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8-K

Ovintiv Inc. (OVV)

8-K 2023-07-27 For: 2023-07-27
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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): July 27, 2023

Ovintiv Inc.

(Exact Name of Registrant as Specified in its Charter)

Delaware 001-39191 84-4427672
(State or Other Jurisdiction<br> <br>of Incorporation) (Commission<br> <br>File Number) (I.R.S. Employer<br> <br>Identification No.)
Suite 1700, 370 - 17th Street<br> <br>Denver, Colorado 80202
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(Address of principal executive offices) (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)
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☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Securities registered pursuant to Section 12(b) of the Act:

Title of each class Trading<br> <br>Symbol(s) Name of each exchange<br> <br>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 July 27, 2023, Ovintiv Inc. (the “Company”) issued a news release announcing its financial and operating results for its second quarter ended June 30, 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 Exhibit 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 filing.

ITEM 8.01 Other Events.

Quarterly Dividend

In its July 27, 2023 news release, the Company also announced that its Board of Directors had declared a quarterly dividend of $0.30 per share on the Company’s outstanding common stock. The dividend is payable on September 29, 2023 to holders of record at the close of business on September 15, 2023. A copy of the news release is attached as Exhibit 99.1 to this Current Report on Form 8-K.

ITEM 9.01 Financial Statements and Exhibits.

(d) Exhibits

Exhibit No. Exhibit Description
Exhibit 99.1 News Release dated July 27, 2023.
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: July 27, 2023

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

EX-99.1

Exhibit 99.1

news release

Ovintiv Reports Second Quarter 2023 Financial and Operating Results

Strong Results Across Portfolio Drive Higher Full Year Production Guidance and Reduced Capital and Per Unit Cost Guidance

Second Quarter 2023 Highlights:

• Generated net earnings of $336 million, cash from operating activities of $831 million, Non-GAAP Cash Flow of $699 million and Non-GAAP Free Cash Flow of $59 million after capital expenditures of $640 million
• Exceeded second quarter production guidance on every product with average total production volumes of<br>573 thousand barrels of oil equivalent per day (“MBOE/d”), including 186 thousand barrels per day (“Mbbls/d”) of oil and condensate, 97 Mbbls/d of other NGLs (C2 to C4) and 1,743 million cubic feet per day<br>(“MMcf/d”) of natural gas
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• Increased full year 2023 production guidance and lowered both full year 2023 capital and per unit cost guidance<br>
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• Closed the previously announced acquisition of Midland Basin assets, which added approximately 65,000 net acres<br>and approximately 1,050 net well locations to Ovintiv’s Permian inventory
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• Closed the previously announced sale of Ovintiv’s Bakken assets, representing the Company’s exit from<br>the play
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• Announced inclusion on the S&P 400 index effective June 20, 2023
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• Returned $172 million to shareholders through the combination of base dividend payments and share buybacks<br>
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• Announced a 20% increase to quarterly per share dividend payment representing an annualized dividend of $1.20 per<br>share of common stock
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DENVER, July 27, 2023 – Ovintiv Inc. (NYSE, TSX: OVV) (“Ovintiv” or the “Company”) today announced its second quarter 2023 financial and operating results. The Company plans to hold a conference call and webcast at 9:00 a.m. MT (11:00 a.m. ET) on July 28, 2023. 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.

“Our outstanding second quarter results demonstrate our capability to use innovation to increase well productivity per lateral foot and drive returns,” said Ovintiv President and CEO, Brendan McCracken. “We have seamlessly integrated the newly acquired Midland Basin assets into our existing Permian operations. Our team is already deploying the same drilling and completion designs that have been delivering exceptional results on our legacy position and our first, fully Ovintiv-designed wells are expected to be online late in the fourth quarter.

Our high-graded portfolio and our leading capital efficiency have positioned us to deliver superior durable returns for our shareholders for many years to come.”

Second Quarter 2023 Financial and Operating Results

• The Company recorded net earnings of $336 million, or $1.34 per diluted share of common stock. Included in<br>net earnings were net gains on risk management of $147 million, before tax.
• Cash from operating activities was $831 million, Non-GAAP Cash Flow<br>was $699 million and capital investment totaled approximately $640 million, resulting in $59 million of Non-GAAP Free Cash Flow.
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• Second quarter capital investment was lower than the second quarter guidance range of $670 million to<br>$710 million resulting from capital efficiencies.
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• Second quarter average total production volumes were above Company guidance on all products at approximately 573<br>MBOE/d, including 186 Mbbls/d of oil and condensate, 97 Mbbls/d of other NGLs and 1,743 MMcf/d of natural gas.
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• Upstream operating expense was $3.23 per barrel of oil equivalent (“BOE”), which included a recovery of<br>prior years’ costs of $23 million. Upstream transportation and processing costs were $7.97 per BOE. Production, mineral and other taxes were $1.43 per BOE. These costs were below the midpoint of guidance on a combined basis.<br>
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Ovintiv Inc. 1
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• Excluding the impact of hedges, second quarter average realized prices were $71.50 per barrel for oil and<br>condensate (97% of WTI), $14.43 per barrel for other NGLs (C2-C4) and $1.95 per thousand cubic feet (“Mcf”) for natural gas (93% of NYMEX) resulting in a total average realized price of $31.56 per<br>BOE. Including the impact of hedges, the average realized prices for oil and condensate and other NGLs were unchanged, while the average realized price for natural gas was $1.98 per Mcf (94% of NYMEX).
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2023 Guidance

The Company issued its third quarter 2023 guidance and revised its full year guidance. Full year production guidance was increased due to strong well productivity across the portfolio and lower royalty rates in the Montney. Full year capital guidance was decreased due to execution efficiencies and cost savings.

Full Year 2023
Guidance Updates 3Q 2023 Previous Updated
Total Production (MBOE/d) 540 – 560 521 – 546 535 – 550
Oil & Condensate (Mbbls/d)^^ 202 – 208 186 – 196 190 – 196
NGLs (C2 - C4) (Mbbls/d) 80 – 85 80 – 85 83 – 87
Natural Gas (MMcf/d) 1,575 – 1,625 1,525 – 1,575 1,575 – 1,625
Capital Investment ($ Millions) $840 – $890 $2,680 – $2,980 $2,680 – $2,850

Ovintiv expects capital investment in the third quarter to be the high point for the year as a result of the high level of activity in the Midland Basin assets at the time of acquisition. The Company expects the vast majority of the acquired wells in progress to be on production by year-end. Total company oil and condensate production is expected to average 210 Mbbls/d in the second half of the year, with volumes growing from the third quarter to the fourth quarter. On a combined basis, per unit upstream operating expense and upstream transportation and processing expense are expected to be five percent lower in the second half of the year compared to the original full year 2023 guidance.

2024 Outlook

In 2024, Ovintiv expects to deliver total company average oil and condensate production volumes of greater than 200 Mbbls/d with total capital investment of $2.1 billion to $2.5 billion. The Company’s production profile is expected to normalize by mid-year 2024 with second-half 2024 oil and condensate production stabilizing at 200 Mbbls/d.

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 second quarter of 2023, the Company returned approximately $172 million to shareholders through share buybacks totaling approximately $90 million and its base dividend of approximately $82 million.

During the second quarter, Ovintiv purchased for cancellation, approximately 2.5 million shares of common stock at an average price of $35.84 per share.

Continued Balance Sheet Focus

Ovintiv had $3.2 billion in total liquidity as of June 30, 2023, which included available credit facilities of $3,150 million, available uncommitted demand lines of $278 million, and cash and cash equivalents of $52 million, net of outstanding commercial paper of $330 million. The Company’s long-term debt totaled $6.1 billion.

Ovintiv reported Debt to EBITDA of 1.2 times and Non-GAAP Debt to Adjusted EBITDA of 1.7 times as of June 30, 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 with an associated long-term total debt target of $4.0 billion.

Dividend Declared

On July 27, 2023, Ovintiv’s Board declared a quarterly dividend of $0.30 per share of common stock payable on September 29, 2023, to shareholders of record as of September 15, 2023.

Ovintiv Inc. 2

Asset Highlights

Permian

Permian production averaged 139 MBOE/d (79% liquids) in the second quarter. The Company had 27 net wells turned in line (“TIL”). Ovintiv plans to invest approximately $1.4 to $1.5 billion in the play in 2023 to bring on 150 to 170 net wells TIL.

Montney

Montney production averaged 248 MBOE/d (21% liquids) in the second quarter. The Company had 29 net wells TIL. Ovintiv plans to invest approximately $500 to $600 million in the play in 2023 to bring on 70 to 80 net wells TIL.

Uinta

Uinta production averaged 22 MBOE/d (85% liquids) in the second quarter. The Company had three net wells TIL. Ovintiv plans to invest approximately $400 to $450 million in the play in 2023 to bring on 25 to 30 net wells TIL.

Anadarko

Anadarko production averaged 124 MBOE/d (61% liquids) in the second quarter. The Company had seven net wells TIL. Ovintiv plans to invest approximately $175 to $200 million in the play in 2023 to bring on 20 to 25 net wells TIL.

For additional information, please refer to the Second Quarter 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 second quarter results will be held at 9:00 a.m. MT (11:00 a.m. ET) on July 28, 2023.

To join the conference call without operator assistance, you may register and enter your phone number at https://emportal.ink/3pmXQ2L 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 June 30) 2Q 2022
Capital Expenditures (1) (<br>millions) 640 511
Oil (Mbbls/d) 142.4 132.8
NGLs – Plant Condensate (Mbbls/d) 43.5 42.6
Oil & Plant Condensate (Mbbls/d) 185.9 175.4
NGLs – Other (Mbbls/d) 96.8 87.0
Total Liquids (Mbbls/d) 282.7 262.4
Natural gas (MMcf/d) 1,743 1,426
Total production (MBOE/d) 573.0 500.0

All values are in US Dollars.

(1) Including capitalized directly attributable internal costs.

Second Quarter Financial Summary

(for the period ended June 30)<br><br><br>($<br>millions) 2Q 2023 2Q 2022
Cash From (Used In) Operating Activities **** 831 **** 1,344
Deduct (Add Back):
Net change in other assets and liabilities **** (12 ) (13 )
Net change in non-cash working capital **** 144 **** 133
Non-GAAP Cash Flow ^(1)^ **** 699 **** 1,224
Non-GAAP Cash Flow ^(1)^ **** 699 **** 1,224
Less: Capital Expenditures^(2)^ **** 640 **** 511
Non-GAAP Free Cash Flow ^(1)^ **** 59 **** 713
Net Earnings (Loss) Before Income Tax **** 437 **** 1,422
Before-tax (Addition) Deduction:
Unrealized gain (loss) on risk management **** 142 **** 513
Non-operating foreign exchange gain (loss) **** (15 ) (7 )
Adjusted Earnings (Loss) Before Income Tax **** 310 **** 916
Income tax expense (recovery) **** 78 **** 288
Non-GAAP Adjusted Earnings ^(1)^ **** 232 **** 628
(1) Non-GAAP Cash Flow, Non-GAAP<br>Free Cash Flow and Non-GAAP Adjusted Earnings are non-GAAP measures as defined in Note 1.
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(2) Including capitalized directly attributable internal costs.
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Realized Pricing Summary (Including the impact of realized gains (losses) on risk management)

(for the period ended June 30) 2Q 2022
Liquids (/bbl)
WTI 73.78 108.41
Realized Liquids Prices
Oil 72.83 89.16
NGLs – Plant Condensate 67.14 89.67
Oil & Plant Condensate 71.50 89.29
NGLs – Other 14.43 37.03
Total NGLs 30.78 54.34
Natural Gas
NYMEX (/MMBtu) 2.10 7.17
Realized Natural Gas Price (/Mcf) 1.98 2.78

All values are in US Dollars.

