Ovintiv Inc. (OVV) Q4 Results - Feb 27

[dan_s]

Q4 results are very close to my forecast. I will update my forecast/valuation model on Tuesday.

Company Delivers Record Financial Results and Significant Inventory Additions

Highlights:

Full Year 2022

Generated net earnings of $3.6 billion, cash from operating activities of $3.9 billion, Non-GAAP Cash Flow of $4.1 billion and Non-GAAP Free Cash Flow of $2.3 billion after capital expenditures of $1.8 billion

Reduced total long-term debt by approximately $1.2 billion; Non-GAAP Debt to Adjusted EBITDA ratio of 0.8 times at year-end, down from 1.5 times at year-end 2021

Returned $958 million to shareholders through the combination of base dividend payments and share buybacks

Added approximately 450 net premium drilling locations through inventory renewal program, replacing approximately 200% of full-year 2022 net wells turned in line ("TIL")

Increased quarterly dividend payments by 25% to $1.00 per share annualized

Delivered average annual production volumes of 510 thousand barrels of oil equivalent per day ("MBOE/d"), including 176 thousand barrels per day ("Mbbls/d") of oil and condensate, 86 Mbbls/d of other NGLs (C2 to C4) and 1,494 million cubic feet per day ("MMcf/d") of natural gas; all in line with Company guidance

Fourth Quarter 2022

Generated fourth quarter net earnings of $1.3 billion, cash from operating activities of $875 million, Non-GAAP Cash Flow of $895 million and Non-GAAP Free Cash Flow of $537 million after capital expenditures of $358 million

Delivered average quarterly production volumes of 524 MBOE/d, including 175 Mbbls/d of oil and condensate, 89 Mbbls/d of other NGLs and 1,561 MMcf/d of natural gas; all in line with Company guidance

2023 Outlook

Announced 2023 capital program of approximately $2.15 to $2.35 billion, which is expected to deliver total production volumes of 500 to 525 MBOE/d