Operational Outperformance Underpins Strong
Financial Results
First Quarter 2023 Highlights:
- Generated net earnings of $487
million, cash from operating activities of $1,068 million, Non-GAAP Cash Flow of
$851 million and Non-GAAP Free Cash
Flow of $241 million after capital
expenditures of $610 million
- Returned $300 million to
shareholders through the combination of base dividend payments and
share buybacks
- Commodity marketing strategy delivered total company average
realized oil and condensate price of 97% of WTI and realized
natural gas price of 111% of NYMEX, including hedges
- Announced a 20% increase in quarterly dividend payments to
$0.30 per share, effective for the
June 2023 record date
- Exceeded Company's first quarter production guidance on every
product with average total production volumes of 511 thousand
barrels of oil equivalent per day ("MBOE/d"), including 166
thousand barrels per day ("Mbbls/d") of oil and condensate, 86
Mbbls/d of other NGLs (C2 to C4) and 1,555 million cubic feet per
day ("MMcf/d") of natural gas
Recent Developments:
- On April 3, announced the
acquisition of core Midland Basin assets, including approximately
65,000 net acres of largely undeveloped resource with approximately
1,050 net well locations in a cash and stock transaction
valued at approximately $4.275
billion, before closing adjustments
- On April 3, announced the
disposition of the Company's Bakken assets for proceeds of
approximately $825 million, in cash,
before closing adjustments
DENVER, May 9, 2023
/PRNewswire/ - Ovintiv Inc. (NYSE: OVV) (TSX: OVV) ("Ovintiv" or
the "Company") today announced its first quarter 2023 financial and
operating results. The Company plans to hold a conference call and
webcast at 9:00 a.m. MT (11:00 a.m. ET) on May 10,
2023. Please see dial-in details within this release, as
well as additional details on the Company's website at
www.ovintiv.com under Presentations and Events – Ovintiv.
"Picking up where we left off in the fourth quarter, our first
quarter outperformance reflects the combination of strong well
results and cost efficiencies," said Ovintiv President and CEO,
Brendan McCracken. "For the past two
quarters, our average Permian well performance was among the
highest oil volumes per lateral foot in Ovintiv's history in the
play.
The combination of strong wells across the portfolio and our
leading capital efficiency are delivering substantial Non-GAAP Free
Cash Flow, durable returns on invested capital and substantial cash
returns(1) to our shareholders. Our recently announced
transactions will further build on our momentum and are expected to
drive more than 25% higher cash returns per share over the next
twelve months following the close of the transactions and more than
40% higher cash returns per share in 2024."
First Quarter 2023 Financial and Operating Results
- The Company recorded net earnings of $487 million, or $1.97 per diluted share of common stock.
- Cash from operating activities was $1,068 million, Non-GAAP Cash Flow was
$851 million and capital investment
totaled approximately $610 million,
resulting in $241 million of Non-GAAP
Free Cash Flow.
- First quarter average total production volumes were above
Company guidance on all products at approximately 511 MBOE/d,
including 166 Mbbls/d of oil and condensate, 86 Mbbls/d of other
NGLs and 1,555 MMcf/d of natural gas.
- Upstream operating expense was $4.33 per barrel of oil equivalent ("BOE").
Upstream transportation and processing costs were $9.00 per BOE. Production, mineral and other
taxes were $1.83 per BOE. These costs
were below the midpoint of guidance on a combined basis.
- Including the impact of hedges, first quarter average realized
prices were $73.81 per barrel for oil
and condensate (97% of WTI), $21.11
per barrel for other NGLs (C2-C4) and $3.80 per thousand cubic feet ("Mcf") for natural
gas (111% of NYMEX) resulting in a total average realized price of
$39.08 per BOE. Excluding the impact
of hedges, the average realized prices for oil and condensate and
other NGLs were unchanged, while the average realized price for
natural gas was $4.34 per Mcf (127%
of NYMEX).
2023 Guidance
The Company issued its second quarter
2023 guidance and confirmed the full year guidance announced in
April. Full year 2023 guidance ranges for oil and condensate, and
total production volumes were updated in April to reflect proforma
operations assuming integration of the recently announced Midland
Basin acquisition and the Bakken divestiture.