Ovintiv Inc. 4

Cost Summary

(for the period ended June 30)<br><br><br>($/BOE, except as indicated) 2Q 2023 2Q 2022
Production, mineral and other taxes **** 1.43 2.58
Upstream transportation and processing **** 7.97 9.08
Upstream operating **** 3.23 3.83
Administrative, excluding long-term incentive, transaction and legal costs, and current<br>expected credit losses **** 1.28 1.36

Debt to EBITDA ^(1)^

($ millions, except as indicated) June 30, 2023 December 31, 2022
Long-Term Debt, including Current Portion **** 6,134 3,570
Net Earnings (Loss) **** 3,344 3,637
Add back (Deduct):
Depreciation, depletion and amortization **** 1,354 1,113
Interest **** 297 311
Income tax expense (recovery) **** 90 (77 )
EBITDA **** 5,085 4,984
Debt to EBITDA (times) **** 1.2 0.7

Debt to Adjusted EBITDA ^(1)^

($ millions, except as indicated) June 30, 2023 December 31, 2022
Long-Term Debt, including Current Portion **** 6,134 **** 3,570
Net Earnings (Loss) **** 3,344 **** 3,637
Add back (Deduct):
Depreciation, depletion and amortization **** 1,354 **** 1,113
Accretion of asset retirement obligation **** 17 **** 18
Interest **** 297 **** 311
Unrealized (gains) losses on risk management **** (1,400 ) (741 )
Foreign exchange (gain) loss, net **** 35 **** 15
Other (gains) losses, net **** (20 ) (33 )
Income tax expense (recovery) **** 90 **** (77 )
Adjusted EBITDA **** 3,717 **** 4,243
Debt to Adjusted EBITDA (times) **** 1.7 **** 0.8
1) Debt to EBITDA and Debt to Adjusted EBITDA are non-GAAP measures as<br>defined in Note 1.
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Ovintiv Inc. 5
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Hedge Details as of June 30, 2023

Oil and Condensate<br><br><br>Hedges ($/bbl) 3Q 2023 4Q 2023 1Q 2024 2Q 2024 3Q 2024 4Q 2024
WTI Swaps 35 Mbbls/d<br> <br>$76.94 35 Mbbls/d<br> <br>$76.94 25 Mbbls/d<br> <br>$73.69 25 Mbbls/d<br> <br>$73.69 0<br> <br>— 0<br> <br>—
WTI Collars<br><br><br>Call Strike<br><br><br>Put Strike 35 Mbbls/d<br> <br>$87.60<br><br><br>$65.00 35 Mbbls/d<br> <br>$87.60<br><br><br>$65.00 75 Mbbls/d<br> <br>$82.29<br><br><br>$64.33 75 Mbbls/d<br> <br>$80.39<br><br><br>$65.00 0<br> <br>—<br><br><br>— 0<br> <br>—<br><br><br>—
WTI 3-Way Options<br><br><br>Short Call<br><br><br>Long Put<br><br><br>Short Put 40 Mbbls/d<br> <br>$119.01<br><br><br>$66.25<br> <br>$50.00 40 Mbbls/d<br> <br>$104.19<br><br><br>$65.00<br> <br>$50.00 0<br> <br>—<br><br><br>—<br><br><br>— 0<br> <br>—<br><br><br>—<br><br><br>— 23 Mbbls/d<br> <br>$90.27<br><br><br>$65.00<br> <br>$50.00 10 Mbbls/d<br> <br>$89.79<br><br><br>$65.00<br> <br>$50.00
Natural Gas Hedges<br><br><br>($/Mcf) 3Q 2023 4Q 2023 1Q 2024 2Q 2024 3Q 2024 4Q 2024
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NYMEX Swaps 0<br> <br>— 0<br> <br>— 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
NYMEX Collars<br><br><br>Call Strike<br><br><br>Put Strike 200 MMcf/d<br> <br>$3.68<br><br><br>$3.00 200 MMcf/d<br> <br>$3.68<br><br><br>$3.00 400 MMcf/d<br> <br>$5.10<br><br><br>$3.00 400 MMcf/d<br> <br>$3.40<br><br><br>$3.00 400 MMcf/d<br> <br>$3.40<br><br><br>$3.00 400 MMcf/d<br> <br>$5.57<br><br><br>$3.00
NYMEX 3-Way Options<br><br><br>Call Strike<br><br><br>Put Strike<br><br><br>Sold Put Strike 390 MMcf/d<br> <br>$7.72<br><br><br>$3.71<br> <br>$2.51 400 MMcf/d<br> <br>$10.05<br><br><br>$4.00<br> <br>$3.00 100 MMcf/d<br> <br>$4.79<br><br><br>$3.00<br> <br>$2.25 200 MMcf/d<br> <br>$4.44<br><br><br>$3.00<br> <br>$2.25 200 MMcf/d<br> <br>$4.44<br><br><br>$3.00<br> <br>$2.25 100 MMcf/d<br> <br>$4.79<br><br><br>$3.00<br> <br>$2.25
Waha Basis Swaps 30 MMcf/d<br> <br>($0.61) 30 MMcf/d<br> <br>($0.61) 0<br> <br>— 0<br> <br>— 0<br> <br>— 0<br> <br>—
Waha % of NYMEX Swaps 0<br> <br>— 0<br> <br>— 50 MMcf/d<br> <br>71% 50 MMcf/d<br> <br>71% 50 MMcf/d<br> <br>71% 50 MMcf/d<br> <br>71%
Malin Basis Swaps 50 MMcf/d<br> <br>($0.26) 50 MMcf/d<br> <br>($0.26) 0<br> <br>— 0<br> <br>— 0<br> <br>— 0<br> <br>—
AECO Basis Swaps 260 MMcf/d<br> <br>($1.07) 260 MMcf/d<br> <br>($1.07) 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>($1.08)
AECO % of NYMEX Swaps 50 MMcf/d<br> <br>71% 50 MMcf/d<br> <br>71% 100 MMcf/d<br> <br>72% 100 MMcf/d<br> <br>72% 100 MMcf/d<br> <br>72% 100 MMcf/d<br> <br>72%
Ovintiv Inc. 6
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Price Sensitivities for WTI Oil ^(1)^ ($MM)

WTI Oil Hedge Gains (Losses)
40 50 60 70 80 90 100 110 120
3Q 2023 ( ) ( ) ( ) ( ) ( )
4Q 2023 ( ) ( ) ( ) ( ) ( )
2024 ( ) ( ) ( ) ( ) ( )

All values are in US Dollars.

(1) Hedge positions and hedge sensitivity estimates as of 6/30/2023. Does not include impact of basis positions.<br>

Price Sensitivities for NYMEX Natural Gas ^(1)^ ($MM)

NYMEX Natural Gas Hedge Gains(Losses)
1.50 2.00 2.50 3.00 3.50 4.00 4.50 5.00 5.50
3Q 2023 ( ) ( ) ( ) ( )
4Q 2023 ( ) ( ) ( ) ( )
2024 ( ) ( ) ( ) ( )

All values are in US Dollars.

(1) Hedge positions and hedge sensitivity estimates as of 6/30/2023. Does not include impact of basis positions.<br>
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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.

NI51-101 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.sedar.com 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<br>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.<br>
• Non-GAAP Free Cash Flow is a<br>non-GAAP measure **** defined as Non-GAAP Cash Flow in excess of capital expenditures, excluding net acquisitions and divestitures.
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• Non-GAAP Adjusted Earnings is a<br>non-GAAP measure defined as net earnings (loss) excluding non-cash items that Management believes reduces the comparability of the Company’s financial performance<br>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<br>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.
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• Adjusted EBITDA, Debt to EBITDA and Debt to Adjusted EBITDA (Leverage 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<br>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<br>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.
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ADVISORY REGARDING OIL AND GAS INFORMATION – The conversion of natural gas volumes to barrels of oil equivalent (BOE) is on the basis of six thousand cubic feet to one barrel. BOE is based on a generic energy equivalency conversion method primarily applicable at the burner tip and does not represent economic value equivalency at the wellhead. Readers are cautioned that BOE may be misleading, particularly if used in isolation.

ADVISORY REGARDING FORWARD-LOOKING STATEMENTS – This news release contains forward-looking statements or information (collectively, “forward-looking statements”) within the meaning of applicable securities legislation, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, except for statements of historical fact, that relate to the anticipated future activities, plans,

Ovintiv Inc. 8

strategies, objectives or expectations of the Company, including the expectation of delivering sustainable durable returns to shareholders in future years, 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
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EX-99.2

Exhibit 99.2

img4767402_0.jpg

Ovintiv Inc.

Selected Financial Information

(unaudited)

For the period ended June 30, 2023

U.S. Dollar / U.S. Protocol

Condensed Consolidated Statement of Earnings (unaudited)

Three Months Ended <br> Six Months Ended
<br>June 30, <br> <br>June 30, <br>
(US$ millions, except per share amounts) <br>2023 <br> <br>2022 <br> <br>2023 <br> <br>2022 <br>
Revenues <br>
Product and service revenues $ 2,352 $ 4,014 <br> $ 4,944 $ 7,421
Gains (losses) on risk management, net 147 (295 <br>) 89 (1,753 )
<br>Sublease revenues <br> <br>18 <br> <br> <br>17 <br> <br> <br>35 <br> <br> <br>35 <br>
<br>Total Revenues <br> <br>2,517 <br> <br> <br>3,736 <br> <br> <br>5,068 <br> <br> <br>5,703 <br>
Operating Expenses <br>
Production, mineral and other taxes 76 118 <br> 160 212
Transportation and processing 452 453 <br> 907 859
Operating 175 180 <br> 381 368
Purchased product 692 1,115 <br> 1,393 2,181
Depreciation, depletion and amortization 419 278 <br> 783 542
Accretion of asset retirement obligation 4 5 <br> 9 10
<br>Administrative <br> <br>168 <br> <br> <br>71 <br> <br> <br>226 <br> <br> <br>215 <br>
<br>Total Operating Expenses <br> <br>1,986 <br> <br> <br>2,220 <br> <br> <br>3,859 <br> <br> <br>4,387 <br>
Operating Income (Loss) <br> <br>531 <br> <br> <br>1,516 <br> <br> <br>1,209 <br> <br> <br>1,316 <br>
Other (Income) Expenses <br>
Interest 80 91 <br> 151 165
Foreign exchange (gain) loss, net 25 3 <br> 22 2
<br>Other (gains) losses, net <br> <br>(11 <br>) <br> <br>- <br> <br> <br>(14 <br>) <br> <br>(27 <br>)
<br>Total Other (Income) Expenses <br> <br>94 <br> <br> <br>94 <br> <br> <br>159 <br> <br> <br>140 <br>
Net Earnings (Loss) Before Income Tax 437 1,422 <br> 1,050 1,176
<br>Income tax expense (recovery) <br> <br>101 <br> <br> <br>65 <br> <br> <br>227 <br> <br> <br>60 <br>
Net Earnings (Loss) <br>$ <br>336 <br> <br>$ <br>1,357 <br> <br>$ <br>823 <br> <br>$ <br>1,116 <br>
Net Earnings (Loss) per Share of Common Stock <br>
Basic $ 1.35 $ 5.28 <br> $ 3.33 $ 4.34
Diluted 1.34 5.21 <br> 3.28 4.26
Weighted Average Shares of Common Stock Outstanding (millions) <br>
Basic 249.4 257.2 <br> 246.9 257.3
<br>Diluted <br> <br>250.8 <br> <br> <br>260.6 <br> <br> <br>250.8 <br> <br> <br>262.1 <br>

Condensed Consolidated Statement of Comprehensive Income (unaudited)

