Dividend Increased by ~50%, New Debt Target
Established
Second Quarter Highlights:
- Generated second quarter cash from operating activities of
$750 million, non-GAAP cash flow of
$733 million and non-GAAP free cash
flow of $350 million
- Reduced net debt(1) by $1.2
billion to $5.2 billion;
accelerated expected timeline of $4.5
billion net debt target to year-end 2021
- Continued to demonstrate industry-leading capital efficiencies
with operational efficiency gains and supply chain management more
than offsetting inflation during the quarter
- Established new net debt target of $3
billion, expected to be achieved by year-end 2023 assuming
$50 per barrel (bbl) WTI oil and
$2.75 per thousand cubic feet (Mcf)
NYMEX natural gas prices
- Announced a 50% increase to quarterly dividend payment;
represents dividend of $0.56 per
share of common stock on an annualized basis
- Published full-year 2020 ESG metrics on the Company's website
at www.ovintiv.com
- Increased full-year crude and condensate(2) guidance
to 190 – 195 thousand barrels per day (Mbbls/d) as a result of
strong production outperformance across our assets; full-year
capital guidance of $1.5 billion is
unchanged
DENVER, July 27, 2021 /CNW/ - Ovintiv Inc. (NYSE:
OVV) (TSX: OVV) today announced its second quarter 2021 financial
and operating results. In addition, the Company increased its
quarterly dividend payment by approximately 50%, accelerated its
$4.5 billion net debt target timeline
to the end of 2021 and set a new net debt target of $3 billion by year-end 2023, assuming
$50 per bbl WTI oil and $2.75 per Mcf NYMEX natural gas prices.
The Company plans to hold a conference call and webcast at
7:30 a.m. MT (9:30 a.m. ET) on July 28,
2021. Please see dial-in details within this release, as
well as additional details on the Company's website at
www.ovintiv.com.
"Our track record of free cash flow generation continued in the
second quarter with another $350
million of free cash, bringing us to a total of $890 million year-to-date," said Ovintiv CEO,
Doug Suttles. "We also expect to
reach our original $4.5 billion net
debt target before year-end – one year ahead of our original
timeline. This achievement will mark almost $3 billion of net debt reduction since the second
quarter of 2020. Our business continues to perform
exceptionally well with operational efficiency gains and supply
chain management more than offsetting cost inflation year-to-date.
Ovintiv is positioned to thrive on the road ahead."
Second Quarter 2021 Financial and Operating Results
- The Company recorded a net loss in the second quarter of
$205 million, or $0.79 per diluted share of common stock. The
results included the impact of net losses on risk management of
$799 million, before-tax.
- Second quarter cash from operating activities was $750 million, non-GAAP cash flow was $733 million and capital investment totaled
$383 million, resulting in
$350 million of non-GAAP free cash
flow.
- Average total production was 555 thousand barrels of oil
equivalent per day (MBOE/d) and crude and condensate production
averaged 201 Mbbls/d.
- Total Costs for the second quarter were $12.90 per barrel of oil equivalent (BOE) and
were impacted by an elevated foreign exchange rate of approximately
0.81 US$/C$ (vs. guidance of
0.75 US$/C$), as well as higher
production taxes due to higher commodity prices.
- Second quarter 2021 average realized prices, excluding hedge,
were $63.47 per barrel for oil and
condensate (96% of WTI), $20.83 per
barrel for other NGLs (C2-C4) and $2.75 per Mcf for natural gas (97% of NYMEX)
resulted in a total average realized price of $34.20 per BOE.
- Second quarter 2021 average realized prices, including hedge,
were $52.39 per barrel for oil and
condensate, $18.37 per barrel for
other NGLs (C2-C4) and $2.74 per Mcf
for natural gas, resulted in a total average realized price of
$29.76 per BOE. Ovintiv reported
second quarter realized risk management losses of $223 million, before tax.
1.
|
Net debt is a
non-GAAP measure Ovintiv defines as long-term debt, including the
current portion, less cash and cash equivalents.
|
2.
|
Throughout this
document, crude and condensate refers to tight oil including medium
and light crude oil volumes and plant condensate.
|
New Debt Target Established
During the second quarter, Ovintiv accelerated the timeline to
achieve its $4.5 billion net debt
target to year-end 2021 from its original target date of year-end
2022. This target represents approximately $3 billion of net debt reduction since the second
quarter of 2020.
