Ovintiv(US:OVV) ZACKS·2025-11-06 17:31Core Insights - Ovintiv Inc. reported third-quarter 2025 adjusted earnings per share of $1.03, surpassing the Zacks Consensus Estimate of 97 cents, driven by increased plant condensate production and higher average realized natural gas prices, although down from $1.85 year-over-year [1][10] - The company's total revenues were $2.1 billion, an 11% decrease from the previous year due to lower oil production and prices, yet still exceeding the Zacks Consensus Estimate by 6.1% [2][10] - Ovintiv's board declared a quarterly dividend of 30 cents per share, payable on December 31, 2025, to shareholders of record as of December 15, 2025 [2] Production and Financial Performance - Ovintiv achieved total production of 630,400 barrels of oil equivalent per day (BOE/d) in Q3 2025, up from 592,600 BOE/d in the prior year, exceeding predictions [6][10] - Natural gas production rose to 1,925 million cubic feet per day (MMcf/d) from 1,725 MMcf/d year-over-year, also beating estimates [6] - Total liquids production increased to 309.5 thousand barrels per day (Mbbls/d) from 305 Mbbls/d in the prior year, surpassing expectations [7] Pricing and Costs - Ovintiv's realized natural gas price was $2.01 per thousand cubic feet, up from $1.88 year-over-year, while the realized oil price fell to $66.51 per barrel from $73.23 [8] - Total expenses were $1.8 billion, a slight decrease from the previous year but higher than projections, with cash from operating activities at $812 million compared to $1 billion year-over-year [9][10] Debt and Shareholder Returns - The company reduced its net debt by $126 million during the quarter, ending with approximately $5.2 billion in outstanding debt [3][10] - Ovintiv returned a total of $235 million to shareholders through dividends and share repurchases [3][10] Capital Expenditures and Future Guidance - Capital investments for Q3 were $544 million, slightly up from $538 million in the prior year, with a non-GAAP free cash flow of $351 million [11] - For Q4 2025, Ovintiv expects total production between 610 MBOE/d and 630 MBOE/d, with capital investment projected between $440 million and $490 million [15][16] - The company reaffirmed its full-year capital guidance while raising its production estimate for 2025 to an average of 610 MBOE/d to 620 MBOE/d [16] Acquisition and Divestiture Plans - Ovintiv announced plans to acquire NuVista in a $2.7 billion cash-and-stock deal, adding significant assets and production capabilities, expected to close by Q1 2026 [5] - The company also plans to divest its Anadarko asset, with proceeds aimed at accelerating debt reduction [5]