Three Months Ended <br> Six Months Ended
<br>June 30, <br> <br>June 30, <br>
(US$ millions) <br>2023 <br> <br>2022 <br> <br>2023 <br> <br>2022 <br>
Net Earnings (Loss) $ 336 $ 1,357 <br> $ 823 $ 1,116
Other Comprehensive Income (Loss), Net of Tax <br>
Foreign currency translation adjustment 53 (59 <br>) 55 (31 )
<br>Pension and other post-employment benefit plans <br> <br>(1 <br>) <br> <br>(2 <br>) <br> <br>(3 <br>) <br> <br>(3 <br>)
Other Comprehensive Income (Loss) <br> <br>52 <br> <br> <br>(61 <br>) <br> <br>52 <br> <br> <br>(34 <br>)
Comprehensive Income (Loss) <br>$ <br>388 <br> <br>$ <br>1,296 <br> <br>$ <br>875 <br> <br>$ <br>1,082 <br>
Ovintiv Inc. 1 <br>Selected Financial Information
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Condensed Consolidated Balance Sheet (unaudited)

<br> As at
<br> December 31,
(US millions) <br> <br>2022 <br>
Assets <br>
Current Assets <br>
Cash and cash equivalents 52 <br> $ 5
Accounts receivable and accrued revenues (net of allowances <br>
of 4 million (2022: 4 million)) 1,253 <br> 1,594
Risk management 167 <br> 53
Income tax receivable <br>7 <br> <br> <br>43 <br>
1,479 <br> 1,695
Property, Plant and Equipment, at cost: <br>
Oil and natural gas properties, based on full cost accounting <br>
Proved properties 62,058 <br> 57,054
Unproved properties 1,989 <br> 1,172
Other <br>945 <br> <br> <br>882 <br>
Property, plant and equipment 64,992 <br> 59,108
Less: Accumulated depreciation, depletion and amortization <br>(50,775 <br>) <br> <br>(49,640 <br>)
Property, plant and equipment, net 14,217 <br> 9,468
Other Assets 1,047 <br> 1,004
Risk Management 21 <br> 34
Deferred Income Taxes 157 <br> 271
Goodwill <br>2,598 <br> <br> <br>2,584 <br>
<br>19,519 <br> <br>$ <br>15,056 <br>
Liabilities and Shareholders’ Equity <br>
Current Liabilities <br>
Accounts payable and accrued liabilities 2,443 <br> $ 2,221
Current portion of operating lease liabilities 85 <br> 76
Income tax payable 97 <br> 4
Risk management 5 <br> 86
Current portion of long-term debt <br>680 <br> <br> <br>393 <br>
3,310 <br> 2,780
Long-Term Debt 5,454 <br> 3,177
Operating Lease Liabilities 847 <br> 814
Other Liabilities and Provisions 118 <br> 131
Risk Management 7 <br> -
Asset Retirement Obligation 283 <br> 281
Deferred Income Taxes <br>184 <br> <br> <br>184 <br>
<br>10,203 <br> <br> <br>7,367 <br>
Shareholders’ Equity <br>
Share capital - authorized 775 million shares of stock <br>
2023 issued and outstanding: 273.9 million shares (2022: 245.7 million<br>shares) 3 <br> 3
Paid in surplus 8,671 <br> 7,776
Retained earnings (Accumulated deficit) (401 <br>) (1,081 )
Accumulated other comprehensive income <br>1,043 <br> <br> <br>991 <br>
Total Shareholders’ Equity <br>9,316 <br> <br> <br>7,689 <br>
<br>19,519 <br> <br>$ <br>15,056 <br>

All values are in US Dollars.

Ovintiv Inc. 2 <br>Selected Financial Information

Condensed Consolidated Statement of Cash Flows (unaudited)

Three Months Ended <br> Six Months Ended
<br>June 30, <br> <br>June 30, <br>
(US$ millions) <br>2023 <br> <br>2022 <br> <br>2023 <br> <br>2022 <br>
Operating Activities <br>
Net earnings (loss) $ 336 $ 1,357 <br> $ 823 $ 1,116
Depreciation, depletion and amortization 419 278 <br> 783 542
Accretion of asset retirement obligation 4 5 <br> 9 10
Deferred income taxes 47 58 <br> 111 50
Unrealized (gain) loss on risk management (142 ) (513 <br>) (160 ) 499
Unrealized foreign exchange (gain) loss 10 7 <br> 5 4
Foreign exchange on settlements 4 - <br> 3 (1 )
Other 21 32 <br> (24 ) 47
Net change in other assets and liabilities (12 ) (13 <br>) (17 ) (25 )
<br>Net change in non-cash working capital <br> <br>144 <br> <br> <br>133 <br> <br> <br>366 <br> <br> <br>(213 <br>)
<br>Cash From (Used in) Operating Activities <br> <br>831 <br> <br> <br>1,344 <br> <br> <br>1,899 <br> <br> <br>2,029 <br>
Investing Activities <br>
Capital expenditures (640 ) (511 <br>) (1,250 ) (962 )
Acquisitions (15 ) (7 <br>) (214 ) (22 )
Corporate acquisition, net of cash acquired (3,225 ) - <br> (3,225 ) -
Proceeds from divestitures 717 4 <br> 729 5
<br>Net change in investments and other <br> <br>155 <br> <br> <br>- <br> <br> <br>89 <br> <br> <br>48 <br>
<br>Cash From (Used in) Investing Activities <br> <br>(3,008 <br>) <br> <br>(514 <br>) <br> <br>(3,871 <br>) <br> <br>(931 <br>)
Financing Activities <br>
Net issuance (repayment) of revolving long-term debt 100 215 <br> 287 215
Issuance of long-term debt 2,278 - <br> 2,278 -
Repayment of long-term debt - (1,103 <br>) - (1,109 )
Purchase of shares of common stock (89 ) (135 <br>) (328 ) (206 )
Dividends on shares of common stock (82 ) (64 <br>) (143 ) (116 )
<br>Finance lease payments and other <br> <br>(1 <br>) <br> <br>(2 <br>) <br> <br>(72 <br>) <br> <br>(66 <br>)
<br>Cash From (Used in) Financing Activities <br> <br>2,206 <br> <br> <br>(1,089 <br>) <br> <br>2,022 <br> <br> <br>(1,282 <br>)
Foreign Exchange Gain (Loss) on Cash, Cash Equivalents <br>
<br>and Restricted Cash Held in Foreign Currency <br> <br>(3 <br>) <br> <br>(4 <br>) <br> <br>(3 <br>) <br> <br>(3 <br>)
Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash 26 (263 <br>) 47 (187 )
Cash, Cash Equivalents and Restricted Cash, Beginning of Period <br> <br>26 <br> <br> <br>271 <br> <br> <br>5 <br> <br> <br>195 <br>
Cash, Cash Equivalents and Restricted Cash, End of Period <br>$ <br>52 <br> <br>$ <br>8 <br> <br>$ <br>52 <br> <br>$ <br>8 <br>
Cash, End of Period $ 9 $ 8 <br> $ 9 $ 8
Cash Equivalents, End of Period 43 - <br> 43 -
Restricted Cash, End of Period <br> <br>- <br> <br> <br>- <br> <br> <br>- <br> <br> <br>- <br>
Cash, Cash Equivalents and Restricted Cash, End of Period <br>$ <br>52 <br> <br>$ <br>8 <br> <br>$ <br>52 <br> <br>$ <br>8 <br>
Ovintiv Inc. 3 <br>Selected Financial Information
--- --- ---

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Ovintiv Inc.

Interim Supplemental Information

(unaudited)

For the period ended June 30, 2023

U.S. Dollar / U.S. Protocol

Second quarter report

for the period ended June 30, 2023

Supplemental Financial Information (unaudited)

Financial Results

<br>2023 <br> <br>2022 <br>
(US millions, unless otherwise specified) <br>Year-to-<br>Date <br> <br>Q2 <br> <br>Q1 <br> <br>Year <br> <br>Q4 <br> <br>Q3 <br> <br>Q2 Year-<br>to-Date <br> <br>Q2 <br> <br>Q1 <br>
Net Earnings (Loss) 823 336 487 3,637 1,335 1,186 1,116 1,357 (241 )
3.33 1.35 1.99 14.34 5.39 4.70 4.34 5.28 (0.94 )
3.28 1.34 1.97 14.08 5.30 4.63 4.26 5.21 (0.94 )
Non-GAAP Adjusted Earnings (2) 682 232 450 1,769 228 353 1,188 628 560
2.76 0.93 1.84 6.98 0.92 1.40 4.62 2.44 2.18
2.72 0.93 1.82 6.85 0.91 1.38 4.53 2.41 2.18
Non-GAAP Cash Flow (3) 1,550 699 851 4,110 895 948 2,267 1,224 1,043
6.28 2.80 3.48 16.21 3.62 3.75 8.81 4.76 4.05
<br> <br>6.18 <br> <br> <br>2.79 <br> <br> <br>3.44 <br> <br> <br>15.91 <br> <br> <br>3.55 <br> <br> <br>3.70 <br> <br> <br>8.65 <br> <br> <br>4.70 <br> <br> <br>4.05 <br>
Foreign Exchange Rates (C per US1)
1.348 1.343 1.353 1.301 1.358 1.306 1.272 1.277 1.266
<br> <br>1.324 <br> <br> <br>1.324 <br> <br> <br>1.353 <br> <br> <br>1.354 <br> <br> <br>1.354 <br> <br> <br>1.371 <br> <br> <br>1.289 <br> <br> <br>1.289 <br> <br> <br>1.250 <br>
Non-GAAP Adjusted Earnings Summary
Net Earnings (Loss) Before Income Tax 1,050 437 613 3,560 1,110 1,274 1,176 1,422 (246 )
Before-tax (Addition) Deduction:
160 142 18 741 530 710 (499 ) 513 (1,012 )
(10 ) (15 ) 5 (14 ) 10 (20 ) (4 ) (7 ) 3
Adjusted Earnings (Loss) Before Income Tax <br> <br>900 <br> <br> <br>310 <br> <br> <br>590 <br> <br> <br>2,833 <br> <br> <br>570 <br> <br> <br>584 <br> <br> <br>1,679 <br> <br> <br>916 <br> <br> <br>763 <br>
<br> <br>218 <br> <br> <br>78 <br> <br> <br>140 <br> <br> <br>1,064 <br> <br> <br>342 <br> <br> <br>231 <br> <br> <br>491 <br> <br> <br>288 <br> <br> <br>203 <br>
Non-GAAP Adjusted Earnings (2) <br> <br>682 <br> <br> <br>232 <br> <br> <br>450 <br> <br> <br>1,769 <br> <br> <br>228 <br> <br> <br>353 <br> <br> <br>1,188 <br> <br> <br>628 <br> <br> <br>560 <br>
Non-GAAP Cash Flow Summary
Cash From (Used in) Operating Activities 1,899 831 1,068 3,866 875 962 2,029 1,344 685
(Add back) Deduct:
(17 ) (12 ) (5 ) (57 ) (15 ) (17 ) (25 ) (13 ) (12 )
366 144 222 (187 ) (5 ) 31 (213 ) 133 (346 )
Non-GAAP Cash Flow (3) <br> <br>1,550 <br> <br> <br>699 <br> <br> <br>851 <br> <br> <br>4,110 <br> <br> <br>895 <br> <br> <br>948 <br> <br> <br>2,267 <br> <br> <br>1,224 <br> <br> <br>1,043 <br>

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:

<br> <br> <br>2023 <br>2022
<br>(millions) <br>Year-to-<br>Date <br>Q2 <br>Q1 <br>Year <br>Q4 <br>Q3 <br>Q2 Year-<br>to-Date <br>Q2 <br>Q1
Weighted Average Shares of Common Stock Outstanding
Basic 246.9 249.4 244.3 253.6 247.5 252.5 257.3 257.2 257.4
Diluted <br> <br>250.8 <br> <br>250.8 <br> <br>247.7 <br> <br>258.4 <br> <br>251.8 <br> <br>256.2 <br> <br>262.1 <br> <br>260.6 <br> <br>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 23.9 percent (2022 - 23.0 percent and 23.9 percent, respectively).

