Ovintiv Inc. (OVV) Q1 2026 Financial Results Summary

Ovintiv Inc. (NYSE, TSX: OVV) released its first quarter 2026 financial and operating results on May 11, 2026. Here is a summary of the key highlights and metrics from the report.

Financial Performance Highlights

• Cash Flow:
  • Generated cash from operating activities: $1.1 billion
  • Non-GAAP Cash Flow: $1.2 billion (up 23.5% from Q1 2025)
  • Non-GAAP Free Cash Flow: $634 million (up 64% from Q1 2025)
• Production Volumes:
  • Average production: 679 MBOE/d (up 15% from Q1 2025)
    • Oil and condensate: 225 Mbbls/d (up 9.5%)
    • Other NGLs (C2 to C4): 100 Mbbls/d (up 81.6%)
    • Natural gas: 2,124 MMcf/d (up 20.4%)
• Acquisition and Divestiture:
  • Closed acquisition of NuVista Energy Ltd. for approximately $2.8 billion, adding about 100 MBOE/d.
  • Closed sale of Anadarko assets in April for roughly $2.85 billion.
• Debt Management:
  • Redeemed $700 million in senior notes due 2028, resulting in expected annual interest savings of $40 million.
  • Net Debt as of April 30, 2026: less than $3.3 billion (approximately 40% lower compared to one year prior).

Loss Metrics

Reported net loss: $630 million or $2.35 per diluted share, primarily due to one-time non-cash ceiling test impairments totaling $1.2 billion, reflecting decreased SEC trailing oil prices.

Cost Structure

Upstream operating expense of $3.71 per BOE (down 4.6% from Q1 2025).
Upstream transportation and processing costs: $7.53 per BOE (up 2.3%).
Production, mineral and other taxes: $1.30 per BOE (down 20.7%).

Shareholder Returns

• Total shareholder returns for Q1 2026: approximately $169 million.
  • Share buybacks: $84 million (or approximately 1.5 million shares repurchased).
  • Base dividend payments: approximately $85 million.
• Declared a quarterly dividend of $0.30 per share, payable on June 30, 2026.

Operational Highlights

• Permian Basin:
  • Production averaged 221 MBOE/d, primarily liquids.
  • Planned capital investment for the year: approximately $1.325 billion to $1.375 billion aiming to bring 125 to 135 net wells online.
• Montney Play:
  • Production averaged 365 MBOE/d, with an investment plan of around $875 million to $925 million set for 130 to 140 net wells.

Balance Sheet and Liquidity

As of March 31, 2026, Ovintiv maintained approximately $2.8 billion in total liquidity.
Net Debt to Adjusted EBITDA as of April 30, 2026, below 0.8 times.

Sustainability Initiatives

Released the 2025 Sustainability Report highlighting progress in GHG emissions reduction and safety culture.
Achieved over 85% of the goal to reduce Scope 1 & 2 greenhouse gas emissions intensity by 50% by 2030 relative to 2019.

Guidance

Full-year production volumes expected to average 620 to 645 MBOE/d.
Anticipated capital investment for the year: $2.25 billion to $2.35 billion.

Ovintiv remains focused on operational efficiency and disciplined capital allocation as evidenced in their current performance metrics. For further inquiries or detailed breakdowns, please refer to the full quarterly report available on the Ovintiv website.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Amounts in millions)

Note: The amounts in the following tables are in thousands/millions.

	1Q 2026	1Q 2025
Cash From (Used In) Operating	1,056	873
Non-GAAP Cash Flow	1,239	1,004
Less: Capital Expenditures	605	617
Non-GAAP Free Cash Flow	634	387
Adjusted Earnings (Loss)	709	496
Non-GAAP Adjusted Earnings	537	370

CONDENSED CONSOLIDATED BALANCE SHEETS

(Amounts in millions)

	March 31, 2026	December 31, 2025
Long-Term Debt, including Current	6,398	5,202
Net Earnings (Loss)	771	1,242
EBITDA	2,714	3,325
Debt to EBITDA (times)	2.4	1.6
Debt to Adjusted EBITDA (times)	1.5	1.2
Net Debt to Adjusted EBITDA	<0.8

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