Ovintiv Inc. (de) · NYSE:OVV
Ovintiv Inc. (de) — Q4 2024 Earnings Presentation
26 slides from Ovintiv Inc. (de)'s earnings presentation, Feb 27, 2025
Slide 1: 4Q & YE24 Results Conference Call
4Q & YE24 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 & Montney Oil Powerhouse
A Permian & Montney Oil Powerhouse Differentiated Oil Portfolio • Top performer anchored in the Permian & Montney, the two largest oil basins in North America • Paired with stable, low-decline Free Cash FlowŦ in the Anadarko Meaningful Scale • ~205 Mbbls/d of oil & condensate & ~1,850 MMcf/d of
Slide 5: Delivering on our Durable Returns Strategy
Delivering on our Durable Returns Strategy A Banner Year Generated >$1.7 B of Free Cash FlowŦ Returned >$900 MM to shareholders 2024 Reduced Net DebtŦ by $323 MM Delivered 6 Mbbls/d more oil & condensate and 25 MBOE/d more total production vs. original guide without additional capital Enhanced portf
Slide 6: 4Q24 Results Driven by Strong Ops
4Q24 Results Driven by Strong Ops $3.86 4Q24 Cash Flow per ShareŦ $452 4Q24 Free Cash FlowŦ MM $457 MM Net DebtŦ Reduction in 4Q24 Diluted 4Q24 Operational Performance Oil & condensate production Guidance Actuals above guidance range Oil & Condensate 203 - 207 210 • Driven by Permian & Montney (Mbbl
Slide 7: Continued Financial Enhancement
Continued Financial Enhancement FY25E Free Cash FlowŦ More y/y Free Cash FlowŦ despite lower WTI $MM ~$2,900 Oil-directed program in FY25 ($80 & $4.50) • Sustainable & durable capital efficiency ~$2,500 ($75 & $4.25) Anchored in a diversified & optimized portfolio ~$2,100 ($70 & $4.00) • ~85% of cap
Slide 8: Significant Torque to Higher Gas Prices
Significant Torque to Higher Gas Prices Scale FY25E Natural Gas Price Exposure2 Top 10 public onshore natural gas producer1 NYMEX Downstream Markets Price Diversity AECO ~75% of FY25E gas production Waha priced ex AECO & Waha FY25E NYMEX Free Cash FlowŦ Sensitivities @ $70 WTI $B Upside ~$2.3 ~$2.2
Slide 9: 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 10: 2025 Guidance Details
2025 Guidance Details Maximizes capital efficiency & Free Cash FlowŦ 2025 Production and Capital • Maintenance program in FY25E with a portfolio that 1Q25 FY25 supports potential growth Total Production 575 – 595 595 - 615 • Capital 100% directed to oil drilling with torque to stronger (MBOE/d) gas
Slide 11: Leading Permian Operations
Leading Permian Operations Consistent y/y well performance & similar y/y TILs in FY25E for less capital than FY24 Permian Well Performance Drilled Ft/Day Award-Winning Operations 2024 OVV Type Curve ~2,000 ~1,700 FY24 (145 wells) ~1,600 18% Faster J.P. Morgan 2024 16 FY24 vs. FY23 Order of Merit for
Slide 12: Enhancing our Montney Oil Program
Enhancing our Montney Oil Program Improving capital efficiency with ~70% more oil y/y for only ~40% more capital Leading Free Cash FlowŦ Generation Drilled Ft/Day Montney Condensate Realizations2 95% Unmatched capital efficiency The ~300 Mbbls/d ~1,700 ~1,725 ~1,775 Canadian condensate Low & imp
Slide 13: Anadarko Free Cash Flow Machine
Anadarko Free Cash FlowŦ Machine Compelling returns from inexpensive operations, low declines & strong pricing Anadarko D&C1 $/ft ~$640 Award-Winning Operations J.P. Morgan 2024 Maximizing lateral length Order of Merit for Anadarko Basin 2025E Anadarko Program Rigs 1-2 Minimizing 3- string casin
Slide 14: Why Ovintiv?
