Disclaimers and Non-GAAP Definitions For convenience, references in this presentation to "Ovintiv", "OVV", the "Company", "we", "us" and "our" may, where applicable, refer only to or include any relevant direct and indirect subsidiary entities and partnerships ("Subsidiaries") of Ovintiv Inc., and the assets, activities and initiatives of such Subsidiaries. The terms "include", "includes", "including" and "included" are to be construed as if they were immediately followed by the words "without limitation", ...

Financial Data and Key Metrics Changes - The company generated cash flow per share of $3.51 and free cash flow of $392 million, both exceeding consensus estimates [14] - Full year free cash flow guidance was increased by 10% to approximately $1.65 billion, reflecting strong operational performance [16][17] - The company returned approximately $223 million to shareholders through share buybacks and dividends [14] Business Line Data and Key Metrics Changes - Production during the quarter exceeded guidance across all products, driven by the integration of Montney assets and operational efficiencies [15] - The company increased its oil and condensate guidance by 2,000 barrels per day to an average of 207,000 barrels per day for the year [23] - NGL volume expectations were raised by about 5,000 barrels per day due to ethane recovery in the Anadarko [23] Market Data and Key Metrics Changes - The company is now less than 20% exposed to AECO prices for the remainder of 2025, with increased exposure to JKM pricing and Chicago markets [20] - The company has been realizing 72% of NYMEX for Canadian gas, compared to AECO's 40% [48] Company Strategy and Development Direction - The company focuses on capital discipline, operational efficiency, and innovative technology to enhance returns and free cash flow generation [8][11] - The strategy includes maintaining a high-quality inventory and maximizing resource recovery through cube development [25][28] - The company aims to achieve a net debt target of $4 billion while balancing shareholder returns and debt reduction [19][93] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to generate superior returns and free cash flow through the commodity cycle, with a breakeven price under $40 WTI [9] - The integration of Montney assets has been successful, leading to significant cost savings and operational efficiencies [31] - Management highlighted the importance of maintaining a disciplined approach to capital allocation and the potential for further efficiency gains [11][17] Other Important Information - The company has repurchased a total of $2.2 billion worth of shares since the inception of its buyback program [17] - The company is exploring opportunities to diversify its gas exposure and maximize profitability through new marketing agreements [20] Q&A Session Summary Question: Thoughts on portfolio and potential for consolidation - Management indicated that the current portfolio is strong and any future acquisitions would need to exceed existing asset value [38] Question: Long-term cash tax rate outlook - Management expects a cash tax rate of about 3% of pre-tax book income for the U.S. over the next three to five years [41] Question: Return of capital strategy - Management emphasized the importance of balancing debt reduction and share buybacks, viewing both as valuable for shareholder returns [46][78] Question: Marketing strategy for Montney gas - Management highlighted successful diversification strategies that have improved netbacks significantly [48] Question: Capital efficiency in Montney - Management confirmed that capital savings from the Montney acquisition have been integrated into guidance, with ongoing efforts to improve efficiency [60] Question: Service cost deflation and its impact - Management noted that service cost deflation is matching expectations and could provide a tailwind for 2026 [102]

Financial Data and Key Metrics Changes - The company reported cash flow per share of $3.51 and free cash flow of $392 million, both exceeding consensus estimates [13] - Full year free cash flow guidance was increased by 10% to approximately $1.65 billion, reflecting strong operational performance [15][16] - The company achieved a 25% growth in cash flow per share from 2021 to 2024, despite a 10% decline in realized prices during the same period [12] Business Line Data and Key Metrics Changes - Production during the quarter exceeded guidance across all products, driven by the integration of Montney assets and operational efficiencies [14] - The company increased its oil and condensate guidance by 2,000 barrels per day to an average of 207,000 barrels per day for the year [22] - NGL volume expectations were raised by about 5,000 barrels per day due to ethane recovery in the Anadarko Basin [22] Market Data and Key Metrics Changes - The company is now less than 20% exposed to AECO prices for the remainder of 2025, with increased exposure to JKM pricing and Chicago markets [19] - The company expects natural gas volumes in the second half of the year to be higher than the first half, alleviated by LNG Canada coming online [23] Company Strategy and Development Direction - The company focuses on capital discipline, inventory depth, and operational efficiency to deliver superior returns [7] - The integration of Montney assets has been successful, achieving significant cost savings and operational efficiencies [30][31] - The company aims to maintain a balance between debt reduction and shareholder returns through buybacks and dividends [16][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to generate durable free cash flow and superior returns despite commodity price fluctuations [12][15] - The company is optimistic about the potential for gas sales to data centers, enhancing margins and profitability [20] - Management highlighted the importance of innovation and technology adoption in maintaining competitive advantages [9][95] Other Important Information - The company has repurchased a total of $2.2 billion worth of shares since the inception of its buyback program [16] - The company is targeting a net debt of $4 billion, with plans to maintain an investment-grade credit rating [18][96] Q&A Session Summary Question: Thoughts on OVV as a natural consolidator - Management acknowledged the strong performance and indicated that any future M&A would need to exceed the value of their current assets [39] Question: Long-term cash tax rate outlook - Management indicated a reduction in cash tax guidance due to changes in depreciation, projecting a long-term rate of about 3% of pre-tax book income [42] Question: Return of capital strategy - Management emphasized the importance of balancing debt reduction and buybacks, highlighting the value proposition of their cash flow per share growth [48][49] Question: Marketing strategy for Montney gas - Management noted successful diversification strategies, achieving 72% of NYMEX pricing for Canadian gas, significantly higher than AECO prices [50] Question: Capital efficiency in Montney - Management confirmed that capital savings from the Montney acquisition were already integrated into guidance, with ongoing efforts to improve efficiency [60] Question: Future of service costs and capital allocation - Management expressed optimism about potential service cost deflation in 2026, while maintaining a focus on capital efficiency across the portfolio [107]