The Company has set a new net debt target of $3 billion, which it expects to achieve by
year-end 2023 and assuming $50 per
bbl WTI oil and $2.75 per Mcf NYMEX
natural gas prices. Ovintiv expects to meet this target
without proceeds from asset sales.
In June 2021, Ovintiv redeemed its
$600 million 5.75% senior notes due
January 30, 2022. The Company has
given notice to redeem its $518
million 3.90% senior notes due November 15, 2021 on August 16, 2021. The combined redemptions
represent approximately $1.1 billion
of debt repayments, resulting in expected annualized interest
savings of over $50 million.
At the end of the second quarter, the balance on the Company's
revolving credit facility had been fully paid down and Ovintiv had
no commercial paper outstanding. Ovintiv's available liquidity
totaled $4.4 billion.
Dividend Increased
On July 27,
2021, Ovintiv's Board declared a dividend of $0.14 per share of common stock payable on
September 30, 2021 to common
stockholders of record as of September
15, 2021.This represents an increase of approximately 50%
from the previous level.
Ongoing Focus on ESG
The Company published full year
2020 ESG metrics on its website today.
Year-over-year highlights include:
- 14% reduction in greenhouse gas emissions intensity
- 33% reduction in methane emissions intensity
- 36% reduction in flaring and venting intensity
- 10% reduction in total recordable injury frequency
- 11% reduction in spill intensity performance
"With our $4.5 billion net debt
target firmly in sight, we are well positioned to increase our cash
return to shareholders with this sustainable increase in our base
dividend," said Ovintiv's President and incoming CEO, Brendan McCracken. "We are also furthering our
commitment to balance sheet strength by reducing our targeted net
debt to $3 billion. This equates to
approximately one times net debt to adjusted EBITDA leverage ratio
at mid-cycle prices. Our latest ESG performance demonstrates our
commitment to rapidly reducing our emissions in real time. Looking
forward, we will maintain our disciplined focus on generating
significant free cash and delivering quality returns."
Environmental and Safety Highlights
Metric
|
Measurement
|
2020
|
2019
|
GHG
Intensity
|
metric tons
CO2e/MBOE
|
18
|
21
|
Methane
Intensity
|
metric tons
CH4/MBOE
|
0.10
|
0.15
|
Flaring &
Venting Intensity
|
Gross flared &
vented volumes / produced gas
|
0.7%
|
1.1%
|
Total Recordable
Injury Frequency (TRIF)
|
# Recordable Injuries
x 200,000 divided by exposure hours
|
0.19
|
0.21
|
Spill
Intensity
|
Gross oil, C5+ &
produced water bbls spilled / produced oil, C5+ & water
Mbbls
|
0.039
|
0.044
|
Ovintiv's full 2020 ESG data disclosure can be found at
www.ovintiv.com/sustainability.
Refer to Note 1 Non-GAAP measures and the tables in this
release for reconciliation to comparable GAAP financial
measures.
Asset Highlights
The Company continued to demonstrate
industry-leading capital efficiencies across its Core 3 assets
during the second quarter.
Permian
Permian production averaged 126 MBOE/d (82%
liquids) in the quarter. The Company averaged three gross rigs,
drilled 21 net wells, and had 33 net wells turned in line
(TIL).
Permian drilling and completion (D&C) costs have averaged
$480 per foot year-to-date and are
11% lower than the 2020 program average. Both drilling and
completion efficiency records were achieved in the quarter,
including an average drilling cost of $170 per foot, 17% lower than the 2020 average.
Among wells rig released in the quarter, the average lateral length
drilled was 12,050 feet, approximately 20% longer than the 2020
average. Underpinned by Simul-frac operations, the Company
completed 3,500 lateral feet per day and pumped 9.5 million pounds
of sand per day on a single pad, its most efficient well set to
date. During the quarter, 30 out of the 33 net wells were completed
using Simul-frac. Ovintiv also began sourcing in-basin, wet sand
from a Howard County mine during the quarter.
Anadarko
Anadarko production averaged 133 MBOE/d (62%
liquids) in the quarter. The Company averaged two gross rigs,
drilled 16 net wells, and had 22 net wells TIL, of which 21 were
operated by Ovintiv.
