Ovintiv Reports Second Quarter 2024 Financial and Operating Results
Ovintiv reported strong Q2 2024 financial results with net earnings of $340 million and cash from operating activities at $1.02 billion.
Production was at the high-end of guidance with average volumes at 594 MBOE/d. The company raised its full-year production guidance to 570-580 MBOE/d and narrowed capital guidance to $2.25-$2.35 billion.
Ovintiv returned $262 million to shareholders through dividends and buybacks, and expects to generate $1.9 billion in Non-GAAP Free Cash Flow for 2024, a 60% increase YoY. The company maintains a strong balance sheet with $3.1 billion in liquidity.
Key guidance updates: Q3 production expected to be 565-580 MBOE/d, oil and condensate at 207-209 Mbbls/d, and natural gas at 1,660-1,690 MMcf/d.
Ovintiv plans substantial investments across its assets, including $1.35-$1.45 billion in Permian and $425-$475 million in Montney for 2024.
Ovintiv ha riportato risultati finanziari solidi per il secondo trimestre del 2024, con utili netti di 340 milioni di dollari e flussi di cassa dalle attività operative pari a 1,02 miliardi di dollari.
La produzione si è attestata nella parte alta delle previsioni, con volumi medi di 594 MBOE/giorno. L'azienda ha alzato la sua guida sulla produzione per l'intero anno a 570-580 MBOE/giorno e ha ristretto le previsioni di capitalizzazione a 2,25-2,35 miliardi di dollari.
Ovintiv ha restituito 262 milioni di dollari agli azionisti attraverso dividendi e riacquisti, e prevede di generare 1,9 miliardi di dollari in flusso di cassa libero Non-GAAP per il 2024, un aumento del 60% rispetto all'anno precedente. L'azienda mantiene un forte bilancio con 3,1 miliardi di dollari in liquidità.
Aggiornamenti chiave delle previsioni: nel terzo trimestre la produzione è attesa tra 565-580 MBOE/giorno, il petrolio e i condensati tra 207-209 Mbbls/giorno, e il gas naturale tra 1.660-1.690 MMcf/giorno.
Ovintiv prevede investimenti sostanziali su tutti i suoi asset, inclusi 1,35-1,45 miliardi di dollari nel Permiano e 425-475 milioni di dollari nel Montney per il 2024.
Ovintiv reportó resultados financieros sólidos en el segundo trimestre de 2024, con ganancias netas de 340 millones de dólares y flujos de efectivo de actividades operativas de 1,02 mil millones de dólares.
La producción estuvo en la parte alta de las proyecciones, con volúmenes promedio de 594 MBOE/día. La empresa elevó su guía de producción anual a 570-580 MBOE/día y redujo la guía de capital a 2,25-2,35 mil millones de dólares.
Ovintiv devolvió 262 millones de dólares a los accionistas a través de dividendos y recompras, y espera generar 1,9 mil millones de dólares en flujo de caja libre No-GAAP para 2024, un aumento del 60% interanual. La empresa mantiene un balance fuerte con 3,1 mil millones de dólares en liquidez.
Actualizaciones clave de la guía: se espera que la producción del tercer trimestre esté entre 565-580 MBOE/día, el petróleo y condensado entre 207-209 Mbbls/día, y el gas natural entre 1.660-1.690 MMcf/día.
Ovintiv planea inversiones sustanciales en sus activos, incluidos 1,35-1,45 mil millones de dólares en Permian y 425-475 millones de dólares en Montney para 2024.
오빈티브는 2024년 2분기에 강력한 재무 결과를 보고했으며, 순이익은 3억 4천만 달러, 운영 활동에서 발생한 현금은 10억 2천만 달러에 달했습니다.
생산은 가이던스의 상한선에 도달했으며, 평균 생산량은 594 MBOE/일이었습니다. 이 회사는 연간 생산 가이던스를 570-580 MBOE/일로 상향 조정하고, 자본 가이던스를 22억 5천만~23억 5천만 달러로 좁혔습니다.
오빈티브는 배당금과 자사주 매입을 통해 주주에게 2억 6천2백만 달러를 반환하였으며, 2024년 비-GAAP 자유 현금 흐름에서 19억 달러를 생성할 것으로 예상하며, 이는 전년 대비 60% 증가한 수치입니다. 이 회사는 31억 달러의 유동성을 보유하며 강력한 재무 구조를 유지하고 있습니다.