2023
Guidance*
|
2Q
2023
|
Full Year
2023
|
Total Production
(MBOE/d)
|
515 -
535
|
520 -
545
|
Oil &
Condensate (Mbbls/d)
|
170 -
174
|
185 -
195
|
Other NGLs
(Mbbls/d)
|
85 -
90
|
80 -
85
|
Natural Gas
(MMcf/d)
|
1,575 -
1,625
|
1,525 -
1,575
|
Capital Investment
($ Millions)
|
$590 -
$630
|
$2,600 -
$2,900
|
*Assumes June 30, 2023,
closing date for both the Midland Basin acquisition and the Bakken
divestiture.
|
2024 Outlook
Ovintiv expects to deliver 2024 total company
average oil and condensate production volumes of greater than 200
Mbbls/d with total capital investment of $2.1 billion to $2.5
billion, following the integration of the recently announced
Midland Basin acquisition and the Bakken divestiture.
Midland Basin Acquisition
On April 3, Ovintiv announced it had entered into a
definitive purchase agreement to acquire substantially all
leasehold interest and related assets of Black Swan Oil & Gas,
PetroLegacy Energy and Piedra Resources which are portfolio
companies of funds managed by EnCap Investments L.P. ("EnCap"), in
a cash and stock transaction valued at approximately $4.275 billion, before closing adjustments. Upon
closing, the acquisition will add approximately 1,050 net 10,000
foot well locations to Ovintiv's Permian inventory and
approximately 65,000 net acres in the core of the Midland Basin,
strategically located in close proximity to Ovintiv's current
Permian operations.
Under the terms of the agreement, the sellers will receive
approximately 32.6 million shares of Ovintiv common stock and
$3.125 billion of cash. The cash
portion of the transaction is expected to be funded through a
combination of cash on hand, cash proceeds received from the
Company's pending sale of its Bakken assets, as well as proceeds
from new debt financing and/or borrowings under the Company's
credit facility. If required, Ovintiv has received fully
committed bridge financing from Goldman Sachs Bank USA and Morgan Stanley to facilitate the
transaction.
Ovintiv's land position in the Permian is expected to increase
to approximately 179 thousand net acres; 97% of the acquired
acreage is held by production with an average operated working
interest of 82%. At the end of June, the Company's pro forma
Permian oil and condensate production is expected to nearly double.
The Company expects to realize significant well cost savings across
its combined Permian assets resulting from optimized operations and
economies of scale.
Bakken Disposition
On April
3, Ovintiv announced that it had entered into a definitive
agreement to sell the entirety of its Bakken assets located in the
Williston Basin of North Dakota to Grayson Mill Bakken, LLC, a portfolio company of
funds managed by EnCap for total cash proceeds of approximately
$825 million, before closing
adjustments. Ovintiv's landholdings in the play totaled 46 thousand
net acres as of December 31, 2022.
First quarter production from the Bakken totaled approximately 38.8
MBOE/d (59% oil and condensate).
The effective date of the acquisition of the Midland Basin
assets and the Bakken disposition is January
1, 2023. The transactions, which are expected to close by
the end of the second quarter, are subject to the satisfaction of
customary closing conditions and closing adjustments.
Returns to Shareholders
Ovintiv remains committed to
its capital allocation framework which returns at least 50% of post
base dividend Non-GAAP Free Cash Flow to shareholders through
buybacks and/or variable dividends.
In the first quarter of 2023, the Company returned approximately
$300 million to shareholders through
share buybacks totaling approximately $239
million and its base dividend of approximately $61 million.
During the first quarter, Ovintiv purchased for cancellation,
approximately 5.2 million common shares at an average price of
$45.74 per share.
Second quarter 2023 cash returns to shareholders are expected to
total approximately $173 million,
consisting of share buybacks of approximately $90 million and base dividend payments of
approximately $83 million, bringing
total cash returns since the third quarter of 2021 to approximately
$1.6 billion.
Using March 30, 2023 strip
pricing, the Company expects the combined Midland Basin acquisition
and the Bakken disposition transactions to drive more than 25%
higher cash returns per share over the next twelve months following
the close of the transactions and more than 40% higher cash returns
per share in 2024.
Continued Balance Sheet Focus
Ovintiv had $3.2 billion in total liquidity as at
March 31, 2023, which included
available credit facilities of $3.2
billion, available uncommitted demand lines of $280 million, and cash and cash equivalents of
$26 million, net of outstanding
commercial paper of $280 million. The
Company's long-term debt totaled $3.8
billion.