STACK D&C costs have averaged $430 per foot year-to-date, and are 10% lower
than the 2020 program average. During the quarter, 17 wells were
completed in the STACK, with two wells drilled and completed for
$3.5 million. All the STACK wells
were completed using Simul-frac operations, where the Company
pumped an average of 150,000 bbls per day, 40% more than the 2020
program average. Ovintiv also achieved a new spud-to-rig release
drill time pacesetter of 5.9 days. The team has now recorded faster
average drilling times in the STACK for the third consecutive
quarter.
In SCOOP, four net Woodford/Caney oil wells were brought on-line
in the quarter with an average D&C cost of $5.3 million.
Montney
Montney production averaged 235 MBOE/d (25%
liquids) in the quarter. The Company averaged four gross rigs,
drilled 18 net wells and had 30 net wells TIL.
Montney year-to-date D&C
costs have averaged $410 per foot and
are 9% lower than the 2020 program average. All the quarterly wells
TIL targeted the volatile oil and liquids-rich condensate fairway
of the play with an expected liquids composition of 30-70%. Ovintiv
drilled five wells at or below $100
per foot, 20% of the total quarter rig releases. Six wells were
drilled faster than the previous pacesetter and all six wells
achieved drilling rates greater than 2,050 feet per day.
Base Assets
Bakken production averaged 24 MBOE/d (79%
liquids) in the quarter. The company drilled one net well and had
two net wells TIL. The two net wells brought online in the quarter
exhibited strong production performance, achieving an average
60-day initial production rate of 1,235 bbls of oil per well.
D&C costs from 2020 to 2021 have averaged $510 per foot, 14% lower than the 2019
average.
Revised 2021 Guidance
2021
Guidance
|
|
Original
|
Revised Post Asset
Sales(1)
|
Current
(1)
|
Capital Investment
($ Billion)
|
$1.5
|
$1.5
|
$1.5
|
Oil &
Condensate (Mbbls/d)
|
200
|
190
|
190 -
195
|
Other NGLs
(Mbbls/d)
|
80
|
80
|
80 -
85
|
Natural Gas
(MMcf/d)
|
1,550
|
1,550
|
1,550 -
1,575
|
Total Costs per
BOE (2)(3)
|
$12.25 -
$12.50
|
$12.25 -
$12.50
|
$12.95 -
$13.20
|
(1)
|
Production volumes
have been adjusted for the sale of the Company's Eagle Ford and
Duvernay assets which closed in Q2 2021.
|
(2)
|
Total Costs is a
non-GAAP measure as defined in Note 1.
|
(3)
|
Increase in Total
Costs under current 2021 guidance driven by revised foreign
exchange rate assumption of $0.80 US$/CAD$ from $0.75 US$/CAD$ and
revised WTI oil price assumption of $65/bbl from
$50/bbl.
|
For additional information, please refer to the 2Q 2021 Results
Presentation at
https://investor.ovintiv.com/presentations-events.
Conference Call Information
A conference call and
webcast to discuss the Company's second quarter results will be
held at 7:30 a.m. MT (9:30 a.m. ET) on July 28,
2021. To participate in the call, please dial 888-664-6383
(toll-free in North America) or
416-764-8650 (international) approximately 15 minutes prior to the
conference call. The live audio webcast of the conference call,
including slides and financial statements, will be available on
Ovintiv's website, www.ovintiv.com under Investors/Presentations
and Events. The webcast will be archived for approximately 90
days.
Capital Investment and Production
(for the three months
ended June 30)
|
2Q 2021
|
2Q 2020
|
Capital
Expenditures (1) ($ millions)
|
383
|
252
|
Oil (Mbbls/d)
(2)
|
148.5
|
146.5
|
NGLs – Plant
Condensate (Mbbls/d)
|
52.3
|
51.8
|
Oil & Plant
Condensate (Mbbls/d)
|
200.8
|
198.3
|
NGLs – Other
(Mbbls/d)
|
85.9
|
80.1
|
Total Liquids
(Mbbls/d)
|
286.7
|
278.4
|
Natural gas
(MMcf/d) (3)
|
1,607
|
1,550
|
Total production
(MBOE/d)
|
554.6
|
536.6
|
(1)
|
Including capitalized
overhead costs.
|
(2)
|
Primarily tight oil,
including minimal medium and light crude oil volumes.
|
(3)
|
Primarily shale gas,
including minimal conventional natural gas.
