Ovintiv Inc. (de) · NYSE:OVV
Ovintiv Inc. (de) — Q1 2025 Earnings Presentation
27 slides from Ovintiv Inc. (de)'s earnings presentation, May 7, 2025
Slide 1: 1Q25 Results Conference Call
1Q25 Results Conference Call May 7, 2025 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: Well-Positioned to Weather Volatility
Well-Positioned to Weather Volatility Current commodity fundamentals validate choice for maintenance-level investment in 2025 $B FY25E Free Cash FlowŦ Scenarios1 Positioned to generate returns & Free Cash FlowŦ through the cycle ~$2.1 FY25E at $70/bbl & $4.00/MMBtu ~23% Free Cash Flow YieldŦ A
Slide 5: 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 Meaningf
Slide 6: 1Q25 Results Driven by Strong Ops
1Q25 Results Driven by Strong Ops $3.86 1Q25 Cash Flow per ShareŦ $3871Q25 Free Cash FlowŦ MM 206 Mbbls/d 1Q25 Oil & Condensate Production Diluted Production at or above guide ranges 1Q25 Operational Performance • Oil beat primarily driven by Permian, supported by Guidance Actuals Oil & Condensate •
Slide 7: Robust Cash Returns & Restarted Buyback
Robust Cash Returns & Restarted Buyback Fully committed to our capital return framework Restarted buybacks in 2Q25 as planned • $146 MM in expected buybacks in 2Q25; ~$40 MM executed through April (~1.2 MM shares, average price of ~$32.40/share) >$3.0 B returned to shareholders through 2Q25E since a
Slide 8: Committed to Debt Reduction
Committed to Debt Reduction Managed 1Q25 debt via buyback pause • Modest increase in Net DebtŦ from YE24 to 3/31 4Q24-1Q25 Debt Bridge $MM $78 $2 $5,530 $5,411 $426 50% of post-base div. Free Cash FlowŦ allocated to Balance Sheet in 2Q25E+ ($387) $4.0 B debt target • ~1.0x Debt to Adjusted EBITDAŦ a
Slide 9: 2Q25 & FY25 Guidance
2Q25 & FY25 Guidance Reaffirming FY25 production & capex guidance • Capital savings prioritized over higher production should 2025 Production and Capital efficiencies accelerate and/or service costs decline 2Q25E FY25E Total Production Montney integration fully on track 585 – 605 595 - 615 (MBOE/d)
Slide 10: Leading Permian Operations
Leading Permian Operations Maximizing capital efficiency, driving ops faster & maintaining well productivity 2025E Permian Type Curve ~2,050 ft/d 16 1Q25 Average 14 FY24A (145 wells) Drilling >2,800 ft/d Pacesetter 12 10 Cume. Oil bbls / ft 8 1Q25 ~3,800 ft/d Average (Simulfrac & Trimulfrac) 6 Compl
Slide 11: Exceptional Montney Well Productivity
Exceptional Montney Well Productivity Acquisition further cements Ovintiv’s premier oil & condensate position Most Recent Well Results Over- Normally Pressured ~16 Pressured Pipestone bbls/ft Avg. 12-Month Cume Condensate Production 15-24, 07-18 & 07-33 Pads 13 Total Wells Across Three Pads Online S
Slide 12: Montney Integration on Track
Montney Integration on Track Significant drilling savings today; high confidence in $1.5 MM / well savings ~$1 MM / Well Drilling Savings Captured to Date ~$600k / well ~$400k / well Savings vs. Prior Owner Savings vs. Prior Owner First Ovintiv 1 High-Efficiency Casing Design 2 Faster Drilling compl
Slide 13: Anadarko Free Cash Flow Machine
Anadarko Free Cash FlowŦ Machine First FY25 completions in February FY25E at 1-2 rigs & ½ frac crew 1Q25 Anadarko D&C Highlights • ~15% of company FY25E capital with full optionality to adjust if needed ~1,500 ft/d On track for expected D&C savings Avg. Drilling Speed FY25E D&C at ~$550/ft, a ~14% i
