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8-K

Ovintiv Inc. (OVV)

8-K 2024-02-27 For: 2024-02-27
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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): February 27, 2024

Ovintiv Inc.

(Exact Name of Registrant as Specified in its Charter)

Delaware<br><br>(State or Other Jurisdiction<br><br>of Incorporation) 001-39191<br><br>(Commission<br><br>File Number) 84-4427672<br><br>(I.R.S. Employer<br><br>Identification No.)
Suite 1700, 370 - 17th Street<br><br>Denver, Colorado<br><br>(Address of principal executive offices) 80202<br><br>(Zip Code)

(303) 623-2300

(Registrant’s telephone number, including area code)

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class Trading Symbol(s) Name of each exchange on which registered
Common Stock, par value $0.01 per share OVV New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

ITEM 2.02 Results of Operations and Financial Condition.

On February 27, 2024 Ovintiv Inc. (the “Company”) issued a news release announcing its financial and operating results for its fourth quarter and full year ended December 31, 2023. In connection with this announcement, the Company provided an earnings release and certain selected and supplemental financial information. A copy of the news release and supplemental financial information are attached as Exhibits 99.1 and 99.2 to this Current Report on Form 8-K.

The information contained in this report, including Exhibits 99.1 and 99.2 attached hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall they be deemed incorporated by reference in any filing under the Exchange Act or Securities Act of 1933, as amended, except as expressly set forth by specific reference in such a filing.

ITEM 9.01 Financial Statements and Exhibits.

(d) Exhibits

Exhibit No. Exhibit Description
Exhibit 99.1 News Release dated February 27, 2024.
Exhibit 99.2 Selected and Supplemental Financial Information.
Exhibit 104 Cover Page Interactive Data File (embedded within the Inline XBRL document).

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Dated: February 27, 2024

OVINTIV INC.
(Registrant)
By: /s/ Dawna I. Gibb
Name: Dawna I. Gibb
Title: Assistant Corporate Secretary

EX-99.1

Exhibit 99.1<br><br>news release

Ovintiv Reports Fourth Quarter and Year-End 2023 Financial and Operating Results

Strong 2023 Operational Execution; Enhanced Capital Efficiency Expected in 2024

Highlights:

Full Year 2023

• Generated net earnings of $2.1 billion, cash from operating activities of $4.2 billion, Non-GAAP Cash Flow of $3.9 billion and Non-GAAP Free Cash Flow of $1.2 billion after capital expenditures of $2.7 billion

• Exceeded high end of full year production guidance on every product with average total volumes of 566 thousand barrels of oil equivalent per day (“MBOE/d”), including 202 thousand barrels per day (“Mbbls/d”) of oil and condensate, 90 Mbbls/d of other NGLs (C2 to C4) and 1,642 million cubic feet per day (“MMcf/d”) of natural gas

• Returned $733 million to shareholders through the combination of base dividend payments and share buybacks

• Acquired and seamlessly integrated high-quality Permian assets comprising approximately 65,000 net acres of largely undeveloped land directly adjacent to the Company’s existing Permian operations

• Closed the sale of the Company’s Bakken assets, representing Ovintiv’s exit from the play

• Announced the Company’s inclusion on the S&P 400 index effective June 20, 2023

Fourth Quarter 2023

• Generated fourth quarter net earnings of $856 million, cash from operating activities of $1.4 billion, Non-GAAP Cash Flow of $1.2 billion and Non-GAAP Free Cash Flow of $577 million after capital expenditures of $660 million

• Delivered average quarterly production volumes of 605 MBOE/d, including 240 Mbbls/d of oil and condensate, 91 Mbbls/d of other NGLs and 1,645 MMcf/d of natural gas; all exceeding the high end of Company guidance

• Reduced total debt by $426 million

2024 Outlook

• Announced 2024 capital program of approximately $2.2 to $2.4 billion, which is expected to deliver total production volumes of 545 to 575 MBOE/d, including oil and condensate volumes of 202 to 208 Mbbls/d

DENVER, February 27, 2024 – Ovintiv Inc. (NYSE, TSX: OVV) (“Ovintiv” or the “Company”) today announced its fourth quarter and year-end 2023 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 February 28, 2024. 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.

“2023 marked a year of exceptionally strong execution for our Company,” said President and CEO, Brendan McCracken. “Our focus on operational excellence led to multiple quarters of positive guidance revisions, as we repeatedly outperformed our production targets without increasing spending. From volumes, to capital, to per unit costs, we beat our 2023 targets and enhanced the capital efficiency of the business. Our durable-returns strategy is set to deliver again in 2024, as we plan to produce higher oil and condensate volumes with less capital and generate about $450 million more free cash flow than 2023.”

Full Year and Fourth Quarter 2023 Financial and Operating Results

• The Company recorded full year net earnings of $2,085 million, or $7.90 per diluted share of common stock. Included in net earnings were income tax expense of $425 million and net gains on risk management of $151 million, before tax.

• Fourth quarter net earnings totaled $856 million, or $3.11 per diluted share of common stock. Included in net earnings were income tax expense of $211 million and net gains on risk management of $344 million, before tax.

• Full year capital investment of $2,744 million was below the full year 2023 guidance range of approximately $2,745 million to $2,785 million.

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• Fourth quarter capital investment of $660 million was at the low end of the guidance range of approximately $660 million to $700 million.

• Full year upstream operating expense was $4.03 per barrel of oil equivalent ("BOE"). Upstream transportation and processing costs were $7.76 per BOE. Production, mineral and other taxes were $1.66 per BOE, or 4.4% of upstream revenue. These costs were below the bottom end of guidance on a combined basis.

• Fourth quarter upstream operating expense was $4.09 per BOE. Upstream transportation and processing costs were $6.89 per BOE. Production, mineral and other taxes were $1.67 per BOE, or 4.2% of upstream revenue. These costs were below the bottom end of guidance on a combined basis.

• Excluding the impact of hedges, full year average realized prices were $75.19 per barrel for oil and condensate (97% of WTI), $18.09 per barrel for other NGLs (C2-C4) and $2.74 per thousand cubic feet ("Mcf") for natural gas (100% of NYMEX) resulting in a total average realized price of $37.67 per BOE.

• Including the impact of hedges, full year average realized prices for oil and condensate was $74.88 (96% of WTI), other NGLs was unchanged, and the average realized price for natural gas was $2.71 per Mcf (99% of NYMEX) resulting in a total average realized price of $37.46 per BOE.

• Excluding the impact of hedges, fourth quarter average realized prices were $75.66 per barrel for oil and condensate (97% of WTI), $18.85 per barrel for other NGLs (C2-C4) and $2.50 per Mcf for natural gas (87% of NYMEX) resulting in a total average realized price of $39.66 per BOE.

• Including the impact of hedges, fourth quarter average realized prices for oil and condensate was $75.46 (96% of WTI), other NGLs was unchanged, and the average realized price for natural gas was $2.65 per Mcf (92% of NYMEX) resulting in a total average realized price of $39.99 per BOE.

2024 Guidance

The Company issued the following first quarter and full year 2024 guidance:

2024 Guidance 1Q 2024 Full Year 2024
Total Production (MBOE/d) 560 – 575 545 – 575
Oil & Condensate (Mbbls/d) 208 – 212 202 – 208
NGLs (C2 - C4) (Mbbls/d) 86 – 89 85 – 90
Natural Gas (MMcf/d) 1,575 – 1,625 1,550 – 1,650
Capital Investment ($ Millions) $580 – $620 $2,200 – $2,400

Ovintiv expects production in the first quarter to be the high point for the year, with oil and condensate volumes expected to average 208 to 212 Mbbls/d. This includes the impacts of refinery turnarounds in Salt Lake City, weather and planned maintenance, which are expected to reduce first quarter volumes by approximately 8 Mbbls/d. Oil and condensate production is expected to stabilize in the second quarter and remain largely flat through the end of the year for an annual average of 202 to 208 Mbbls/d. The Company expects to realize a greater than 18% improvement in capital efficiency for its oil and condensate production versus its original 2023 guidance.

Inventory Renewal

Since 2021, Ovintiv has added approximately 1,650 net premium drilling locations to its inventory through the combination of the Permian acquisition in 2023, low-cost strategic bolt-on transactions and its organic inventory appraisal and assessment programs. This represents an addition of more than seven years of drilling inventory based on the number of wells the Company expects to drill in 2024. Approximately two thirds of the inventory additions, or about 1,100 net locations, are located in the Permian.

Returns to Shareholders

Ovintiv remains committed to its capital allocation framework, which returns at least 50% of post base dividend Non-GAAP Free Cash Flow to shareholders through buybacks and/or variable dividends.

In the fourth quarter of 2023, the Company returned approximately $135 million to shareholders through share buybacks totaling approximately $53 million and its base dividend of approximately $82 million.

Full year shareholder returns totaled approximately $733 million, consisting of share buybacks of approximately $426 million, or approximately 10 million shares of common stock, and base dividend payments of approximately $307 million.

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Share buybacks in the first quarter of 2024 are expected to total approximately $248 million.

Continued Balance Sheet Focus

Ovintiv had approximately $3.5 billion in total liquidity as of December 31, 2023, which included available credit facilities of $3,486 million, available uncommitted demand lines of $234 million, and cash and cash equivalents of $3 million, net of outstanding commercial paper of $270 million. Ovintiv reported total debt of $5.7 billion at year-end.

Non-GAAP Debt to EBITDA was 1.2 times and Non-GAAP Debt to Adjusted EBITDA was 1.3 times as of December 31, 2023.

The Company remains committed to maintaining a strong balance sheet and is currently rated investment grade by four credit rating agencies. Ovintiv maintains a long-term leverage target of 1.0 times Non-GAAP Debt to Adjusted EBITDA at mid-cycle prices, with an associated long-term total debt target of $4.0 billion.

Dividend Declared

On February 27, 2024, Ovintiv’s Board declared a quarterly dividend of $0.30 per share of common stock payable on March 28, 2024, to shareholders of record as of March 15, 2024.