|
Second Quarter Summary
(for the three
months ended June 30)
|
2Q 2021
|
2Q 2020
|
($ millions,
except as indicated)
|
|
|
Cash From (Used
In) Operating Activities
|
|
|
Deduct (Add
Back):
|
750
|
117
|
Net
change in other assets and liabilities
|
(5)
|
(68)
|
Net
change in non-cash working capital
|
22
|
(119)
|
Current
tax on sale of assets
|
-
|
-
|
Non-GAAP Cash Flow
(1)
|
733
|
304
|
Non-GAAP Cash Flow
Margin (1) ($/BOE)
|
14.51
|
6.23
|
|
|
|
Non-GAAP Cash
Flow (1)
|
733
|
304
|
Less: Capital
Expenditures (2)
|
383
|
252
|
Non-GAAP Free Cash
Flow (1)
|
350
|
52
|
|
|
|
Net Earnings
(Loss) Before Income Tax
|
|
|
Before-tax (Addition)
Deduction:
|
(205)
|
(4,089)
|
Unrealized gain (loss)
on risk management
|
(576)
|
(679)
|
Impairments
|
-
|
(3,250)
|
Restructuring
charges
|
(5)
|
(81)
|
Non-operating foreign
exchange gain (loss)
|
(4)
|
50
|
Gain (loss) on
divestitures
|
-
|
-
|
Gain on debt
retirement
|
-
|
11
|
Adjusted Net Earnings
(Loss) Before Income Tax
|
380
|
(140)
|
Income tax expense
(recovery)
|
90
|
(29)
|
Non-GAAP Operating
Earnings (Loss) (1)
|
290
|
(111)
|
(1)
|
Non-GAAP cash flow,
non-GAAP cash flow margin, non-GAAP free cash flow and non-GAAP
operating earnings (loss) are non-GAAP measures as defined in Note
1.
|
(2)
|
Including capitalized
overhead costs.
|
Realized Pricing Summary
(for the three months
ended June 30)
|
2Q 2021
|
2Q 2020
|
Liquids ($/bbl)
|
|
|
WTI
|
66.07
|
27.85
|
Realized Liquids
Prices (1)
|
|
|
Oil
|
51.27
|
39.70
|
NGLs – Plant
Condensate
|
55.59
|
31.37
|
Oil & Plant
Condensate
|
52.39
|
37.52
|
NGLs –
Other
|
18.37
|
9.01
|
Total
NGLs
|
32.46
|
17.78
|
|
|
|
Natural
Gas
|
|
|
NYMEX
($/MMBtu)
|
2.83
|
1.72
|
Realized Natural
Gas Price (1) ($/Mcf)
|
2.74
|
2.09
|
(1)
Prices include the impact of realized gain (loss) on risk
management.
|
Total Costs
(for the three months
ended June 30)
($ millions, except
as indicated)
|
2Q
2021
|
2Q 2020
|
Total Operating
Expenses
|
1,813
|
4,785
|
Deduct (Add
Back):
|
|
|
Market optimization
operating expenses
|
784
|
382
|
Corporate & other
operating expenses
|
-
|
-
|
Depreciation,
depletion and amortization
|
311
|
493
|
Impairments
|
-
|
3,250
|
Accretion of asset
retirement obligation
|
6
|
9
|
Long-term incentive
costs
|
39
|
25
|
Restructuring and
legal costs
|
25
|
81
|
Current expected
credit losses
|
(1)
|
(3)
|
Total Costs
(1)
|
649
|
548
|
Divided
by:
|
|
|
Production Volumes
(MMBOE)
|
50.5
|
48.8
|
Total Costs
(1) ($/BOE)
|
12.90
|
11.23
|
Drivers Included
in Total Costs
(1) ($/BOE)
|
|
|
Production, mineral
and other taxes
|
1.44
|
0.55
|
Upstream
transportation and processing
|
7.42
|
6.44
|
Upstream operating,
excluding long-term incentive costs
|
2.68
|
2.86
|
Administrative,
excluding long-term incentive costs, restructuring and legal costs,
and current expected credit losses
|
1.36
|
1.38
|
Total Costs
(1) ($/BOE)
|
12.90
|
11.23
|
(1)
|
Total Costs is a
non-GAAP measure as defined in Note 1. Total Costs per BOE is
calculated using whole dollars and volumes.