The Company reported Debt to EBITDA of 0.6 times and Non-GAAP
Debt to Adjusted EBITDA of 0.9 times as of March 31, 2023.
Ovintiv's leverage metrics are expected to remain strong
following the close of the transactions. Based on a twelve-month
projected Adjusted EBITDA using strip pricing as of March 30, 2023, the Company's leverage ratio is
expected to be approximately 1.4 times Debt to Adjusted EBITDA
following the close of the transaction. Going forward, Ovintiv will
steward towards a 1.0 times leverage ratio and $4.0 billion of total debt.
Ovintiv remains committed to maintaining a strong balance sheet
and is currently rated investment grade by four credit rating
agencies.
Dividend Declared
On April 2,
2023, Ovintiv's Board declared a quarterly dividend of
$0.30 per share of common stock
payable on June 30, 2023, to
shareholders of record as of June 15,
2023.
Inventory Renewal
The Company continued to add premium
drilling locations through low-cost bolt-on acquisitions during the
first quarter which totaled $199
million and was largely focused in the Permian and Uinta
plays.
Asset Highlights
Permian
Permian production averaged 116 MBOE/d (77%
liquids) in the first quarter. The Company had 14 net wells
turned in line ("TIL").
Montney
Montney production
averaged 210 MBOE/d (19% liquids) in the first quarter. The Company
had 11 net wells TIL.
Uinta
Uinta production averaged 16 MBOE/d (84%
liquids) in the first quarter. No wells were TIL during the
quarter.
Bakken
Bakken production averaged 39 MBOE/d (79%
liquids) in the first quarter. The Company had eight net wells TIL.
Anadarko
Anadarko production averaged 124 MBOE/d (62%
liquids) in the first quarter. The Company had 13 net wells
TIL.
For additional information, please refer to the First Quarter
2023 Results Presentation available on Ovintiv's website,
www.ovintiv.com under Presentations and Events – Ovintiv.
Supplemental Information, and Non-GAAP Definitions and
Reconciliations, are available on Ovintiv's website under Financial
Documents Library.
Conference Call Information
A conference call and
webcast to discuss the Company's first quarter results will be held
at 9:00 a.m. MT (11:00 a.m. ET) on May 10,
2023.
To join the conference call without operator assistance, you may
register and enter your phone number
at https://emportal.ink/43vQfOY to receive an instant
automated call back. You can also dial direct to be entered to the
call by an Operator. Please dial 888-664-6383 (toll-free in
North America) or 416-764-8650
(international) approximately 15 minutes prior to the call.
The live audio webcast of the conference call, including slides
and financial statements, will be available on Ovintiv's website,
www.ovintiv.com under Investors/Presentations and Events. The
webcast will be archived for approximately 90 days.
Refer to Note 1 Non-GAAP measures and the tables in this
release for reconciliation to comparable GAAP financial
measures.
Capital Investment and Production
(for the period ended
March 31)
|
1Q
2023
|
1Q 2022
|
Capital Expenditures
(1) ($ millions)
|
610
|
451
|
Oil
(Mbbls/d)
|
127.3
|
128.3
|
NGLs – Plant
Condensate (Mbbls/d)
|
38.7
|
44.6
|
Oil & Plant
Condensate (Mbbls/d)
|
166.0
|
172.9
|
NGLs – Other
(Mbbls/d)
|
86.2
|
79.2
|
Total Liquids
(Mbbls/d)
|
252.2
|
252.1
|
Natural gas
(MMcf/d)
|
1,555
|
1,487
|
Total production
(MBOE/d)
|
511.4
|
499.9
|
(1)
Including capitalized directly attributable internal
costs.
|
First Quarter Financial Summary
(for the period ended
March 31)
($ millions)
|
1Q
2023
|
1Q 2022
|
Cash From (Used In)
Operating Activities
Deduct (Add
Back):
Net change in other
assets and liabilities
Net change in non-cash
working capital
|
1,068
(5)
222
|
685
(12)
(346)
|
Non-GAAP Cash Flow
(1)
|
851
|
1,043
|
|
|
|
Non-GAAP Cash
Flow (1)
|
851
|
1,043
|
Less: Capital
Expenditures (2)
|
610
|
451
|
Non-GAAP Free Cash
Flow (1)
|
241
|
592
|
|
|
|
Net Earnings (Loss)
Before Income Tax
Before-tax (Addition)
Deduction:
Unrealized gain (loss)
on risk management
Non-operating foreign
exchange gain (loss)
|
613
18
5
|
(246)
(1,012)
3
|
Adjusted Earnings
(Loss) Before Income Tax
Income tax expense
(recovery)
|
590
140
|
763
203
|
Non-GAAP Adjusted
Earnings (1)
|
450
|
560
|
(1) Non-GAAP Cash Flow,
Non-GAAP Free Cash Flow and Non-GAAP Adjusted Earnings are non-GAAP
measures as defined in Note 1.