주요 가이던스 업데이트: 3분기 생산량은 565-580 MBOE/일로 예상되며, 원유 및 응축수는 207-209 Mbbls/일, 천연 가스는 1,660-1,690 MMcf/일로 예상됩니다.
오빈티브는 2024년을 위해 Permian에 13억 5천만~14억 5천만 달러, Montney에 4억 2천5백만~4억 7천5백만 달러의 대규모 투자를 계획하고 있습니다.
Ovintiv a annoncé des résultats financiers solides pour le deuxième trimestre 2024, avec un bénéfice net de 340 millions de dollars et des flux de trésorerie provenant des activités opérationnelles de 1,02 milliard de dollars.
La production était à la limite supérieure des prévisions, avec un volume moyen de 594 MBOE/jour. L'entreprise a relevé ses prévisions de production pour l'année entière à 570-580 MBOE/jour et a affiné ses projections de capital à 2,25-2,35 milliards de dollars.
Ovintiv a restitué 262 millions de dollars aux actionnaires par le biais de dividendes et de rachats d'actions, et s'attend à générer 1,9 milliard de dollars de flux de trésorerie libre Non-GAAP pour 2024, ce qui représente une augmentation de 60 % par rapport à l'année précédente. L'entreprise maintient un bilan solide avec 3,1 milliards de dollars de liquidités.
Mises à jour clés des prévisions : pour le troisième trimestre, la production devrait se situer entre 565-580 MBOE/jour, le pétrole et les condensats entre 207-209 Mbbls/jour, et le gaz naturel entre 1 660-1 690 MMcf/jour.
Ovintiv prévoit des investissements substantiels dans ses actifs, notamment 1,35-1,45 milliard de dollars dans le Permien et 425-475 millions de dollars dans le Montney pour 2024.
Ovintiv berichtete starke Finanzzahlen für das zweite Quartal 2024 mit einem Nettogewinn von 340 Millionen US-Dollar und einem Cashflow aus operativen Aktivitäten von 1,02 Milliarden US-Dollar.
Die Produktion lag am oberen Ende der Prognose mit einem durchschnittlichen Volumen von 594 MBOE/Tag. Das Unternehmen hat seine Jahresprognose für die Produktion auf 570-580 MBOE/Tag angehoben und die Kapitalprognose auf 2,25-2,35 Milliarden US-Dollar eingegrenzt.
Ovintiv hat 262 Millionen US-Dollar an die Aktionäre in Form von Dividenden und Aktienrückkäufen zurückgegeben und erwartet, im Jahr 2024 1,9 Milliarden US-Dollar an nicht-GAAP freien Cashflow zu generieren, was einem Anstieg von 60 % im Vergleich zum Vorjahr entspricht. Das Unternehmen weist eine starke Bilanz mit 3,1 Milliarden US-Dollar an liquiden Mitteln auf.
Wichtige Aktualisierungen der Prognose: Für das dritte Quartal wird eine Produktion von 565-580 MBOE/Tag, Öl und Kondensat von 207-209 Mbbls/Tag und Erdgas von 1.660-1.690 MMcf/Tag erwartet.
Ovintiv plant erhebliche Investitionen in seinen Vermögenswerten, darunter 1,35-1,45 Milliarden US-Dollar im Permian und 425-475 Millionen US-Dollar im Montney für 2024.
- Net earnings of $340 million and cash from operating activities of $1.02 billion.
- Increased full-year production guidance to 570-580 MBOE/d.
- Returned $262 million to shareholders through dividends and buybacks.
- Expected Non-GAAP Free Cash Flow of $1.9 billion for 2024, a 60% YoY increase.
- Maintained strong balance sheet with $3.1 billion in liquidity.
- Substantial investments in key assets, including $1.35-$1.45 billion in Permian.
- Upstream operating expenses increased to $4.29 per BOE from $3.23 per BOE in Q2 2023.
- Natural gas prices realized at $1.86 per Mcf, down from $1.98 per Mcf in Q2 2023.
- Total long-term debt increased to $6.087 billion from $5.737 billion at the end of 2023.
