Ovintiv (OVV) Q1 Results - May 8

[dan_s]

Highlights:

Generated net earnings of $338 million, cash from operating activities of $659 million, Non-GAAP Cash Flow of $1,035 million (< beat my operating cash flow forecast of $1,015 million) and Non-GAAP Free Cash Flow of $444 million after capital expenditures of $591 million

First quarter production was at the high-end or above the guidance range on every product with average total production volumes of 574 thousand barrels of oil equivalent per day ("MBOE/d"), including 211 thousand barrels per day ("Mbbls/d") of oil and condensate, 88 Mbbls/d of other NGLs (C2 to C4) and 1,648 million cubic feet per day ("MMcf/d") of natural gas < Q1 production beat my forecast of 570,000 Boepd and mix is very close to my forecast.

Returned $328 million to shareholders through the combination of base dividend payments and share buybacks

Raised full year production guidance to 560 MBOE/d to 575 MBOE/d while leaving capital guidance unchanged at $2.2 billion to $2.4 billion < My full year production forecast was 565,000 Boepd. I will be raising it to 570,000 Boepd. Due to the impact of Spring Breakup on well completions, Ovintiv's production is expected to be down a bit from Q1 to Q2 then rise steadily into year-end.


"Our solid execution continued across the portfolio during the first quarter," said Ovintiv President and CEO, Brendan McCracken. "Our combination of strong productivity, leading capital efficiency and a stronger oil price environment have raised our expectations for 2024 Non-GAAP Free Cash Flow from $1.6 billion to $1.9 billion – roughly $750 million more than last year."