Financial Metrics

<br> <br>2023 <br>2022
<br>Year-to-<br>Date <br>Year
Debt to Capitalization 40% 32%
Debt to Adjusted Capitalization (1) 26% 19%
Debt to EBITDA (1) 1.2x 0.7x
<br>Debt to Adjusted EBITDA (1) <br>1.7x <br>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$)

Second quarter report

for the period ended June 30, 2023

Supplemental Operating Information (unaudited)

Production Volumes by Product

<br> <br> <br>2023 <br>2022
<br>(average) <br>% of<br>Oil & NGLs <br>Year-to-<br>Date <br>Q2 <br>Q1 <br>Year <br>Q4 <br>Q3 <br>Q2 Year-<br>to-Date <br>Q2 <br>Q1
Oil (Mbbls/d) 51 134.9 142.4 127.3 131.6 132.0 133.4 130.5 132.8 128.3
NGLs - Plant Condensate (Mbbls/d) <br>15 <br> <br>41.2 <br> <br>43.5 <br> <br>38.7 <br> <br>44.0 <br> <br>42.7 <br> <br>46.0 <br> <br>43.7 <br> <br>42.6 <br> <br>44.6
<br>Oil & Plant Condensate (Mbbls/d) <br>66 <br> <br>176.1 <br> <br>185.9 <br> <br>166.0 <br> <br>175.6 <br> <br>174.7 <br> <br>179.4 <br> <br>174.2 <br> <br>175.4 <br> <br>172.9
Butane (Mbbls/d) 8 21.2 23.2 19.1 19.3 19.0 19.8 19.3 19.8 18.7
Propane (Mbbls/d) 12 33.1 34.9 31.3 31.5 32.2 31.0 31.3 31.3 31.3
Ethane (Mbbls/d) <br>14 <br> <br>37.3 <br> <br>38.7 <br> <br>35.8 <br> <br>34.7 <br> <br>37.5 <br> <br>36.1 <br> <br>32.5 <br> <br>35.9 <br> <br>29.2
<br>NGLs - Other (Mbbls/d) <br>34 <br> <br>91.6 <br> <br>96.8 <br> <br>86.2 <br> <br>85.5 <br> <br>88.7 <br> <br>86.9 <br> <br>83.1 <br> <br>87.0 <br> <br>79.2
<br>Oil & NGLs (Mbbls/d) <br>100 <br> <br>267.7 <br> <br>282.7 <br> <br>252.2 <br> <br>261.1 <br> <br>263.4 <br> <br>266.3 <br> <br>257.3 <br> <br>262.4 <br> <br>252.1
<br>Natural Gas (MMcf/d) <br> <br>1,649 <br> <br>1,743 <br> <br>1,555 <br> <br>1,494 <br> <br>1,561 <br> <br>1,500 <br> <br>1,456 <br> <br>1,426 <br> <br>1,487
<br>Total (MBOE/d) <br> <br>542.4 <br> <br>573.0 <br> <br>511.4 <br> <br>510.0 <br> <br>523.6 <br> <br>516.3 <br> <br>500.0 <br> <br>500.0 <br> <br>499.9

Production Volumes by Segment

<br>2023 <br>2022
<br>(average) <br>Year-to-<br>Date <br>Q2 <br>Q1 <br>Year <br>Q4 <br>Q3 <br>Q2 Year-<br>to-Date <br>Q2 <br>Q1
Oil (Mbbls/d)
USA Operations 134.8 142.4 127.2 131.5 131.9 133.3 130.4 132.7 128.2
Canadian Operations 0.1 - 0.1 0.1 0.1 0.1 0.1 0.1 0.1
<br> <br> <br> <br>134.9 <br> <br>142.4 <br> <br>127.3 <br> <br>131.6 <br> <br>132.0 <br> <br>133.4 <br> <br>130.5 <br> <br>132.8 <br> <br>128.3
NGLs - Plant Condensate (Mbbls/d)
USA Operations 10.6 10.5 10.6 10.4 11.0 11.1 9.7 10.1 9.2
Canadian Operations 30.6 33.0 28.1 33.6 31.7 34.9 34.0 32.5 35.4
<br> <br> <br> <br>41.2 <br> <br>43.5 <br> <br>38.7 <br> <br>44.0 <br> <br>42.7 <br> <br>46.0 <br> <br>43.7 <br> <br>42.6 <br> <br>44.6
Oil & Plant Condensate (Mbbls/d)
USA Operations 145.4 152.9 137.8 141.9 142.9 144.4 140.1 142.8 137.4
Canadian Operations 30.7 33.0 28.2 33.7 31.8 35.0 34.1 32.6 35.5
<br> <br> <br> <br>176.1 <br> <br>185.9 <br> <br>166.0 <br> <br>175.6 <br> <br>174.7 <br> <br>179.4 <br> <br>174.2 <br> <br>175.4 <br> <br>172.9
NGLs - Other (Mbbls/d)
USA Operations 76.0 78.1 73.7 71.7 75.1 74.1 68.7 72.6 64.8
Canadian Operations 15.6 18.7 12.5 13.8 13.6 12.8 14.4 14.4 14.4
<br> <br> <br> <br>91.6 <br> <br>96.8 <br> <br>86.2 <br> <br>85.5 <br> <br>88.7 <br> <br>86.9 <br> <br>83.1 <br> <br>87.0 <br> <br>79.2
NGLs - Total (Mbbls/d)
USA Operations 86.6 88.6 84.3 82.1 86.1 85.2 78.4 82.7 74.0
Canadian Operations 46.2 51.7 40.6 47.4 45.3 47.7 48.4 46.9 49.8
<br> <br> <br> <br>132.8 <br> <br>140.3 <br> <br>124.9 <br> <br>129.5 <br> <br>131.4 <br> <br>132.9 <br> <br>126.8 <br> <br>129.6 <br> <br>123.8
Oil & NGLs (Mbbls/d)
USA Operations 221.4 231.0 211.5 213.6 218.0 218.5 208.8 215.4 202.2
Canadian Operations 46.3 51.7 40.7 47.5 45.4 47.8 48.5 47.0 49.9
<br> <br> <br> <br>267.7 <br> <br>282.7 <br> <br>252.2 <br> <br>261.1 <br> <br>263.4 <br> <br>266.3 <br> <br>257.3 <br> <br>262.4 <br> <br>252.1
Natural Gas (MMcf/d)
USA Operations 518 530 507 492 506 502 479 485 475
Canadian Operations 1,131 1,213 1,048 1,002 1,055 998 977 941 1,012
<br> <br> <br> <br>1,649 <br> <br>1,743 <br> <br>1,555 <br> <br>1,494 <br> <br>1,561 <br> <br>1,500 <br> <br>1,456 <br> <br>1,426 <br> <br>1,487
Total (MBOE/d)
USA Operations 307.7 319.2 296.1 295.5 302.3 302.1 288.8 296.1 281.3
Canadian Operations 234.7 253.8 215.3 214.5 221.3 214.2 211.2 203.9 218.6
<br> <br> <br> <br>542.4 <br> <br>573.0 <br> <br>511.4 <br> <br>510.0 <br> <br>523.6 <br> <br>516.3 <br> <br>500.0 <br> <br>500.0 <br> <br>499.9

Ovintiv Inc. 2 Supplemental Information (prepared in US$)

Second quarter report

for the period ended June 30, 2023

Supplemental Financial & Operating Information (unaudited)

Results of Operations

Revenues and Realized Gains (Losses) on Risk Management

<br>2023 <br> <br>2022 <br>
(US millions) <br>Year-to-<br>Date <br> <br>Q2 <br>Q1 <br> <br>Year <br> <br>Q4 <br> <br>Q3 <br> <br>Q2 Year-<br>to-Date <br> <br>Q2 <br> <br>Q1 <br>
USA Operations
Revenues, excluding Realized Gains (Losses) on Risk Management (1)
1,792 944 848 4,524 995 1,143 2,386 1,311 1,075
332 149 183 1,045 198 270 577 311 266
<br> <br>241 <br> <br> <br>86 <br> <br>155 <br> <br> <br>1,108 <br> <br> <br>251 <br> <br> <br>349 <br> <br> <br>508 <br> <br> <br>302 <br> <br> <br>206 <br>
<br> <br>2,365 <br> <br> <br>1,179 <br> <br>1,186 <br> <br> <br>6,677 <br> <br> <br>1,444 <br> <br> <br>1,762 <br> <br> <br>3,471 <br> <br> <br>1,924 <br> <br> <br>1,547 <br>
Realized Gains (Losses) on Risk Management
- - - (594 ) (75 ) (141 ) (378 ) (235 ) (143 )
- - - - - - - - -
<br> <br>7 <br> <br> <br>5 <br> <br>2 <br> <br> <br>(529 <br>) <br> <br>(122 <br>) <br> <br>(183 <br>) <br> <br>(224 <br>) <br> <br>(148 <br>) <br> <br>(76 <br>)
<br> <br>7 <br> <br> <br>5 <br> <br>2 <br> <br> <br>(1,123 <br>) <br> <br>(197 <br>) <br> <br>(324 <br>) <br> <br>(602 <br>) <br> <br>(383 <br>) <br> <br>(219 <br>)
Canadian Operations
Revenues, excluding Realized Gains (Losses) on Risk Management (1)
- - - 3 1 1 1 1 -
481 245 236 1,358 290 326 742 382 360
<br> <br>675 <br> <br> <br>222 <br> <br>453 <br> <br> <br>2,104 <br> <br> <br>550 <br> <br> <br>562 <br> <br> <br>992 <br> <br> <br>577 <br> <br> <br>415 <br>
<br> <br>1,156 <br> <br> <br>467 <br> <br>689 <br> <br> <br>3,465 <br> <br> <br>841 <br> <br> <br>889 <br> <br> <br>1,735 <br> <br> <br>960 <br> <br> <br>775 <br>
Realized Gains (Losses) on Risk Management (3)
- - - - - - - - -
- - - (125 ) (16 ) (26 ) (83 ) (51 ) (32 )
<br> <br>(78 <br>) <br> <br>- <br> <br>(78 <br>) <br> <br>(1,366 <br>) <br> <br>(324 <br>) <br> <br>(471 <br>) <br> <br>(571 <br>) <br> <br>(374 <br>) <br> <br>(197 <br>)
<br> <br>(78 <br>) <br> <br>- <br> <br>(78 <br>) <br> <br>(1,491 <br>) <br> <br>(340 <br>) <br> <br>(497 <br>) <br> <br>(654 <br>) <br> <br>(425 <br>) <br> <br>(229 <br>)

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$)

Second quarter report

for the period ended June 30, 2023

Supplemental Financial & Operating Information (unaudited)

Results of Operations (continued)

