Company Announces TSX Acceptance of Normal
Course Issuer Bid
DENVER, Sept. 28, 2021 /CNW/ - Ovintiv (NYSE: OVV) (TSX:
OVV) today announced it is progressing its commitment to increase
shareholder returns with the receipt of regulatory approvals for a
share buy-back program. This action is consistent with the
Company's capital allocation framework, which supports the goal of
unlocking shareholder value by delivering on Ovintiv's strategic
priorities of financial strength, increasing cash returns to
shareholders, generating superior returns on capital investment,
and driving ESG progress.
The TSX has accepted Ovintiv's notice of intention to implement
a normal course issuer bid (NCIB) to purchase up to 26,048,261
common shares during the 12-month period commencing October 1, 2021, and ending September 30, 2022. The number of shares
authorized for purchase represents 10 percent of Ovintiv's public
float as of September 20, 2021.
Purchases will be made on the open market through the facilities of
the TSX, New York Stock Exchange and/or alternative trading systems
at the market price at the time of acquisition, as well as by other
means permitted by stock exchange rules and securities laws
including Rule 10b-18 under the
Securities Exchange Act of 1934, as amended.
Ovintiv has also entered into an automatic share purchase plan
(ASPP) allowing it to purchase common shares under the NCIB when
Ovintiv would ordinarily not be permitted to purchase shares due to
regulatory restrictions and customary self-imposed blackout
periods. Pursuant to the ASPP, Ovintiv will provide instructions
during non-blackout periods to its designated broker, which may not
be varied or suspended during the blackout period. Purchases by
Ovintiv's designated broker will be in accordance with stock
exchange rules, applicable securities laws and the terms of the
ASPP. All purchases made under the ASPP are included in
computing the number of common shares purchased under the NCIB. The
ASPP has been pre-cleared as required by the stock exchanges.
The actual number of common shares that may be purchased under
the NCIB and the timing of any such purchases will be determined by
Ovintiv. The average daily trading volume through the facilities of
the TSX, excluding purchases made on such facilities, during the
most recently completed six-month period was 419,746 common shares.
Consequently, daily purchases through the facilities of the TSX
will be limited to 104,936 common shares, other than block
purchase exceptions. Purchases over the NYSE will be made in
compliance with the volume limitations in Rule 10b-18 in relation to average daily trading
volume and block trades. All common shares acquired by
Ovintiv under the NCIB may be cancelled or returned to treasury as
authorized but unissued shares.
As previously announced, beginning in the fourth quarter of
2021, and until Ovintiv reaches its $3
billion net debt* target, the company plans to
return 25% of the previous quarter's free cash flow after base
dividends to its shareholders through share buy-backs and/or
variable dividends. Once the Company reaches its net debt target of
$3 billion, it plans to increase
quarterly shareholder returns to at least 50% of the previous
quarter's free cash flow after base dividends.
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: the planned
share repurchase program, including the amount and number of shares
to be acquired, treatment of such shares following purchase,
anticipated timeframe, method and location of purchases, announced
capital framework; and benefits of the NCIB.
Readers are cautioned against unduly relying on FLS which, by
their nature, involve numerous assumptions, risks and uncertainties
that may cause such statements not to occur, or results to differ
materially from those expressed or implied. These assumptions
include: future commodity prices and differentials; foreign
exchange rates; ability to access cash, credit facilities and shelf
prospectuses; and expectations and projections made in light of,
and generally consistent with, Ovintiv's historical experience and
its perception of historical trends, including with respect to the
pace of technological development, benefits achieved and general
industry expectations.
Risks and uncertainties that may affect these business outcomes
include: ability to generate sufficient cash flow to meet
obligations and fund the NCIB; commodity price volatility;
variability in the amount, number of shares, method, location and
timing of purchases, if any, pursuant to the NCIB; fluctuations in
currency and interest rates; and other risks and uncertainties
impacting Ovintiv's business, as described in its most recent
Annual Report on Form 10-K and as described from time to time in
Ovintiv's other periodic filings as filed on EDGAR and SEDAR.
Although Ovintiv believes the expectations represented by such
FLS are reasonable, there can be no assurance that such
expectations will prove to be correct. Readers are cautioned that
the assumptions, risks and uncertainties referenced above are not
exhaustive. FLS are made as of the date of this news release and,
except as required by law, Ovintiv undertakes no obligation to
update publicly or revise any FLS. FLS contained in this news
release are expressly qualified by these cautionary statements.
Further information on Ovintiv 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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*
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Net debt is a
non-GAAP measure Ovintiv defines as long-term debt, including the
current portion, less cash and cash equivalents.
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SOURCE Ovintiv Inc.