Ovintiv(US:OVV)2025-11-04 22:09Commodity Price Risk - The company reported a significant exposure to commodity price risk, with potential unrealized gains or losses impacting pre-tax net earnings by up to $54 million for a 10% increase in oil prices and $51 million for a 10% decrease [290]. - The company is focused on managing ongoing market risk exposures related to oil, NGL, and natural gas prices, as well as foreign currency exchange rates and interest rates [289]. - The company may enter into various derivative financial instruments to mitigate exposure to commodity price risk, governed by formal policies established by the Board of Directors [289]. Foreign Exchange Risk - The company experienced a foreign exchange impact, with a potential unrealized gain of $34 million and a loss of $42 million from a 10% fluctuation in foreign currency exchange rates [296]. - The company has not entered into any U.S. dollar denominated currency swaps as of September 30, 2025, to mitigate foreign exchange risks [294]. - The company’s financial results are significantly affected by fluctuations in the exchange rate between the U.S. and Canadian dollars, given its operations in both countries [291]. Interest Rate Risk - As of September 30, 2025, the company had floating rate borrowings of $360 million, with a sensitivity of $4 million for each 1% change in interest rates [298]. Operating and Capital Expenses - The company’s capital investment decreased by $1 million and transportation and processing expenses decreased by $3 million compared to the previous period [293]. - The company’s operating expenses decreased by $1 million, while administrative expenses decreased by $3 million compared to the same period last year [293]. - The company’s depreciation, depletion, and amortization expenses decreased by $1 million for the three months ended September 30, 2025 [293].