asset1 High-return multi-basin, multi-product investment optionality <$40/bbl FY25E WTI Breakeven w/ Base Dividend2 Cube Development 2 Culture & Expertise + Private Data Preserves Inventory and Delivers Lon
Slide 6: Delivering Cash Flow & Inventory Growth
Delivering Cash Flow & Inventory Growth 2025E supported by Montney integration, ~25% buybacks & continued focus on Higher Cash profitability Flow per Cash Flow per ShareŦ Growth, Not driven by price – FY24 unhedged ShareŦ FY21-FY24 realized price per BOE was ~10% lower than FY21 Change in Sub-$5
Slide 7: Continued Operational Excellence in 2Q25
Continued Operational Excellence in 2Q25 $3.51 2Q25 Cash Flow per ShareŦ $3922Q25 Free Cash FlowŦ MM 211 Mbbls/d 2Q25 Oil & Condensate Production Diluted Production above top end of guidance 2Q25 Operational Performance ranges • Montney: seamless integration of new assets Guidance Actuals Oil & Cond
Slide 8: Profitability Driving Free Cash Flow
Profitability Driving Free Cash FlowŦ FY25E Free Cash FlowŦ Scenarios3 $MM 3Q25-4Q25E Pricing 10% more Free Cash FlowŦ in FY25E than prior ~$1,825 $65/bbl & $4.00/MMBtu expectation $1,739 ~17% Free Cash Flow YieldŦ • ~$1.65 B FY25E Free Cash FlowŦ at $60/bbl & $3.75/MMBtu pricing $60/bbl & $3.75/MMB
Slide 9: Return Framework Balances Priorities
Return Framework Balances Priorities Shareholder Cumulative >$3.3 B Returns Cumulative Shareholder Returns $2.2B Since 3Q21; >30% of Current Market Buybacks Capitalization1 since Framework Cumulative Base Dividends $1.2B $158 MM Planned Buybacks in 3Q25E; Based Announced 3Q21-3Q25E on 2Q25A Free Cas
Slide 10: Diversifying Montney Natural Gas Exposures
Diversifying Montney Natural Gas Exposures First Ovintiv exposure to JKM Expected Montney Natural Gas Exposures1 Percent of Production • Two-year contract begins Jan '26 • Ovintiv to deliver 50 MMcf/d of physical gas at AECO & receive <20% fixed percentage of JKM AECO ~1/3 Exposed to Unenhanced AECO
Slide 11: 3Q25 & Updated FY25 Guidance
3Q25 & Updated FY25 Guidance 2025 Production and Capital Prior Updated More FY25E production for less capital 3Q25E FY25E FY25E • Mid-point of FY capital lowered by $50 MM Total Production 610 – 630 595 - 615 600 - 620 • Oil & Condensate production guidance increase (MBOE/d) driven by strong 1H25 re
Slide 12: Cube Development Supports Inventory Duration
Cube Development Supports Inventory Duration Cube Development Drives Durable Returns Ovintiv established cube development in 2015 – simultaneous co- development of multiple stacked zones in a single development window Preserves inventory quality and longevity Reoccupation Strategy • Drill adjacent
Slide 13: Leading Permian Operations
Leading Permian Operations FY25E type curve remains unchanged • Performance to-date aligns with FY25E type curve Ovintiv Permian Well Productivity • Productivity uplift & sustainability observable in public data FY24A 16 (145 wells) ~10% well productivity uplift vs. FY22A 14 • Demonstrates return va
Slide 14: Montney Cost Synergies Achieved
Montney Cost Synergies Achieved Delivered on $1.5 MM per Well Savings1 Drilling Completions Facilities ~$1.0 Total Captured Savings From MM/well ~$0.3 MM/well Total Captured Savings From ~$0.2 MM/well Total Captured Savings From Drilling Completions Facilities ~$600k/well ~30% ~2x Savings From high-
Slide 15: Why Ovintiv?