Asset Highlights

Permian

Permian production averaged 220 MBOE/d (84% liquids) in the fourth quarter. The Company had 60 net wells turned in line (TIL). Ovintiv plans to invest approximately $1.35 billion to $1.45 billion in the play in 2024 to bring on 120 to 130 net wells.

Montney

Montney production averaged 234 MBOE/d (22% liquids) in the fourth quarter. The Company had 15 net wells TIL. Ovintiv plans to invest approximately $425 million to $475 million in the play in 2024 to bring on 60 to 70 net wells.

Uinta

Uinta production averaged 34 MBOE/d (86% liquids) in the fourth quarter. The Company had eight net wells TIL. Ovintiv plans to invest approximately $300 million to $350 million in the play in 2024 to bring on 25 to 30 net wells.

Anadarko

Anadarko production averaged 113 MBOE/d (59% liquids) in the fourth quarter. The Company had four net wells TIL. Ovintiv plans to invest approximately $100 million to $125 million in the play in 2024 to bring on seven to ten net wells.

Year-End 2023 Reserves

SEC proved reserves at year-end 2023 were 2.2 billion BOE, of which approximately 48% were liquids and 62% were proved developed. Total proved reserves replacement including the impact of commodity prices and acquisitions was 106% of 2023 production. Ovintiv's reserve life index at year-end was approximately 11 years.

For additional information, please refer to the Fourth Quarter and Year-end 2023 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 Documents Library.

Conference Call Information

A conference call and webcast to discuss the Company’s fourth quarter and year-end 2023 results will be held at 8:00 a.m. MT (10:00 a.m. ET) on February 28, 2024.

To join the conference call without operator assistance, you may register and enter your phone number at https://emportal.ink/3Segm9H to receive an instant automated call back. You can also dial direct to be entered to the call by an Operator. Please dial 888-664-6383 (toll-free in North America) or 416-764-8650 (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.

Ovintiv Inc. 3

Capital Investment and Production

(for the period ended December 31) 4Q 2023 4Q 2022 2023 2022
Capital Expenditures (1) ($ millions) 660 358 2,744 1,831
Oil (Mbbls/d) 194.1 132.0 158.9 131.6
NGLs – Plant Condensate (Mbbls/d) 46.1 42.7 42.9 44.0
Oil & Plant Condensate (Mbbls/d) 240.2 174.7 201.8 175.6
NGLs – Other (Mbbls/d) 90.9 88.7 90.2 85.5
Total Liquids (Mbbls/d) 331.1 263.4 292.0 261.1
Natural gas (MMcf/d) 1,645 1,561 1,642 1,494
Total production (MBOE/d) 605.2 523.6 565.6 510.0

(1) Including capitalized directly attributable internal costs.

Financial Summary

(for the period ended December 31)<br><br>($ millions) 4Q 2023 4Q 2022 2023 2022
Cash From (Used In) Operating Activities<br><br>Deduct (Add Back):<br><br>Net change in other assets and liabilities<br><br>Net change in non-cash working capital 1,362<br><br><br><br>(31)<br><br>156 875<br><br><br><br>(15)<br><br>(5) 4,167<br><br><br><br>(62)<br><br>330 3,866<br><br><br><br>(57)<br><br>(187)
Non-GAAP Cash Flow (1) 1,237 895 3,899 4,110
Non-GAAP Cash Flow (1) 1,237 895 3,899 4,110
Less: Capital Expenditures (2) 660 358 2,744 1,831
Non-GAAP Free Cash Flow (1) 577 537 1,155 2,279
Net Earnings (Loss) Before Income Tax<br><br>Before-tax (Addition) Deduction:<br><br>Unrealized gain (loss) on risk management<br><br>Non-operating foreign exchange gain (loss) 1,067<br><br><br><br>326<br><br>(9) 1,110<br><br><br><br>530<br><br>10 2,510<br><br><br><br>194<br><br>(2) 3,560<br><br><br><br>741<br><br>(14)
Adjusted Earnings (Loss) Before Income Tax<br><br>Income tax expense (recovery) 750<br><br>103 570<br><br>342 2,318<br><br>508 2,833<br><br>1,064
Non-GAAP Adjusted Earnings (1) 647 228 1,810 1,769

(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.

Ovintiv Inc. 4

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

(for the period ended December 31) 4Q 2022 2023 2022
Liquids (/bbl)
WTI 82.65 77.62 94.23
Realized Liquids Prices
Oil 75.85 76.06 81.88
NGLs – Plant Condensate 72.01 70.51 80.74
Oil & Plant Condensate 74.91 74.88 81.59
NGLs – Other 22.95 18.09 31.45
Total NGLs 38.88 34.98 48.20
Natural Gas
NYMEX (/MMBtu) 6.26 2.74 6.64
Realized Natural Gas Price (/Mcf) 2.49 2.71 2.42

All values are in US Dollars.

Cost Summary

(for the period ended December 31)<br><br>($/BOE, except as indicated) 2023 2022
Production, mineral and other taxes 1.66 2.23
Upstream transportation and processing 7.76 8.75
Upstream operating 4.03 4.15
Administrative, excluding long-term incentive, transaction and legal costs, and current expected credit losses 1.35 1.39

Debt to EBITDA (1)

($ millions, except as indicated) December 31, 2023 December 31, 2022
Long-Term Debt, including Current Portion 5,737 3,570
Net Earnings (Loss) 2,085 3,637
Add back (Deduct):
Depreciation, depletion and amortization 1,825 1,113
Interest 355 311
Income tax expense (recovery) 425 (77)
EBITDA 4,690 4,984
Debt to EBITDA (times) 1.2 0.7

Debt to Adjusted EBITDA(1)

($ millions, except as indicated) December 31, 2023 December 31, 2022
Long-Term Debt, including Current Portion 5,737 3,570
Net Earnings (Loss) 2,085 3,637
Add back (Deduct):
Depreciation, depletion and amortization 1,825 1,113
Accretion of asset retirement obligation 19 18
Interest 355 311
Unrealized (gains) losses on risk management (194) (741)
Foreign exchange (gain) loss, net 19 15
Other (gains) losses, net (20) (33)
Income tax expense (recovery) 425 (77)
Adjusted EBITDA 4,514 4,243
Debt to Adjusted EBITDA (times) 1.3 0.8

(1) Debt to EBITDA and Debt to Adjusted EBITDA are non-GAAP measures as defined in Note 1.

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Hedge Details as of December 31, 2023

Oil and Condensate Hedges ($/bbl) 1Q 2024 2Q 2024 3Q 2024 4Q 2024 1Q 2025
WTI Swaps 25 Mbbls/d<br><br>$73.69 25 Mbbls/d<br><br>$73.69 0<br><br>- 0<br><br>- 0<br><br>-
WTI Collars<br><br>Call Strike<br><br>Put Strike 75 Mbbls/d<br><br>$82.29<br><br>$64.33 75 Mbbls/d<br><br>$80.39<br><br>$65.00 10 Mbbls/d<br><br>$92.06<br><br>$60.00 0<br><br>-<br><br>- 0<br><br>-<br><br>-
WTI 3-Way Options<br>Short Call<br><br>Long Put<br><br>Short Put 0<br><br>-<br><br>-<br><br>- 0<br><br>-<br><br>-<br><br>- 40 Mbbls/d<br><br>$89.76<br><br>$65.00<br><br>$50.00 32 Mbbls/d<br><br>$85.36<br><br>$65.00<br><br>$50.00 0<br><br>-<br><br>-<br><br>-
Natural Gas Hedges ($/Mcf) 1Q 2024 2Q 2024 3Q 2024 4Q 2024 1Q 2025
--- --- --- --- --- ---
NYMEX Swaps 200 MMcf/d<br><br>$3.62 200 MMcf/d<br><br>$3.62 200 MMcf/d<br><br>$3.62 200 MMcf/d<br><br>$3.62 0<br><br>-
NYMEX Collars<br><br>Call Strike<br><br>Put Strike 400 MMcf/d<br><br>$5.10<br><br>$3.00 400 MMcf/d<br><br>$3.40<br><br>$3.00 400 MMcf/d<br><br>$3.40<br><br>$3.00 400 MMcf/d<br><br>$5.57<br><br>$3.00 0<br><br>-<br><br>-
NYMEX 3-Way Options<br>Call Strike<br><br>Put Strike<br><br>Sold Put Strike 100 MMcf/d<br><br>$4.79<br><br>$3.00<br><br>$2.25 200 MMcf/d<br><br>$4.44<br><br>$3.00<br><br>$2.25 200 MMcf/d<br><br>$4.44<br><br>$3.00<br><br>$2.25 200 MMcf/d<br><br>$4.58<br><br>$3.00<br><br>$2.25 300 MMcf/d<br><br>$4.99<br><br>$3.00<br><br>$2.25
Waha % of NYMEX Swaps 50 MMcf/d<br><br>71% 50 MMcf/d<br><br>71% 50 MMcf/d<br><br>71% 50 MMcf/d<br><br>71% 0<br><br>-
AECO Nominal Basis Swaps 190 MMcf/d<br><br>($1.08) 190 MMcf/d<br><br>($1.08) 190 MMcf/d<br><br>($1.08) 190 MMcf/d<br><br>($1.08) 190 MMcf/d<br><br>($1.08)
AECO % of NYMEX Swaps 100 MMcf/d<br><br>72% 100 MMcf/d<br><br>72% 100 MMcf/d<br><br>72% 100 MMcf/d<br><br>72% 100 MMcf/d<br><br>72%
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--- ---

Price Sensitivities for WTI Oil (1) ($MM) (Before-Tax)

WTI Oil Hedge Gains (Losses)
$40 $50 $60 $70 $80 $90 $100 $110 $120
1Q 2024 $243 $152 $61 $8 ($14) ($90) ($181) ($272) ($363)
2Q 2024 $247 $156 $65 $8 ($14) ($103) ($194) ($285) ($376)
3Q 2024 $74 $64 $18 - - ($2) ($45) ($91) ($137)
4Q 2024 $44 $44 $15 - - ($14) ($43) ($73) ($102)
1Q 2025 - - - - - - - - -

(1) Hedge positions and hedge sensitivity estimates as of 12/31/2023. Does not include impact of basis positions.