|
Debt to Adjusted Capitalization
($ millions, except
as indicated)
|
June 30,
2021
|
December 31,
2020
|
Long-Term Debt,
including current portion
|
5,314
|
6,885
|
Total Shareholders'
Equity
|
3,934
|
3,837
|
Equity Adjustment for
Impairments at December 31, 2011
|
7,746
|
7,746
|
Adjusted
Capitalization
|
16,994
|
18,468
|
Debt to Adjusted
Capitalization (1)
|
31%
|
37%
|
(1) Debt
to Adjusted Capitalization is a non-GAAP measure as defined in Note
1.
|
Hedge Volumes as of July 15,
2021
Oil &
Condensate Hedges ($/bbl)
|
3Q
2021
|
4Q
2021
|
2022
|
WTI
Swaps
Swap Price
|
30
Mbbls/d
$46.37
|
30
Mbbls/d
$46.37
|
5
Mbbls/d
$60.16
|
WTI 3-Way
Options
Short Call
Long Put
Short Put
|
85
Mbbls/d
$53.92
$44.66
$34.79
|
85
Mbbls/d
$53.92
$44.66
$34.79
|
66
Mbbls/d $70.18 $60.25 $48.56
|
WTI Costless
Collars
Short Call
Long Put
|
15
Mbbls/d
$45.84
$35.00
|
15
Mbbls/d
$45.84
$35.00
|
-
|
Natural Gas Hedges
($/Mcf)
|
3Q
2021
|
4Q
2021
|
2022
|
NYMEX
Swaps Swap Price
|
165 MMcf/d
$2.51
|
165 MMcf/d
$2.51
|
200 MMcf/d
$2.67
|
NYMEX 3-Way
Options
Short Call Long Put
Short Put
|
1,030
MMcf/d $3.37 $2.87 $2.50
|
980
MMcf/d $3.36 $2.89 $2.50
|
398
MMcf/d $3.02 $2.75 $2.00
|
NYMEX Costless
Collars Short Call Long
Put
|
-
|
-
|
200
MMcf/d $2.85 $2.55
|
NYMEX Short Call
Options Sold Call
Strike
|
-
|
-
|
330
MMcf/d $2.38
|
NYMEX
Swaption Swaption
Strike
|
-
|
-
|
165
MMcf/d $2.51
|
Price Sensitivities for WTI Oil (1) ($ MM)
WTI Oil Hedge
Gains (Losses) by Quarter
|
Period
|
$40
|
$50
|
$60
|
$70
|
3Q21
|
56
|
(10)
|
(106)
|
(224)
|
4Q21
|
56
|
(10)
|
(106)
|
(224)
|
3Q21 - 4Q21
Total
|
112
|
(20)
|
(212)
|
(448)
|
Full Year
2022
|
318
|
264
|
26
|
(54)
|
(1)
|
Hedge positions and
hedge sensitivity estimates based on hedge positions as at
07/15/2021. Does not include impact of basis positions.
|
Note: Company has
additional hedges on ethane, butane and propane not included in the
above table.
|
Price Sensitivities for NYMEX Natural Gas (1) ($
MM)
NYMEX Natural Gas
Hedge Gains (Losses) by Quarter
|
Period
|
$2.00
|
$2.50
|
$3.00
|
$3.50
|
3Q21
|
43
|
35
|
(7)
|
(29)
|
4Q21
|
43
|
35
|
(7)
|
(28)
|
3Q21-4Q21
Total
|
86
|
70
|
(14)
|
(57)
|
Full Year
2022
|
198
|
38
|
(139)
|
(372)
|
(1)
|
Hedge positions and
hedge sensitivity estimates based on hedge positions as at
07/15/2021. 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.
The term liquids is used to represent oil and NGLs. The term
liquids-rich is used to represent natural gas streams with
associated liquids volumes. Unless otherwise specified or the
context otherwise requires, references to Ovintiv or to the Company
includes reference to subsidiaries of and partnership interests
held by Ovintiv Inc. and its subsidiaries.
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, net change in non-cash working
capital and current tax on sale of assets. Non-GAAP Cash Flow
Margin is a non-GAAP measure defined as Non-GAAP Cash Flow per
BOE of production. 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 Operating Earnings (Loss) is a non-GAAP
measure defined as net earnings (loss) excluding non-recurring or
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, restructuring charges, non-operating
foreign exchange gains/losses, gains/losses on divestitures and
gains on debt retirement. 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.