|
(2) Including
capitalized directly attributable internal costs.
|
Realized Pricing Summary (Including the impact of realized
gains (losses) on risk management)
(for the period ended
March 31)
|
1Q
2023
|
1Q 2022
|
Liquids
($/bbl)
|
|
|
WTI
|
76.13
|
94.29
|
Realized Liquids
Prices
|
|
|
Oil
|
74.06
|
80.74
|
NGLs – Plant
Condensate
|
73.01
|
85.94
|
Oil & Plant
Condensate
|
73.81
|
82.08
|
NGLs –
Other
|
21.11
|
34.94
|
Total
NGLs
|
37.19
|
53.33
|
|
|
|
Natural
Gas
|
|
|
NYMEX
($/MMBtu)
|
3.42
|
4.95
|
Realized Natural Gas
Price ($/Mcf)
|
3.80
|
2.60
|
Cost Summary
(for the period ended
March 31)
($/BOE, except as
indicated)
|
1Q
2023
|
1Q 2022
|
Production, mineral and
other taxes
|
1.83
|
2.08
|
Upstream transportation
and processing
|
9.00
|
8.12
|
Upstream
operating
|
4.33
|
3.98
|
Administrative,
excluding long-term incentive, restructuring and legal costs, and
current expected credit losses
|
1.52
|
1.48
|
Debt to EBITDA (1)
($ millions, except as
indicated)
|
March 31,
2023
|
December 31,
2022
|
Long-Term Debt,
including Current Portion
|
3,756
|
3,570
|
|
|
|
Net Earnings
(Loss)
|
4,365
|
3,637
|
Add back
(Deduct):
|
|
|
Depreciation, depletion and amortization
|
1,213
|
1,113
|
Interest
|
308
|
311
|
Income tax
expense (recovery)
|
54
|
(77)
|
EBITDA
|
5,940
|
4,984
|
Debt to EBITDA
(times)
|
0.6
|
0.7
|
Debt to Adjusted EBITDA (1)
($ millions, except as
indicated)
|
March 31,
2023
|
December 31,
2022
|
Long-Term Debt,
including Current Portion
|
3,756
|
3,570
|
|
|
|
Net Earnings
(Loss)
|
4,365
|
3,637
|
Add back
(Deduct):
|
|
|
Depreciation, depletion and amortization
|
1,213
|
1,113
|
Accretion
of asset retirement obligation
|
18
|
18
|
Interest
|
308
|
311
|
Unrealized
(gains) losses on risk management
|
(1,771)
|
(741)
|
Foreign
exchange (gain) loss, net
|
13
|
15
|
Other
(gains) losses, net
|
(9)
|
(33)
|
Income tax
expense (recovery)
|
54
|
(77)
|
ADJUSTED
EBITDA
|
4,191
|
4,243
|
Debt to ADJUSTED
EBITDA (times)
|
0.9
|
0.8
|
1) Debt to EBITDA
and Debt to Adjusted EBITDA are non-GAAP measures as defined in
Note 1.
