Ovintiv Reports Third Quarter 2024 Financial and Operating Results
Ovintiv reported strong Q3 2024 results with net earnings of $507 million and cash from operating activities of $1,022 million. Production exceeded guidance with 593 MBOE/d, including 212 Mbbls/d of oil and condensate. The company returned $240 million to shareholders through dividends and buybacks, while reducing total debt by $210 million to $5.88 billion. Full-year production guidance was raised to 583-587 MBOE/d, with capital guidance narrowed to $2.275-2.325 billion. Operating costs remained below guidance, and the company maintained strong operational execution across its key assets in Permian, Montney, Uinta, and Anadarko basins.
Ovintiv ha riportato risultati solidi per il terzo trimestre del 2024, con un guadagno netto di 507 milioni di dollari e un flusso di cassa dalle attività operative di 1.022 milioni di dollari. La produzione ha superato le previsioni, raggiungendo 593 MBOE/giorno, inclusi 212 Mbbls/giorno di petrolio e condensato. L'azienda ha restituito 240 milioni di dollari agli azionisti tramite dividendi e riacquisti, mentre ha ridotto il debito totale di 210 milioni di dollari, portandolo a 5,88 miliardi di dollari. La guida sulla produzione per l'intero anno è stata alzata a 583-587 MBOE/giorno, con la guida sugli investimenti ristretta a 2,275-2,325 miliardi di dollari. I costi operativi sono rimasti al di sotto delle previsioni e l'azienda ha mantenuto una forte esecuzione operativa nei suoi principali attivi nei bacini di Permian, Montney, Uinta e Anadarko.
Ovintiv reportó resultados sólidos en el tercer trimestre de 2024, con ganancias netas de 507 millones de dólares y un flujo de efectivo de actividades operativas de 1,022 millones de dólares. La producción superó la guía con 593 MBOE/día, incluyendo 212 Mbbls/día de petróleo y condensado. La compañía devolvió 240 millones de dólares a los accionistas a través de dividendos y recompras, mientras redujo la deuda total en 210 millones de dólares a 5.88 mil millones de dólares. Se elevó la guía de producción anual a 583-587 MBOE/día, con la guía de capital ajustada a 2.275-2.325 mil millones de dólares. Los costos operativos se mantuvieron por debajo de la guía, y la empresa mantuvo una fuerte ejecución operativa en sus activos clave en las cuencas de Permian, Montney, Uinta y Anadarko.
오빈티브는 2024년 3분기 실적이 매우 좋았음을 보고했으며, 순이익이 5억 700만 달러였고 운영 활동으로부터의 현금 흐름은 10억 2200만 달러였습니다. 생산량은 가이던스를 초과하여 593 MBOE/일에 달했으며, 이 중 212 Mbbls/일은 원유 및 응축유였습니다. 이 회사는 배당금과 자사주 매입을 통해 2억 4000만 달러를 주주에게 환원했으며, 총 부채를 2억 1000만 달러 줄여 58억 8000만 달러로 낮췄습니다. 연간 생산 가이던스는 583-587 MBOE/일로 상향 조정되었으며, 자본 가이던스는 22억 7500만에서 23억 2500만 달러로 축소되었습니다. 운영 비용은 가이던스 아래에 유지되었으며, 이 회사는 퍼미안, 몬트니, 유인터, 아나다르코 유역의 주요 자산에서 강력한 운영 실행을 유지했습니다.
Ovintiv a annoncé des résultats solides pour le troisième trimestre 2024 avec un bénéfice net de 507 millions de dollars et un flux de trésorerie provenant des activités opérationnelles de 1,022 milliard de dollars. La production a dépassé les prévisions avec 593 MBOE/jour, dont 212 Mbbls/jour de pétrole et de condensat. L'entreprise a retourné 240 millions de dollars aux actionnaires par le biais de dividendes et de rachats d'actions, tout en réduisant la dette totale de 210 millions de dollars à 5,88 milliards de dollars. Les prévisions de production sur l'année entière ont été rehaussées à 583-587 MBOE/jour, avec une prévision d'investissements resserrée à 2,275-2,325 milliards de dollars. Les coûts d'exploitation sont restés inférieurs aux prévisions, et l'entreprise a maintenu une forte exécution opérationnelle sur ses principaux actifs dans les bassins de Permian, Montney, Uinta et Anadarko.
