Ovintiv (OVV) closed the last trading session at $43.80, gaining 3.6% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $57.24 indicates a 30.7% upside potential.The mean estimate comprises 21 short-term price targets with a standard deviation of $6.25. While the lowest estimate of $45 indicates a 2.7% increase from the current price level, the most optimistic analyst expects the sto ...

Core Viewpoint - Ovintiv Inc. reported fourth-quarter 2024 adjusted earnings per share of $1.35, exceeding the Zacks Consensus Estimate of $1.11, driven by better-than-expected oil production volumes, although the earnings decreased from $2.35 in the previous year due to lower commodity prices and increased expenses [1][2]. Financial Performance - Total revenues for the fourth quarter were $2.2 billion, a decrease of 30.9% from the previous year and missing the Zacks Consensus Estimate by 5.6% [2]. - Total expenses increased to $2.2 billion from $2 billion in the prior year, surpassing the estimate of $1.8 billion [9]. - Cash from operating activities was $1 billion, down from $1.4 billion year-over-year [9]. - The company generated a non-GAAP free cash flow of $1,004 million in the reported quarter [10]. Production and Prices - Total production in the fourth quarter was 579,900 barrels of oil equivalent per day (BOE/d), down from 605,200 BOE/d in the prior year and missing the estimate of 581,600 BOE/d [6]. - Natural gas production increased to 1,680 million cubic feet per day (MMcf/d) from 1,645 MMcf/d year-over-year, but fell short of the estimate of 1,704.3 MMcf/d [6]. - Realized natural gas price was $2.42 per thousand cubic feet, down from $2.65 in the previous year, but exceeded the estimate of $1.89 [7]. - Realized oil price decreased to $67.93 per barrel from $76.64 in the fourth quarter of 2023, missing the estimate of $69.20 [8]. Shareholder Value and Capital Management - The company distributed approximately $913 million to shareholders in 2024, including $597 million in share buybacks and $316 million in base dividend payments [4]. - A quarterly dividend of 30 cents per share was declared, payable on March 31, 2025 [3]. Strategic Moves - Ovintiv optimized its portfolio by acquiring Montney assets for $2.3 billion and divesting Uinta assets for $2 billion, resulting in a $323 million decrease in non-GAAP net debt [5]. - The company plans to invest $1.2-$1.3 billion in the Permian Basin in 2025, targeting the completion of 130 to 140 net new wells [12]. - In Montney, Ovintiv plans to invest $575-$625 million in 2025 to bring 75-85 net wells into production [13]. - For the Anadarko Basin, the company intends to invest between $300 million and $325 million in 2025, targeting 25 to 35 net new wells [14]. Guidance - Ovintiv expects capital expenditure of $600-$650 million for Q1 2025 and $2.15 billion to $2.25 billion for the full year [15]. - Total production volumes are anticipated to average between 575,000 and 595,000 barrels per day in Q1 and between 595,000 and 615,000 barrels per day for the full year [15]. - The company predicts a temporary reduction in production of about 3,000 barrels per day due to recent asset changes but expects production to stabilize in Q2 [17]. - A temporary pause on the share buyback program will redirect approximately $368 million toward debt reduction by the end of Q1 2025, with plans to resume buybacks in Q2 2025 [18].

