Ovintiv Inc. (OVV) Q3 Results - Nov 8

[dan_s]

Third Quarter 2024 Financial and Operating Results

> The Company recorded net earnings of $507 million, or $1.92 per diluted share of common stock. Included in net earnings were net gains of $150 million related to the settlement of a legacy asset disposition and net gains on risk management in revenues of $128 million, before tax. < My forecast of Adjusted Net Income was $262 million.

> Cash from operating activities was $1,022 million, Non-GAAP Cash Flow was $978 million and capital investment totaled approximately $538 million, resulting in $440 million of Non-GAAP Free Cash Flow. < They beat my forecast of $921 million Adjusted Operating Cash Flow, which should be compared to "Non-GAAP Cash Flow" above. Adjusted CFPS is what impacts my stock valuations the most.

> Third quarter average total production volumes were approximately 593 MBOE/d, including 212 Mbbls/d of oil and condensate, 93 Mbbls/d of other NGLs (C2 to C4) and 1,725 MMcf/d of natural gas. < Beat my forecasts of 582,000 Boepd and 207,774 bpd of oil & condensate.

> Upstream operating expense was $4.17 per barrel of oil equivalent ("BOE"). Upstream transportation and processing costs were $7.31 per BOE. Production, mineral and other taxes were $1.56 per BOE, or 4.9% of upstream revenue. These costs were below the low-end of guidance on a combined basis.

> Excluding the impact of hedges, third quarter average realized prices were $72.00 per barrel for oil and condensate (96% of WTI), $18.13 per barrel for other NGLs (C2-C4) and $1.29 per thousand cubic feet ("Mcf") for natural gas (60% of NYMEX) resulting in a total average realized price of $32.41 per BOE.

> Including the impact of hedges, third quarter average realized prices were $72.00 per barrel for oil and condensate (96% of WTI), $18.33 per barrel for other NGLs (C2-C4) and $1.88 per Mcf for natural gas (87% of NYMEX) resulting in a total average realized price of $34.17 per BOE.
Guidance

The Company issued its fourth quarter 2024 guidance and raised its full year production guidance while narrowing the range for full year capital investment around an unchanged midpoint. Full year production volumes are expected to average 583 to 587 MBOE/d, with full year capital investment of $2.275 billion to $2.325 billion. < Within previous capex guidance range.