Price Sensitivities for NYMEX Natural Gas (1) ($MM) (Before-Tax)

NYMEX Natural Gas Hedge Gains (Losses)
$1.50 $2.00 $2.50 $3.00 $3.50 $4.00 $4.50 $5.00 $5.50
1Q 2024 $100 $73 $43 $11 $2 ($7) ($16) ($27) ($55)
2Q 2024 $107 $79 $48 $11 ($2) ($29) ($60) ($94) ($130)
3Q 2024 $108 $80 $48 $11 ($2) ($29) ($60) ($95) ($131)
4Q 2024 $108 $80 $48 $11 $2 ($7) ($18) ($33) ($52)
1Q 2025 $20 $20 $14 - - - ($1) ($6) ($14)

(1) Hedge positions and hedge sensitivity estimates as of 12/31/2023. Does not include impact of basis positions.

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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 measuredefined as Non-GAAP Cash Flow in excess of capital expenditures, excluding net acquisitions and divestitures. Forecasted Non-GAAP Free Cash Flow represents forecasted Non-GAAP Cash Flow based on $75 WTI and $2.50 NYMEX and utilizing the midpoint of production guidance. Due to its forward-looking nature, management cannot reliably predict certain of the necessary components of the most directly comparable forward-looking GAAP measures, such as changes in operating assets and liabilities. Accordingly, Ovintiv is unable to present a quantitative reconciliation of such forward-looking non-GAAP financial measure to its most directly comparable forward-looking GAAP financial measure. Amounts excluded from this non-GAAP measure in future periods could be significant.

• 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, any valuation allowances are excluded in the calculation of income taxes.

• Adjusted EBITDA, Debt to EBITDA and Debt to Adjusted EBITDA (Leverage Target/Ratio) 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. Adjusted EBITDA, Debt to EBITDA and Debt to Adjusted EBITDA are a 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.

Ovintiv Inc. 8

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 2024 guidance, 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 Company's ability to successfully integrate the Midland Basin assets; 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 changes to the geopolitical environment; and projections made in light of, and generally consistent with, the Company's historical experience and its perception of historical industry trends; and the other assumptions contained herein.

Although the Company believes the expectations represented by its forward-looking statements are reasonable based on the information available to it as of the date such statements are made, forward-looking statements are only predictions and statements of our current beliefs and there can be no assurance that such expectations will prove to be correct. All forward-looking statements contained in this news release are made as of the date of this news release and, except as required by law, the Company undertakes no obligation to update publicly; 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:<br><br>(888) 525-0304 Media contact:<br><br>(403) 645-2252
Ovintiv Inc. 9
--- ---

EX-99.2

Exhibit 99.2

img101474839_0.jpg

Ovintiv Inc.

Selected Financial Information

(unaudited)

For the year ended December 31, 2023

U.S. Dollar / U.S. Protocol

Condensed Consolidated Statement of Earnings (unaudited)

For the years ended December 31 (US$ millions, except per share amounts) 2023 2022 2021
Revenues
Product and service revenues $ 10,661 $ 14,263 $ 10,468
Gains (losses) on risk management, net 151 (1,867 ) (1,883 )
Sublease revenues 71 68 73
Total Revenues 10,883 12,464 8,658
Operating Expenses
Production, mineral and other taxes 342 415 293
Transportation and processing 1,766 1,786 1,616
Operating 859 802 625
Purchased product 2,815 4,055 2,951
Depreciation, depletion and amortization 1,825 1,113 1,190
Accretion of asset retirement obligation 19 18 22
Administrative 393 422 442
Total Operating Expenses 8,019 8,611 7,139
Operating Income (Loss) 2,864 3,853 1,519
Other (Income) Expenses
Interest 355 311 340
Foreign exchange (gain) loss, net 19 15 (23 )
Other (gains) losses, net (20 ) (33 ) (37 )
Total Other (Income) Expenses 354 293 280
Net Earnings (Loss) Before Income Tax 2,510 3,560 1,239
Income tax expense (recovery) 425 (77 ) (177 )
Net Earnings (Loss) $ 2,085 $ 3,637 $ 1,416
Net Earnings (Loss) per Share of Common Stock
Basic $ 8.02 $ 14.34 $ 5.44
Diluted 7.90 14.08 5.32
Weighted Average Shares of Common Stock Outstanding (millions)
Basic 259.9 253.6 260.4
Diluted 263.9 258.4 266.4

Condensed Consolidated Statement of Comprehensive Income (unaudited)

For the years ended December 31 (US$ millions) 2023 2022 2021
Net Earnings (Loss) $ 2,085 $ 3,637 $ 1,416
Other Comprehensive Income (Loss), Net of Tax
Foreign currency translation adjustment 63 (107 ) 2
Pension and other post-employment benefit plans (4 ) 6 14
Other Comprehensive Income (Loss) 59 (101 ) 16
Comprehensive Income (Loss) $ 2,144 $ 3,536 $ 1,432
Ovintiv Inc. 1 Selected Financial Information
--- --- ---

Condensed Consolidated Balance Sheet (unaudited)

As at
December 31,
(US millions) 2022
Assets
Current Assets
Cash and cash equivalents 3 $ 5
Accounts receivable and accrued revenues (net of allowances
of 5 million (2022: 4 million)) 1,442 1,594
Risk management 214 53
Income tax receivable 17 43
1,676 1,695
Property, Plant and Equipment, at cost:
Oil and natural gas properties, based on full cost accounting
Proved properties 64,084 57,054
Unproved properties 1,486 1,172
Other 907 882
Property, plant and equipment 66,477 59,108
Less: Accumulated depreciation, depletion and amortization (51,837 ) (49,640 )
Property, plant and equipment, net 14,640 9,468
Other Assets 1,015 1,004
Risk Management 4 34
Deferred Income Taxes 53 271
Goodwill 2,599 2,584
19,987 $ 15,056
Liabilities and Shareholders’ Equity
Current Liabilities
Accounts payable and accrued liabilities 2,209 $ 2,221
Current portion of operating lease liabilities 87 76
Income tax payable 232 4
Risk management - 86
Current portion of long-term debt 284 393
2,812 2,780
Long-Term Debt 5,453 3,177
Operating Lease Liabilities 832 814
Other Liabilities and Provisions 132 131
Risk Management 2 -
Asset Retirement Obligation 276 281
Deferred Income Taxes 110 184
9,617 7,367
Shareholders’ Equity
Share capital - authorized 775 million shares of stock
2023 issued and outstanding: 271.7 million shares (2022: 245.7 million shares) 3 3
Paid in surplus 8,620 7,776
Retained earnings (Accumulated deficit) 697 (1,081 )
Accumulated other comprehensive income 1,050 991
Total Shareholders’ Equity 10,370 7,689
19,987 $ 15,056

All values are in US Dollars.

Ovintiv Inc. 2 Selected Financial Information

Condensed Consolidated Statement of Cash Flows (unaudited)

For the years ended December 31 (US$ millions) 2023 2022 2021
Operating Activities
Net earnings (loss) $ 2,085 $ 3,637 $ 1,416
Depreciation, depletion and amortization 1,825 1,113 1,190
Accretion of asset retirement obligation 19 18 22
Deferred income taxes 144 (87 ) (21 )
Unrealized (gain) loss on risk management (194 ) (741 ) 488
Unrealized foreign exchange (gain) loss (6 ) 14 21
Foreign exchange (gain) loss on settlements 6 8 (11 )
Other 20 148 104
Net change in other assets and liabilities (62 ) (57 ) (39 )
Net change in non-cash working capital 330 (187 ) (41 )
Cash From (Used in) Operating Activities 4,167 3,866 3,129
Investing Activities
Capital expenditures (2,744 ) (1,831 ) (1,519 )
Acquisitions (277 ) (286 ) (11 )
Corporate acquisition, net of cash acquired (3,225 ) - -
Proceeds from divestitures 772 228 1,025
Net change in investments and other (45 ) 103 (20 )
Cash From (Used in) Investing Activities (5,519 ) (1,786 ) (525 )
Financing Activities
Net issuance (repayment) of revolving debt (109 ) 393 (950 )
Issuance of long-term debt 2,278 - -
Repayment of long-term debt - (1,634 ) (1,137 )
Purchase of shares of common stock (426 ) (719 ) (111 )
Dividends on shares of common stock (307 ) (239 ) (122 )
Finance lease payments and other (77 ) (69 ) (99 )
Cash From (Used in) Financing Activities 1,359 (2,268 ) (2,419 )
Foreign Exchange Gain (Loss) on Cash, Cash Equivalents
and Restricted Cash Held in Foreign Currency (9 ) (2 ) -
Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash (2 ) (190 ) 185
Cash, Cash Equivalents and Restricted Cash, Beginning of Year 5 195 10
Cash, Cash Equivalents and Restricted Cash, End of Year $ 3 $ 5 $ 195
Cash, End of Year $ 3 $ 5 $ 26
Cash Equivalents, End of Year - - 169
Restricted Cash, End of Year - - -
Cash, Cash Equivalents and Restricted Cash, End of Year $ 3 $ 5 $ 195
Ovintiv Inc. 3 Selected Financial Information
--- --- ---

img101474839_1.jpg

Ovintiv Inc.