Why Ovintiv? Differentiated Oil Portfolio in the Permian & Montney Meaningful Scale In the Best Plays in North America Montney Durable Returns Free Cash FlowŦ & Deep Premium1 Oil & Gas Inventory Anadarko Delivering Debt Reduction Permian Execution Excellence 14 Ŧ Non-GAAP measures define
Slide 15: _ Ovintiv’
_ 636 Ovintiv’ “
Slide 16: Appendix
Trl Appendix
Slide 17: Additional 2025 Guidance
Additional 2025 Guidance Operating Expenses 4Q24 Guide1 4Q24A FY25 Guide PMOT (% of Upstream Revenue2) 4%-5% 4.2% 3.75%-4.50% Lower due to Montney acquisition & Uinta divestiture Upstream T&P3 ($/BOE) $7.50-$8.00 $7.30 $7.50-$8.00 Unchanged despite a larger Montney program Upstream Opex3 ($/BOE)
Slide 18: Hedge Positions as of February 14, 2025
Hedge Positions as of February 14, 2025 Oil and Condensate Hedge Positions1 Oil and Condensate 1Q25 2Q25 3Q25 4Q25 1Q26 2Q26 3Q26 4Q26 Volume Mbbls/d 50 50 50 50 0 0 0 0 WTI & NYMEX Realized Gain / WTI 3-Way Options Call Strike $/bbl Put Strike $/bbl $84.85 $86.48 $80.59 $76.57 $65.00 $65.00 $65.00
Slide 19: 2025 Sensitivities
2025 Sensitivities Upstream T&P Sensitivities FY25E CAD/USD Free Cash FlowŦ Sensitivity1 FY25E Sensitivity Upstream T&P Sensitivity Change F/X Rate F/X Rate (CAD/USD) ~0.70 +/- 0.01 CAD/USD $0.10/BOE (CAD/USD) +/- 0.01 CAD/USD ~$25 MM WTI ($/bbl) ~$70 +/- $10/bbl $0.10/BOE +/- 0.01 CAD/USD Free Cash
Slide 20: Oil-Directed Program in 2025
Oil-Directed Program in 2025 FY25E WTI Sensitivities @ $4.00 NYMEX Compelling returns with significant upside Free Cash FlowŦ ($B) ~$2.7 ~$2.4 Sustainable & durable capital efficiency • Maintenance program today with an option to grow ~$2.1 production Anchored in a diversified & optimized portfolio
Slide 21: Diversified Montney Natural Gas Pricing
Diversified Montney Natural Gas Pricing Significantly priced outside of AECO today with an option to participate in LNG OVV AECO Price Mitigation1 OVV Montney Natural Gas Realizations2 Firm Transport (2025+) ~1,000 164% Dawn ~330 Sumas ~20 Several downstream Malin ~115 MMcf/d markets trade above Chi
Slide 22: Committed to Debt Reduction
Committed to Debt Reduction December 31, 2024 $5,411 MM Net DebtŦ Debt / Leverage TargetŦ 1.2x Debt to Adjusted EBITDAŦ $4B debt target reaffirmed Adjusted EBITDAŦ is ~$4B at mid-cycle1 $457 MM Net DebtŦ Reduction in 4Q24 Debt Maturity Profile ($MM) $1,368 $600 $459 $700 $300 $850 $600 $599 Invest
Slide 23: Durable Cash Return Framework
Durable Cash Return Framework Expect to resume buybacks in 2Q25 1Q25 Free Cash FlowŦ Allocation ($ MM) Shareholder Return Framework 4Q24 Results Shareholder Returns $1,004 Non-GAAP Cash FlowŦ At least Share Buybacks ($552) Capex Uses of Post-Base 50% Variable Dividend Dividend Free $452 Non-GAAP Fre
Slide 24: Liquids-Focused, Multi-Basin Proved Reserves
Liquids-Focused, Multi-Basin Proved Reserves SEC Proved Reserves (Total BOE) SEC Proved Reserves (U.S. Oil) 200% Reserve Replacement Ratio ~10 years Total Proved Reserve Life Index +12% Proved Oil Reserves (ex A&D and Price) (YE24 vs. YE23) MMBOE MMbbls 118 6 3,000 700 128 2,500 300 600 (4) 580 2,18
Slide 25: 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 26: 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