Insights
Ovintiv's Q2 2024 results demonstrate strong operational and financial performance, with several key metrics exceeding expectations. The company reported
Production volumes were at the high end or above guidance across all products, with total production reaching 594 MBOE/d. This operational excellence has led Ovintiv to raise its full-year production guidance to 570-580 MBOE/d, up from the previous 545-575 MBOE/d range. The company has also narrowed its capital expenditure guidance to
Ovintiv's focus on shareholder returns is evident, with
The company's balance sheet remains strong, with a Non-GAAP Debt to EBITDA ratio of 1.2 times. This is in line with Ovintiv's long-term leverage target of 1.0 times at mid-cycle prices, indicating prudent financial management.
Overall, Ovintiv's Q2 results and raised guidance paint a picture of a company executing well operationally and financially, positioning itself for continued success in the evolving energy landscape.
Ovintiv's Q2 performance underscores its operational efficiency across its key assets. The Permian Basin continues to be a cornerstone of the company's portfolio, producing 203 MBOE/d with
The Montney asset's production of 251 MBOE/d with
Ovintiv's hedging strategy appears well-balanced, with a mix of collars and 3-way options for both oil and natural gas. This approach provides downside protection while allowing for some upside participation, which is important in the volatile commodity price environment.
The company's focus on capital efficiency is evident in its ability to raise production guidance while maintaining its capital expenditure midpoint. This suggests that Ovintiv is achieving more with its investments, a key factor for long-term success in the industry.
The emphasis on repeatable capital efficiency into 2025 and beyond is particularly noteworthy. If achieved, this could set Ovintiv apart in an industry often criticized for inconsistent returns on capital.
Ovintiv's Q2 results and raised guidance are likely to be well-received by the market. The company's ability to exceed production targets while maintaining capital discipline addresses two key concerns for energy investors: growth and fiscal responsibility.
The projected
Ovintiv's commitment to returning capital to shareholders aligns with broader market trends and investor expectations in the energy sector. The combination of a stable base dividend and share buybacks offers a balanced approach to capital returns.
The company's investment grade rating from four credit agencies, coupled with its strong balance sheet, positions Ovintiv favorably in the market. This financial strength could provide a competitive advantage, especially if industry conditions become more challenging.
However, investors will likely keep a close eye on Ovintiv's ability to maintain its operational efficiency and capital discipline, particularly given the inherent volatility in commodity prices. The company's hedging strategy will play a important role in managing this risk.
Overall, Ovintiv's Q2 performance and optimistic outlook for the remainder of 2024 and beyond could potentially lead to positive sentiment among investors and analysts, possibly supporting the stock's valuation in the near term.
Operational Excellence Drives Strong Financial Results; Production Guidance Raised
Highlights:
- Generated net earnings of
, cash from operating activities of$340 million , Non-GAAP Cash Flow of$1,020 million and Non-GAAP Free Cash Flow of$1,025 million after capital expenditures of$403 million $622 million - Second quarter production was at the high-end or above the guidance range on every product with average total production volumes of 594 thousand barrels of oil equivalent per day ("MBOE/d"), including 212 thousand barrels per day ("Mbbls/d") of oil and condensate, 92 Mbbls/d of other NGLs (C2 to C4) and 1,740 million cubic feet per day ("MMcf/d") of natural gas
- Returned
to shareholders through the combination of base dividend payments and share buybacks$262 million - Raised full year production guidance range to 570 MBOE/d to 580 MBOE/d, including oil and condensate of 207 Mbbls/d to 209 Mbbls/d and natural gas of 1,660 MMcf/d to 1,690 MMcf/d
- Full year capital guidance range narrowed to
to$2.25 billion , midpoint unchanged at$2.35 billion $2.3 billion
"Our second quarter results demonstrate our focus on strong, consistent operational execution, enabling us to raise our production guidance for the second time this year," said Ovintiv President and CEO, Brendan McCracken. "We are converting that execution into bottom line results with durable returns on our invested capital. We expect to generate approximately
Second Quarter 2024 Financial and Operating Results
- The Company recorded net earnings of
, or$340 million per diluted share of common stock. Included in net earnings were net gains on risk management in revenues of$1.27 , before tax.$77 million - Cash from operating activities was
, Non-GAAP Cash Flow was$1,020 million and capital investment totaled approximately$1,025 million , resulting in$622 million of Non-GAAP Free Cash Flow.$403 million - Second quarter average total production volumes were approximately 594 MBOE/d, including 212 Mbbls/d of oil and condensate, 92 Mbbls/d of other NGLs and 1,740 MMcf/d of natural gas.
