Ovintiv Reports Fourth Quarter and Year-End 2025 Financial and Operating Results

Executive Summary

• Ovintiv reported full‑year 2025 net earnings of $1.2 billion ($4.78 per diluted share) and Q4 net earnings of $946 million ($3.70 per diluted share).
• Completed acquisition of NuVista Energy Ltd. (≈100 MBOE/d, ~140 k acres) for ~$2.7 billion; announced sale of Anadarko assets for $3.0 billion cash proceeds.
• Introduced a new shareholder‑return framework targeting ≥75% of full‑year Non‑GAAP Free Cash Flow in 2026 and authorized a $3.0 billion share‑buyback program.

Key Details

• Financial Highlights – Full Year 2025
• Cash from operating activities: $3.7 bn (Non‑GAAP cash flow $3.8 bn).
• Non‑GAAP free cash flow after capex ($2.1 bn): $1.6 bn.
• Average production: 615 k BOE/d (209 kbbl/d oil & condensate, 95 kbbl/d NGLs, 1,862 MMcf/d gas).

• Net earnings: $1.2 bn ($4.78/share) including $703 m non‑cash ceiling‑test impairments.

• Financial Highlights – Q4 2025

• Cash from operating activities: $954 m (Non‑GAAP cash flow $973 m).
• Non‑GAAP free cash flow after capex ($465 m): $508 m.

• Production: 623 k BOE/d (209 kbbl/d oil & condensate, 97 kbbl/d NGLs, 1,905 MMcf/d gas).

• Acquisition – NuVista Energy Ltd.

• Purchase price: approximately $2.7 bn.
• Adds ~100 MBOE/d production, 930 net 10‑k ft well locations, ~140 k acres.

• Closed on 2026‑02‑03; hedge position valued at ~$199 m (not included in Non‑GAAP cash flow).

• Divestiture – Anadarko Assets

• Agreement reached February 2026 to sell for total cash proceeds of $3.0 bn.

• Expected close: 2026‑04‑01.

• Shareholder Return Framework (2026)

• Target: ≥75% of full‑year Non‑GAAP free cash flow returned via base dividend + share buybacks.
• Board authorized $3.0 bn share‑buyback program, to commence immediately.

• Quarterly dividend declared: $0.30 per share (payable 2026‑03‑31).

• 2026 Capital Program & Guidance

• Planned capex: $2.25–$2.35 bn.

• Production guidance (post‑Anadarko): 620–645 MBOE/d (oil & condensate 205–212 kbbl/d, NGLs 80–85 kbbl/d, gas 2,000–2,100 MMcf/d).

• Liquidity & Leverage

• Total liquidity as of 2025‑12‑31: ~$4.5 bn (credit facilities $3.5 bn, term credit $1.2 bn, cash $35 m net of commercial paper).
• Non‑GAAP Debt/EBITDA: 1.6×; Debt/Adjusted EBITDA: 1.2×.

• Expected Net Debt after Anadarko sale: ≈$3.6 bn.

• Reserves (Year‑End 2025)

• Proved reserves: 2.3 bn BOE (≈50% liquids, 64% developed).
• Replacement ratio (excluding acquisitions/divestitures): 150% of production.

• Reserve life index >10 years.

• Operating Highlights – Permian & Montney

• Permian Q4 avg. production: 219 MBOE/d (79% liquids); 2026 capex $1.325–$1.375 bn for ~5 rigs, 125‑135 net wells.

• Montney Q4 avg. production: 305 MBOE/d (25% liquids); 2026 capex $875–$925 m for ~6 rigs, 130‑140 net wells.

• Hedge Program (as of 2026‑02‑20) – detailed swap and option volumes/strikes for oil, condensate, and natural gas through 2027 (see release).

Notable Quotes

“We have transformed our company into an industry leader… now we are introducing a new shareholder return framework that will deliver increased returns to our shareholders.” – Brendan McCracken, President & CEO.