Ovintiv meldete starke Ergebnisse für das 3. Quartal 2024 mit netto Gewinn von 507 Millionen Dollar und einem Cashflow aus operativen Tätigkeiten von 1.022 Millionen Dollar. Die Produktion übertraf die Prognose mit 593 MBOE/Tag, einschließlich 212 Mbbls/Tag an Rohöl und Kondensat. Das Unternehmen hat 240 Millionen Dollar an die Aktionäre durch Dividenden und Rückkäufe zurückgegeben, während die Gesamtverschuldung um 210 Millionen Dollar auf 5,88 Milliarden Dollar gesenkt wurde. Die Produktionsprognose für das gesamte Jahr wurde auf 583-587 MBOE/Tag angehoben, während die Kapitalguidance auf 2,275-2,325 Milliarden Dollar eingegrenzt wurde. Die Betriebskosten lagen weiterhin unter der Prognose, und das Unternehmen hielt eine starke betriebliche Ausführung in seinen wichtigen Vermögenswerten in den Becken von Permian, Montney, Uinta und Anadarko aufrecht.
- Net earnings of $507 million and cash from operating activities of $1,022 million
- Production exceeded guidance across all products
- Debt reduced by $210 million to $5.88 billion
- Returned $240 million to shareholders through dividends and buybacks
- Operating costs below guidance
- Raised full-year production guidance
- Lower commodity prices compared to previous quarter
Insights
The Q3 results demonstrate strong operational and financial performance. Net earnings of
Key financial strengths include debt reduction of
Operating costs remained well-controlled, with combined upstream costs below guidance. The
Production results across all key basins demonstrate exceptional operational efficiency. The Permian assets delivered 207 MBOE/d with
The hedging strategy shows prudent risk management with meaningful downside protection through 2025. The combination of 3-way options for oil and structured natural gas hedges helps secure cash flows while maintaining upside exposure. The focus on debt reduction and maintaining investment grade ratings positions the company well for potential market volatility.
Full Year Production Guidance Increased; Strong Operational Execution and Debt Reduction Continue
Highlights:
- Generated net earnings of
$507 million $1,022 million $978 million $440 million $538 million - Third quarter production was above the high-end of the guidance range on every product with average total production volumes of 593 thousand barrels of oil equivalent per day ("MBOE/d"), including 212 thousand barrels per day ("Mbbls/d") of oil and condensate, 93 Mbbls/d of other NGLs (C2 to C4) and 1,725 million cubic feet per day ("MMcf/d") of natural gas
- Returned
$240 million - Reduced total debt by
$210 million $5.88 billion - Raised full year production guidance range to 583 MBOE/d to 587 MBOE/d, including oil and condensate of 209 Mbbls/d to 211 Mbbls/d and natural gas of 1,700 MMcf/d to 1,715 MMcf/d
- Full year capital guidance range narrowed to
$2.27 5 billion$2.32 5 billion$2.3 billion
"Our third quarter results continued to build on our strong track record of operational and financial execution," said Ovintiv President and CEO, Brendan McCracken. "Once again, we exceeded the high end of our production guidance and raised our targets for full year volumes. Our teams continue to be focused on delivering leading returns at the bottom line and I'm pleased to see our third quarter free cash flow move even higher than the second quarter, even though commodity prices were lower."