- Upstream operating expense was
per barrel of oil equivalent ("BOE"). Upstream transportation and processing costs were$4.29 per BOE. Production, mineral and other taxes were$7.15 per BOE, or$1.65 4.8% of upstream revenue. These costs were at the low-end of guidance on a combined basis. - Excluding the impact of hedges, second quarter average realized prices were
per barrel for oil and condensate ($76.82 95% of WTI), per barrel for other NGLs (C2-C4) and$18.35 per thousand cubic feet ("Mcf") for natural gas ($1.30 69% of NYMEX) resulting in a total average realized price of per BOE.$34.08 - Including the impact of hedges, the average realized prices for oil and condensate was
per barrel ($75.55 94% of WTI), per barrel for other NGLs, and$18.47 per Mcf for natural gas ($1.86 98% of NYMEX) resulting in a total average realized price of per BOE.$35.29
Guidance
The Company issued its third quarter 2024 guidance and raised its full year production guidance while narrowing its full year capital guidance range. Full year production volumes are expected to average 570 to 580 MBOE/d, with full year capital investment of
Guidance Updates | 3Q 2024 | Original Full Year 2024 | Updated Full Year 2024 | |
Total Production (MBOE/d) | 565 – 580 | 545 – 575 | 570 – 580 | |
Oil & Condensate (Mbbls/d) | 204 – 208 | 202 – 208 | 207 – 209 | |
NGLs (C2 - C4) (Mbbls/d) | 88 – 92 | 85 – 90 | 89 – 91 | |
Natural Gas (MMcf/d) | 1,640 – 1,690 | 1,550 – 1,650 | 1,660 – 1,690 | |
Capital Investment ($ Millions) | |
Returns to Shareholders
Ovintiv remains committed to its capital allocation framework, which returns at least
In the second quarter of 2024, the Company purchased for cancellation, approximately 3.6 million shares of common stock for consideration of approximately
Continued Balance Sheet Focus
Ovintiv had approximately
Ovintiv reported Non-GAAP Debt to EBITDA of 1.2 times and Non-GAAP Debt to Adjusted EBITDA of 1.2 times.
The Company remains committed to maintaining a strong balance sheet and is currently rated investment grade by four credit rating agencies. Ovintiv maintains a long-term leverage target of 1.0 times Non-GAAP Debt to Adjusted EBITDA at mid-cycle prices, with an associated long-term total debt target of
Dividend Declared
On July 30, 2024, Ovintiv's Board declared a quarterly dividend of
Asset Highlights
Permian
Permian production averaged 203 MBOE/d (
Montney
Montney production averaged 251 MBOE/d (
Uinta
Uinta production averaged 33 MBOE/d (
Anadarko
Anadarko production averaged 104 MBOE/d (
Conference Call Information
A conference call and webcast to discuss the Company's second quarter results will be held at 8:00 a.m. MT (10:00 a.m. ET) on July 31, 2024.
To join the conference call without operator assistance, you may register and enter your phone number at https://emportal.ink/3tYoHEZ 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
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.
Capital Investment and Production
(for the period ended June 30) | 2Q 2024 | 2Q 2023 |
Capital Expenditures (1) ($ millions) | 622 | 640 |
Oil (Mbbls/d) | 167.3 | 142.4 |
NGLs – Plant Condensate (Mbbls/d) | 44.6 | 43.5 |
Oil & Plant Condensate (Mbbls/d) | 211.9 | 185.9 |
NGLs – Other (Mbbls/d) | 92.0 | 96.8 |
Total Liquids (Mbbls/d) | 303.9 | 282.7 |
Natural gas (MMcf/d) | 1,740 | 1,743 |
Total production (MBOE/d) | 593.8 | 573.0 |
(1) | Including capitalized directly attributable internal costs. |
Second Quarter Financial Summary
(for the period ended June 30) ($ millions) | 2Q 2024 | 2Q 2023 |
Cash From (Used In) Operating Activities Deduct (Add Back): Net change in other assets and liabilities Net change in non-cash working capital | 1,020
(42) 37 | 831
(12) 144 |
Non-GAAP Cash Flow (1) | 1,025 | 699 |
Non-GAAP Cash Flow (1) | 1,025 | 699 |
