Financial Data and Key Metrics Changes - In Q4, mineral and royalty production was 30,900 BOE per day, a decrease of 11% from the prior quarter [11] - Total production for the quarter was 32,100 BOE per day, completing the year at the high end of updated guidance [11] - Net income for Q4 was $72.2 million, with adjusted EBITDA at $76.7 million [13] - Distributable cash flow for the quarter was $66.8 million, representing 1.05x coverage for the period [13] Business Line Data and Key Metrics Changes - The company signed development agreements with Revenant Energy and Katouris Energy, placing approximately 500,000 gross acres into development [4] - Minimum drilling commitments ramp up to 37 gross wells per year by 2031, with a total of 50 gross wells expected over the same period [4][5] - Aethon brought several new wells online in the Shelby Trough, producing about 25 MMcf-30 MMcf a day, with additional wells expected in Q1 [4] Market Data and Key Metrics Changes - The company anticipates significant increases in natural gas production and distributions for unitholders over the coming years, driven by growing demand from LNG and electric power generation [14] - The outlook for natural gas is increasingly constructive over the next decade, supported by significant assets near Gulf Coast LNG facilities [14] Company Strategy and Development Direction - The company is focused on increasing production from existing assets and driving long-term value for unitholders through strategic acquisitions and development agreements [6][9] - A new opportunity is being built in the Haynesville expansion area, expected to add significant inventory and scale [5] - The company is strategically increasing G&A in 2026 to support increased activity levels [9] Management's Comments on Operating Environment and Future Outlook - Management views 2026 as a turning point with new and increased development in the Shelby Trough and Haynesville expansion areas [11] - The company remains confident in its ability to fund distributions and grow throughout the year based on minimum commitments and ongoing activity [32][33] - Management is optimistic about long-term growth due to substantial industry-leading inventory and advantageous proximity to key demand centers [9] Other Important Information - The partnership is conducting two substantial 3D seismic surveys covering about 360,000 gross acres, which is expected to enhance subsurface evaluation and accelerate development [12] - The proprietary nature of these surveys may provide opportunities to license the data to the industry, potentially generating additional revenue [12][37] Q&A Session Summary Question: Guidance for production levels throughout 2026 - Management indicated that production is expected to start at the end of 2025 levels and increase materially throughout 2026 due to new development agreements and high-interest projects [20][21] Question: Pipeline of potential new development agreements - Management welcomes both existing and new partners for development agreements and is focused on diversifying new developments [23] Question: Activity in the Permian and its priority - Management is excited about high-interest activity in the Permian and anticipates increased leasing and activity throughout 2026 and 2027 [28][29] Question: Funding the distribution through cash flow - Management expressed confidence in funding the $0.30 distribution through distributable cash flow without relying on liquidity, supported by strong hedges in place for natural gas [32][33] Question: Seismic expenses and their impact on adjusted EBITDA - Management confirmed that the seismic expenses are expected to be primarily incurred in 2026, with the majority of costs related to two specific shoots to be completed in early 2027 [35][36]

Financial Data and Key Metrics Changes - In the fourth quarter, mineral and royalty production was 30.9 thousand BOE per day, a decrease of 11% from the prior quarter, while total production for the quarter was 32.1 thousand BOE per day [11] - Net income for the fourth quarter was $72.2 million, with adjusted EBITDA at $76.7 million [13] - Distributable cash flow for the quarter was $66.8 million, representing 1.05 times coverage for the period [13] Business Line Data and Key Metrics Changes - The company achieved significant commercial milestones, including development agreements with Revenant Energy and Caturus Energy, placing approximately 500,000 gross acres into development [4] - Aethon brought several new wells online in the Shelby Trough at about 25-30 MMcf a day, with additional wells expected to come online in the first quarter [4][5] Market Data and Key Metrics Changes - The company anticipates significant increases in natural gas production and distributions for unitholders over the coming years, driven by growing demand from LNG and electric power generation [14] - The outlook for natural gas is increasingly constructive over the next decade, supported by the company's significant assets near Gulf Coast LNG facilities [15] Company Strategy and Development Direction - The company is focused on increasing production from existing assets and driving long-term value for unitholders, with a comprehensive commercial strategy that includes grassroots acquisitions and high-interest development agreements [9] - The company is strategically increasing G&A in 2026 to support the anticipated increase in activity [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence that 2026 will be a turning point, with new and increased development in the Shelby Trough and Haynesville expansion areas [11] - The company is monitoring increasing activity levels in the Haynesville and commodity price dynamics as it looks towards 2026 production and distribution [11] Other Important Information - The partnership is conducting two substantial 3D seismic surveys covering about 360,000 gross acres, which are expected to enhance subsurface evaluation and accelerate development [12] - The company has invested about $240 million in its acquisition program since launching in 2023 [6] Q&A Session Summary Question: Guidance for the year and production cadence - Management indicated that production is expected to start at the end of 2025 levels and increase materially throughout 2026, primarily due to new development agreements and high-interest projects [20][21] Question: Pipeline of potential new development agreements - Management stated that they welcome both existing partners and newcomers for new developments, indicating a diverse approach to expanding their asset base [24] Question: Activity in the Permian and liquids guidance - Management highlighted excitement about high-interest activity in the Permian, with expectations for increased activity and volumes primarily in 2026 and 2027 [30][31] Question: Funding the distribution through cash flow - Management expressed confidence in funding the $0.30 distribution through distributable cash flow without relying on liquidity, supported by strong development commitments [34][35] Question: Seismic expenses and adjusted EBITDA - Management confirmed that the seismic expenses are expected to be primarily incurred in 2026, with the majority of costs related to the seismic shoots completed by early 2027 [37]

