Ovintiv(US:OVV)2021-04-30 19:23Financial Performance - Ovintiv reported net earnings of $309 million in 1Q21[2] - The company generated $540 million in free cash flow during 1Q21[4] - Ovintiv expects 2021 to be the fourth consecutive year of free cash flow generation[5] - The company achieved a $156 million cash tax recovery in 1Q21[5] Capital Expenditure and Debt Reduction - The company reiterated its FY21 capex guidance of $1.5 billion[5] - Ovintiv exceeded its divestiture target with over $1.1 billion in asset sales[7,8] - The company is accelerating debt reduction, targeting $4.5 billion in debt by 1H22[7,8] - YE21 debt is projected to drop to approximately $4.7 billion at $60/bbl WTI oil[8] Production and Efficiency - 1Q21 crude and condensate production averaged 198 Mbbls/d[5] - Natural gas production in 1Q21 was 1,576 MMcf/d[5] - NGLs (C2-C4) production in 1Q21 was 78 Mbbls/d[5] - The company is reaffirming its $1.5 billion FY21 capex guidance despite inflationary pressures, due to innovation and efficiencies[11] - The company is maintaining its crude and condensate production guidance at approximately 190 Mbbls/d post asset sales[7,66] - The company is targeting a 33% reduction in methane intensity by 2025[26,54] - Flared and vented gas was less than 0.40% of sales gas in 1Q21[7,55]