Less: Capital Expenditures (2) | 622 | 640 |
Non-GAAP Free Cash Flow (1) | 403 | 59 |
Net Earnings (Loss) Before Income Tax Before-tax (Addition) Deduction: Unrealized gain (loss) on risk management Non-operating foreign exchange gain (loss) | 466
8 11 | 437
142 (15) |
Adjusted Earnings (Loss) Before Income Tax Income tax expense (recovery) | 447 116 | 310 78 |
Non-GAAP Adjusted Earnings (1) | 331 | 232 |
(1) | Non-GAAP Cash Flow, Non-GAAP Free Cash Flow and Non-GAAP Adjusted Earnings are non-GAAP measures as defined in Note 1. |
(2) | Including capitalized directly attributable internal costs. |
Realized Pricing Summary (Including the impact of realized gains (losses) on risk management)
(for the period ended June 30) | 2Q 2024 | 2Q 2023 |
Liquids ($/bbl) | ||
WTI | 80.57 | 73.78 |
Realized Liquids Prices | ||
Oil | 76.58 | 72.83 |
NGLs – Plant Condensate | 71.66 | 67.14 |
Oil & Plant Condensate | 75.55 | 71.50 |
NGLs – Other | 18.47 | 14.43 |
Total NGLs | 35.82 | 30.78 |
Natural Gas | ||
NYMEX ($/MMBtu) | 1.89 | 2.10 |
Realized Natural Gas Price ($/Mcf) | 1.86 | 1.98 |
Cost Summary
(for the period ended June 30) ($/BOE) | 2Q 2024 | 2Q 2023 |
Production, mineral and other taxes | 1.65 | 1.43 |
Upstream transportation and processing | 7.15 | 7.97 |
Upstream operating | 4.29 | 3.23 |
Administrative, excluding long-term incentive, transaction and legal costs | 1.28 | 1.28 |
Debt to EBITDA (1)
($ millions, except as indicated) | June 30, 2024 | December 31, 2023 |
Long-Term Debt, including Current Portion | 6,087 | 5,737 |
Net Earnings (Loss) | 1,940 | 2,085 |
Add back (Deduct): | ||
Depreciation, depletion and amortization | 2,188 | 1,825 |
Interest | 407 | 355 |
Income tax expense (recovery) | 414 | 425 |
EBITDA | 4,949 | 4,690 |
Debt to EBITDA (times) | 1.2 | 1.2 |
Debt to Adjusted EBITDA (1)
($ millions, except as indicated) | June 30, 2024 | December 31, 2023 |
Long-Term Debt, including Current Portion | 6,087 | 5,737 |
Net Earnings (Loss) | 1,940 | 2,085 |
Add back (Deduct): | ||
Depreciation, depletion and amortization | 2,188 | 1,825 |
Accretion of asset retirement obligation | 19 | 19 |
Interest | 407 | 355 |
Unrealized (gains) losses on risk management | 58 | (194) |
Foreign exchange (gain) loss, net | (41) | 19 |
Other (gains) losses, net | (15) | (20) |
Income tax expense (recovery) | 414 | 425 |
Adjusted EBITDA | 4,970 | 4,514 |
Debt to Adjusted EBITDA (times) | 1.2 | 1.3 |
1) | Debt to EBITDA and Debt to Adjusted EBITDA are non-GAAP measures as defined in Note 1. |
Hedge Details as of June 30, 2024
Oil and Condensate Hedges ($/bbl) | 3Q 2024 | 4Q 2024 | 1Q 2025 | 2Q 2025 | 3Q 2025 | 4Q 2025 |
WTI Collars Call Strike Put Strike | 10 Mbbls/d | 0 - - | 0 - - | 0 - - | 0 - - | 0 - - |
WTI 3-Way Options Put Strike Sold Put Strike | 40 Mbbls/d | 50 Mbbls/d | 50 Mbbls/d | 41 Mbbls/d | 11 Mbbls/d | 0 - - - |
Natural Gas Hedges ($/Mcf) | 3Q 2024 | 4Q 2024 | 1Q 2025 | 2Q 2025 | 3Q 2025 | 4Q 2025 |
NYMEX Swaps | 200 MMcf/d | 200 MMcf/d | 0 - | 0 - | 0 - | 0 - |
NYMEX Collars Call Strike Put Strike | 400 MMcf/d | 400 MMcf/d | 0 - - | 0 - - | 0 - - | 0 - - |
NYMEX 3-Way Options Put Strike Sold Put Strike | 200 MMcf/d | 200 MMcf/d | 500 MMcf/d | 500 MMcf/d | 500 MMcf/d | 500 MMcf/d |
Waha % of NYMEX Swaps | 50 MMcf/d | 50 MMcf/d | 0 - | 0 - | 0 - | 0 - |
AECO Nominal Basis Swaps | 190 MMcf/d ( | 190 MMcf/d ( | 190 MMcf/d ( | 190 MMcf/d ( | 190 MMcf/d ( | 190 MMcf/d ( |
AECO % of NYMEX Swaps | 100 MMcf/d | 100 MMcf/d | 100 MMcf/d | 100 MMcf/d | 100 MMcf/d | 100 MMcf/d |
Important information
Ovintiv reports in
Please visit Ovintiv's website and Investor Relations page at www.ovintiv.com and investor.ovintiv.com, where Ovintiv often discloses important information about the Company, its business, and its results of operations.