Supplemental Information

(unaudited)

For the year ended December 31, 2023

U.S. Dollar / U.S. Protocol

Fourth quarter report

for the year ended December 31, 2023

Supplemental Financial Information (unaudited)

Financial Results

2023 2022
(US millions, unless otherwise specified) Year Q4 Q3 Q2 Q1 Year Q4 Q3 Q2 Q1
Net Earnings (Loss) 2,085 856 406 336 487 3,637 1,335 1,186 1,357 (241 )
8.02 3.14 1.48 1.35 1.99 14.34 5.39 4.70 5.28 (0.94 )
7.90 3.11 1.47 1.34 1.97 14.08 5.30 4.63 5.21 (0.94 )
Non-GAAP Adjusted Earnings (2) 1,810 647 481 232 450 1,769 228 353 628 560
6.96 2.38 1.76 0.93 1.84 6.98 0.92 1.40 2.44 2.18
6.86 2.35 1.74 0.93 1.82 6.85 0.91 1.38 2.41 2.18
Non-GAAP Cash Flow (3) 3,899 1,237 1,112 699 851 4,110 895 948 1,224 1,043
15.00 4.54 4.06 2.80 3.48 16.21 3.62 3.75 4.76 4.05
14.77 4.49 4.02 2.79 3.44 15.91 3.55 3.70 4.70 4.05
Foreign Exchange Rates (C per US1)
1.350 1.362 1.341 1.343 1.353 1.301 1.358 1.306 1.277 1.266
1.323 1.323 1.352 1.324 1.353 1.354 1.354 1.371 1.289 1.250
Non-GAAP Adjusted Earnings Summary
Net Earnings (Loss) Before Income Tax 2,510 1,067 393 437 613 3,560 1,110 1,274 1,422 (246 )
Before-tax (Addition) Deduction:
194 326 (292 ) 142 18 741 530 710 513 (1,012 )
(2 ) (9 ) 17 (15 ) 5 (14 ) 10 (20 ) (7 ) 3
Adjusted Earnings (Loss) Before Income Tax 2,318 750 668 310 590 2,833 570 584 916 763
508 103 187 78 140 1,064 342 231 288 203
Non-GAAP Adjusted Earnings (2) 1,810 647 481 232 450 1,769 228 353 628 560
Non-GAAP Cash Flow Summary
Cash From (Used in) Operating Activities 4,167 1,362 906 831 1,068 3,866 875 962 1,344 685
(Add back) Deduct:
(62 ) (31 ) (14 ) (12 ) (5 ) (57 ) (15 ) (17 ) (13 ) (12 )
330 156 (192 ) 144 222 (187 ) (5 ) 31 133 (346 )
Non-GAAP Cash Flow (3) 3,899 1,237 1,112 699 851 4,110 895 948 1,224 1,043

All values are in US Dollars.

(1) Net Earnings (Loss), Non-GAAP Adjusted Earnings and Non-GAAP Cash Flow per share are calculated using the weighted average number of shares of common stock outstanding as follows:

2023 2022
(millions) Year Q4 Q3 Q2 Q1 Year Q4 Q3 Q2 Q1
Weighted Average Shares of Common Stock Outstanding
Basic 259.9 272.3 273.7 249.4 244.3 253.6 247.5 252.5 257.2 257.4
Diluted 263.9 275.4 276.3 250.8 247.7 258.4 251.8 256.2 260.6 257.4

(2) 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, any valuation allowances are excluded in the calculation of income taxes.

(3) 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.

(4) Calculated using the applicable U.S. federal and state statutory income tax rate of 23.0 percent and the applicable Canadian federal and provincial statutory income tax rate of 23.7 percent (2022 - 23.0 percent and 23.9 percent, respectively).

Financial Metrics

2023 2022
Year Year
Debt to Capitalization 36% 32%
Debt to Adjusted Capitalization (1) 24% 19%
Debt to EBITDA (1) 1.2x 0.7x
Debt to Adjusted EBITDA (1) 1.3x 0.8x

(1) Debt to Adjusted Capitalization, Debt to EBITDA and Debt to Adjusted EBITDA are non-GAAP measures monitored by Management as indicators of the Company’s overall financial strength. Non-GAAP measures are defined and calculated in the Non-GAAP Definitions and Reconciliations document following this Supplemental Information report.

Ovintiv Inc. 1 Supplemental Information (prepared in US$)

Fourth quarter report

for the year ended December 31, 2023

Supplemental Operating Information (unaudited)

Production Volumes by Product

2023 2022
(average) % of<br>Oil & NGLs Year Q4 Q3 Q2 Q1 Year Q4 Q3 Q2 Q1
Oil (Mbbls/d) 54 158.9 194.1 170.9 142.4 127.3 131.6 132.0 133.4 132.8 128.3
NGLs - Plant Condensate (Mbbls/d) 15 42.9 46.1 43.3 43.5 38.7 44.0 42.7 46.0 42.6 44.6
Oil & Plant Condensate (Mbbls/d) 69 201.8 240.2 214.2 185.9 166.0 175.6 174.7 179.4 175.4 172.9
Butane (Mbbls/d) 7 21.1 21.7 20.4 23.2 19.1 19.3 19.0 19.8 19.8 18.7
Propane (Mbbls/d) 12 33.7 35.2 33.2 34.9 31.3 31.5 32.2 31.0 31.3 31.3
Ethane (Mbbls/d) 12 35.4 34.0 33.1 38.7 35.8 34.7 37.5 36.1 35.9 29.2
NGLs - Other (Mbbls/d) 31 90.2 90.9 86.7 96.8 86.2 85.5 88.7 86.9 87.0 79.2
Oil & NGLs (Mbbls/d) 100 292.0 331.1 300.9 282.7 252.2 261.1 263.4 266.3 262.4 252.1
Natural Gas (MMcf/d) 1,642 1,645 1,625 1,743 1,555 1,494 1,561 1,500 1,426 1,487
Total (MBOE/d) 565.6 605.2 571.8 573.0 511.4 510.0 523.6 516.3 500.0 499.9

Production Volumes by Segment

2023 2022
(average) Year Q4 Q3 Q2 Q1 Year Q4 Q3 Q2 Q1
Oil (Mbbls/d)
USA Operations 158.8 194.0 170.8 142.4 127.2 131.5 131.9 133.3 132.7 128.2
Canadian Operations 0.1 0.1 0.1 - 0.1 0.1 0.1 0.1 0.1 0.1
158.9 194.1 170.9 142.4 127.3 131.6 132.0 133.4 132.8 128.3
NGLs - Plant Condensate (Mbbls/d)
USA Operations 10.9 11.3 11.2 10.5 10.6 10.4 11.0 11.1 10.1 9.2
Canadian Operations 32.0 34.8 32.1 33.0 28.1 33.6 31.7 34.9 32.5 35.4
42.9 46.1 43.3 43.5 38.7 44.0 42.7 46.0 42.6 44.6
Oil & Plant Condensate (Mbbls/d)
USA Operations 169.7 205.3 182.0 152.9 137.8 141.9 142.9 144.4 142.8 137.4
Canadian Operations 32.1 34.9 32.2 33.0 28.2 33.7 31.8 35.0 32.6 35.5
201.8 240.2 214.2 185.9 166.0 175.6 174.7 179.4 175.4 172.9
NGLs - Other (Mbbls/d)
USA Operations 74.6 74.6 71.8 78.1 73.7 71.7 75.1 74.1 72.6 64.8
Canadian Operations 15.6 16.3 14.9 18.7 12.5 13.8 13.6 12.8 14.4 14.4
90.2 90.9 86.7 96.8 86.2 85.5 88.7 86.9 87.0 79.2
NGLs - Total (Mbbls/d)
USA Operations 85.5 85.9 83.0 88.6 84.3 82.1 86.1 85.2 82.7 74.0
Canadian Operations 47.6 51.1 47.0 51.7 40.6 47.4 45.3 47.7 46.9 49.8
133.1 137.0 130.0 140.3 124.9 129.5 131.4 132.9 129.6 123.8
Oil & NGLs (Mbbls/d)
USA Operations 244.3 279.9 253.8 231.0 211.5 213.6 218.0 218.5 215.4 202.2
Canadian Operations 47.7 51.2 47.1 51.7 40.7 47.5 45.4 47.8 47.0 49.9
292.0 331.1 300.9 282.7 252.2 261.1 263.4 266.3 262.4 252.1
Natural Gas (MMcf/d)
USA Operations 517 524 508 530 507 492 506 502 485 475
Canadian Operations 1,125 1,121 1,117 1,213 1,048 1,002 1,055 998 941 1,012
1,642 1,645 1,625 1,743 1,555 1,494 1,561 1,500 1,426 1,487
Total (MBOE/d)
USA Operations 330.4 367.1 338.5 319.2 296.1 295.5 302.3 302.1 296.1 281.3
Canadian Operations 235.2 238.1 233.3 253.8 215.3 214.5 221.3 214.2 203.9 218.6
565.6 605.2 571.8 573.0 511.4 510.0 523.6 516.3 500.0 499.9
Ovintiv Inc. 2 Supplemental Information (prepared in US$)
--- --- ---

Fourth quarter report

for the year ended December 31, 2023

Supplemental Financial & Operating Information (unaudited)

Results of Operations

Revenues and Realized Gains (Losses) on Risk Management

2023 2022
(US millions) Year Q4 Q3 Q2 Q1 Year Q4 Q3 Q2 Q1
USA Operations
Revenues, excluding Realized Gains (Losses) on   Risk Management (1)
4,431 1,372 1,267 944 848 4,524 995 1,143 1,311 1,075
676 170 174 149 183 1,045 198 270 311 266
458 114 103 86 155 1,108 251 349 302 206
5,565 1,656 1,544 1,179 1,186 6,677 1,444 1,762 1,924 1,547
Realized Gains (Losses) on Risk Management (3)
(24 ) (5 ) (19 ) - - (594 ) (75 ) (141 ) (235 ) (143 )
- - - - - - - - - -
33 11 15 5 2 (529 ) (122 ) (183 ) (148 ) (76 )
9 6 (4 ) 5 2 (1,123 ) (197 ) (324 ) (383 ) (219 )
Canadian Operations
Revenues, excluding Realized Gains (Losses) on   Risk Management (1)
3 1 2 - - 3 1 1 1 -
1,023 284 258 245 236 1,358 290 326 382 360
1,186 267 244 222 453 2,104 550 562 577 415
2,212 552 504 467 689 3,465 841 889 960 775
Realized Gains (Losses) on Risk Management (3)
- - - - - - - - - -
1 1 - - - (125 ) (16 ) (26 ) (51 ) (32 )
(54 ) 11 13 - (78 ) (1,366 ) (324 ) (471 ) (374 ) (197 )
(53 ) 12 13 - (78 ) (1,491 ) (340 ) (497 ) (425 ) (229 )

All values are in US Dollars.