Financial Data and Key Metrics Changes - In Q4 2025, mineral and royalty production was 30.9 thousand BOE per day, a decrease of 11% from the prior quarter, while total production for the quarter was 32.1 thousand BOE per day [11] - Net income for the fourth quarter was $72.2 million, with adjusted EBITDA at $76.7 million [13] - Distributable cash flow for the quarter was $66.8 million, representing 1.05 times coverage for the period [13] Business Line Data and Key Metrics Changes - The company signed development agreements with Revenant Energy and Caturus Energy, placing approximately 500,000 gross acres into development, with commitments ramping up to 37 gross wells per year by 2031 [4] - Aethon brought several new wells online in the Shelby Trough at about 25-30 MMcf a day, with additional wells expected in Q1 2026 [4][5] Market Data and Key Metrics Changes - The company anticipates significant increases in natural gas production and distributions for unitholders over the coming years, driven by growing demand from LNG and electric power generation [14] - The outlook for natural gas is increasingly constructive over the next decade, supported by significant assets near Gulf Coast LNG facilities [14] Company Strategy and Development Direction - The company is focused on increasing production from existing assets and driving long-term value for unitholders through strategic acquisitions and development agreements [6][9] - A new opportunity is being built in the Haynesville expansion area, expected to add significant inventory and scale to current developments [5] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term growth for unitholders, citing substantial industry-leading inventory and advantageous proximity to key demand centers [9] - The company expects 2026 to be a turning point with new and increased development in the Shelby Trough and Haynesville expansion areas [11] Other Important Information - The partnership is conducting two substantial 3D seismic surveys covering about 360,000 gross acres, which are expected to enhance subsurface evaluation and accelerate development [12] - The company has updated the presentation of adjusted EBITDA and distributable cash flow to exclude seismic acquisition costs [13] Q&A Session Summary Question: Guidance for the year and production cadence - Management indicated that production is expected to start at the end of 2025 levels and increase materially throughout 2026 due to new development agreements and high-interest projects [19][20] Question: Pipeline of potential new development agreements - Management stated they welcome both existing and new partners for development agreements, emphasizing diversification in their approach [22][23] Question: Activity in the Permian and leasing outside Coterra - Management highlighted excitement about high-interest developments in the Permian, with increased activity expected in 2026 and 2027 [29][30] Question: Funding the distribution through distributable cash flow - Management expressed confidence in funding the $0.30 distribution through distributable cash flow without relying on liquidity, supported by strong hedges in place for natural gas [32][34] Question: Seismic expenses and adjusted EBITDA - Management confirmed that the seismic expenses are expected to be primarily incurred in 2026, with the majority of costs related to the seismic shoots completed by early 2027 [36][38]

Other17.4420.8818.9419.70Total NGLs32.7635.3436.0335.28Natural GasNYMEX ($/MMBtu)3.552.793.432.27Realized Natural Gas Price ($/Mcf)2.652.422.542.17Cost Summary(for the period ended December 31)($/BOE)20252024Production, mineral and other taxes1.271.56Upstream transportation and processing7.517.25Upstream operating3.804.24Administrative, excluding long-term incentive, restructuring, transaction and legal costs1.261.32Debt to EBITDA (1)($ millions, except as indicated)December 31, 2025December 31, 2024Long-Te ...