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

<br>2023 <br>2022
(US/BOE) <br>Year-to-<br>Date <br>Q2 <br>Q1 <br>Year <br>Q4 <br>Q3 <br>Q2 Year-<br>to-Date <br>Q2 <br>Q1
Total USA Operations Netback
42.45 40.56 44.52 61.91 51.96 63.44 66.40 71.39 61.08
2.74 2.49 3.01 3.72 3.23 3.83 3.92 4.25 3.56
5.29 5.10 5.51 5.80 5.81 6.14 5.62 5.91 5.31
<br> <br>6.05 <br> <br>5.73 <br> <br>6.39 <br> <br>5.99 <br> <br>6.05 <br> <br>6.73 <br> <br>5.56 <br> <br>5.53 <br> <br>5.58
<br> <br>28.37 <br> <br>27.24 <br> <br>29.61 <br> <br>46.40 <br> <br>36.87 <br> <br>46.74 <br> <br>51.30 <br> <br>55.70 <br> <br>46.63
Total Canadian Operations Netback
27.21 20.26 35.50 44.26 41.30 45.11 45.39 51.70 39.44
0.17 0.14 0.19 0.18 0.19 0.12 0.16 0.15 0.19
12.59 11.57 13.80 12.80 12.85 13.01 12.66 13.67 11.72
<br> <br>0.73 <br> <br>0.10 <br> <br>1.50 <br> <br>1.62 <br> <br>1.52 <br> <br>1.69 <br> <br>1.64 <br> <br>1.35 <br> <br>1.90
<br> <br>13.72 <br> <br>8.45 <br> <br>20.01 <br> <br>29.66 <br> <br>26.74 <br> <br>30.29 <br> <br>30.93 <br> <br>36.53 <br> <br>25.63
Total Operations Netback
35.86 31.56 40.72 54.49 47.45 55.83 57.52 63.36 51.62
1.63 1.43 1.83 2.23 1.95 2.29 2.33 2.58 2.08
8.45 7.97 9.00 8.75 8.78 8.99 8.60 9.08 8.12
<br> <br>3.75 <br> <br>3.23 <br> <br>4.33 <br> <br>4.15 <br> <br>4.13 <br> <br>4.64 <br> <br>3.90 <br> <br>3.83 <br> <br>3.98
<br> <br>22.03 <br> <br>18.93 <br> <br>25.56 <br> <br>39.36 <br> <br>32.59 <br> <br>39.91 <br> <br>42.69 <br> <br>47.87 <br> <br>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

<br>2023 <br>2022
(US/BOE) <br>Year-to-<br>Date <br>Q2 <br>Q1 <br>Year <br>Q4 <br>Q3 <br>Q2 Year-<br>to-Date <br>Q2 <br>Q1
Administrative Expense 2.30 3.23 1.25 2.27 2.17 2.16 2.38 1.56 3.20
Administrative Expense, Excluding Long-Term Incentive,
<br> <br>1.39 <br> <br>1.28 <br> <br>1.52 <br> <br>1.39 <br> <br>1.35 <br> <br>1.39 <br> <br>1.41 <br> <br>1.36 <br> <br>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 8 of the interim Condensed Consolidated Financial Statements included in Part 1, Item 1 of Ovintiv’s Quarterly Report on Form 10-Q.

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

Second quarter report

for the period ended June 30, 2023

Supplemental Oil and Gas Operating Statistics (unaudited)

Operating Statistics

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

<br>2023 <br>2022
(US) <br>Year-to-<br>Date <br>Q2 <br>Q1 <br>Year <br>Q4 <br>Q3 <br>Q2 Year-<br>to-Date <br>Q2 <br>Q1
Oil Price (/bbl)
73.41 72.83 74.06 94.25 82.08 93.22 101.05 108.58 93.16
71.44 - 71.44 87.28 81.48 82.86 91.79 100.11 82.80
<br> <br>73.41 <br> <br>72.83 <br> <br>74.06 <br> <br>94.25 <br> <br>82.08 <br> <br>93.21 <br> <br>101.04 <br> <br>108.57 <br> <br>93.15
NGLs - Plant Condensate Price (/bbl)
58.46 55.09 61.84 73.22 57.95 66.62 85.87 86.56 85.09
73.84 70.99 77.22 93.22 82.41 86.65 101.79 107.78 96.22
<br> <br>69.89 <br> <br>67.14 <br> <br>73.01 <br> <br>88.52 <br> <br>76.14 <br> <br>81.82 <br> <br>98.26 <br> <br>102.74 <br> <br>93.93
Oil & Plant Condensate Price (/bbl)
72.32 71.61 73.12 92.72 80.24 91.18 100.00 107.02 92.62
73.83 70.99 77.21 93.20 82.41 86.64 101.76 107.76 96.19
<br> <br>72.58 <br> <br>71.50 <br> <br>73.81 <br> <br>92.81 <br> <br>80.63 <br> <br>90.29 <br> <br>100.34 <br> <br>107.16 <br> <br>93.35
NGLs - Other Price (/bbl)
15.99 13.43 18.73 29.35 20.03 29.82 34.26 34.88 33.55
25.20 18.62 35.17 42.39 39.07 41.12 44.56 47.84 41.23
<br> <br>17.56 <br> <br>14.43 <br> <br>21.11 <br> <br>31.45 <br> <br>22.95 <br> <br>31.49 <br> <br>36.04 <br> <br>37.03 <br> <br>34.94
NGLs - Total Price (/bbl)
21.18 18.39 24.14 34.88 24.85 34.61 40.62 41.21 39.95
57.41 52.05 64.31 78.44 69.42 74.41 84.76 89.37 80.36
<br> <br>33.78 <br> <br>30.78 <br> <br>37.19 <br> <br>50.84 <br> <br>40.22 <br> <br>48.91 <br> <br>57.46 <br> <br>58.64 <br> <br>56.21
Oil & NGLs Price (/bbl)
52.99 51.94 54.16 71.44 59.49 70.37 78.36 82.70 73.68
57.43 52.06 64.32 78.46 69.44 74.43 84.77 89.39 80.37
<br> <br>53.76 <br> <br>51.96 <br> <br>55.80 <br> <br>72.72 <br> <br>61.20 <br> <br>71.10 <br> <br>79.57 <br> <br>83.90 <br> <br>75.00
Natural Gas Price (/Mcf)
2.57 1.79 3.40 6.18 5.42 7.55 5.86 6.87 4.82
3.30 2.02 4.80 5.75 5.67 6.11 5.61 6.73 4.56
<br> <br>3.07 <br> <br>1.95 <br> <br>4.34 <br> <br>5.89 <br> <br>5.59 <br> <br>6.60 <br> <br>5.69 <br> <br>6.78 <br> <br>4.64
Total Price (/BOE)
42.45 40.56 44.52 61.91 51.96 63.44 66.40 71.39 61.08
27.21 20.26 35.50 44.26 41.30 45.11 45.39 51.70 39.44
<br> <br>35.86 <br> <br>31.56 <br> <br>40.72 <br> <br>54.49 <br> <br>47.45 <br> <br>55.83 <br> <br>57.52 <br> <br>63.36 <br> <br>51.62

All values are in US Dollars.

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

Second quarter report

for the period ended June 30, 2023

Supplemental Oil and Gas Operating Statistics (unaudited)

Operating Statistics (continued)

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

<br>2023 <br> <br>2022 <br>
(US) <br>Year-to-<br>Date <br> <br>Q2 <br>Q1 <br> <br>Year <br> <br>Q4 <br> <br>Q3 <br> <br>Q2 Year-<br>to-Date <br> <br>Q2 <br> <br>Q1 <br>
Oil (/bbl)
- - - (12.38 ) (6.24 ) (11.48 ) (16.01 ) (19.42 ) (12.43 )
- - - - - - - - -
<br> <br>- <br> <br> <br>- <br> <br>- <br> <br> <br>(12.37 <br>) <br> <br>(6.23 <br>) <br> <br>(11.47 <br>) <br> <br>(16.00 <br>) <br> <br>(19.41 <br>) <br> <br>(12.41 <br>)
NGLs - Plant Condensate (/bbl)
- - - - - - - - -
- - - (10.15 ) (5.57 ) (8.02 ) (13.47 ) (17.14 ) (10.06 )
<br> <br>- <br> <br> <br>- <br> <br>- <br> <br> <br>(7.78 <br>) <br> <br>(4.13 <br>) <br> <br>(6.09 <br>) <br> <br>(10.48 <br>) <br> <br>(13.07 <br>) <br> <br>(7.99 <br>)
Oil & Plant Condensate (/bbl)
- - - (11.48 ) (5.76 ) (10.60 ) (14.90 ) (18.05 ) (11.59 )
- - - (10.13 ) (5.56 ) (8.00 ) (13.45 ) (17.10 ) (10.03 )
<br> <br>- <br> <br> <br>- <br> <br>- <br> <br> <br>(11.22 <br>) <br> <br>(5.72 <br>) <br> <br>(10.09 <br>) <br> <br>(14.61 <br>) <br> <br>(17.87 <br>) <br> <br>(11.27 <br>)
NGLs - Other (/bbl)
- - - - - - - - -
- - - - - - - - -
<br> <br>- <br> <br> <br>- <br> <br>- <br> <br> <br>- <br> <br> <br>- <br> <br> <br>- <br> <br> <br>- <br> <br> <br>- <br> <br> <br>- <br>
NGLs - Total (/bbl)
- - - - - - - - -
- - - (7.20 ) (3.89 ) (5.86 ) (9.46 ) (11.87 ) (7.16 )
<br> <br>- <br> <br> <br>- <br> <br>- <br> <br> <br>(2.64 <br>) <br> <br>(1.34 <br>) <br> <br>(2.10 <br>) <br> <br>(3.61 <br>) <br> <br>(4.30 <br>) <br> <br>(2.88 <br>)
Oil & NGLs (/bbl)
- - - (7.62 ) (3.78 ) (7.00 ) (10.00 ) (11.96 ) (7.88 )
- - - (7.19 ) (3.89 ) (5.85 ) (9.45 ) (11.85 ) (7.14 )
<br> <br>- <br> <br> <br>- <br> <br>- <br> <br> <br>(7.55 <br>) <br> <br>(3.79 <br>) <br> <br>(6.80 <br>) <br> <br>(9.90 <br>) <br> <br>(11.94 <br>) <br> <br>(7.74 <br>)
Natural Gas (/Mcf)
0.07 0.10 0.03 (2.94 ) (2.57 ) (3.97 ) (2.60 ) (3.39 ) (1.78 )
(0.38 ) - (0.82 ) (3.74 ) (3.35 ) (5.12 ) (3.22 ) (4.35 ) (2.16 )
<br> <br>(0.24 <br>) <br> <br>0.03 <br> <br>(0.54 <br>) <br> <br>(3.47 <br>) <br> <br>(3.10 <br>) <br> <br>(4.75 <br>) <br> <br>(3.00 <br>) <br> <br>(4.00 <br>) <br> <br>(2.04 <br>)
Total (/BOE)
0.12 0.17 0.05 (10.50 ) (7.00 ) (11.68 ) (11.54 ) (14.24 ) (8.66 )
(1.81 ) - (3.97 ) (18.91 ) (16.80 ) (25.19 ) (16.98 ) (22.62 ) (11.65 )
<br> <br>(0.72 <br>) <br> <br>0.10 <br> <br>(1.64 <br>) <br> <br>(14.04 <br>) <br> <br>(11.14 <br>) <br> <br>(17.28 <br>) <br> <br>(13.83 <br>) <br> <br>(17.66 <br>) <br> <br>(9.97 <br>)

All values are in US Dollars.