(1) Excludes other revenues with no associated production volumes, but includes intercompany marketing fees transacted between the Company’s operating segments.

(2) Includes plant condensate.

(3) Excludes realized gains or losses from other derivative contracts with no associated production volumes and foreign exchange risk management positions.

Ovintiv Inc. 3 Supplemental Information (prepared in US$)

Fourth quarter report

for the year ended December 31, 2023

Supplemental Financial & Operating Information (unaudited)

Results of Operations (continued)

Per-Unit Results, Excluding the Impact of Realized Gains (Losses) on Risk Management (1)

2023 2022
(US/BOE) Year Q4 Q3 Q2 Q1 Year Q4 Q3 Q2 Q1
Total USA Operations Netback
46.15 49.03 49.62 40.56 44.52 61.91 51.96 63.44 71.39 61.08
2.71 2.65 2.71 2.49 3.01 3.72 3.23 3.83 4.25 3.56
4.54 3.80 3.98 5.10 5.51 5.80 5.81 6.14 5.91 5.31
6.15 5.85 6.66 5.73 6.39 5.99 6.05 6.73 5.53 5.58
32.75 36.73 36.27 27.24 29.61 46.40 36.87 46.74 55.70 46.63
Total Canadian Operations Netback
25.76 25.21 23.46 20.26 35.50 44.26 41.30 45.11 51.70 39.44
0.18 0.16 0.24 0.14 0.19 0.18 0.19 0.12 0.15 0.19
12.29 11.65 12.36 11.57 13.80 12.80 12.85 13.01 13.67 11.72
1.04 1.38 1.30 0.10 1.50 1.62 1.52 1.69 1.35 1.90
12.25 12.02 9.56 8.45 20.01 29.66 26.74 30.29 36.53 25.63
Total Operations Netback
37.67 39.66 38.95 31.56 40.72 54.49 47.45 55.83 63.36 51.62
1.66 1.67 1.70 1.43 1.83 2.23 1.95 2.29 2.58 2.08
7.76 6.89 7.40 7.97 9.00 8.75 8.78 8.99 9.08 8.12
4.03 4.09 4.48 3.23 4.33 4.15 4.13 4.64 3.83 3.98
24.22 27.01 25.37 18.93 25.56 39.36 32.59 39.91 47.87 37.44

All values are in US Dollars.

(1) Netback is a common metric used in the oil and gas industry to measure operating performance on a per-unit basis and is considered a non-GAAP measure. The netbacks disclosed above have been calculated on a BOE basis using upstream product revenues, excluding the impact of realized gains and losses on risk management, less costs associated with delivering the product to market, including production, mineral and other taxes, transportation and processing expense and operating expense. For additional information regarding non-GAAP measures, including Netback reconciliations, see the Non-GAAP Definitions and Reconciliations document following this Supplemental Information report.

Other Per-unit Results

2023 2022
(US/BOE) Year Q4 Q3 Q2 Q1 Year Q4 Q3 Q2 Q1
Administrative Expense 1.91 1.57 1.53 3.23 1.25 2.27 2.17 2.16 1.56 3.20
Administrative Expense, Excluding Long-Term Incentive,
1.35 1.36 1.27 1.28 1.52 1.39 1.35 1.39 1.36 1.48

All values are in US Dollars.

(1) Transaction costs refer to costs primarily incurred to facilitate the Permian Acquisition as defined in Note 9 of the Consolidated Financial Statements included in Part II, Item 8 of Ovintiv’s Annual Report on Form 10-K.

Ovintiv Inc. 4 Supplemental Information (prepared in US$)

Fourth quarter report

for the year ended December 31, 2023

Supplemental Oil and Gas Operating Statistics (unaudited)

Operating Statistics

Per-Unit Prices, Excluding the Impact of Realized Gains (Losses) on Risk Management

2023 2022
(US) Year Q4 Q3 Q2 Q1 Year Q4 Q3 Q2 Q1
Oil Price (/bbl)
76.46 76.91 80.69 72.83 74.06 94.25 82.08 93.22 108.58 93.16
81.59 75.10 100.64 - 71.44 87.28 81.48 82.86 100.11 82.80
76.46 76.91 80.70 72.83 74.06 94.25 82.08 93.21 108.57 93.15
NGLs - Plant Condensate Price (/bbl)
58.53 57.24 59.96 55.09 61.84 73.22 57.95 66.62 86.56 85.09
74.52 74.65 75.67 70.99 77.22 93.22 82.41 86.65 107.78 96.22
70.46 70.38 71.61 67.14 73.01 88.52 76.14 81.82 102.74 93.93
Oil & Plant Condensate Price (/bbl)
75.31 75.83 79.42 71.61 73.12 92.72 80.24 91.18 107.02 92.62
74.54 74.65 75.75 70.99 77.21 93.20 82.41 86.64 107.76 96.19
75.19 75.66 78.86 71.50 73.81 92.81 80.63 90.29 107.16 93.35
NGLs - Other Price (/bbl)
16.27 16.21 16.91 13.43 18.73 29.35 20.03 29.82 34.88 33.55
26.78 30.94 25.50 18.62 35.17 42.39 39.07 41.12 47.84 41.23
18.09 18.85 18.39 14.43 21.11 31.45 22.95 31.49 37.03 34.94
NGLs - Total Price (/bbl)
21.66 21.61 22.72 18.39 24.14 34.88 24.85 34.61 41.21 39.95
58.89 60.71 59.76 52.05 64.31 78.44 69.42 74.41 89.37 80.36
34.98 36.20 36.11 30.78 37.19 50.84 40.22 48.91 58.64 56.21
Oil & NGLs Price (/bbl)
57.29 59.94 61.73 51.94 54.16 71.44 59.49 70.37 82.70 73.68
58.93 60.75 59.84 52.06 64.32 78.46 69.44 74.43 89.39 80.37
57.55 60.06 61.43 51.96 55.80 72.72 61.20 71.10 83.90 75.00
Natural Gas Price (/Mcf)
2.43 2.34 2.22 1.79 3.40 6.18 5.42 7.55 6.87 4.82
2.89 2.58 2.38 2.02 4.80 5.75 5.67 6.11 6.73 4.56
2.74 2.50 2.33 1.95 4.34 5.89 5.59 6.60 6.78 4.64
Total Price (/BOE)
46.15 49.03 49.62 40.56 44.52 61.91 51.96 63.44 71.39 61.08
25.76 25.21 23.46 20.26 35.50 44.26 41.30 45.11 51.70 39.44
37.67 39.66 38.95 31.56 40.72 54.49 47.45 55.83 63.36 51.62

All values are in US Dollars.

Ovintiv Inc. 5 Supplemental Information (prepared in US$)

Fourth quarter report

for the year ended December 31, 2023

Supplemental Oil and Gas Operating Statistics (unaudited)

Operating Statistics (continued)

Per-unit Impact of Realized Gains (Losses) on Risk Management

2023 2022
(US) Year Q4 Q3 Q2 Q1 Year Q4 Q3 Q2 Q1
Oil (/bbl)
(0.40 ) (0.27 ) (1.18 ) - - (12.38 ) (6.24 ) (11.48 ) (19.42 ) (12.43 )
- - - - - - - - - -
(0.40 ) (0.27 ) (1.18 ) - - (12.37 ) (6.23 ) (11.47 ) (19.41 ) (12.41 )
NGLs - Plant Condensate (/bbl)
- - - - - - - - - -
0.09 0.10 - - - (10.15 ) (5.57 ) (8.02 ) (17.14 ) (10.06 )
0.05 0.08 - - - (7.78 ) (4.13 ) (6.09 ) (13.07 ) (7.99 )
Oil & Plant Condensate (/bbl)
(0.38 ) (0.25 ) (1.12 ) - - (11.48 ) (5.76 ) (10.60 ) (18.05 ) (11.59 )
- - - - - (10.13 ) (5.56 ) (8.00 ) (17.10 ) (10.03 )
(0.31 ) (0.20 ) (0.92 ) - - (11.22 ) (5.72 ) (10.09 ) (17.87 ) (11.27 )
NGLs - Other (/bbl)
- - - - - - - - - -
- - - - - - - - - -
- - - - - - - - - -
NGLs - Total (/bbl)
- - - - - - - - - -
- - - - - (7.20 ) (3.89 ) (5.86 ) (11.87 ) (7.16 )
- - - - - (2.64 ) (1.34 ) (2.10 ) (4.30 ) (2.88 )
Oil & NGLs (/bbl)
(0.27 ) (0.19 ) (0.80 ) - - (7.62 ) (3.78 ) (7.00 ) (11.96 ) (7.88 )
- - - - - (7.19 ) (3.89 ) (5.85 ) (11.85 ) (7.14 )
(0.21 ) (0.14 ) (0.66 ) - - (7.55 ) (3.79 ) (6.80 ) (11.94 ) (7.74 )
Natural Gas (/Mcf)
0.17 0.23 0.32 0.10 0.03 (2.94 ) (2.57 ) (3.97 ) (3.39 ) (1.78 )
(0.13 ) 0.11 0.12 - (0.82 ) (3.74 ) (3.35 ) (5.12 ) (4.35 ) (2.16 )
(0.03 ) 0.15 0.18 0.03 (0.54 ) (3.47 ) (3.10 ) (4.75 ) (4.00 ) (2.04 )
Total (/BOE)
0.07 0.18 (0.12 ) 0.17 0.05 (10.50 ) (7.00 ) (11.68 ) (14.24 ) (8.66 )
(0.60 ) 0.56 0.60 - (3.97 ) (18.91 ) (16.80 ) (25.19 ) (22.62 ) (11.65 )
(0.21 ) 0.33 0.17 0.10 (1.64 ) (14.04 ) (11.14 ) (17.28 ) (17.66 ) (9.97 )

All values are in US Dollars.

