Highlights:
Generated first quarter cash from operating activities of $1.1 billion, Non-GAAP Cash Flow of $1.2 billion and Non-GAAP Free Cash Flow of $634 million after capital expenditures of $605 million
Produced average first quarter volumes of 679 thousand barrels of oil equivalent per day ("MBOE/d"), at the high end of company guidance across all products including 225 thousand barrels per day ("Mbbls/d") of oil and condensate, 100 Mbbls/d of other NGLs (C2 to C4) and 2,124 million cubic feet per day ("MMcf/d") of natural gas
Closed the acquisition of NuVista Energy Ltd., adding approximately 100 MBOE/d of production, 930 net 10,000-foot equivalent well locations, and approximately 140,000 net acres of land for approximately $2.8 billion
Closed the sale of the Company's Anadarko assets in April for total cash proceeds of approximately $2.85 billion after preliminary closing adjustments
Redeemed the Company's $700 million, 5.65% senior notes due May 15, 2028, on April 20, 2026, using proceeds from the Anadarko divestiture; annualized interest savings to total approximately $40 million
Net Debt of less than $3.3 billion as of April 30, 2026; approximately 40% lower than one year prior
Resumed share buybacks in March with the repurchase of approximately 1.5 million shares for total consideration of approximately $84 million; year-to-date share buybacks as of April 30, 2026, totaled 3.2 million shares for total consideration of $180 million
Released the 2025 Sustainability Report on the Company's website
DENVER, May 11, 2026 /CNW/ - Ovintiv Inc. (NYSE:OVV) (TSX:OVV) ("Ovintiv" or the "Company") today announced its first quarter 2026 financial and operating results. The Company plans to hold a conference call and webcast at 8:00 a.m. MT (10:00 a.m. ET) on May 12, 2026. 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.
"We've built a track record of leading execution efficiency and disciplined capital allocation and now we've combined those strengths with best-in-class inventory depth in the two best E&P assets, and a clean balance sheet," said Ovintiv President and CEO, Brendan McCracken. "With the enhanced stability of our business today, we are intensely focused on efficient execution and profitability. Our strong first quarter continues to demonstrate differentiated results that reflect the moat we have created through disciplined portfolio management and stacked innovation."
First Quarter 2026 Financial and Operating Results
Reported first quarter net loss of $630 million, or $2.35 per share diluted, including non-cash ceiling test impairments of $1.2 billion, after tax, or $4.30 per share diluted; impairment primarily driven by a weaker SEC 12-month trailing oil price relative to the previous quarter
Recognized a net loss on risk management in revenues of $63 million, before tax
Generated cash from operating activities of $1.1 billion and Non-GAAP Cash Flow of $1.2 billion
First quarter average total production volumes were approximately 679 MBOE/d, including 225 Mbbls/d of oil and condensate, 100 Mbbls/d of other NGLs (C2 to C4) and 2,124 MMcf/d of natural gas; all products were at the high end of guidance
First quarter capital investment of $605 million was at the low end of the guidance range of $600 million to $650 million
First quarter upstream operating expense of $3.71 per BOE, upstream transportation and processing costs of $7.53 per BOE, production, mineral and other taxes of $1.30 per BOE, or 3.6% of upstream product revenue; costs were at the low end of guidance on a combined basis.
Including the impact of hedges, first quarter average realized price for oil and condensate was $70.14 per barrel (98% of WTI), $18.12 per barrel for other NGLs, and $3.24 per Mcf (64% of NYMEX) for natural gas, resulting in a total average realized price of $36.08 per BOE
2026 GuidanceThe Company issued its second quarter 2026 guidance and reiterated its full year guidance. Full year production volumes are expected to average 620 to 645 MBOE/d, with full year expected capital investment of $2.25 billion to $2.35 billion.
2026 Guidance
2Q 2026
Full Year 2026
Total Production (MBOE/d)
610, 635
620, 645
Oil & Condensate (Mbbls/d)
200, 205
205, 212
NGLs (C2 to C4) (Mbbls/d)
75, 80
80, 85
Natural Gas (MMcf/d)
2,000, 2,100
2,000, 2,100
Capital Investment ($ Millions)
$550, $600
$2,250, $2,350
Shareholder ReturnsFirst quarter shareholder returns totaled approximately $169 million, consisting of share buybacks of approximately $84 million, or approximately 1.5 million shares of common stock, and base dividend payments of approximately $85 million. As of April 30, 2026, year to date share buybacks totaled $180 million, or approximately 3.2 million shares of common stock.