Financial Data and Key Metrics Changes - The company reported full-year cash flow of $4 billion and generated free cash flow of approximately $1.7 billion, up 50% year-over-year, with over $900 million returned to shareholders [12][14] - Fourth quarter cash flow per share was $3.86, beating consensus estimates by about 7%, and free cash flow totaled more than $450 million [18][19] - Net debt decreased by over $320 million, ending the year at $5.4 billion [14] Business Line Data and Key Metrics Changes - The company maintained 2025 guidance at 205,000 barrels per day, compensating for the sale of 29,000 barrels per day in Uinta and the acquisition of 25,000 barrels per day in Montney [8][20] - The production from the Permian and Montney was highlighted as strong, with fourth quarter oil and condensate volumes averaging approximately 210,000 barrels per day [15] - The Anadarko Basin continues to provide stable production with a low base decline rate of about 16% per year, contributing to free cash flow generation [51] Market Data and Key Metrics Changes - The company expects to generate about $2.1 billion of free cash flow in 2025, an increase of over $300 million year-over-year, assuming commodity prices of $70 WTI and $4 NYMEX gas [21][22] - The company has shifted its price exposure away from weaker pricing hubs like AECO and Waha, with about three-quarters of natural gas pricing expected outside these hubs in 2025 [26] Company Strategy and Development Direction - The company is focused on maximizing returns on invested capital, increasing free cash flow, and further reducing debt, with a capital investment of about $2.2 billion planned for 2025 [20][33] - The strategy includes leveraging a multi-basin portfolio and focusing investments in oil and condensate-rich areas, with expected program-level after-tax returns of approximately 65% to 75% [20][21] - The company plans to restart its share buyback program in the second quarter of 2025, following a pause due to the Montney acquisition [23][78] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to generate superior returns and free cash flow for years to come, supported by a strong inventory position in the Permian and Montney [5][8] - The anticipated modest impact of potential tariffs on Canadian imports was discussed, with management indicating that the overall effect on cash flow in 2025 would be neutral [109] - The company is optimistic about the operational efficiencies achieved in 2024 and expects continued improvements in 2025 [115][119] Other Important Information - The company has made significant progress in debt reduction, with a target to bring total debt below $5 billion by year-end 2025 [24][77] - The company is actively managing its supply chain to mitigate risks associated with tariffs and geopolitical uncertainties [182][183] Q&A Session All Questions and Answers Question: Comparison of Montney versus Permian - Management highlighted the difficulty in surpassing the current portfolio's value and expressed confidence in the ability to generate free cash flow from both Montney and Permian [60][62] Question: Role of Anadarko in the Portfolio - Management emphasized the unique low decline nature of the Anadarko asset, which supports free cash generation with minimal capital requirements [68][70] Question: Net Debt Target by End of 2025 - Management projected net debt to be well below $5 billion by the end of 2025, with a long-term target of $4 billion by 2026 [77][78] Question: Inventory Analysis and Strategic Standpoint - Management noted that the durable inventory position enhances confidence in free cash generation and profitability, with lower capital and cash costs contributing to higher returns [91][92] Question: Impact of Potential Tariffs - Management anticipates a modest impact from potential tariffs, with proactive measures taken to secure supply chains and manage costs [104][109] Question: Operational Efficiencies and Cost Management - Management indicated that the majority of cost savings in 2025 would come from operational efficiencies rather than deflation, with significant improvements in drilling and completion times [113][115] Question: Future M&A Opportunities - Management stated that while there is potential for future acquisitions, the focus remains on maintaining high standards for capital allocation and inventory quality [123][124] Question: Free Cash Flow Yield Sensitivity - Management acknowledged the sensitivity of free cash flow to gas prices and emphasized the importance of maintaining a balanced capital allocation strategy [130][156] Question: Risk Management through Hedging - Management confirmed a current hedge book covering about 25% of production, with plans to reduce this as leverage improves [142][143]

Ovintiv (OVV) came out with quarterly earnings of $1.35 per share, beating the Zacks Consensus Estimate of $1.11 per share. This compares to earnings of $2.35 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 21.62%. A quarter ago, it was expected that this energy company would post earnings of $1.09 per share when it actually produced earnings of $1.85, delivering a surprise of 69.72%.Over the last four quarters, the company ha ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number 001-39191 Ovintiv Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) Suit ...

Exhibit 99.2 Ovintiv Inc. Selected Financial Information (unaudited) For the year ended December 31, 2024 U.S. Dollar / U.S. Protocol Consolidated Statement of Earnings (unaudited) | For the years ended December 31 (US$ millions, except per share amounts) | | 2024 | | 2023 | | 2022 | | --- | --- | --- | --- | --- | --- | --- | | Revenues | | | | | | | | (1) Product and service revenues | $ | 7,358 | $ | 7,812 | $ | 10,183 | | (1) Sales of purchased product | | 1,585 | | 2,849 | | 4,080 | | Gains (losses) on ...

2024 Non-GAAP Free Cash Flow Up Approximately 50% Year-Over-Year Highlights:Full Year 2024 Generated cash from operating activities of $3.7 billion, Non-GAAP Cash Flow of $4.0 billion and Non-GAAP Free Cash Flow of $1.7 billion after capital expenditures of $2.3 billion Produced average total volumes of 585 thousand barrels of oil equivalent per day ("MBOE/d"), including 211 thousand barrels per day ("Mbbls/d") of oil and condensate, 91 Mbbls/d of other NGLs (C2 to C4) and 1,698 million cubic feet per day ( ...