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

Second quarter report

for the period ended June 30, 2023

Supplemental Oil and Gas Operating Statistics (unaudited)

Operating Statistics (continued)

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

<br>2023 <br>2022
(US) <br>Year-to-<br>Date <br>Q2 <br>Q1 <br>Year <br>Q4 <br>Q3 <br>Q2 Year-<br>to-Date <br>Q2 <br>Q1
Oil Price (/bbl)
73.41 72.83 74.06 81.87 75.84 81.74 85.04 89.16 80.73
71.44 - 71.44 87.28 81.48 82.86 91.79 100.11 82.80
<br> <br>73.41 <br> <br>72.83 <br> <br>74.06 <br> <br>81.88 <br> <br>75.85 <br> <br>81.74 <br> <br>85.04 <br> <br>89.16 <br> <br>80.74
NGLs - Plant Condensate Price (/bbl)
58.46 55.09 61.84 73.22 57.95 66.62 85.87 86.56 85.09
73.84 70.99 77.22 83.07 76.84 78.63 88.32 90.64 86.16
<br> <br>69.89 <br> <br>67.14 <br> <br>73.01 <br> <br>80.74 <br> <br>72.01 <br> <br>75.73 <br> <br>87.78 <br> <br>89.67 <br> <br>85.94
Oil & Plant Condensate Price (/bbl)
72.32 71.61 73.12 81.24 74.48 80.58 85.10 88.97 81.03
73.83 70.99 77.21 83.07 76.85 78.64 88.31 90.66 86.16
<br> <br>72.58 <br> <br>71.50 <br> <br>73.81 <br> <br>81.59 <br> <br>74.91 <br> <br>80.20 <br> <br>85.73 <br> <br>89.29 <br> <br>82.08
NGLs - Other Price (/bbl)
15.99 13.43 18.73 29.35 20.03 29.82 34.26 34.88 33.55
25.20 18.62 35.17 42.39 39.07 41.12 44.56 47.84 41.23
<br> <br>17.56 <br> <br>14.43 <br> <br>21.11 <br> <br>31.45 <br> <br>22.95 <br> <br>31.49 <br> <br>36.04 <br> <br>37.03 <br> <br>34.94
NGLs - Total Price (/bbl)
21.18 18.39 24.14 34.88 24.85 34.61 40.62 41.21 39.95
57.41 52.05 64.31 71.24 65.53 68.55 75.30 77.50 73.20
<br> <br>33.78 <br> <br>30.78 <br> <br>37.19 <br> <br>48.20 <br> <br>38.88 <br> <br>46.81 <br> <br>53.85 <br> <br>54.34 <br> <br>53.33
Oil & NGLs Price (/bbl)
52.99 51.94 54.16 63.82 55.71 63.37 68.36 70.74 65.80
57.43 52.06 64.32 71.27 65.55 68.58 75.32 77.54 73.23
<br> <br>53.76 <br> <br>51.96 <br> <br>55.80 <br> <br>65.17 <br> <br>57.41 <br> <br>64.30 <br> <br>69.67 <br> <br>71.96 <br> <br>67.26
Natural Gas Price (/Mcf)
2.64 1.89 3.43 3.24 2.85 3.58 3.26 3.48 3.04
2.92 2.02 3.98 2.01 2.32 0.99 2.39 2.38 2.40
<br> <br>2.83 <br> <br>1.98 <br> <br>3.80 <br> <br>2.42 <br> <br>2.49 <br> <br>1.85 <br> <br>2.69 <br> <br>2.78 <br> <br>2.60
Total Price (/BOE)
42.57 40.73 44.57 51.41 44.96 51.76 54.86 57.15 52.42
25.40 20.26 31.53 25.35 24.50 19.92 28.41 29.08 27.79
<br> <br>35.14 <br> <br>31.66 <br> <br>39.08 <br> <br>40.45 <br> <br>36.31 <br> <br>38.55 <br> <br>43.69 <br> <br>45.70 <br> <br>41.65
Total Netback (/BOE)
28.49 27.41 29.66 35.90 29.87 35.06 39.76 41.46 37.97
11.91 8.45 16.04 10.75 9.94 5.10 13.95 13.91 13.98
<br> <br>21.31 <br> <br>19.03 <br> <br>23.92 <br> <br>25.32 <br> <br>21.45 <br> <br>22.63 <br> <br>28.86 <br> <br>30.21 <br> <br>27.47

All values are in US Dollars.

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

Second quarter report

for the period ended June 30, 2023

Supplemental Oil and Gas Operating Statistics (unaudited)

Results by Play

<br>2023 <br>2022
<br>(average) <br>Year-to-<br>Date <br>Q2 <br>Q1 <br>Year <br>Q4 <br>Q3 <br>Q2 Year-<br>to-Date <br>Q2 <br>Q1
Oil Production (Mbbls/d)
USA Operations
Permian 67.7 75.6 59.6 62.7 65.4 60.8 62.2 62.6 61.8
Anadarko 32.7 32.4 33.1 35.5 34.4 35.9 35.9 36.5 35.4
Uinta 15.3 17.8 12.8 17.9 15.4 19.9 18.1 19.6 16.6
Bakken (1) 18.9 16.4 21.5 15.3 16.5 16.5 14.1 14.0 14.3
<br>Other (2) <br> <br>0.2 <br> <br>0.2 <br> <br>0.2 <br> <br>0.1 <br> <br>0.2 <br> <br>0.2 <br> <br>0.1 <br> <br>- <br> <br>0.1
<br>Total USA Operations <br> <br>134.8 <br> <br>142.4 <br> <br>127.2 <br> <br>131.5 <br> <br>131.9 <br> <br>133.3 <br> <br>130.4 <br> <br>132.7 <br> <br>128.2
Canadian Operations
Montney 0.1 - 0.1 0.1 0.1 0.1 0.1 0.1 0.1
<br>Other (2) <br> <br>- <br> <br>- <br> <br>- <br> <br>- <br> <br>- <br> <br>- <br> <br>- <br> <br>- <br> <br>-
<br>Total Canadian Operations <br> <br>0.1 <br> <br>- <br> <br>0.1 <br> <br>0.1 <br> <br>0.1 <br> <br>0.1 <br> <br>0.1 <br> <br>0.1 <br> <br>0.1
<br>Total <br> <br>134.9 <br> <br>142.4 <br> <br>127.3 <br> <br>131.6 <br> <br>132.0 <br> <br>133.4 <br> <br>130.5 <br> <br>132.8 <br> <br>128.3
NGLs - Plant Condensate Production (Mbbls/d)
USA Operations
Permian 3.4 3.7 3.0 3.1 3.2 3.4 2.9 3.1 2.7
Anadarko 5.8 5.6 5.8 5.9 6.2 6.3 5.6 5.7 5.4
Uinta 0.2 0.2 0.2 0.2 0.4 0.2 0.2 0.2 0.2
Bakken (1) 1.2 0.9 1.5 1.1 1.1 1.2 1.0 1.1 0.9
<br>Other (2) <br> <br>- <br> <br>0.1 <br> <br>0.1 <br> <br>0.1 <br> <br>0.1 <br> <br>- <br> <br>- <br> <br>- <br> <br>-
<br>Total USA Operations <br> <br>10.6 <br> <br>10.5 <br> <br>10.6 <br> <br>10.4 <br> <br>11.0 <br> <br>11.1 <br> <br>9.7 <br> <br>10.1 <br> <br>9.2
Canadian Operations
Montney 30.6 33.0 28.1 33.6 31.7 34.9 34.0 32.5 35.3
<br>Other (2) <br> <br>- <br> <br>- <br> <br>- <br> <br>- <br> <br>- <br> <br>- <br> <br>- <br> <br>- <br> <br>0.1
<br>Total Canadian Operations <br> <br>30.6 <br> <br>33.0 <br> <br>28.1 <br> <br>33.6 <br> <br>31.7 <br> <br>34.9 <br> <br>34.0 <br> <br>32.5 <br> <br>35.4
<br>Total <br> <br>41.2 <br> <br>43.5 <br> <br>38.7 <br> <br>44.0 <br> <br>42.7 <br> <br>46.0 <br> <br>43.7 <br> <br>42.6 <br> <br>44.6
Oil & Plant Condensate Production (Mbbls/d)
USA Operations
Permian 71.1 79.3 62.6 65.8 68.6 64.2 65.1 65.7 64.5
Anadarko 38.5 38.0 38.9 41.4 40.6 42.2 41.5 42.2 40.8
Uinta 15.5 18.0 13.0 18.1 15.8 20.1 18.3 19.8 16.8
Bakken (1) 20.1 17.3 23.0 16.4 17.6 17.7 15.1 15.1 15.2
<br>Other (2) <br> <br>0.2 <br> <br>0.3 <br> <br>0.3 <br> <br>0.2 <br> <br>0.3 <br> <br>0.2 <br> <br>0.1 <br> <br>- <br> <br>0.1
<br>Total USA Operations <br> <br>145.4 <br> <br>152.9 <br> <br>137.8 <br> <br>141.9 <br> <br>142.9 <br> <br>144.4 <br> <br>140.1 <br> <br>142.8 <br> <br>137.4
Canadian Operations
Montney 30.7 33.0 28.2 33.7 31.8 35.0 34.1 32.6 35.4
<br>Other (2) <br> <br>- <br> <br>- <br> <br>- <br> <br>- <br> <br>- <br> <br>- <br> <br>- <br> <br>- <br> <br>0.1
<br>Total Canadian Operations <br> <br>30.7 <br> <br>33.0 <br> <br>28.2 <br> <br>33.7 <br> <br>31.8 <br> <br>35.0 <br> <br>34.1 <br> <br>32.6 <br> <br>35.5
<br>Total <br> <br>176.1 <br> <br>185.9 <br> <br>166.0 <br> <br>175.6 <br> <br>174.7 <br> <br>179.4 <br> <br>174.2 <br> <br>175.4 <br> <br>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$)

Second quarter report

for the period ended June 30, 2023

Supplemental Oil and Gas Operating Statistics (unaudited)

Results by Play (continued)