Ovintiv Inc. 6 Supplemental Information (prepared in US$)

Fourth quarter report

for the year ended December 31, 2023

Supplemental Oil and Gas Operating Statistics (unaudited)

Operating Statistics (continued)

Per-Unit Results, Including the Impact of Realized Gains (Losses) on Risk Management

2023 2022
(US) Year Q4 Q3 Q2 Q1 Year Q4 Q3 Q2 Q1
Oil Price (/bbl)
76.06 76.64 79.51 72.83 74.06 81.87 75.84 81.74 89.16 80.73
81.59 75.10 100.64 - 71.44 87.28 81.48 82.86 100.11 82.80
76.06 76.64 79.52 72.83 74.06 81.88 75.85 81.74 89.16 80.74
NGLs - Plant Condensate Price (/bbl)
58.53 57.24 59.96 55.09 61.84 73.22 57.95 66.62 86.56 85.09
74.61 74.75 75.67 70.99 77.22 83.07 76.84 78.63 90.64 86.16
70.51 70.46 71.61 67.14 73.01 80.74 72.01 75.73 89.67 85.94
Oil & Plant Condensate Price (/bbl)
74.93 75.58 78.30 71.61 73.12 81.24 74.48 80.58 88.97 81.03
74.54 74.65 75.75 70.99 77.21 83.07 76.85 78.64 90.66 86.16
74.88 75.46 77.94 71.50 73.81 81.59 74.91 80.20 89.29 82.08
NGLs - Other Price (/bbl)
16.27 16.21 16.91 13.43 18.73 29.35 20.03 29.82 34.88 33.55
26.78 30.94 25.50 18.62 35.17 42.39 39.07 41.12 47.84 41.23
18.09 18.85 18.39 14.43 21.11 31.45 22.95 31.49 37.03 34.94
NGLs - Total Price (/bbl)
21.66 21.61 22.72 18.39 24.14 34.88 24.85 34.61 41.21 39.95
58.89 60.71 59.76 52.05 64.31 71.24 65.53 68.55 77.50 73.20
34.98 36.20 36.11 30.78 37.19 48.20 38.88 46.81 54.34 53.33
Oil & NGLs Price (/bbl)
57.02 59.75 60.93 51.94 54.16 63.82 55.71 63.37 70.74 65.80
58.93 60.75 59.84 52.06 64.32 71.27 65.55 68.58 77.54 73.23
57.34 59.92 60.77 51.96 55.80 65.17 57.41 64.30 71.96 67.26
Natural Gas Price (/Mcf)
2.60 2.57 2.54 1.89 3.43 3.24 2.85 3.58 3.48 3.04
2.76 2.69 2.50 2.02 3.98 2.01 2.32 0.99 2.38 2.40
2.71 2.65 2.51 1.98 3.80 2.42 2.49 1.85 2.78 2.60
Total Price (/BOE)
46.22 49.21 49.50 40.73 44.57 51.41 44.96 51.76 57.15 52.42
25.16 25.77 24.06 20.26 31.53 25.35 24.50 19.92 29.08 27.79
37.46 39.99 39.12 31.66 39.08 40.45 36.31 38.55 45.70 41.65
Total Netback (/BOE)
32.82 36.91 36.15 27.41 29.66 35.90 29.87 35.06 41.46 37.97
11.65 12.58 10.16 8.45 16.04 10.75 9.94 5.10 13.91 13.98
24.01 27.34 25.54 19.03 23.92 25.32 21.45 22.63 30.21 27.47

All values are in US Dollars.

Ovintiv Inc. 7 Supplemental Information (prepared in US$)

Fourth quarter report

for the year ended December 31, 2023

Supplemental Oil and Gas Operating Statistics (unaudited)

Results by Play

2023 2022
(average) Year Q4 Q3 Q2 Q1 Year Q4 Q3 Q2 Q1
Oil Production (Mbbls/d)
USA Operations
Permian 99.5 140.2 121.4 75.6 59.6 62.7 65.4 60.8 62.6 61.8
Anadarko 30.6 26.8 30.2 32.4 33.1 35.5 34.4 35.9 36.5 35.4
Uinta 19.1 26.8 18.9 17.8 12.8 17.9 15.4 19.9 19.6 16.6
Bakken (1) 9.4 - - 16.4 21.5 15.3 16.5 16.5 14.0 14.3
Other (2) 0.2 0.2 0.3 0.2 0.2 0.1 0.2 0.2 - 0.1
Total USA Operations 158.8 194.0 170.8 142.4 127.2 131.5 131.9 133.3 132.7 128.2
Canadian Operations
Montney 0.1 0.1 0.1 - 0.1 0.1 0.1 0.1 0.1 0.1
Other (2) - - - - - - - - - -
Total Canadian Operations 0.1 0.1 0.1 - 0.1 0.1 0.1 0.1 0.1 0.1
Total 158.9 194.1 170.9 142.4 127.3 131.6 132.0 133.4 132.8 128.3
NGLs - Plant Condensate Production (Mbbls/d)
USA Operations
Permian 4.1 4.9 4.6 3.7 3.0 3.1 3.2 3.4 3.1 2.7
Anadarko 5.9 6.0 6.1 5.6 5.8 5.9 6.2 6.3 5.7 5.4
Uinta 0.3 0.4 0.4 0.2 0.2 0.2 0.4 0.2 0.2 0.2
Bakken (1) 0.6 - - 0.9 1.5 1.1 1.1 1.2 1.1 0.9
Other (2) - - 0.1 0.1 0.1 0.1 0.1 - - -
Total USA Operations 10.9 11.3 11.2 10.5 10.6 10.4 11.0 11.1 10.1 9.2
Canadian Operations
Montney 32.0 34.8 32.1 33.0 28.1 33.6 31.7 34.9 32.5 35.3
Other (2) - - - - - - - - - 0.1
Total Canadian Operations 32.0 34.8 32.1 33.0 28.1 33.6 31.7 34.9 32.5 35.4
Total 42.9 46.1 43.3 43.5 38.7 44.0 42.7 46.0 42.6 44.6
Oil & Plant Condensate Production (Mbbls/d)
USA Operations
Permian 103.6 145.1 126.0 79.3 62.6 65.8 68.6 64.2 65.7 64.5
Anadarko 36.5 32.8 36.3 38.0 38.9 41.4 40.6 42.2 42.2 40.8
Uinta 19.4 27.2 19.3 18.0 13.0 18.1 15.8 20.1 19.8 16.8
Bakken (1) 10.0 - - 17.3 23.0 16.4 17.6 17.7 15.1 15.2
Other (2) 0.2 0.2 0.4 0.3 0.3 0.2 0.3 0.2 - 0.1
Total USA Operations 169.7 205.3 182.0 152.9 137.8 141.9 142.9 144.4 142.8 137.4
Canadian Operations
Montney 32.1 34.9 32.2 33.0 28.2 33.7 31.8 35.0 32.6 35.4
Other (2) - - - - - - - - - 0.1
Total Canadian Operations 32.1 34.9 32.2 33.0 28.2 33.7 31.8 35.0 32.6 35.5
Total 201.8 240.2 214.2 185.9 166.0 175.6 174.7 179.4 175.4 172.9

(1) Production volumes associated with Bakken were included in USA Operations until the asset was divested on June 12, 2023.

(2) Other Operations includes production volumes from plays that are not part of the Company’s current focus.

Ovintiv Inc. 8 Supplemental Information (prepared in US$)

Fourth quarter report

for the year ended December 31, 2023

Supplemental Oil and Gas Operating Statistics (unaudited)

Results by Play (continued)

2023 2022
(average) Year Q4 Q3 Q2 Q1 Year Q4 Q3 Q2 Q1
NGLs - Other Production (Mbbls/d)
USA Operations
Permian 33.0 39.0 35.1 31.0 26.8 26.3 27.0 26.8 26.2 25.4
Anadarko 36.3 33.7 35.2 37.8 38.5 37.3 39.3 38.6 38.2 32.7
Uinta 1.2 1.8 1.2 1.1 0.7 0.9 0.9 1.0 0.8 0.7
Bakken (1) 4.0 - - 8.1 7.7 7.1 7.9 7.6 7.3 5.9
Other (2) 0.1 0.1 0.3 0.1 - 0.1 - 0.1 0.1 0.1
Total USA Operations 74.6 74.6 71.8 78.1 73.7 71.7 75.1 74.1 72.6 64.8
Canadian Operations
Montney 15.6 16.3 14.9 18.7 12.5 13.8 13.6 12.8 14.4 14.4
Other (2) - - - - - - - - - -
Total Canadian Operations 15.6 16.3 14.9 18.7 12.5 13.8 13.6 12.8 14.4 14.4
Total 90.2 90.9 86.7 96.8 86.2 85.5 88.7 86.9 87.0 79.2
NGLs - Total Production (Mbbls/d)
USA Operations
Permian 37.1 43.9 39.7 34.7 29.8 29.4 30.2 30.2 29.3 28.1
Anadarko 42.2 39.7 41.3 43.4 44.3 43.2 45.5 44.9 43.9 38.1
Uinta 1.5 2.2 1.6 1.3 0.9 1.1 1.3 1.2 1.0 0.9
Bakken (1) 4.6 - - 9.0 9.2 8.2 9.0 8.8 8.4 6.8
Other (2) 0.1 0.1 0.4 0.2 0.1 0.2 0.1 0.1 0.1 0.1
Total USA Operations 85.5 85.9 83.0 88.6 84.3 82.1 86.1 85.2 82.7 74.0
Canadian Operations
Montney 47.6 51.1 47.0 51.7 40.6 47.4 45.3 47.7 46.9 49.7
Other (2) - - - - - - - - - 0.1
Total Canadian Operations 47.6 51.1 47.0 51.7 40.6 47.4 45.3 47.7 46.9 49.8
Total 133.1 137.0 130.0 140.3 124.9 129.5 131.4 132.9 129.6 123.8
Oil & NGLs Production (Mbbls/d)
USA Operations
Permian 136.6 184.1 161.1 110.3 89.4 92.1 95.6 91.0 91.9 89.9
Anadarko 72.8 66.5 71.5 75.8 77.4 78.7 79.9 80.8 80.4 73.5
Uinta 20.6 29.0 20.5 19.1 13.7 19.0 16.7 21.1 20.6 17.5
Bakken (1) 14.0 - - 25.4 30.7 23.5 25.5 25.3 22.4 21.1
Other (2) 0.3 0.3 0.7 0.4 0.3 0.3 0.3 0.3 0.1 0.2
Total USA Operations 244.3 279.9 253.8 231.0 211.5 213.6 218.0 218.5 215.4 202.2
Canadian Operations
Montney 47.7 51.2 47.1 51.7 40.7 47.5 45.4 47.8 47.0 49.8
Other (2) - - - - - - - - - 0.1
Total Canadian Operations 47.7 51.2 47.1 51.7 40.7 47.5 45.4 47.8 47.0 49.9
Total 292.0 331.1 300.9 282.7 252.2 261.1 263.4 266.3 262.4 252.1