Continued Balance Sheet FocusOvintiv had approximately $2.8 billion in total liquidity as of March 31, 2026, which included available credit facilities of $3.4 billion, available uncommitted demand lines of $162 million, and cash and cash equivalents of $26 million, net of outstanding commercial paper of $824 million. The Company's Net Debt was approximately $6.4 billion of March 31, 2026.
Following the receipt of proceeds from the Anadarko disposition on April 9, 2026, Ovintiv repaid the balance under its Term Credit Agreement and the facility was terminated. The Company also redeemed its $700 million, 5.65% senior notes due May 15, 2028 on April 20, 2026. Annualized interest savings from the note redemption are expected to total approximately $40 million.
As of April 30, 2026, Ovintiv's Net Debt was less than $3.3 billion and Net Debt to Adjusted EBITDA was less than 0.8 times using twelve-month trailing EBITDA as of March 31, 2026.
The Company remains committed to maintaining a strong balance sheet and is currently rated investment grade by four credit rating agencies.
Dividend DeclaredOn May 11, 2026, Ovintiv's Board declared a quarterly dividend of $0.30 per share of common stock payable on June 30, 2026, to shareholders of record as of June 15, 2026.
Asset Highlights
PermianPermian production averaged 221 MBOE/d (79% liquids) in the first quarter with 34 net wells turned in line ("TIL"). In 2026, Ovintiv plans to invest approximately $1.325 billion to $1.375 billion in the play to run approximately 5 rigs and bring on an expected 125 to 135 net wells. 2026 oil and condensate production is expected to average 117 to 123 Mbbls/d and natural gas production is expected to average 270 to 295 MMcf/d.
Montney Montney production averaged 365 MBOE/d (27% liquids) in the first quarter with 26 net wells TIL. In 2026, Ovintiv plans to invest approximately $875 million to $925 million in the play to run approximately 6 rigs and bring on an expected 130 to 140 net wells. 2026 oil and condensate production is expected to average 80 to 84 Mbbls/d and natural gas production is expected to average 1.7 to 1.8 Bcf/d.
2025 Sustainability Report ReleasedToday, the Company released its 21st annual Sustainability Report, highlighting its progress and performance on several key sustainability initiatives.
"We take our role as a responsible producer seriously," said McCracken. "We are proud of our track record of integrating tangible actions into our business that allow us to deliver superior returns to our shareholders while continuing to make progress on sustainability outcomes."
Key Sustainability Highlights
Achieved greater than 85% of the Company's goal to reduce Scope 1 & 2 greenhouse gas (GHG) emissions intensity by 50% by 2030, relative to 2019 levels
Continued advancing Ovintiv's safety culture through collective dedication to serious injury prevention with the expansion of the Leading with Safety program and the introduction of Safe Decision-Making training
Announced investment in the Ovintiv Tool Hub at Northwestern Polytechnic, supporting skilled-trades training and equipping students with practical experience for the workforce
Announced the retirement of current Board Chair and the unanimous election of a new Chair, Steven Nance
Welcomed a new independent director, Gregory Hill, in January 2026, adding a wealth of energy industry and leadership experience to the Board, maintaining an ongoing Board refreshment process
Ovintiv's sustainability report can be found on the Company's website at Download Sustainability Report, Ovintiv.
For additional information, please refer to the First Quarter 2026 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 Document Library, Ovintiv.
Conference Call Information A conference call and webcast to discuss the Company's first quarter 2026 results will be held at 8:00 a.m. MT (10:00 a.m. ET) on May 12, 2026.
To join the conference call without operator assistance, you may register and enter your phone number at https://emportal.ink/4aQ9VDs to receive an instant automated call back. You can also dial direct to be entered to the call by an Operator. Please dial 888-510-2154 (toll-free in North America) or 437-900-0527 (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 2026
1Q 2025
Capital Expenditures (1) ($ millions)
605
617
Oil (Mbbls/d)
141.8
150.5
NGLs, Plant Condensate (Mbbls/d)
83.5
55.2
Oil & Plant Condensate (Mbbls/d)
225.3
205.7
NGLs, Other (Mbbls/d)
99.6
88.7
Total Liquids (Mbbls/d)
324.9
294.4
Natural gas (MMcf/d)
2,124
1,764
Total production (MBOE/d)
678.9
588.3
1) Including capitalized directly attributable internal costs.
First Quarter Financial Summary
(for the period ended March 31)
($ millions)
1Q 2026
1Q 2025
