Ovintiv(US:OVV)2025-11-04 22:06Financial Performance - Total revenues for Q3 2025 were $2,066 million, a decrease of 11.1% compared to $2,324 million in Q3 2024[2]. - Net earnings for Q3 2025 were $148 million, down 70.8% from $507 million in Q3 2024, resulting in a diluted earnings per share of $0.57[2][3]. - Operating income for the nine months ended September 30, 2025, was $695 million, a decline of 55.9% from $1,577 million in the same period of 2024[2]. - Total operating expenses for Q3 2025 were $1,793 million, slightly down from $1,797 million in Q3 2024[2]. - Cash from operating activities for the nine months ended September 30, 2025, was $2,698 million, compared to $2,701 million in the same period of 2024[5]. - The company reported impairments of $141 million in Q3 2025, while there were no impairments reported in Q3 2024[2][5]. - Net earnings for Q3 2025 reached $296 million, a significant increase from $148 million in Q2 2025, while year-to-date earnings totaled $1,125 million[7]. - Non-GAAP adjusted earnings for Q3 2025 were $902 million, compared to $267 million in Q2 2025, with year-to-date adjusted earnings at $1,560 million[7]. - Non-GAAP cash flow for Q3 2025 was $2,812 million, up from $895 million in Q2 2025, with total cash flow year-to-date at $4,042 million[7]. - The company reported a debt to capitalization ratio of 34% for 2025, a slight improvement from 35% in 2024[9]. Production and Operations - Average oil production for Q3 2025 was 143.3 Mbbls/d, with total production volumes for oil and NGLs averaging 303.6 Mbbls/d[11]. - Natural gas production for Q3 2025 was 1,847 MMcf/d, reflecting a slight decrease from 1,925 MMcf/d in Q2 2025[11]. - The company anticipates continued growth in production volumes and cash flow, supported by ongoing operational efficiencies and market expansion strategies[7]. - USA Operations produced an average of 142.9 Mbbls/d of oil year-to-date in 2025, compared to 137.0 Mbbls/d in the same period of 2024, reflecting a 2.9% increase[12]. - Total revenues from USA Operations, excluding realized gains and losses on risk management, reached $3,517 million year-to-date in 2025, up from $4,267 million in 2024[13]. - The netback for total USA Operations was $28.56 per BOE in Q3 2025, an increase from $26.07 per BOE in Q3 2024, representing a 9.5% rise[16]. - Canadian Operations generated $1,922 million in revenues, excluding realized gains and losses on risk management, year-to-date in 2025, compared to $1,289 million in 2024, marking a significant increase[13]. - The total production of oil and NGLs in USA Operations was 229.1 Mbbls/d in Q3 2025, a slight decrease from 231.0 Mbbls/d in Q2 2025[12]. - Total oil production for USA operations averaged 142.9 Mbbls/d in Q3 2025, a slight increase from 137.0 Mbbls/d in Q2 2025[21]. - Total Production for USA Operations averaged 314.2 MBOE/d year-to-date in 2025, a slight increase from 311.9 MBOE/d in Q2 2025[26]. Capital Expenditures and Investments - Capital expenditures for Q3 2025 were $544 million, compared to $538 million in Q3 2024[5]. - Total capital expenditures for 2025 reached $1,682 million, with $544 million in Q3 2025 alone, compared to $2,303 million for the full year 2024[28]. - Total USA operations capital expenditures amounted to $1,224 million in 2025, with $416 million spent in Q3 2025[28]. - Total Canadian operations capital expenditures were $454 million in 2025, with $126 million in Q3 2025[28]. - The company drilled a total of 177 net wells in 2025, with 57 wells drilled in Q3 2025, compared to 268 wells for the full year 2024[30]. - The company completed 217 net wells on production in 2025, with 63 completions in Q3 2025, reflecting ongoing operational efficiency[30]. Debt and Equity - As of September 30, 2025, total assets were $19,388 million, an increase from $19,254 million as of December 31, 2024[4]. - The company’s long-term debt decreased to $4,393 million as of September 30, 2025, from $4,853 million at the end of 2024[4]. - Shareholders' equity as of September 30, 2025, was $10,234 million, a slight decrease from $10,331 million at the end of 2024[4]. - The company's long-term debt, including the current portion, stood at $5,212 million, resulting in a debt to capitalization ratio of 34%[36]. - Net debt, defined as long-term debt minus cash and cash equivalents, is $5,187 million[40]. Market and Pricing - The average oil price for USA operations in Q3 2025 is $67.59 per barrel, up from $66.23 in Q2 2025, indicating a 2.1% increase[18]. - The price per BOE for total operations was $32.57 in Q3 2025, compared to $29.69 in Q3 2024, indicating an increase of 9.5%[16]. - Total operations' natural gas price for Q3 2025 is $2.32 per Mcf, a significant increase from $1.79 in Q2 2025, representing a 29.6% rise[18]. - The average oil price for total operations in Q3 2025 was $66.13/bbl, compared to $64.49/bbl in Q2 2025, reflecting a 2.5% increase[20]. - Natural gas price for total operations was $2.50/Mcf in Q3 2025, up from $2.01/Mcf in Q2 2025, representing a 24.4% increase[20]. - The total operations' oil and NGLs price in Q3 2025 is $51.49 per barrel, up from $49.34 in Q2 2025, reflecting a 4.4% increase[19]. Other Key Metrics - The company incurred impairments totaling $1,321 million over the trailing 12 months[38]. - The company reported net acquisitions and divestitures totaling $360 million in 2025, with a significant divestiture of Uinta assets completed on January 22, 2025[28]. - Total sales volumes for YTD 2025 reached 166,982,360 BOE, with Q3 2025 volumes at 28,696,540 BOE[47]. - Operating margin for total operations in Q3 2025 is $635 million, with total operating expenses at $3,315 million[45]. - The company reported a debt to EBITDA ratio of 1.8 times and a debt to adjusted EBITDA ratio of 1.2 times[38].