Ovintiv(OVV) - 2023 Q4 - Annual Results

markdown [Selected Financial Information](index=1&type=section&id=Selected%20Financial%20Information) Presents consolidated financial statements, including earnings, balance sheet, and cash flow data for recent fiscal years [Condensed Consolidated Statement of Earnings](index=2&type=section&id=Condensed%20Consolidated%20Statement%20of%20Earnings) Ovintiv's 2023 revenues decreased to $10.88 billion, with net earnings falling to $2.09 billion from $3.64 billion in 2022 Consolidated Statement of Earnings (2021-2023) | For the years ended December 31 (US$ millions, except per share) | 2023 | 2022 | 2021 | | :--- | :--- | :--- | :--- | | **Total Revenues** | $10,883 | $12,464 | $8,658 | | **Operating Income** | $2,864 | $3,853 | $1,519 | | **Net Earnings (Loss)** | $2,085 | $3,637 | $1,416 | | **Diluted Net Earnings per Share** | $7.90 | $14.08 | $5.32 | [Condensed Consolidated Balance Sheet](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheet) Total assets grew to $19.99 billion in 2023, driven by increased property, plant, and equipment and long-term debt Consolidated Balance Sheet Highlights (as of Dec 31) | (US$ millions) | 2023 | 2022 | | :--- | :--- | :--- | | **Total Current Assets** | $1,676 | $1,695 | | **Property, plant and equipment, net** | $14,640 | $9,468 | | **Total Assets** | $19,987 | $15,056 | | **Total Current Liabilities** | $2,812 | $2,780 | | **Long-Term Debt** | $5,453 | $3,177 | | **Total Liabilities** | $9,617 | $7,367 | | **Total Shareholders' Equity** | $10,370 | $7,689 | [Condensed Consolidated Statement of Cash Flows](index=5&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) Operating cash flow increased to $4.17 billion, while investing activities used $5.52 billion due to a corporate acquisition Consolidated Statement of Cash Flows (2021-2023) | For the years ended December 31 (US$ millions) | 2023 | 2022 | 2021 | | :--- | :--- | :--- | :--- | | **Cash From Operating Activities** | $4,167 | $3,866 | $3,129 | | **Cash From (Used in) Investing Activities** | $(5,519) | $(1,786) | $(525) | | *Corporate acquisition, net of cash acquired* | *$(3,225)* | *-* | *-* | | **Cash From (Used in) Financing Activities** | $1,359 | $(2,268) | $(2,419) | | **Increase (Decrease) in Cash** | $(2) | $(190) | $185 | [Supplemental Information](index=6&type=section&id=Supplemental%20Information) Provides additional financial and operational metrics, including non-GAAP results, production volumes, and segment-specific performance [Financial Results & Metrics](index=7&type=section&id=Financial%20Results%20%26%20Metrics) Non-GAAP Adjusted Earnings were $1.81 billion, while Non-GAAP Cash Flow decreased, and leverage metrics increased Annual Financial Performance (GAAP vs. Non-GAAP) | (US$ millions) | 2023 | 2022 | | :--- | :--- | :--- | | Net Earnings (Loss) | $2,085 | $3,637 | | Non-GAAP Adjusted Earnings | $1,810 | $1,769 | | Cash From Operating Activities | $4,167 | $3,866 | | Non-GAAP Cash Flow | $3,899 | $4,110 | Key Financial Metrics | Metric | 2023 | 2022 | | :--- | :--- | :--- | | Debt to Capitalization | 36% | 32% | | Debt to Adjusted Capitalization | 24% | 19% | | Debt to EBITDA | 1.2x | 0.7x | | Debt to Adjusted EBITDA | 1.3x | 0.8x | [Operating Performance](index=8&type=section&id=Operating%20Performance) Total production rose to 565.6 MBOE/d in 2023, but netback decreased to $24.22/BOE due to lower commodity prices [Results by Play](index=14&type=section&id=Results%20by%20Play) Permian basin production increased to 167.3 MBOE/d with $1.44 billion in capex, while the Bakken asset was divested [Non-GAAP Definitions and Reconciliations](index=19&type=section&id=Non-GAAP%20Definitions%20and%20Reconciliations) Details the reconciliation of GAAP to non-GAAP financial measures, including adjusted earnings, cash flow, and leverage ratios [Non-GAAP Reconciliations](index=20&type=section&id=Non-GAAP%20Reconciliations) Reconciles GAAP to non-GAAP measures, showing $3.90 billion Non-GAAP Cash Flow and $1.81 billion Adjusted Earnings Reconciliation to Non-GAAP Free Cash Flow (YTD 2023) | (US$ millions) | Amount | | :--- | :--- | | Cash from Operating Activities | $4,167 | | *Adjustments for working capital, etc.* | $(268) | | **Non-GAAP Cash Flow** | **$3,899** | | Deduct: Capital expenditures | $(2,744) | | **Non-GAAP Free Cash Flow** | **$1,155** | Reconciliation to Non-GAAP Adjusted Earnings (YTD 2023) | (US$ millions) | Amount | | :--- | :--- | | Net Earnings Before Income Tax | $2,510 | | *Adjustments for unrealized gains, etc.* | $(192) | | **Adjusted Earnings Before Income Tax** | **$2,318** | | Income tax expense | $(508) | | **Non-GAAP Adjusted Earnings** | **$1,810** | Reconciliation to Adjusted EBITDA (YTD 2023) | (US$ millions) | Amount | | :--- | :--- | | Net Earnings (Loss) | $2,085 | | Add back: DD&A | $1,825 | | Add back: Interest | $355 | | Add back: Income tax expense | $425 | | **EBITDA** | **$4,690** | | *Other adjustments* | $(176) | | **Adjusted EBITDA** | **$4,514** |