Why Ovintiv? A Permian & Montney Oil Powerhouse Durable Free Cash FlowŦ & Returns Deep Premium1 Oil & Gas Inventory Montney Delivering Debt Reduction Execution Excellence Anadarko Permian 15 Ŧ Non-GAAP measures defined in advisories. For additional information regarding non-GAAP measures s
Slide 16: Int iv"
iv" Int < Ovi » 4 A
Slide 17: Appendix
Appendix
Slide 18: Additional 2025 Guidance
Additional 2025 Guidance Operating Expenses Prior FY25 Guide1 2Q25A 3Q25-4Q25 Guide Current guidance assumes $60/bbl WTI, $3.75/MMBtu NYMEX & PMOT 3.75%-4.50% 4.1% 3.75%-4.50% 0.72 CAD/USD for 3Q25-4Q25 (% of Upstream Revenue2) Upstream T&P3 $7.50-$8.00 $7.62 $7.50-$8.00 ($/BOE) Upstream Opex3 Impro
Slide 19: Additional 2025 Guidance
Additional 2025 Guidance FY25E Asset-Level Guidance Permian Montney Anadarko Rigs 4-5 3-4 1-2 Frac Crews 1-2 ~1 0-1 Net TILs 130-140 75-85 25-35 Capital ($MM) $1,200-$1,250 $575-$625 $290-$310 D&C ($/ft) $600-$650 $500-$550 $525-$575 LL (ft) ~11,500 ~11,500 ~11,500 Trimulfrac ~75% - - Asset-level ac
Slide 20: 2025 Sensitivities
2025 Sensitivities Upstream T&P Sensitivities 3Q25-4Q25E CAD/USD Free Cash FlowŦ Sensitivity1 3Q25-4Q25E Sensitivity Upstream T&P Sensitivity Change F/X Rate F/X Rate ~0.72 +/- 0.01 CAD/USD $0.10/BOE +/- 0.01 CAD/USD ~$15 MM (CAD/USD) (CAD/USD) WTI ~$60 +/- $10/bbl $0.10/BOE ($/bbl) NYMEX +/- 0.01 C
Slide 21: Hedge Positions as of June 30, 2025
Hedge Positions as of June 30, 2025 Oil and Condensate Hedge Positions1 Oil and Condensate 3Q25 4Q25 1Q26 2Q26 3Q26 4Q26 2027 2028 WTI & NYMEX Realized Gain / (Loss) Sensitivities ($ MM)2 Volume Mbbls/d 50 50 45 25 0 0 0 0 Call Strike $/bbl $80.59 $76.57 $72.32 $70.68 - - - - WTI 3-Way Options Put S
Slide 22: Relentless Focus on Profitability
Relentless Focus on Profitability ~30% higher capital efficiency, FY25E vs. FY23A Improving Capital Efficiency1 • Driven by Montney-for-Uinta asset swap • Updated FY25E Guidance – more production for less capital Oil & Condensate Production • Supported by ongoing capital savings initiatives across e
Slide 23: Montney Oil and Condensate Type Curve
Montney Oil and Condensate Type Curve Montney Oil & Condensate Type Curve 18 16 All capital targets oil today Higher CGR (Karr) Repeatable Montney Program 14 Program maximizes >70% >40% returns & duration Cume. Oil bbls/ft 12 10 Repeatable IRR @ $65 WTI, $3.50 IRR @ $55 WTI, $2.75 NYMEX 8 Montne
Slide 24: Anadarko Free Cash Flow Machine
Anadarko Free Cash FlowŦ Machine FY25E at 1-2 rigs & ½ frac crew 2Q25 Anadarko Drilling Highlights • ~15% of company FY25E capital with full optionality to >17,700ft adjust if needed On track for expected D&C savings Drilled Longest Anadarko Lateral in • FY25E D&C at ~$550/ft, a ~14% improvement fro
Slide 25: Significant Torque to Higher Gas Prices
Significant Torque to Higher Gas Prices Scale 3Q25E-4Q25E Natural Gas Price Exposure2 Top 10 public onshore natural NYMEX gas producer1 AECO Price Diversity Waha ~75% of FY25E gas production Downstream Markets priced ex AECO & Waha No Material Tariff Impact3 ~20% of gas production crosses the U.S. /
Slide 26: Durable Cash Return Framework
Durable Cash Return Framework 3Q25E Free Cash FlowŦ Allocation ($ MM) Committed to Our Proven Framework 2Q25 Results $913 Non-GAAP Cash FlowŦ Post Base Dividend Free Cash FlowŦ ($521) Capex $392 Non-GAAP Free Cash FlowŦ ($77) 2Q25 Base Dividend Shareholder Returns $315 Available for Allocation 3Q25E
Slide 27: Committed to Debt Reduction
Committed to Debt Reduction 1Q25-2Q25 Net DebtŦ Bridge 50% of post-base div. Free Cash FlowŦ $MM allocated to Balance Sheet • $217 MM Net DebtŦ reduction quarter-over-quarter $5,530 $146 $5,313 $77 $4.0 B debt target ($48) ($392) • ~1.0x Debt to Adjusted EBITDAŦ at mid-cycle1 • Expect <$5 B Debt by
Slide 28: Canadian Royalty Sensitivity
Canadian Royalty Sensitivity Royalty Sensitivity1 Royalty rates vary based on commodity prices U.S. Basin Average (20 – 25%) 24 – 26% • OVV Reports “NRI” volumes after royalties across its U.S. and Canadian assets • Changes in royalty rates seen in changes to reported net MAX production Effective Ro
Slide 29: Track Record of Responsible Operations
Track Record of Responsible Operations 50% Scope 1&2 Achieved 46% Reduction Through YE24 GHG Intensity Reduction Target Intensity Reduction1 (from ’19 – ’30) Tied to Compensation For All Employees 73% Methane Intensity Reduction2 Dedicated to our Communities Achieved 33% Reduction from ’19 Targ