|
Hedge Details as of April 30,
2023
Oil and Condensate
Hedges ($/bbl)
|
2Q
2023
|
3Q
2023
|
4Q
2023
|
1Q
2024
|
2Q
2024
|
3Q
2024
|
4Q
2024
|
WTI
Swaps
|
0
-
|
35
Mbbls/d
$76.94
|
35
Mbbls/d
$76.94
|
25
Mbbls/d
$73.69
|
25
Mbbls/d
$73.69
|
0
-
|
0
-
|
WTI
Collars
Call Strike
Put Strike
|
0
-
-
|
35
Mbbls/d
$87.60
$65.00
|
35
Mbbls/d
$87.60
$65.00
|
75
Mbbls/d
$82.29
$64.33
|
75
Mbbls/d
$80.39
$65.00
|
0
-
-
|
0
-
-
|
WTI 3-Way
Options
Short Call
Long Put
Short Put
|
40
Mbbls/d
$112.95
$65.00
$50.00
|
40
Mbbls/d
$119.01
$66.25
$50.00
|
40
Mbbls/d
$104.19
$65.00
$50.00
|
0
-
-
-
|
0
-
-
-
|
23
Mbbls/d
$90.27
$65.00
$50.00
|
10
Mbbls/d
$89.79
$65.00
$50.00
|
Natural Gas Hedges
($/Mcf)
|
2Q
2023
|
3Q
2023
|
4Q
2023
|
1Q
2024
|
2Q
2024
|
3Q
2024
|
4Q
2024
|
NYMEX
Swaps
|
0
-
|
0
-
|
0
-
|
100
MMcf/d
$3.72
|
100
MMcf/d
$3.72
|
100
MMcf/d
$3.72
|
100
MMcf/d
$3.72
|
NYMEX
Collars
Call Strike
Put Strike
|
0
-
-
|
200
MMcf/d
$3.68
$3.00
|
200
MMcf/d
$3.68
$3.00
|
400
MMcf/d
$5.10
$3.00
|
400
MMcf/d
$3.40
$3.00
|
400
MMcf/d
$3.40
$3.00
|
400
MMcf/d
$5.57
$3.00
|
NYMEX 3-Way
Options
Call Strike
Put Strike
Sold Put
Strike
|
400
MMcf/d
$4.86
$3.13
$2.25
|
390
MMcf/d
$7.72
$3.71
$2.51
|
400
MMcf/d
$10.05
$4.00
$3.00
|
0
-
-
-
|
0
-
-
-
|
0
-
-
-
|
0
-
-
-
|
Waha Basis
Swaps
|
30
MMcf/d
($0.61)
|
30
MMcf/d
($0.61)
|
30
MMcf/d
($0.61)
|
0
-
|
0
-
|
0
-
|
0
-
|
Waha % of NYMEX
Swaps
|
0
-
|
0
-
|
0
-
|
50
MMcf/d
71%
|
50
MMcf/d
71%
|
50
MMcf/d
71%
|
50
MMcf/d
71%
|
Malin Basis
Swaps
|
50
MMcf/d
($0.26)
|
50
MMcf/d
($0.26)
|
50
MMcf/d
($0.26)
|
0
-
|
0
-
|
0
-
|
0
-
|
AECO Basis
Swaps
|
260
MMcf/d
($1.07)
|
260
MMcf/d
($1.07)
|
260
MMcf/d
($1.07)
|
190
MMcf/d
($1.08)
|
190
MMcf/d
($1.08)
|
190
MMcf/d
($1.08)
|
190
MMcf/d
($1.08)
|
AECO % of NYMEX
Swaps
|
50
MMcf/d
70%
|
50
MMcf/d
71%
|
50
MMcf/d
71%
|
100
MMcf/d
72%
|
100
MMcf/d
72%
|
100
MMcf/d
72%
|
100
MMcf/d
72%
|
Price Sensitivities for WTI Oil (1) ($MM)
WTI Oil Hedge Gains
(Losses)
|
|
$40
|
$50
|
$60
|
$70
|
$80
|
$90
|
$100
|
$110
|
$120
|
2Q
2023
|
$55
|
$55
|
$18
|
$0
|
$0
|
$0
|
$0
|
($15)
|
($40)
|
3Q
2023
|
$259
|
$195
|
$94
|
$22
|
($10)
|
($50)
|
($114)
|
($182)
|
($264)
|
4Q
2023
|
$255
|
$190
|
$89
|
$22
|
($10)
|
($50)
|
($114)
|
($200)
|
($301)
|
2024
|
$536
|
$354
|
$141
|
$17
|
($29)
|
($193)
|
($404)
|
$(617)
|
$(829)
|
(1) Hedge
positions and hedge sensitivity estimates as at 4/30/2023. Does not
include impact of basis positions.