NI 51-101 Exemption
The Canadian securities regulatory authorities have issued a decision document (the "Decision") granting Ovintiv exemptive relief from the requirements contained in
NOTE 1: Non-GAAP Measures
Certain measures in this news release do not have any standardized meaning as prescribed by
- Non-GAAP Cash Flow is a non-GAAP measure defined as cash from (used in) operating activities excluding net change in other assets and liabilities, and net change in non-cash working capital.
- Non-GAAP Free Cash Flow is a non-GAAP measure defined as Non-GAAP Cash Flow in excess of capital expenditures, excluding net acquisitions and divestitures. Forecasted Non-GAAP Free Cash Flow assumes forecasted Non-GAAP Cash Flow based on price sensitivity of
WTI and$80 NYMEX. The scenario utilizes the midpoint of the production and capital guidance. Due to its forward-looking nature, management cannot reliably predict certain of the necessary components of the most directly comparable forward-looking GAAP measure, such as changes in operating assets and liabilities. Accordingly, Ovintiv is unable to present a quantitative reconciliation of such forward-looking non-GAAP financial measure to its most directly comparable forward-looking GAAP financial measure. Amounts excluded from this non-GAAP measure in future periods could be significant.$2.25 - Non-GAAP Adjusted Earnings is a non-GAAP measure defined as net earnings (loss) excluding non-cash items that the Company's management believes reduces the comparability of the Company's financial performance between periods. These items may include, but are not limited to, unrealized gains/losses on risk management, impairments, non-operating foreign exchange gains/losses, and gains/losses on divestitures. Income taxes includes adjustments to normalize the effect of income taxes calculated using the estimated annual effective income tax rate. In addition, any valuation allowances are excluded in the calculation of income taxes.
- Adjusted EBITDA, Debt to EBITDA and Debt to Adjusted EBITDA (Leverage Target/Ratio) are non-GAAP measures. EBITDA is defined as trailing 12-month net earnings (loss) before income taxes, depreciation, depletion and amortization, and interest. Adjusted EBITDA is EBITDA adjusted for impairments, accretion of asset retirement obligation, unrealized gains/losses on risk management, foreign exchange gains/losses, gains/losses on divestitures and other gains/losses. Debt to EBITDA is calculated as long-term debt, including the current portion, divided by EBITDA. Debt to Adjusted EBITDA is calculated as long-term debt, including the current portion, divided by Adjusted EBITDA. Adjusted EBITDA, Debt to EBITDA and Debt to Adjusted EBITDA are non-GAAP measures monitored by management as indicators of the Company's overall financial strength.
ADVISORY REGARDING OIL AND GAS INFORMATION – The conversion of natural gas volumes to barrels of oil equivalent (BOE) is on the basis of six thousand cubic feet to one barrel. BOE is based on a generic energy equivalency conversion method primarily applicable at the burner tip and does not represent economic value equivalency at the wellhead. Readers are cautioned that BOE may be misleading, particularly if used in isolation.
ADVISORY REGARDING FORWARD-LOOKING STATEMENTS – This news release contains forward-looking statements or information (collectively, "forward-looking statements") within the meaning of applicable securities legislation, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, except for statements of historical fact, that relate to the anticipated future activities, plans, strategies, objectives or expectations of the Company, including third quarter and fiscal year 2024 guidance and expected free cash flow, the expectation of delivering sustainable durable returns to shareholders in future years, plans regarding share buybacks and debt reduction, and the anticipated timing of bringing wells online, 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 fully integrate the Midland Basin assets; the ability of the Company to access credit facilities, debt and equity markets and other sources of liquidity to fund operations or acquisitions and manage debt; 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: (888) 525-0304 | Media contact: (403) 645-2252 |
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SOURCE Ovintiv Inc.
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