Ovintiv(OVV)2025-05-06 21:03Financial Performance - Total revenues for Q1 2025 were $2,377 million, a slight increase of 1.1% compared to $2,352 million in Q1 2024[2] - Net loss for Q1 2025 was $159 million, compared to net earnings of $338 million in Q1 2024, representing a significant decline[2] - Operating expenses increased to $2,466 million in Q1 2025, up from $1,858 million in Q1 2024, primarily due to impairments of $730 million[2] - Basic and diluted net earnings (loss) per share for Q1 2025 were both $(0.61), compared to $1.25 in Q1 2024[2] - Cash from operating activities for Q1 2025 was $873 million, an increase from $659 million in Q1 2024[7] - Capital expenditures in Q1 2025 were $617 million, compared to $591 million in Q1 2024[7] - The company reported acquisitions totaling $2,310 million in Q1 2025, significantly higher than $190 million in Q1 2024[7] - Shareholders' equity decreased to $10,080 million as of March 31, 2025, down from $10,331 million at the end of 2024[6] - The company had a weighted average of 260.4 million shares outstanding in Q1 2025, compared to 269.7 million in Q1 2024[9] Production and Operations - In Q1 2025, total production volumes reached 588.3 MBOE/d, a slight increase from 585.0 MBOE/d in 2024[13] - Oil production averaged 150.5 Mbbls/d in Q1 2025, compared to 168.3 Mbbls/d for the entire year of 2024[13] - The company reported a total of 294.4 Mbbls/d for oil and NGLs production in Q1 2025, compared to 299.3 Mbbls/d in Q1 2024, a decrease of 1.6%[25] - Total oil production in Q1 2025 reached 150.5 Mbbls/d, a decrease of 11.7% compared to Q1 2024's 170.4 Mbbls/d[23] - Total production (MBOE/d) in Q1 2025 was 588.3 MBOE/d, slightly up from 573.8 MBOE/d in Q1 2024[27] - Natural gas production in Q1 2025 was 1,764 MMcf/d, an increase of 7.0% from Q1 2024's 1,648 MMcf/d[27] - The Montney region in Canada produced 1,251 MMcf/d of natural gas in Q1 2025, up from 1,093 MMcf/d in Q1 2024, representing a 14.5% increase[27] - The company plans to focus on expanding its operations in the Permian and Montney regions to enhance production efficiency and growth[23] Revenue and Pricing - Revenues from USA operations for Q1 2025 were $1,310 million, with oil revenues contributing $975 million[15] - Total upstream product revenue for USA operations in Q1 2025 was $1,310 million, a decrease of 10.6% from Q1 2024's $1,466 million[47] - Total upstream product revenue for Canadian operations in Q1 2025 was $652 million, down from $470 million in Q1 2024, representing a 38.5% increase[47] - The average price received for oil in USA operations was $46.02 per BOE in Q1 2025, compared to $46.85 per BOE in Q1 2024[18] - Total operations price per BOE for Q1 2025 is $37.03, compared to $36.97 in Q1 2024, indicating a slight increase of 0.2%[20] - Total operations natural gas price for Q1 2025 is $2.98 per Mcf, up from $2.21 in Q1 2024, representing a 34.9% increase[20] - USA Operations oil price for Q1 2025 is $71.79 per barrel, a decrease from $76.17 in Q1 2024, reflecting a 5.8% decline[20] - Canadian Operations oil price for Q1 2025 is $71.46 per barrel, consistent with $72.34 in Q1 2024, reflecting a marginal decrease of 1.2%[20] Debt and Equity - The company's debt to EBITDA ratio increased to 1.6x in Q1 2025 from 1.3x in 2024, indicating a rise in leverage[11] - The company reported a debt to adjusted capitalization of 24% in Q1 2025, up from 23% in 2024[11] - The company's long-term debt, including the current portion, stood at $5,538 million, resulting in a debt to capitalization ratio of 35%[38] - The company reported a net debt of $5,530 million after accounting for cash and cash equivalents of $8 million[42] Cash Flow and Capital Expenditures - Non-GAAP cash flow for YTD 2025 was reported at $1,004 million, resulting in a non-GAAP free cash flow of $387 million after capital expenditures of $617 million[35] - Total capital expenditures for Q1 2025 reached $617 million, with a year-to-date total of $2,303 million, reflecting a slight increase compared to previous quarters[29] - Future capital expenditures are projected to focus on key operational areas, including the Permian and Montney plays, to enhance production capabilities[29] Operational Efficiency - Operating margin and netback metrics are utilized by management to assess the profitability of operations, although specific figures were not disclosed[42] - Total operating netback for USA operations in Q1 2025 was $33.22 per BOE, an increase of 5.4% from $31.48 per BOE in Q4 2024[50] - Total operating netback for Canadian operations in Q1 2025 was $13.58 per BOE, significantly up from $9.00 per BOE in Q1 2024, marking a 50.9% increase[50] - The company drilled a total of 65 net wells in Q1 2025, with 44 wells in USA operations and 21 in Canadian operations, indicating a robust drilling activity[31]