|
Price Sensitivities for NYMEX Natural Gas (1)
($MM)
NYMEX Natural Gas
Hedge Gains (Losses)
|
|
$1.50
|
$2.00
|
$2.50
|
$3.00
|
$3.50
|
$4.00
|
$4.50
|
$5.00
|
$5.50
|
2Q
2023
|
$32
|
$32
|
$23
|
$5
|
$0
|
($1)
|
($10)
|
($21)
|
($35)
|
3Q
2023
|
$71
|
$61
|
$48
|
$25
|
$9
|
($6)
|
($15)
|
($24)
|
($33)
|
4Q
2023
|
$64
|
$55
|
$46
|
$37
|
$18
|
($6)
|
($15)
|
($24)
|
($33)
|
2024
|
$301
|
$209
|
$118
|
$26
|
$0
|
($54)
|
($109)
|
($164)
|
($233)
|
(1) Hedge
positions and hedge sensitivity estimates as at 4/30/2023. Does not
include impact of basis positions.
|
Important information
Ovintiv reports in U.S. dollars unless
otherwise noted. Production, sales and reserves estimates are
reported on an after-royalties basis, unless otherwise noted.
Unless otherwise specified or the context otherwise requires,
references to "Ovintiv," "we," "its," "our" or to "the Company"
includes reference to subsidiaries of and partnership interests
held by Ovintiv Inc. and its subsidiaries.
Please visit Ovintiv's website and Investor Relations page at
www.ovintiv.com and investor.ovintiv.com, where Ovintiv often
discloses important information about the Company, its business,
and its results of operations.
NI 51-101 Exemption
The Canadian securities regulatory
authorities have issued a decision document (the "Decision")
granting Ovintiv exemptive relief from the requirements contained
in Canada's National Instrument
51-101 Standards of Disclosure for Oil and Gas Activities ("NI
51-101"). As a result of the Decision, and provided that
certain conditions set out in the Decision are met on an on-going
basis, Ovintiv will not be required to comply with the Canadian
requirements of NI 51-101 and the Canadian Oil and Gas Evaluation
Handbook. The Decision permits Ovintiv to provide disclosure in
respect of its oil and gas activities in the form permitted by, and
in accordance with, the legal requirements imposed by the U.S.
Securities and Exchange Commission ("SEC"), the Securities Act of
1933, the Securities and Exchange Act of 1934, the Sarbanes-Oxley
Act of 2002 and the rules of the NYSE. The Decision also provides
that Ovintiv is required to file all such oil and gas disclosures
with the Canadian securities regulatory authorities on
www.sedar.com as soon as practicable after such disclosure is filed
with the SEC.
NOTE 1: Non-GAAP Measures
Certain measures in this news release do not have any
standardized meaning as prescribed by U.S. GAAP and, therefore, are
considered non-GAAP measures. These measures may not be comparable
to similar measures presented by other companies and should not be
viewed as a substitute for measures reported under U.S. GAAP. These
measures are commonly used in the oil and gas industry and/or by
Ovintiv to provide shareholders and potential investors with
additional information regarding the Company's liquidity and its
ability to generate funds to finance its operations. For additional
information regarding non-GAAP measures, see the Company's website.
This news release contains references to non-GAAP measures as
follows:
- Non-GAAP Cash Flow is a non-GAAP measure defined as
cash from (used in) operating activities excluding net change in
other assets and liabilities, and net change in non-cash working
capital.
- Non-GAAP Free Cash Flow is a non-GAAP
measure defined as Non-GAAP Cash Flow in excess of capital
expenditures, excluding net acquisitions and divestitures.
- Non-GAAP Adjusted Earnings is a non-GAAP measure
defined as net earnings (loss) excluding non-cash items that
Management believes reduces the comparability of the Company's
financial performance between periods. These items may include, but
are not limited to, unrealized gains/losses on risk management,
impairments, non-operating foreign exchange gains/losses, and
gains/losses on divestitures. Income taxes includes adjustments to
normalize the effect of income taxes calculated using the estimated
annual effective income tax rate. In addition, any valuation
allowances are excluded in the calculation of income taxes.
- Adjusted EBITDA, Debt to EBITDA and Debt to Adjusted
EBITDA are non-GAAP measures. EBITDA is defined as
trailing 12-month net earnings (loss) before income taxes,
depreciation, depletion and amortization, and interest. Adjusted
EBITDA is EBITDA adjusted for impairments, accretion of asset
retirement obligation, unrealized gains/losses on risk management,
foreign exchange gains/losses, gains/losses on divestitures and
other gains/losses. Debt to EBITDA is calculated as long-term debt,
including the current portion, divided by EBITDA. Debt to Adjusted
EBITDA is calculated as long-term debt, including the current
portion, divided by Adjusted EBITDA. Adjusted EBITDA, Debt to
EBITDA and Debt to Adjusted EBITDA are a non-GAAP measures
monitored by management as indicators of the Company's overall
financial strength.