<br>2023 <br>2022
<br>(average) <br>Year-to-<br>Date <br>Q2 <br>Q1 <br>Year <br>Q4 <br>Q3 <br>Q2 Year-<br>to-Date <br>Q2 <br>Q1
NGLs - Other Production (Mbbls/d)
USA Operations
Permian 28.9 31.0 26.8 26.3 27.0 26.8 25.8 26.2 25.4
Anadarko 38.1 37.8 38.5 37.3 39.3 38.6 35.4 38.2 32.7
Uinta 0.9 1.1 0.7 0.9 0.9 1.0 0.8 0.8 0.7
Bakken (1) 8.0 8.1 7.7 7.1 7.9 7.6 6.6 7.3 5.9
<br>Other (2) <br> <br>0.1 <br> <br>0.1 <br> <br>- <br> <br>0.1 <br> <br>- <br> <br>0.1 <br> <br>0.1 <br> <br>0.1 <br> <br>0.1
<br>Total USA Operations <br> <br>76.0 <br> <br>78.1 <br> <br>73.7 <br> <br>71.7 <br> <br>75.1 <br> <br>74.1 <br> <br>68.7 <br> <br>72.6 <br> <br>64.8
Canadian Operations
Montney 15.6 18.7 12.5 13.8 13.6 12.8 14.4 14.4 14.4
<br>Other (2) <br> <br>- <br> <br>- <br> <br>- <br> <br>- <br> <br>- <br> <br>- <br> <br>- <br> <br>- <br> <br>-
<br>Total Canadian Operations <br> <br>15.6 <br> <br>18.7 <br> <br>12.5 <br> <br>13.8 <br> <br>13.6 <br> <br>12.8 <br> <br>14.4 <br> <br>14.4 <br> <br>14.4
<br>Total <br> <br>91.6 <br> <br>96.8 <br> <br>86.2 <br> <br>85.5 <br> <br>88.7 <br> <br>86.9 <br> <br>83.1 <br> <br>87.0 <br> <br>79.2
NGLs - Total Production (Mbbls/d)
USA Operations
Permian 32.3 34.7 29.8 29.4 30.2 30.2 28.7 29.3 28.1
Anadarko 43.9 43.4 44.3 43.2 45.5 44.9 41.0 43.9 38.1
Uinta 1.1 1.3 0.9 1.1 1.3 1.2 1.0 1.0 0.9
Bakken (1) 9.2 9.0 9.2 8.2 9.0 8.8 7.6 8.4 6.8
<br>Other (2) <br> <br>0.1 <br> <br>0.2 <br> <br>0.1 <br> <br>0.2 <br> <br>0.1 <br> <br>0.1 <br> <br>0.1 <br> <br>0.1 <br> <br>0.1
<br>Total USA Operations <br> <br>86.6 <br> <br>88.6 <br> <br>84.3 <br> <br>82.1 <br> <br>86.1 <br> <br>85.2 <br> <br>78.4 <br> <br>82.7 <br> <br>74.0
Canadian Operations
Montney 46.2 51.7 40.6 47.4 45.3 47.7 48.4 46.9 49.7
<br>Other (2) <br> <br>- <br> <br>- <br> <br>- <br> <br>- <br> <br>- <br> <br>- <br> <br>- <br> <br>- <br> <br>0.1
<br>Total Canadian Operations <br> <br>46.2 <br> <br>51.7 <br> <br>40.6 <br> <br>47.4 <br> <br>45.3 <br> <br>47.7 <br> <br>48.4 <br> <br>46.9 <br> <br>49.8
<br>Total <br> <br>132.8 <br> <br>140.3 <br> <br>124.9 <br> <br>129.5 <br> <br>131.4 <br> <br>132.9 <br> <br>126.8 <br> <br>129.6 <br> <br>123.8
Oil & NGLs Production (Mbbls/d)
USA Operations
Permian 100.0 110.3 89.4 92.1 95.6 91.0 90.9 91.9 89.9
Anadarko 76.6 75.8 77.4 78.7 79.9 80.8 76.9 80.4 73.5
Uinta 16.4 19.1 13.7 19.0 16.7 21.1 19.1 20.6 17.5
Bakken (1) 28.1 25.4 30.7 23.5 25.5 25.3 21.7 22.4 21.1
<br>Other (2) <br> <br>0.3 <br> <br>0.4 <br> <br>0.3 <br> <br>0.3 <br> <br>0.3 <br> <br>0.3 <br> <br>0.2 <br> <br>0.1 <br> <br>0.2
<br>Total USA Operations <br> <br>221.4 <br> <br>231.0 <br> <br>211.5 <br> <br>213.6 <br> <br>218.0 <br> <br>218.5 <br> <br>208.8 <br> <br>215.4 <br> <br>202.2
Canadian Operations
Montney 46.3 51.7 40.7 47.5 45.4 47.8 48.5 47.0 49.8
<br>Other (2) <br> <br>- <br> <br>- <br> <br>- <br> <br>- <br> <br>- <br> <br>- <br> <br>- <br> <br>- <br> <br>0.1
<br>Total Canadian Operations <br> <br>46.3 <br> <br>51.7 <br> <br>40.7 <br> <br>47.5 <br> <br>45.4 <br> <br>47.8 <br> <br>48.5 <br> <br>47.0 <br> <br>49.9
<br>Total <br> <br>267.7 <br> <br>282.7 <br> <br>252.2 <br> <br>261.1 <br> <br>263.4 <br> <br>266.3 <br> <br>257.3 <br> <br>262.4 <br> <br>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$)

Second quarter report

for the period ended June 30, 2023

Supplemental Oil and Gas Operating Statistics (unaudited)

Results by Play (continued)

<br>2023 <br>2022
<br>(average) <br>Year-to-<br>Date <br>Q2 <br>Q1 <br>Year <br>Q4 <br>Q3 <br>Q2 Year-<br>to-Date <br>Q2 <br>Q1
Natural Gas Production (MMcf/d)
USA Operations
Permian 164 171 158 149 156 149 145 146 145
Anadarko 285 289 281 286 286 290 283 287 279
Uinta 18 20 15 16 19 16 14 15 13
Bakken (1) 47 44 49 36 39 41 32 32 32
<br>Other (2) <br> <br>4 <br> <br>6 <br> <br>4 <br> <br>5 <br> <br>6 <br> <br>6 <br> <br>5 <br> <br>5 <br> <br>6
<br>Total USA Operations <br> <br>518 <br> <br>530 <br> <br>507 <br> <br>492 <br> <br>506 <br> <br>502 <br> <br>479 <br> <br>485 <br> <br>475
Canadian Operations
Montney 1,097 1,177 1,017 970 1,023 970 943 907 978
<br>Other (2) <br> <br>34 <br> <br>36 <br> <br>31 <br> <br>32 <br> <br>32 <br> <br>28 <br> <br>34 <br> <br>34 <br> <br>34
<br>Total Canadian Operations <br> <br>1,131 <br> <br>1,213 <br> <br>1,048 <br> <br>1,002 <br> <br>1,055 <br> <br>998 <br> <br>977 <br> <br>941 <br> <br>1,012
<br>Total <br> <br>1,649 <br> <br>1,743 <br> <br>1,555 <br> <br>1,494 <br> <br>1,561 <br> <br>1,500 <br> <br>1,456 <br> <br>1,426 <br> <br>1,487
Total Production (MBOE/d)
USA Operations
Permian 127.4 138.9 115.8 117.0 121.7 115.9 115.1 116.2 114.0
Anadarko 124.1 124.0 124.2 126.3 127.6 129.1 124.1 128.2 120.1
Uinta 19.3 22.4 16.3 21.6 19.8 23.6 21.4 23.0 19.7
Bakken (1) 35.9 33.0 38.8 29.6 32.0 32.1 27.1 27.7 26.4
<br>Other (2) <br> <br>1.0 <br> <br>0.9 <br> <br>1.0 <br> <br>1.0 <br> <br>1.2 <br> <br>1.4 <br> <br>1.1 <br> <br>1.0 <br> <br>1.1
<br>Total USA Operations <br> <br>307.7 <br> <br>319.2 <br> <br>296.1 <br> <br>295.5 <br> <br>302.3 <br> <br>302.1 <br> <br>288.8 <br> <br>296.1 <br> <br>281.3
Canadian Operations
Montney 229.1 247.8 210.1 209.1 215.8 209.5 205.6 198.2 212.9
<br>Other (2) <br> <br>5.6 <br> <br>6.0 <br> <br>5.2 <br> <br>5.4 <br> <br>5.5 <br> <br>4.7 <br> <br>5.6 <br> <br>5.7 <br> <br>5.7
<br>Total Canadian Operations <br> <br>234.7 <br> <br>253.8 <br> <br>215.3 <br> <br>214.5 <br> <br>221.3 <br> <br>214.2 <br> <br>211.2 <br> <br>203.9 <br> <br>218.6
<br>Total <br> <br>542.4 <br> <br>573.0 <br> <br>511.4 <br> <br>510.0 <br> <br>523.6 <br> <br>516.3 <br> <br>500.0 <br> <br>500.0 <br> <br>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$)

Second quarter report

for the period ended June 30, 2023

Supplemental Oil and Gas Operating Statistics (unaudited)

Results by Play (continued)

<br>2023 <br> <br>2022
(US millions) <br>Year-to-<br>Date <br> <br>Q2 <br> <br>Q1 <br> <br>Year <br>Q4 <br>Q3 <br> <br>Q2 Year-<br>to-Date <br> <br>Q2 <br> <br>Q1
Capital Expenditures, Excluding Capitalized Internal Costs
USA Operations
501 295 206 632 130 181 321 165 156
153 55 98 375 55 99 221 118 103
137 76 61 117 3 27 87 58 29
107 42 65 243 73 81 89 42 47
<br> <br>2 <br> <br> <br>1 <br> <br> <br>1 <br> <br> <br>7 <br> <br>3 <br> <br>- <br> <br> <br>4 <br> <br> <br>2 <br> <br> <br>2
Total USA Operations <br> <br>900 <br> <br> <br>469 <br> <br> <br>431 <br> <br> <br>1,374 <br> <br>264 <br> <br>388 <br> <br> <br>722 <br> <br> <br>385 <br> <br> <br>337
Canadian Operations
287 152 135 295 50 81 164 97 67
<br> <br>(2 <br>) <br> <br>- <br> <br> <br>(2 <br>) <br> <br>5 <br> <br>- <br> <br>7 <br> <br> <br>(2 <br>) <br> <br>(2 <br>) <br> <br>-
Total Canadian Operations <br> <br>285 <br> <br> <br>152 <br> <br> <br>133 <br> <br> <br>300 <br> <br>50 <br> <br>88 <br> <br> <br>162 <br> <br> <br>95 <br> <br> <br>67
Total Capital Expenditures, Excluding Capitalized Internal<br>Costs <br> <br>1,185 <br> <br> <br>621 <br> <br> <br>564 <br> <br> <br>1,674 <br> <br>314 <br> <br>476 <br> <br> <br>884 <br> <br> <br>480 <br> <br> <br>404
Capitalized Directly Attributable Internal Costs
USA Operations
38 19 19 60 15 15 30 13 17
11 4 7 31 9 7 15 7 8
14 7 7 9 3 1 5 2 3
5 2 3 18 4 5 9 4 5
<br> <br>1 <br> <br> <br>1 <br> <br> <br>- <br> <br> <br>1 <br> <br>- <br> <br>- <br> <br> <br>1 <br> <br> <br>(1 <br>) <br> <br>2
Total USA Operations <br> <br>69 <br> <br> <br>33 <br> <br> <br>36 <br> <br> <br>119 <br> <br>31 <br> <br>28 <br> <br> <br>60 <br> <br> <br>25 <br> <br> <br>35
Canadian Operations
(6 ) (15 ) 9 33 10 7 16 5 11
<br> <br>- <br> <br> <br>- <br> <br> <br>- <br> <br> <br>1 <br> <br>- <br> <br>- <br> <br> <br>1 <br> <br> <br>1 <br> <br> <br>-
Total Canadian Operations <br> <br>(6 <br>) <br> <br>(15 <br>) <br> <br>9 <br> <br> <br>34 <br> <br>10 <br> <br>7 <br> <br> <br>17 <br> <br> <br>6 <br> <br> <br>11
Total Capitalized Directly Attributable Internal Costs <br> <br>63 <br> <br> <br>18 <br> <br> <br>45 <br> <br> <br>153 <br> <br>41 <br> <br>35 <br> <br> <br>77 <br> <br> <br>31 <br> <br> <br>46
Total Capital Expenditures
USA Operations
539 314 225 692 145 196 351 178 173
164 59 105 406 64 106 236 125 111
151 83 68 126 6 28 92 60 32
112 44 68 261 77 86 98 46 52
<br> <br>3 <br> <br> <br>2 <br> <br> <br>1 <br> <br> <br>8 <br> <br>3 <br> <br>- <br> <br> <br>5 <br> <br> <br>1 <br> <br> <br>4
Total USA Operations <br> <br>969 <br> <br> <br>502 <br> <br> <br>467 <br> <br> <br>1,493 <br> <br>295 <br> <br>416 <br> <br> <br>782 <br> <br> <br>410 <br> <br> <br>372
Canadian Operations
281 137 144 328 60 88 180 102 78
<br> <br>(2 <br>) <br> <br>- <br> <br> <br>(2 <br>) <br> <br>6 <br> <br>- <br> <br>7 <br> <br> <br>(1 <br>) <br> <br>(1 <br>) <br> <br>-
Total Canadian Operations <br> <br>279 <br> <br> <br>137 <br> <br> <br>142 <br> <br> <br>334 <br> <br>60 <br> <br>95 <br> <br> <br>179 <br> <br> <br>101 <br> <br> <br>78
Corporate & Other <br> <br>2 <br> <br> <br>1 <br> <br> <br>1 <br> <br> <br>4 <br> <br>3 <br> <br>- <br> <br> <br>1 <br> <br> <br>- <br> <br> <br>1
Total Capital Expenditures <br> <br>1,250 <br> <br> <br>640 <br> <br> <br>610 <br> <br> <br>1,831 <br> <br>358 <br> <br>511 <br> <br> <br>962 <br> <br> <br>511 <br> <br> <br>451
Net Acquisitions & (Divestitures) <br> <br>(515 <br>) <br> <br>(702 <br>) <br> <br>187 <br> <br> <br>58 <br> <br>254 <br> <br>(213 <br>) <br> <br>17 <br> <br> <br>3 <br> <br> <br>14
Net Capital Investment <br> <br>735 <br> <br> <br>(62 <br>) <br> <br>797 <br> <br> <br>1,889 <br> <br>612 <br> <br>298 <br> <br> <br>979 <br> <br> <br>514 <br> <br> <br>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$)

