Ovintiv Reports First Quarter 2025 Financial and Operating Results

Core Viewpoint - Ovintiv Inc. reported strong first quarter 2025 results, emphasizing operational excellence and free cash flow generation, while maintaining capital investment plans amidst market volatility [3][4][5]. Financial Performance - Generated cash from operating activities of $873 million, with Non-GAAP Cash Flow of $1,004 million and Non-GAAP Free Cash Flow of $387 million after capital expenditures of $617 million [7][8]. - The company recorded a net loss of $159 million, or $(0.61) per diluted share, which included a non-cash ceiling test impairment of $557 million after tax [8][26]. - Average total production was approximately 588 MBOE/d, exceeding guidance, with oil and condensate production at 206 Mbbls/d [7][8]. Production and Capital Investment - Full year production volumes are expected to average between 595 to 615 MBOE/d, with capital investment projected at $2.15 billion to $2.25 billion [5][6]. - Specific production averages for the first quarter included 217 MBOE/d from Permian, 272 MBOE/d from Montney, and 91 MBOE/d from Anadarko [14][15][16]. Shareholder Returns - The company plans to return at least 50% of post-base dividend Non-GAAP Free Cash Flow to shareholders through buybacks and/or variable dividends [9]. - Share buybacks were temporarily paused in Q4 2024 but resumed in Q2 2025, with approximately $146 million expected to be repurchased [10]. Balance Sheet and Liquidity - As of March 31, 2025, Ovintiv had approximately $3.5 billion in total liquidity, including available credit facilities and cash [11]. - The company reported a Debt to EBITDA ratio of 1.6 times and a Non-GAAP Debt to Adjusted EBITDA ratio of 1.2 times [11][30]. Sustainability Initiatives - The company achieved a greater than 45% reduction in Scope 1 & 2 greenhouse gas emissions intensity since 2019, continuing progress towards a 50% reduction goal by 2030 [25]. - Released its 2024 Sustainability Report, highlighting efforts in environmental responsibility and corporate governance [17][18].