(1) Production volumes associated with Bakken were included in USA Operations until the asset was divested on June 12, 2023.

(2) Other Operations includes production volumes from plays that are not part of the Company’s current focus.

Ovintiv Inc. 9 Supplemental Information (prepared in US$)

Fourth quarter report

for the year ended December 31, 2023

Supplemental Oil and Gas Operating Statistics (unaudited)

Results by Play (continued)

2023 2022
(average) Year Q4 Q3 Q2 Q1 Year Q4 Q3 Q2 Q1
Natural Gas Production (MMcf/d)
USA Operations
Permian 185 213 195 171 158 149 156 149 146 145
Anadarko 283 277 285 289 281 286 286 290 287 279
Uinta 22 30 24 20 15 16 19 16 15 13
Bakken (1) 23 - - 44 49 36 39 41 32 32
Other (2) 4 4 4 6 4 5 6 6 5 6
Total USA Operations 517 524 508 530 507 492 506 502 485 475
Canadian Operations
Montney 1,095 1,094 1,092 1,177 1,017 970 1,023 970 907 978
Other (2) 30 27 25 36 31 32 32 28 34 34
Total Canadian Operations 1,125 1,121 1,117 1,213 1,048 1,002 1,055 998 941 1,012
Total 1,642 1,645 1,625 1,743 1,555 1,494 1,561 1,500 1,426 1,487
Total Production (MBOE/d)
USA Operations
Permian 167.3 219.5 193.9 138.9 115.8 117.0 121.7 115.9 116.2 114.0
Anadarko 119.9 112.8 119.0 124.0 124.2 126.3 127.6 129.1 128.2 120.1
Uinta 24.3 33.9 24.4 22.4 16.3 21.6 19.8 23.6 23.0 19.7
Bakken (1) 17.9 - - 33.0 38.8 29.6 32.0 32.1 27.7 26.4
Other (2) 1.0 0.9 1.2 0.9 1.0 1.0 1.2 1.4 1.0 1.1
Total USA Operations 330.4 367.1 338.5 319.2 296.1 295.5 302.3 302.1 296.1 281.3
Canadian Operations
Montney 230.2 233.6 229.1 247.8 210.1 209.1 215.8 209.5 198.2 212.9
Other (2) 5.0 4.5 4.2 6.0 5.2 5.4 5.5 4.7 5.7 5.7
Total Canadian Operations 235.2 238.1 233.3 253.8 215.3 214.5 221.3 214.2 203.9 218.6
Total 565.6 605.2 571.8 573.0 511.4 510.0 523.6 516.3 500.0 499.9

(1) Production volumes associated with Bakken were included in USA Operations until the asset was divested on June 12, 2023.

(2) Other Operations includes total production volumes from plays that are not part of the Company’s current focus. Canadian Other Operations primarily includes natural gas volumes in Horn River.

Ovintiv Inc. 10 Supplemental Information (prepared in US$)

Fourth quarter report

for the year ended December 31, 2023

Supplemental Oil and Gas Operating Statistics (unaudited)

Results by Play (continued)

2023 2022
(US millions) Year Q4 Q3 Q2 Q1 Year Q4 Q3 Q2 Q1
Capital Expenditures, Excluding Capitalized Internal Costs
USA Operations
1,360 335 524 295 206 632 130 181 165 156
180 24 3 55 98 375 55 99 118 103
396 123 136 76 61 117 3 27 58 29
105 (2 ) - 42 65 243 73 81 42 47
7 2 3 1 1 7 3 - 2 2
Total USA Operations 2,048 482 666 469 431 1,374 264 388 385 337
Canadian Operations
544 127 130 152 135 295 50 81 97 67
(2 ) - - - (2 ) 5 - 7 (2 ) -
Total Canadian Operations 542 127 130 152 133 300 50 88 95 67
Total Capital Expenditures, Excluding Capitalized Internal Costs 2,590 609 796 621 564 1,674 314 476 480 404
Capitalized Directly Attributable Internal Costs
USA Operations
83 29 16 19 19 60 15 15 13 17
21 5 5 4 7 31 9 7 7 8
31 9 8 7 7 9 3 1 2 3
5 - - 2 3 18 4 5 4 5
1 - - 1 - 1 - - (1 ) 2
Total USA Operations 141 43 29 33 36 119 31 28 25 35
Canadian Operations
6 6 6 (15 ) 9 33 10 7 5 11
1 1 - - - 1 - - 1 -
Total Canadian Operations 7 7 6 (15 ) 9 34 10 7 6 11
Total Capitalized Directly Attributable Internal Costs 148 50 35 18 45 153 41 35 31 46
Total Capital Expenditures
USA Operations
1,443 364 540 314 225 692 145 196 178 173
201 29 8 59 105 406 64 106 125 111
427 132 144 83 68 126 6 28 60 32
110 (2 ) - 44 68 261 77 86 46 52
8 2 3 2 1 8 3 - 1 4
Total USA Operations 2,189 525 695 502 467 1,493 295 416 410 372
Canadian Operations
550 133 136 137 144 328 60 88 102 78
(1 ) 1 - - (2 ) 6 - 7 (1 ) -
Total Canadian Operations 549 134 136 137 142 334 60 95 101 78
Corporate & Other 6 1 3 1 1 4 3 - - 1
Total Capital Expenditures 2,744 660 834 640 610 1,831 358 511 511 451
Net Acquisitions & (Divestitures) (495 ) (27 ) 47 (702 ) 187 58 254 (213 ) 3 14
Net Capital Investment 2,249 633 881 (62 ) 797 1,889 612 298 514 465

All values are in US Dollars.

(1) Capital expenditures associated with Bakken were included in USA Operations until the asset was divested on June 12, 2023.

(2) Other Operations includes capital expenditures in plays that are not part of the Company’s current focus.

Ovintiv Inc. 11 Supplemental Information (prepared in US$)

Fourth quarter report

for the year ended December 31, 2023

Supplemental Oil and Gas Operating Statistics (unaudited)

Results by Play (continued)

2023 2022
Year Q4 Q3 Q2 Q1 Year Q4 Q3 Q2 Q1
Drilling Activity (net wells drilled)
USA Operations
Permian 113 25 45 26 17 62 15 18 16 13
Anadarko 11 - 2 2 7 54 10 13 18 13
Uinta 33 12 10 8 3 12 - 2 5 5
Bakken (1) 11 - - 6 5 25 7 8 8 2
Total USA Operations 168 37 57 42 32 153 32 41 47 33
Canadian Operations
Montney 96 28 19 23 26 52 8 12 16 16
Other (2) - - - - - 3 - 3 - -
Total Canadian Operations 96 28 19 23 26 55 8 15 16 16
Total 264 65 76 65 58 208 40 56 63 49
Completions Activity (net wells on production)
USA Operations
Permian 184 60 83 27 14 66 16 21 11 18
Anadarko 25 4 1 7 13 57 8 16 15 18
Uinta 21 8 10 3 - 11 3 2 6 -
Bakken (1) 16 - - 8 8 19 6 9 - 4
Total USA Operations 246 72 94 45 35 153 33 48 32 40
Canadian Operations
Montney 77 15 22 29 11 63 11 21 12 19
Total Canadian Operations 77 15 22 29 11 63 11 21 12 19
Total 323 87 116 74 46 216 44 69 44 59

(1) Net wells drilled and net wells on production associated with Bakken were included in USA Operations until the asset was divested on June 12, 2023.

(2) Other Operations includes net wells drilled in plays that are not part of the Company’s current focus.

Ovintiv Inc. 12 Supplemental Information (prepared in US$)

img101474839_2.jpg

Ovintiv Inc.

Non-GAAP Definitions and Reconciliations

(unaudited)

For the year ended December 31, 2023

U.S. Dollar / U.S. Protocol

For the year ended December 31, 2023

(US$ millions, except per share amounts or as indicated)

Non-GAAP Cash Flow, Non-GAAP Cash Flow Per Share (CFPS) and Non-GAAP Free Cash Flow - Non-GAAP Cash Flow is 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 CFPS is Non-GAAP Cash Flow divided by the weighted average number of shares of common stock outstanding. Non-GAAP Free Cash Flow is defined as Non-GAAP Cash Flow in excess of capital expenditures, excluding net acquisitions and divestitures. Management believes these measures are useful to the Company and its investors as a measure of operating and financial performance across periods and against other companies in the industry, and are an indication of the Company’s ability to generate cash to finance capital programs, to service debt and to meet other financial obligations. These measures are used, along with other measures, in the calculation of certain performance targets for the Company’s management and employees.