Third Quarter 2024 Financial and Operating Results
- The Company recorded net earnings of
$507 million $1.92 $150 million $128 million - Cash from operating activities was
$1,022 million $978 million $538 million $440 million - Third quarter average total production volumes were approximately 593 MBOE/d, including 212 Mbbls/d of oil and condensate, 93 Mbbls/d of other NGLs (C2 to C4) and 1,725 MMcf/d of natural gas.
- Upstream operating expense was
$4.17 $7.31 $1.56 4.9% of upstream revenue. These costs were below the low-end of guidance on a combined basis. - Excluding the impact of hedges, third quarter average realized prices were
$72.00 96% of WTI),$18.13 $1.29 60% of NYMEX) resulting in a total average realized price of$32.41 - Including the impact of hedges, third quarter average realized prices were
$72.00 96% of WTI),$18.33 $1.88 87% of NYMEX) resulting in a total average realized price of$34.17
Guidance
The Company issued its fourth quarter 2024 guidance and raised its full year production guidance while narrowing the range for full year capital investment around an unchanged midpoint. Full year production volumes are expected to average 583 to 587 MBOE/d, with full year capital investment of
Guidance Updates | 4Q 2024 |
Updated Full Year 2024 | |
Total Production (MBOE/d) | 575 – 595 | 583 – 587 | |
Oil & Condensate (Mbbls/d) | 203 – 207 | 209 – 211 | |
NGLs (C2 - C4) (Mbbls/d) | 91 – 95 | 91 – 92 | |
Natural Gas (MMcf/d) | 1,700 – 1,750 | 1,700 – 1,715 | |
Capital Investment ($ Millions) | |
Returns to Shareholders
Ovintiv remains committed to its capital allocation framework, which returns at least
In the third quarter of 2024, the Company purchased for cancellation, approximately 3.7 million shares of common stock for consideration of approximately
Continued Balance Sheet Focus
Ovintiv had approximately
Total long-term debt including the current portion was
The Company remains committed to supporting 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
As of the end of the third quarter, Ovintiv reported Non-GAAP Debt to EBITDA of 1.1 times and Non-GAAP Debt to Adjusted EBITDA of 1.2 times.
Dividend Declared
On November 7, 2024, Ovintiv's Board declared a quarterly dividend of
Asset Highlights
Permian
Permian production averaged 207 MBOE/d (
Montney
Montney production averaged 245 MBOE/d (
Uinta
Uinta production averaged 37 MBOE/d (
Anadarko
Anadarko production averaged 103 MBOE/d (
Conference Call Information
A conference call and webcast to discuss the Company's third quarter results will be held at 7:00 a.m. MT (09:00 a.m. ET) on November 8, 2024.
To join the conference call without operator assistance, you may register and enter your phone number at https://emportal.ink/3XEGImx to receive an instant automated call back. You can also dial direct to be entered to the call by an Operator. Please dial 888-510-2154 (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 September 30) | 3Q 2024 | 3Q 2023 |
Capital Expenditures (1) ($ millions) | 538 | 834 |
Oil (Mbbls/d) | 168.4 | 170.9 |
NGLs – Plant Condensate (Mbbls/d) | 44.0 | 43.3 |
Oil & Plant Condensate (Mbbls/d) | 212.4 | 214.2 |
NGLs – Other (Mbbls/d) | 92.6 | 86.7 |
Total Liquids (Mbbls/d) | 305.0 | 300.9 |
Natural gas (MMcf/d) | 1,725 | 1,625 |
Total production (MBOE/d) | 592.6 | 571.8 |
(1) Including capitalized directly attributable internal costs. |