Slide 14: 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 14 Ŧ Non-GAAP measures defined in advisories. For additional information regarding non-GAAP measures s
Slide 15: _ Ovintiv’
_ 636 Ovintiv’ “
Slide 16: Appendix
Trl Appendix
Slide 17: Additional 2025 Guidance
Additional 2025 Guidance Operating Expenses Prior FY25 Guide1 1Q25A 2Q25-4Q25 Guide PMOT 3.75%-4.50% 4.4% 3.75%-4.50% (% of Upstream Revenue2) Upstream T&P3 $7.50-$8.00 $7.36 $7.50-$8.00 ($/BOE) Upstream Opex3 $3.75-$4.25 $3.89 $3.75-$4.25 ($/BOE) Corporate Items (Quarterly Run Rate) Current guidanc
Slide 18: 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-$1,300 $575-$625 $300-$325 D&C ($/ft) $600-$650 $500-$550 $525-$575 LL (ft) ~11,500 ~11,500 ~11,500 Trimulfrac ~75% - - Asset-level &
Slide 19: 2025 Sensitivities
2025 Sensitivities Upstream T&P Sensitivities FY25E CAD/USD Free Cash FlowŦ Sensitivity1 2Q25-4Q25E Sensitivity Upstream T&P Sensitivity Change F/X Rate ~0.72 +/- 0.01 CAD/USD $0.10/BOE F/X Rate (CAD/USD) (CAD/USD) +/- 0.01 CAD/USD ~$25 MM WTI ~$60 +/- $10/bbl $0.10/BOE ($/bbl) NYMEX +/- 0.01 CAD/US
Slide 20: Hedge Positions as of March 31, 2025
Hedge Positions as of March 31, 2025 Oil and Condensate Hedge Positions1 Oil and Condensate 2Q25 3Q25 4Q25 1Q26 2Q26 3Q26 4Q26 Volume Mbbls/d 50 50 50 15 0 0 0 WTI & NYMEX Realized Gain / WTI 3-Way Options Call Strike $/bbl Put Strike $/bbl $86.48 $80.59 $76.57 $75.00 $65.00 $65.00 $65.00 $60.74 - -
Slide 21: Inventory Depth Fortifies Durable Returns
Inventory Depth Fortifies Durable Returns 10-20 Strong Premium1 inventory depth today • 10-20 years of expected oil inventory supports long-term durable returns (12-15 years in the Permian, 15-20 years in the Montney, and ~10 years in the Anadarko) Years Premium1 Oil Inventory in Each Asset Inventor
Slide 22: Industry-Leading Montney Operations
Industry-Leading Montney Operations Oil-focused Free Cash FlowŦ generation with limited direct tariff risk Legacy D&C Performance Limited Tariff Risk Ft/d 100% Drilling Completions Of cross-border gas sales are compliant with the USMCA 100% Of Montney Condensate & NGLs sold in Canada 1Q25 Montney Re
Slide 23: Diversified Montney Natural Gas Pricing
Diversified Montney Natural Gas Pricing Significantly priced outside of AECO today with an option to participate in LNG AECO Price Mitigation1 ~1.0 Bcf/d FY25E Montney Gas priced outside AECO Montney / WCSB Gas Export Infrastructure Firm Transport (2025+) NGTL Dawn ~330 PRGT System Ksi Lisims Stn 2
Slide 24: Significant Torque to Higher Gas Prices
Significant Torque to Higher Gas Prices Scale 2Q25E-4Q25E Natural Gas Price Exposure2 Top 10 public onshore natural NYMEX gas producer1 AECO Price Diversity Waha ~75% of FY25E gas production Downstream Markets priced ex AECO & Waha No Material Tariff Impact3 ~20% of gas production crosses the U.S. /
Slide 25: Durable Cash Return Framework
Durable Cash Return Framework Resumed buybacks in 2Q25 2Q25E Free Cash FlowŦ Allocation ($ MM) Committed to Our Proven Framework 1Q25 Results $1,004 Non-GAAP Cash FlowŦ Post Base Dividend Free Cash FlowŦ ($617) Capex $387 Non-GAAP Free Cash FlowŦ ($78) 1Q25 Base Dividend Shareholder Returns $309 Ava
Slide 26: 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 27: 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