Non-GAAP Cash Flow
Cash from (used in) Operating Activities 1,362 4,167
Deduct (add back):
Net change in other assets and liabilities (31 ) (62 )
Net change in non-cash working capital 156 330
Non-GAAP Cash Flow 1,237 3,899
Per Share - Basic 4.54 15.00
Per Share - Diluted 4.49 14.77
Non-GAAP Free Cash Flow
Non-GAAP Cash Flow 1,237 3,899
Deduct:
Capital expenditures 660 2,744
Non-GAAP Free Cash Flow 577 1,155

All values are in US Dollars.

Non-GAAP Adjusted Earnings - is 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, any valuation allowances are excluded in the calculation of income taxes.

Non-GAAP Adjusted Earnings
Net Earnings (Loss) Before Income Tax 1,067 2,510
Before-tax (Addition) Deduction:
Unrealized gain (loss) on risk management 326 194
Non-operating foreign exchange gain (loss) (9 ) (2 )
Adjusted Earnings (Loss) Before Income Tax 750 2,318
Income tax expense (recovery) 103 508
Non-GAAP Adjusted Earnings 647 1,810
Per Share - Basic 2.38 6.96
Per Share - Diluted 2.35 6.86

All values are in US Dollars.

Debt to Capitalization - Capitalization includes debt and total shareholders’ equity. Debt to Capitalization is monitored by management as an indicator of the Company’s overall financial strength.

Debt to Capitalization
Long-Term Debt, Including Current Portion 5,737
Total Shareholders' Equity 10,370
Capitalization 16,107
Debt to Capitalization

All values are in US Dollars.

Ovintiv Inc. 1 Non-GAAP Definitions and Reconciliations

Debt to Adjusted Capitalization - Debt to Adjusted Capitalization is a non-GAAP measure and is a proxy for Ovintiv’s financial covenant under the Company’s credit facilities which require debt to adjusted capitalization to be less than 60 percent. Adjusted Capitalization includes debt, total shareholders’ equity and an equity adjustment for cumulative historical ceiling test impairments recorded as at December 31, 2011 in conjunction with the Company’s January 1, 2012 adoption of U.S. GAAP.

Debt to Adjusted Capitalization
Long-Term Debt, Including Current Portion 5,737
Total Shareholders' Equity 10,370
Equity Adjustment for Impairments at December 31, 2011 7,746
Adjusted Capitalization 23,853
Debt to Adjusted Capitalization

All values are in US Dollars.

EBITDA, Debt to EBITDA, Adjusted EBITDA and Debt to Adjusted EBITDA (Leverage Ratio) - EBITDA is defined as trailing 12-month net earnings (loss) before income taxes, DD&A, and interest. Adjusted EBITDA is defined as 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 and Debt to Adjusted EBITDA are non-GAAP measures monitored by management as an indicator of the Company’s overall financial strength.
Long-Term Debt, Including Current Portion 5,737
Net Earnings (Loss) 487 336 406 856 2,085
Add back (deduct):
Depreciation, depletion and amortization 364 419 486 556 1,825
Interest 71 80 98 106 355
Income tax expense (recovery) 126 101 (13 ) 211 425
EBITDA 1,048 936 977 1,729 4,690
Debt to EBITDA (times) 1.2

All values are in US Dollars.
Long-Term Debt, Including Current Portion 5,737
Net Earnings (Loss) 487 336 406 856 2,085
Add back (deduct):
Depreciation, depletion and amortization 364 419 486 556 1,825
Accretion of asset retirement obligation 5 4 5 5 19
Interest 71 80 98 106 355
Unrealized (gains) losses on risk management (18 ) (142 ) 292 (326 ) (194 )
Foreign exchange (gain) loss, net (3 ) 25 (22 ) 19 19
Other (gains) losses, net (3 ) (11 ) (2 ) (4 ) (20 )
Income tax expense (recovery) 126 101 (13 ) 211 425
Adjusted EBITDA 1,029 812 1,250 1,423 4,514
Debt to Adjusted EBITDA (times) 1.3

All values are in US Dollars.

Operating Margin/Operating Netback - Product revenues less costs associated with delivering the product to market, including production, mineral and other taxes, transportation and processing and operating expenses. When presented on a per BOE basis, Operating Netback is defined as indicated divided by average barrels of oil equivalent sales volumes. Operating Margin/Operating Netback is used by management as an internal measure of the profitability of a play.

Upstream Operating Cash Flow, excluding Risk Management and Upstream Operating Free Cash Flow - Upstream Operating Cash Flow, excluding Risk Management is a measure that adjusts the USA and Canadian Operations revenues for production, mineral and other taxes, transportation and processing expense, operating expense and the impacts of realized risk management activities. It is calculated as total upstream operating income excluding upstream depreciation, depletion and amortization, and the impact of risk management activities. Upstream Operating Free Cash Flow is defined as Upstream Operating Cash Flow, excluding Risk Management, in excess of upstream capital investment, excluding net acquisitions and divestitures. Management monitors these measures as it reflects operating performance and measures the amount of cash generated from the Company’s upstream operations.

Ovintiv Inc. 2 Non-GAAP Definitions and Reconciliations

Netback Calculation

Netback is a common metric used in the oil and gas industry to measure operating performance on a per-unit basis and is considered a non-GAAP measure. The netbacks disclosed below have been calculated on a BOE basis using upstream product revenues, excluding the impact of realized gains and losses on risk management, less costs associated with delivering the product to market, including production, mineral and other taxes, transportation and processing expense and operating expense.

Selected Financial Data (1)
2023 2022
(US millions) Year Q4 Q3 Q2 Q1 Year Q4 Q3 Q2 Q1
USA Operations
5,565 1,656 1,544 1,179 1,186 6,677 1,444 1,762 1,924 1,547
327 90 84 73 80 401 90 106 115 90
547 128 124 148 147 626 162 170 159 135
743 198 208 167 170 646 168 187 149 142
3,948 1,240 1,128 791 789 5,004 1,024 1,299 1,501 1,180
Canadian Operations
2,212 552 504 467 689 3,465 841 889 960 775
15 3 5 3 4 14 4 3 3 4
1,056 256 265 268 267 1,002 261 257 253 231
88 29 28 2 29 127 31 34 25 37
1,053 264 206 194 389 2,322 545 595 679 503
Total Operations
7,777 2,208 2,048 1,646 1,875 10,142 2,285 2,651 2,884 2,322
342 93 89 76 84 415 94 109 118 94
1,603 384 389 416 414 1,628 423 427 412 366
831 227 236 169 199 773 199 221 174 179
5,001 1,504 1,334 985 1,178 7,326 1,569 1,894 2,180 1,683
(1) Segmented financial information per the notes to Ovintiv's financial statements.
(2) Excludes the impact of realized gains and losses on risk management.
(3) Excludes service revenues, certain other revenues and royalty adjustments with no associated production volumes.
(4) Excludes other operating expenses with no associated production volumes.
Sales Volumes (1)
2023 2022
(BOE) Year Q4 Q3 Q2 Q1 Year Q4 Q3 Q2 Q1
USA Operations 120,609,505 33,771,820 31,141,172 29,044,015 26,652,510 107,860,420 27,807,460 27,788,876 26,946,920 25,317,450
Canadian Operations 85,848,365 21,907,316 21,465,900 23,096,801 19,378,260 78,306,370 20,363,280 19,710,448 18,555,628 19,677,060
Total 206,457,870 55,679,136 52,607,072 52,140,816 46,030,770 186,166,790 48,170,740 47,499,324 45,502,548 44,994,510
(1) Numbers may not add due to the calculation of volumes, which is based on sales volumes per day on a BOE basis times the number of days in the period.
Calculated Operating Netback, excluding the Impact of Realized Gains (Losses) on Risk Management (1)
2023 2022
(US/BOE) Year Q4 Q3 Q2 Q1 Year Q4 Q3 Q2 Q1
Total USA Operations
46.14 49.03 49.58 40.59 44.50 61.90 51.93 63.41 71.40 61.10
2.71 2.66 2.70 2.51 3.00 3.72 3.24 3.81 4.27 3.55
4.54 3.79 3.98 5.10 5.52 5.80 5.83 6.12 5.90 5.33
6.16 5.86 6.68 5.75 6.38 5.99 6.04 6.73 5.53 5.61
32.73 36.72 36.22 27.23 29.60 46.39 36.82 46.75 55.70 46.61
Total Canadian Operations
25.77 25.20 23.48 20.22 35.56 44.25 41.30 45.10 51.74 39.39
0.17 0.14 0.23 0.13 0.21 0.18 0.20 0.15 0.16 0.20
12.30 11.69 12.35 11.60 13.78 12.80 12.82 13.04 13.63 11.74
1.03 1.32 1.30 0.09 1.50 1.62 1.52 1.72 1.35 1.88
12.27 12.05 9.60 8.40 20.07 29.65 26.76 30.19 36.59 25.56
Total Operations
37.67 39.66 38.93 31.57 40.73 54.48 47.44 55.81 63.38 51.61
1.66 1.67 1.69 1.46 1.82 2.23 1.95 2.29 2.59 2.09
7.76 6.90 7.39 7.98 8.99 8.74 8.78 8.99 9.05 8.13
4.03 4.08 4.49 3.24 4.32 4.15 4.13 4.65 3.82 3.98
Netback 24.22 27.01 25.36 18.89 25.59 39.35 32.57 39.87 47.91 37.40
(1) May not add due to rounding. Ovintiv calculates reported netbacks using whole dollars and sales volumes. Accordingly, the calculations above may differ from the reported netbacks due to the effects of rounding both dollars and volumes.

All values are in US Dollars.

Ovintiv Inc. 3 Non-GAAP Definitions and Reconciliations

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