Second quarter report

for the period ended June 30, 2023

Supplemental Oil and Gas Operating Statistics (unaudited)

Results by Play (continued)

<br>2023 <br>2022
<br> <br>Year-to-<br>Date <br>Q2 <br>Q1 <br>Year <br>Q4 <br>Q3 <br>Q2 Year-<br>to-Date <br>Q2 <br>Q1
Drilling Activity (net wells drilled)
USA Operations
Permian 43 26 17 62 15 18 29 16 13
Anadarko 9 2 7 54 10 13 31 18 13
Uinta 11 8 3 12 - 2 10 5 5
Bakken (1) 11 6 5 25 7 8 10 8 2
<br>Total USA Operations <br> <br>74 <br> <br>42 <br> <br>32 <br> <br>153 <br> <br>32 <br> <br>41 <br> <br>80 <br> <br>47 <br> <br>33
Canadian Operations
Montney 49 23 26 52 8 12 32 16 16
<br>Other (2) <br> <br>- <br> <br>- <br> <br>- <br> <br>3 <br> <br>- <br> <br>3 <br> <br>- <br> <br>- <br> <br>-
<br>Total Canadian Operations <br> <br>49 <br> <br>23 <br> <br>26 <br> <br>55 <br> <br>8 <br> <br>15 <br> <br>32 <br> <br>16 <br> <br>16
<br>Total <br> <br>123 <br> <br>65 <br> <br>58 <br> <br>208 <br> <br>40 <br> <br>56 <br> <br>112 <br> <br>63 <br> <br>49
Completions Activity (net wells on production)
USA Operations
Permian 41 27 14 66 16 21 29 11 18
Anadarko 20 7 13 57 8 16 33 15 18
Uinta 3 3 - 11 3 2 6 6 -
Bakken (1) 16 8 8 19 6 9 4 - 4
<br>Total USA Operations <br> <br>80 <br> <br>45 <br> <br>35 <br> <br>153 <br> <br>33 <br> <br>48 <br> <br>72 <br> <br>32 <br> <br>40
Canadian Operations
Montney 40 29 11 63 11 21 31 12 19
<br>Total Canadian Operations <br> <br>40 <br> <br>29 <br> <br>11 <br> <br>63 <br> <br>11 <br> <br>21 <br> <br>31 <br> <br>12 <br> <br>19
<br>Total <br> <br>120 <br> <br>74 <br> <br>46 <br> <br>216 <br> <br>44 <br> <br>69 <br> <br>103 <br> <br>44 <br> <br>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$)

img4767402_2.jpg

Ovintiv Inc.

Non-GAAP Definitions and Reconciliations

(unaudited)

For the period ended June 30, 2023

U.S. Dollar / U.S. Protocol

For the period ended June 30, 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 831 1,899
Deduct (add back):
Net change in other assets and liabilities (12 ) (17 )
Net change in non-cash working capital 144 366
<br>Non-GAAP Cash Flow <br>699 <br> <br>1,550 <br>
Per Share - Basic 2.80 6.28
<br>Per Share - Diluted <br>2.79 <br> <br>6.18 <br>
Non-GAAP Free Cash Flow
Non-GAAP Cash Flow 699 1,550
Deduct:
Capital expenditures <br>640 <br> <br>1,250 <br>
<br>Non-GAAP Free Cash Flow <br>59 <br> <br>300 <br>

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 437 1,050
Before-tax (Addition) Deduction:
Unrealized gain (loss) on risk management 142 160
Non-operating foreign exchange gain (loss) (15 ) (10 )
Adjusted Earnings (Loss) Before Income Tax <br>310 <br> <br>900 <br>
Income tax expense (recovery) <br>78 <br> <br>218 <br>
<br>Non-GAAP Adjusted Earnings <br>232 <br> <br>682 <br>
Per Share - Basic 0.93 2.76
<br>Per Share - Diluted <br>0.93 <br> <br>2.72 <br>

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 6,134
<br>Total Shareholders' Equity <br>9,316
<br>Capitalization <br>15,450
<br>Debt to Capitalization

All values are in US Dollars.

Ovintiv Inc. 1 <br>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 6,134
Total Shareholders' Equity 9,316
<br>Equity Adjustment for Impairments at December 31, 2011 <br>7,746
<br>Adjusted Capitalization <br>23,196
<br>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 6,134
Net Earnings (Loss) 1,186 1,335 487 336 3,344
Add back (deduct):
Depreciation, depletion and amortization 291 280 364 419 1,354
Interest 83 63 71 80 297
<br> Income tax expense (recovery) <br>88 <br>(225 <br>) <br>126 <br>101 <br>90
<br>EBITDA <br>1,648 <br>1,453 <br> <br>1,048 <br>936 <br>5,085
<br>Debt to EBITDA (times) <br>1.2

All values are in US Dollars.
Long-Term Debt, Including Current Portion 6,134
Net Earnings (Loss) 1,186 1,335 487 336 3,344
Add back (deduct):
Depreciation, depletion and amortization 291 280 364 419 1,354
Accretion of asset retirement obligation 4 4 5 4 17
Interest 83 63 71 80 297
Unrealized (gains) losses on risk management (710 ) (530 ) (18 ) (142 ) (1,400 )
Foreign exchange (gain) loss, net 19 (6 ) (3 ) 25 35
Other (gains) losses, net (3 ) (3 ) (3 ) (11 ) (20 )
<br> Income tax expense (recovery) <br>88 <br> <br>(225 <br>) <br>126 <br> <br>101 <br> <br>90 <br>
<br>Adjusted EBITDA <br>958 <br> <br>918 <br> <br>1,029 <br> <br>812 <br> <br>3,717 <br>
<br>Debt to Adjusted EBITDA (times) <br>1.7 <br>

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.

Ovintiv Inc. 2 <br>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)
<br>2023 <br>2022
(US millions) <br>Year <br>Q2 <br>Q1 <br>Year <br>Q4 <br>Q3 <br>Q2 <br>Q1
USA Operations
2,365 1,179 1,186 6,677 1,444 1,762 1,924 1,547
153 73 80 401 90 106 115 90
295 148 147 626 162 170 159 135
<br> <br>337 <br> <br>167 <br> <br>170 <br> <br>646 <br> <br>168 <br> <br>187 <br> <br>149 <br> <br>142
<br> <br>1,580 <br> <br>791 <br> <br>789 <br> <br>5,004 <br> <br>1,024 <br> <br>1,299 <br> <br>1,501 <br> <br>1,180
Canadian Operations
1,156 467 689 3,465 841 889 960 775
7 3 4 14 4 3 3 4
535 268 267 1,002 261 257 253 231
<br> <br>31 <br> <br>2 <br> <br>29 <br> <br>127 <br> <br>31 <br> <br>34 <br> <br>25 <br> <br>37
<br> <br>583 <br> <br>194 <br> <br>389 <br> <br>2,322 <br> <br>545 <br> <br>595 <br> <br>679 <br> <br>503
Total Operations
3,521 1,646 1,875 10,142 2,285 2,651 2,884 2,322
160 76 84 415 94 109 118 94
830 416 414 1,628 423 427 412 366
<br> <br>368 <br> <br>169 <br> <br>199 <br> <br>773 <br> <br>199 <br> <br>221 <br> <br>174 <br> <br>179
<br> <br>2,163 <br> <br>985 <br> <br>1,178 <br> <br>7,326 <br> <br>1,569 <br> <br>1,894 <br> <br>2,180 <br> <br>1,683
(1) Segmented financial information per the notes to Ovintiv's financial<br>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<br>associated production volumes.
(4) Excludes other operating expenses with no associated production<br>volumes.
Sales Volumes (1)
<br>2023 <br>2022
(BOE) <br>Year <br>Q2 <br>Q1 <br>Year <br>Q4 <br>Q3 <br>Q2 <br>Q1
USA Operations 55,696,415 29,044,015 26,652,510 107,860,420 27,807,460 27,788,876 26,946,920 25,317,450
Canadian Operations <br> <br>42,475,089 <br> <br>23,096,801 <br> <br>19,378,260 <br> <br>78,306,370 <br> <br>20,363,280 <br> <br>19,710,448 <br> <br>18,555,628 <br> <br>19,677,060
Total <br> <br>98,171,504 <br> <br>52,140,816 <br> <br>46,030,770 <br> <br>186,166,790 <br> <br>48,170,740 <br> <br>47,499,324 <br> <br>45,502,548 <br> <br>44,994,510
(1) Numbers may not add due to the calculation of volumes, which is based on sales<br>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<br>Management (1)
<br>2023 <br>2022
(US/BOE) <br>Year <br>Q2 <br>Q1 <br>Year <br>Q4 <br>Q3 <br>Q2 <br>Q1
Total USA Operations
42.46 40.59 44.50 61.90 51.93 63.41 71.40 61.10
2.75 2.51 3.00 3.72 3.24 3.81 4.27 3.55
5.30 5.10 5.52 5.80 5.83 6.12 5.90 5.33
<br> <br>6.05 <br> <br>5.75 <br> <br>6.38 <br> <br>5.99 <br> <br>6.04 <br> <br>6.73 <br> <br>5.53 <br> <br>5.61
<br> <br>28.37 <br> <br>27.23 <br> <br>29.60 <br> <br>46.39 <br> <br>36.82 <br> <br>46.75 <br> <br>55.70 <br> <br>46.61
Total Canadian Operations
27.22 20.22 35.56 44.25 41.30 45.10 51.74 39.39
0.16 0.13 0.21 0.18 0.20 0.15 0.16 0.20
12.60 11.60 13.78 12.80 12.82 13.04 13.63 11.74
<br> <br>0.73 <br> <br>0.09 <br> <br>1.50 <br> <br>1.62 <br> <br>1.52 <br> <br>1.72 <br> <br>1.35 <br> <br>1.88
<br> <br>13.73 <br> <br>8.40 <br> <br>20.07 <br> <br>29.65 <br> <br>26.76 <br> <br>30.19 <br> <br>36.59 <br> <br>25.56
Total Operations
35.87 31.57 40.73 54.48 47.44 55.81 63.38 51.61
1.63 1.46 1.82 2.23 1.95 2.29 2.59 2.09
8.45 7.98 8.99 8.74 8.78 8.99 9.05 8.13
<br> <br>3.75 <br> <br>3.24 <br> <br>4.32 <br> <br>4.15 <br> <br>4.13 <br> <br>4.65 <br> <br>3.82 <br> <br>3.98
Netback <br> <br>22.03 <br> <br>18.89 <br> <br>25.59 <br> <br>39.35 <br> <br>32.57 <br> <br>39.87 <br> <br>47.91 <br> <br>37.40
(1) May not add due to rounding. Ovintiv calculates reported netbacks using whole<br>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 <br>Non-GAAP Definitions and Reconciliations

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