Ovintiv(OVV)2025-05-06 21:05Commodity Price Risk - The company reported a commodity price risk exposure, with a potential unrealized loss of $44 million for a 10% increase in oil prices and a loss of $53 million for a 10% increase in natural gas prices[255]. - The company anticipates continued volatility in oil, NGL, and natural gas prices, impacting future revenues and cash flows[254]. - The company has implemented risk management programs to mitigate exposure to commodity prices, interest rates, and foreign exchange fluctuations[22]. Interest Rate Sensitivity - As of March 31, 2025, the company had $85 million in floating rate revolving credit and term loan borrowings, with a sensitivity of $1 million for each 1% change in interest rates[263]. Foreign Currency Exchange - The company entered into $51 million notional U.S. dollar denominated currency swaps at an average exchange rate of C$1.3875 to US$, maturing monthly throughout Q2 2025[259]. - A 10% increase in foreign currency exchange rates could result in a gain of $37 million, while a 10% decrease could lead to a loss of $45 million[261]. Cost Management - The company experienced a decrease in capital investment by $8 million and a decrease in transportation and processing expenses by $15 million compared to the same period in 2024[258]. - The company is focused on managing cost inflation and expected cost structures, including operating, transportation, processing, and labor expenses[22]. Environmental, Social, and Governance Goals - The company is committed to achieving its environmental, social, and governance goals, with ongoing assessments of its strategies and objectives[22]. Business Risks - The company’s forward-looking statements are subject to significant business, economic, and regulatory risks that could cause actual results to differ materially from projections[23].