Ovintiv (OVV) Q1 Results - May 6

[dan_s]

Highlights:

Generated cash from operating activities of $873 million, Non-GAAP Cash Flow of $1,004 million and Non-GAAP Free Cash Flow of $387 million after capital expenditures of $617 million < Non-GAAP Cash Flow is "Adjusted Operating Cash Flow" before changes in Working Capital accounts. It beat my forecast of $992 million.

First quarter oil and condensate production was above the guidance range at 206 thousand barrels per day ("Mbbls/d") < Slightly above my forecast of 201.7 Mbbls/day.

Average total production of approximately 588 thousand barrels of oil equivalent per day ("MBOE/d") was above the midpoint of the guidance range and included 89 Mbbls/d of other NGLs (C2 to C4) and 1,764 million cubic feet per day ("MMcf/d") of natural gas < Slightly higher than my total production forecast of 585,000 Boepd. Production mix was close to my forecast.

Closed the previously announced acquisition of certain Montney assets in an all-cash transaction for approximately $2.3 billion after preliminary closing adjustments

Closed the previously announced divestiture of Uinta assets for approximately $1.9 billion after preliminary closing adjustments
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I will update my forecast/valuation model tomorrow morning.