Core Insights - Ovintiv Inc. reported strong third quarter results, highlighting operational excellence and capital efficiency, leading to an increase in full year production guidance while maintaining capital investment levels [3][5][7]. Financial Performance - Generated cash from operating activities of $812 million, with Non-GAAP Cash Flow of $895 million and Non-GAAP Free Cash Flow of $351 million after capital expenditures of $544 million [5][6]. - Net earnings were $148 million, or $0.57 per diluted share, which included a non-cash ceiling test impairment of $108 million [6][19]. - Average total production volumes reached approximately 630 thousand barrels of oil equivalent per day (MBOE/d), exceeding guidance [5][18]. Production and Capital Investment - Full year production guidance was raised to a range of 610 MBOE/d to 620 MBOE/d, with capital investment maintained at $2.125 billion to $2.175 billion [5][7]. - Specific production figures included 212 thousand barrels per day (Mbbls/d) of oil and condensate, 98 Mbbls/d of other NGLs, and 1,925 million cubic feet per day (MMcf/d) of natural gas [5][6]. Shareholder Returns - Returned $235 million to shareholders through dividends and share buybacks, with a quarterly dividend of $0.30 per share declared [5][11][12]. - Approximately 3.7 million shares were repurchased for cancellation at a cost of about $158 million [7][12]. Debt and Liquidity - Reduced net debt by $126 million during the quarter to approximately $5.187 billion, with a Debt to EBITDA ratio of 1.8 times [5][9][24]. - Total liquidity stood at approximately $3.3 billion, including available credit facilities and cash [9][10]. Asset Highlights - Permian production averaged 210 MBOE/d, while Montney production averaged 318 MBOE/d, and Anadarko production averaged 102 MBOE/d [12][13]. - Full year capital investment expectations for the Permian, Montney, and Anadarko plays are approximately $1.20 billion to $1.25 billion, $575 million to $625 million, and $290 million to $310 million, respectively [12][13].

Core Insights - Ovintiv Inc. has lowered its full year capital investment guidance while increasing its production guidance for 2025, reflecting strong operational performance and capital efficiency [3][5][9] Financial Performance - For Q2 2025, Ovintiv reported net earnings of $307 million, or $1.18 per diluted share, with cash from operating activities amounting to $1,013 million and Non-GAAP Free Cash Flow of $392 million after capital expenditures of $521 million [9][22] - The company generated Non-GAAP Cash Flow of $913 million, down from $1,025 million in Q2 2024, while capital expenditures decreased from $622 million in Q2 2024 to $521 million in Q2 2025 [21][22] Production and Capital Guidance - Full year production volumes are now expected to average between 600 to 620 MBOE/d, with capital investment guidance lowered to $2.125 billion to $2.175 billion, a reduction of $50 million at the midpoint [5][9] - Q2 2025 production averaged 615 MBOE/d, exceeding guidance, with specific contributions of 211 Mbbls/d of oil and condensate, 96 Mbbls/d of other NGLs, and 1,851 MMcf/d of natural gas [8][9] Shareholder Returns - The company remains committed to returning at least 50% of post-base dividend Non-GAAP Free Cash Flow to shareholders through buybacks and variable dividends, having returned $223 million in Q2 2025 [7][9] - In Q2 2025, Ovintiv repurchased approximately 4.1 million shares for about $146 million and declared a quarterly dividend of $0.30 per share [7][13] Debt and Liquidity - As of June 30, 2025, Ovintiv had approximately $3.2 billion in total liquidity, with a Debt to EBITDA ratio of 1.6 times and Non-GAAP Debt to Adjusted EBITDA of 1.2 times [11][12] - The company reduced its net debt by $217 million during the quarter, bringing it to approximately $5.31 billion [9][11] Asset Highlights - In the Permian region, production averaged 215 MBOE/d, with a full year capital investment expected to be around $1.20 billion to $1.25 billion [14] - Montney production averaged 300 MBOE/d, with anticipated capital investment of approximately $575 million to $625 million [15] - Anadarko production averaged 100 MBOE/d, with expected capital investment of about $290 million to $310 million [16]