Third Quarter Financial Summary
(for the period ended September 30) ($ millions) | 3Q 2024 | 3Q 2023 |
Cash From (Used In) Operating Activities Deduct (Add Back): Net change in other assets and liabilities Net change in non-cash working capital | 1,022
19 25 | 906
(14) (192) |
Non-GAAP Cash Flow (1) | 978 | 1,112 |
Non-GAAP Cash Flow (1) | 978 | 1,112 |
Less: Capital Expenditures (2) | 538 | 834 |
Non-GAAP Free Cash Flow (1) | 440 | 278 |
Net Earnings (Loss) Before Income Tax Before-tax (Addition) Deduction: Unrealized gain (loss) on risk management Non-operating foreign exchange gain (loss) | 558
31 (16) | 393
(292) 17 |
Adjusted Earnings (Loss) Before Income Tax Income tax expense (recovery) | 543 54 | 668 187 |
Non-GAAP Adjusted Earnings (1) | 489 | 481 |
(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 September 30) | 3Q 2024 | 3Q 2023 |
Liquids ($/bbl) | ||
WTI | 75.09 | 82.26 |
Realized Liquids Prices | ||
Oil | 73.23 | 79.52 |
NGLs – Plant Condensate | 67.30 | 71.61 |
Oil & Plant Condensate | 72.00 | 77.94 |
NGLs – Other | 18.33 | 18.39 |
Total NGLs | 34.12 | 36.11 |
Natural Gas | ||
NYMEX ($/MMBtu) | 2.16 | 2.55 |
Realized Natural Gas Price ($/Mcf) | 1.88 | 2.51 |
Cost Summary
(for the period ended September 30) ($/BOE) | 3Q 2024 | 3Q 2023 |
Production, mineral and other taxes | 1.56 | 1.70 |
Upstream transportation and processing | 7.31 | 7.40 |
Upstream operating | 4.17 | 4.48 |
Administrative, excluding long-term incentive, transaction | 1.24 | 1.27 |
Debt to EBITDA (1)
($ millions, except as indicated) | September 30, 2024 | December 31, 2023 |
Long-Term Debt, including Current Portion | 5,877 | 5,737 |
Net Earnings (Loss) | 2,041 | 2,085 |
Add back (Deduct): | ||
Depreciation, depletion and amortization | 2,301 | 1,825 |
Interest | 412 | 355 |
Income tax expense (recovery) | 478 | 425 |
EBITDA | 5,232 | 4,690 |
Debt to EBITDA (times) | 1.1 | 1.2 |
Debt to Adjusted EBITDA (1)
($ millions, except as indicated) | September 30, 2024 | December 31, 2023 |
Long-Term Debt, including Current Portion | 5,877 | 5,737 |
Net Earnings (Loss) | 2,041 | 2,085 |
Add back (Deduct): | ||
Depreciation, depletion and amortization | 2,301 | 1,825 |
Accretion of asset retirement obligation | 19 | 19 |
Interest | 412 | 355 |
Unrealized (gains) losses on risk management | (265) | (194) |
Foreign exchange (gain) loss, net | (2) | 19 |
Other (gains) losses, net | (164) | (20) |
Income tax expense (recovery) | 478 | 425 |
Adjusted EBITDA | 4,820 | 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 September 30, 2024
Oil and Condensate Hedges ($/bbl) | 4Q 2024 | 1Q 2025 | 2Q 2025 | 3Q 2025 | 4Q 2025 |
WTI 3-Way Options Put Strike Sold Put Strike | 50 Mbbls/d | 50 Mbbls/d | 50 Mbbls/d | 50 Mbbls/d | 0 - - - |
Natural Gas Hedges ($/Mcf) | 4Q 2024 | 1Q 2025 | 2Q 2025 | 3Q 2025 | 4Q 2025 |
NYMEX Swaps | 200 MMcf/d | 0 - | 0 - | 0 - | 0 - |
NYMEX Collars Call Strike Put Strike | 400 MMcf/d | 0 - - | 0 - - | 0 - - | 0 - - |
NYMEX 3-Way Options Put Strike Sold Put Strike | 200 MMcf/d | 500 MMcf/d | 500 MMcf/d | 500 MMcf/d | 500 MMcf/d |
Waha % of NYMEX Swaps | 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 ( |
AECO % of NYMEX Swaps | 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.
- 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 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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