Core Insights - Ovintiv (OVV) has a strong history of beating earnings estimates and is well-positioned for continued success in its upcoming quarterly report [1][2] Earnings Performance - Ovintiv has consistently surpassed earnings estimates, with an average surprise of 35.68% over the last two quarters [2] - In the most recent quarter, Ovintiv reported earnings of $1.85 per share, exceeding the expected $1.09 per share by 69.72% [2] - For the previous quarter, the company reported $1.24 per share against an estimate of $1.22 per share, resulting in a surprise of 1.64% [2] Analyst Sentiment - Recent earnings estimates for Ovintiv have been revised upward, indicating growing analyst confidence in the company's near-term earnings potential [3][6] - The Zacks Earnings ESP for Ovintiv is currently +12.47%, suggesting a favorable outlook for the next earnings report [6] Predictive Metrics - Stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have a nearly 70% chance of producing a positive surprise [4] - Ovintiv's current Zacks Rank is 2 (Buy), further supporting the likelihood of another earnings beat [6] Upcoming Earnings Report - Ovintiv's next earnings report is anticipated to be released on February 26, 2025 [6]

Core Viewpoint - Ovintiv (OVV) is expected to report a quarterly earnings per share (EPS) of $1.11, reflecting a year-over-year decline of 52.8%, with anticipated revenues of $2.32 billion, down 26.8% from the previous year [1]. Earnings Estimates - Over the last 30 days, the consensus EPS estimate has been revised upward by 1.5%, indicating analysts' reassessment of their initial forecasts [2]. - Changes in earnings projections are crucial for predicting investor reactions, as empirical studies show a strong correlation between earnings estimate trends and short-term stock price movements [3]. Revenue Estimates - Analysts estimate 'Revenues - Canadian Operations' at $462.62 million, representing an 18% decline year-over-year [5]. - 'Revenues - USA Operations' are projected to be $1.32 billion, indicating a decrease of 20.7% from the same quarter last year [5]. - 'Revenues - Market Optimization' are expected to reach $410.08 million, reflecting a 31% decline year-over-year [5]. Production Volumes - Total production volumes are estimated at 583.10 million barrels of oil equivalent per day, down from 605.2 million barrels of oil equivalent per day in the previous year [6]. - Natural gas production volumes are projected at 1,710.06 million cubic feet per day, compared to 1,645 million cubic feet per day in the same quarter last year [6]. - Oil production volumes are expected to be 163.62 million barrels per day, down from 194.1 million barrels per day year-over-year [7]. - Total production volumes for Oil & NGLs are estimated at 298.69 million barrels per day, compared to 331.1 million barrels per day in the same quarter last year [7]. - NGLs production volumes are projected at 135.08 million barrels per day, slightly down from 137 million barrels per day year-over-year [8]. - Canadian operations are expected to produce 240.65 million barrels of oil equivalent per day, compared to 238.1 million barrels of oil equivalent per day in the same quarter last year [9]. - USA operations are projected to reach 341.35 million barrels of oil equivalent per day, down from 367.1 million barrels of oil equivalent per day in the same quarter last year [10]. - Oil & NGLs production volumes for Canadian operations are estimated at 46.45 million barrels per day, down from 51.2 million barrels per day year-over-year [11]. - For USA operations, Oil & NGLs production volumes are expected to be 251.54 million barrels per day, compared to 279.9 million barrels per day in the same quarter last year [12]. Stock Performance - Over the past month, Ovintiv shares have recorded a return of -3.5%, while the Zacks S&P 500 composite has changed by -0.5% [12].

Core Viewpoint - Ovintiv (OVV) shares have shown a modest gain of 0.4% over the past month, closing at $45.41, with analysts suggesting a potential upside of 29.1% based on a mean price target of $58.62 [1] Price Targets and Analyst Estimates - The mean estimate consists of 21 short-term price targets with a standard deviation of $7.17, indicating variability among analysts; the lowest estimate is $42 (7.5% decline), while the highest is $73 (60.8% increase) [2] - A low standard deviation signifies strong agreement among analysts regarding the stock's price movement direction, which can serve as a starting point for further research [7] Earnings Estimates and Analyst Sentiment - Analysts have shown growing optimism regarding OVV's earnings prospects, as evidenced by a positive trend in earnings estimate revisions, which correlates with near-term stock price movements [9] - The Zacks Consensus Estimate for the current year has risen by 6.4% over the past month, with no negative revisions reported [10] - OVV holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates, indicating strong potential for upside [11] Caution on Price Targets - While consensus price targets are a popular metric, relying solely on them for investment decisions may not be prudent due to historical inaccuracies in predicting stock price movements [5][8] - Analysts often set optimistic price targets influenced by business relationships, which can lead to inflated estimates [6]