- Forward Looking: Next twelve months ("NTM") Adjusted EBITDA
and NTM Debt to Adjusted EBITDA are non-GAAP
measures. Ovintiv has not provided a reconciliation for the
NTM Adjusted EBITDA or NTM Debt to Adjusted EBITDA to NTM net
earnings (loss), the most comparable financial measure calculated
in accordance with GAAP. The NTM net earnings (loss) includes
certain items which may be significant and difficult to project
with a reasonable degree of accuracy. Therefore, the NTM net
earnings (loss), and a reconciliation of the NTM Adjusted EBITDA or
NTM Debt to Adjusted EBITDA to net earnings (loss), are not
available without unreasonable effort.
ADVISORY REGARDING OIL AND GAS INFORMATION – The
conversion of natural gas volumes to barrels of oil equivalent
(BOE) is on the basis of six thousand cubic feet to one barrel. BOE
is based on a generic energy equivalency conversion method
primarily applicable at the burner tip and does not represent
economic value equivalency at the wellhead. Readers are cautioned
that BOE may be misleading, particularly if used in isolation.
ADVISORY REGARDING FORWARD-LOOKING STATEMENTS – This news
release contains forward-looking statements or information
(collectively, "forward-looking statements") within the meaning of
applicable securities legislation, including Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. All statements, except
for statements of historical fact, that relate to the anticipated
future activities, plans, strategies, objectives or expectations of
the Company are forward-looking statements. When used in this news
release, the use of words and phrases including "anticipates,"
"believes," "continue," "could," "estimates," "expects," "focused
on," "forecast," "guidance," "intends," "maintain," "may,"
"opportunities," "outlook," "plans," "potential," "strategy,"
"targets," "will," "would" and other similar terminology are
intended to identify forward-looking statements, although not all
forward-looking statements contain such identifying words or
phrases. Without limiting the generality of the foregoing,
forward-looking statements contained in this news release include:
future commodity prices and basis differentials; the Company's
ability to consummate any pending transactions (including the
transactions described herein); other risks and uncertainties
related to the closing of pending transactions (including the
transactions described herein); the ability of the Company to
access credit facilities and capital markets; the availability of
attractive commodity or financial hedges and the enforceability of
risk management programs; the Company's ability to capture and
maintain gains in productivity and efficiency; the ability for the
Company to general cash returns and execute on its share buyback
plan; expectations of plans, strategies and objectives of the
Company, including anticipated production volumes and capital
investment; the Company's ability to manage cost inflation and
expected cost structures, including expected operating,
transportation, processing and labor expenses; the outlook of the
oil and natural gas industry generally, including impacts from
changes to the geopolitical environment; and projections made in
light of, and generally consistent with, the Company's historical
experience and its perception of historical industry trends; and
the other assumptions contained herein.
Although the Company believes the expectations represented by
its forward-looking statements are reasonable based on the
information available to it as of the date such statements are
made, forward-looking statements are only predictions and
statements of our current beliefs and there can be no assurance
that such expectations will prove to be correct. All
forward-looking statements contained in this news release are made
as of the date of this news release and, except as required by law,
the Company undertakes no obligation to update publicly or revise
any forward-looking statements. The forward-looking statements
contained or incorporated by reference in this news release, and
all subsequent forward-looking statements attributable to the
Company, whether written or oral, are expressly qualified by these
cautionary statements.
The reader should carefully read the risk factors described in
the "Risk Factors" and "Management's Discussion and Analysis of
Financial Condition and Results of Operations" sections of the
Company's most recent Annual Report on Form 10-K, Quarterly Report
on Form 10-Q, and in other filings with the SEC or Canadian
securities regulators, for a description of certain risks that
could, among other things, cause actual results to differ from
these forward-looking statements. Other unpredictable or unknown
factors not discussed in this new release could also have material
adverse effects on forward-looking statements.
Further information on Ovintiv Inc. is available on the
Company's website, www.ovintiv.com, or by contacting:
Investor
contact:
(888)
525-0304
|
Media
contact:
(403)
645-2252
|
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SOURCE Ovintiv Inc.