- Total Costs is a non-GAAP measure which includes
the summation of production, mineral and other taxes, upstream
transportation and processing expense, upstream operating expense
and administrative expense, excluding the impact of long-term
incentive costs, restructuring and legal costs, and current
expected credit losses. It is calculated as total operating
expenses excluding non-upstream operating costs and non-cash items
which include operating expenses from the Market Optimization and
Corporate and Other segments, depreciation, depletion and
amortization, impairments, accretion of asset retirement
obligation, long-term incentive costs, restructuring and legal
costs, and current expected credit losses. When presented on a per
BOE basis, Total Costs is divided by production volumes. Management
believes this measure is useful to the Company and its investors as
a measure of operational efficiency across periods.
- Net Debt is defined as long-term debt, including
the current portion, less cash and cash equivalents. Adjusted
EBITDA is defined as trailing 12-month net earnings (loss)
before income taxes, DD&A, impairments, accretion of asset
retirement obligation, interest, unrealized gains/losses on risk
management, foreign exchange gains/losses, gains/losses on
divestitures and other gains/losses. Net Debt to Adjusted
EBITDA is a non-GAAP measure monitored by management as an
indicator of the Company's overall financial strength.
Annualized Leverage represents normalized leverage for the
period presented, calculated by annualizing Net Debt to Adjusted
EBITDA using Adjusted EBITDA generated in the period.
- Debt to Adjusted Capitalization is a non-GAAP measure
which adjusts capitalization for historical ceiling test
impairments that were recorded as at December 31, 2011. Management monitors Debt to
Adjusted Capitalization as a proxy for the Company's financial
covenant under the Credit Facilities which require debt to adjusted
capitalization to be less than 60 percent. Adjusted Capitalization
incudes debt, total shareholders' equity and an equity adjustment
for cumulative historical ceiling test impairments recorded as at
December 31, 2011 in conjunction with
the Company's January 1, 2012
adoption of U.S. GAAP.
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 certain forward-looking statements or information
(collectively, "FLS") within the meaning of applicable securities
legislation, including the United States Private Securities
Litigation Reform Act of 1995. FLS include: anticipated cost
savings, capital efficiency and sustainability thereof; operational
flexibility and benefits of the Company's multi-basin portfolio;
anticipated success of and benefits from technology and innovation;
expected activity and investment levels; ability to meet targets,
including with respect to capital efficiency, cash flow generation,
debt reduction, scale and emissions-related performance, and the
timing thereof; estimated hedging revenue and sensitivity to
commodity prices; timing of projections and expectation of
meeting the targets contained in the Company's corporate guidance
and net debt target; and planned redemption of outstanding senior
notes. FLS involve assumptions, risks and uncertainties that
may cause such statements not to occur or results to differ
materially. These assumptions include: future commodity prices and
differentials; assumptions contained herein; data contained in key
modeling statistics; availability of attractive hedges and
enforceability of risk management program; and expectations and
projections made in light of the Company's historical experience.
Risks and uncertainties include: suspension of or changes to
guidance, and associated impact to production; ability to generate
sufficient cash flow to meet obligations and to reduce debt;
commodity price volatility and impact to the Company's stock price
and cash flows; ability to secure adequate transportation and
potential curtailments of refinery operations, including resulting
storage constraints or widening price differentials; discretion to
declare and pay dividends, if any; business interruption, property
and casualty losses or unexpected technical difficulties; impact of
COVID-19 to the Company's operations, including maintaining
ordinary staffing levels, securing operational inputs, executing on
portions of its business and cyber-security risks associated with
remote work; counterparty and credit risk; impact of changes in
credit rating and access to liquidity, including costs thereof;
risks in marketing operations; risks associated with technology;
risks associated with decommissioning activities, including timing
and costs thereof; and other risks and uncertainties as described
in the Company's Annual Report on Form 10- K, Quarterly Report on
Form 10-Q and as described from time to time in its other periodic
filings as filed on EDGAR and SEDAR. Although the Company believes
such FLS are reasonable, there can be no assurance they will prove
to be correct. The above assumptions, risks and uncertainties are
not exhaustive. FLS are made as of the date hereof and, except as
required by law, the Company undertakes no obligation to update or
revise any FLS.
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.