Strong Third Quarter Free Cash Flow to Enhance
Shareholder Returns Through Fourth Quarter Share Buyback
Program
Third Quarter Highlights:
- Generated third quarter cash from operating activities of
$812 million, non-GAAP cash flow of
$845 million and non-GAAP free cash
flow of $480 million
- Reduced net debt by $409 million
to $4.8 billion; achieved 1.5 times
net debt to adjusted EBITDA leverage ratio
- Fully offset inflation during the quarter with operational
efficiency gains and supply chain management
- Implemented a new capital allocation framework to increase cash
returns to shareholders through share buybacks and/or variable
dividends; Company expects to purchase shares equivalent to
$111 million during fourth
quarter
- Received regulatory approval to purchase, for cancellation, up
to 10% of the Company's outstanding shares of common stock over a
12-month period beginning October 1,
2021
- On track to achieve 33% methane intensity reduction target in
2021, four years ahead of schedule
- Committed to establishing a Scope 1&2 greenhouse gas (GHG)
emission intensity target tied to 2022 employee compensation
- Announced that as of September 1,
2021, the Company is fully aligned with the World Bank Zero
Routine Flaring by 2030 initiative, nine years ahead of the World
Bank's target
DENVER, Nov. 2, 2021 /PRNewswire/ - Ovintiv Inc.
(NYSE: OVV) (TSX: OVV) today announced its third quarter 2021
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
November 3, 2021. Please see dial-in
details within this release, as well as additional details on the
Company's website at www.ovintiv.com.
"Our third quarter results demonstrate our commitment to
unlocking shareholder value by delivering on our strategic
priorities", said Ovintiv President and CEO, Brendan McCracken. "Year-to-date, we have
generated nearly $1.4 billion of free
cash flow, dropped our net debt by more than $2.1 billion, and increased our base dividend by
about 50%. During the fourth quarter we expect to return
approximately $150 million to our
shareholders via our base dividend and share buybacks. Looking
ahead, we are committed to debt reduction, generating superior
returns on the capital we invest, returning cash to our
shareholders, and driving ESG progress."
Third Quarter 2021 Financial and Operating Results
- The Company recorded a net loss in the third quarter of
$72 million, or $0.28 per diluted share of common stock. The
results included the impact of net losses on risk management of
$954 million, before-tax.
- Third quarter cash from operating activities was $812 million, non-GAAP cash flow was $845 million and capital investment totaled
$365 million, resulting in
$480 million of non-GAAP free cash
flow.
- Average total production was 535 thousand barrels of oil
equivalent per day (MBOE/d), including crude and condensate
production of 189 thousand barrels per day (Mbbls/d), natural gas
production of 1,566 million cubic feet per day (MMcf/d), and NGL
production of 85 Mbbls/d.
- Total Costs for the third quarter were $13.03 per barrel of oil equivalent (BOE).
- Third quarter 2021 average realized prices, excluding losses on
risk management, were $68.36 per
barrel for oil and condensate (97% of WTI), $29.31 per barrel for other NGLs (C2-C4) and
$3.69 per thousand cubic feet (Mcf)
for natural gas (92% of NYMEX), resulting in a total average
realized price of $39.57 per
BOE.
- Third quarter 2021 average realized prices, including losses on
risk management, were $54.97 per
barrel for oil and condensate, $23.86
per barrel for other NGLs (C2-C4) and $3.02 per Mcf for natural gas, resulting in a
total average realized price of $32.00 per BOE. Ovintiv reported third quarter
realized commodity-based risk management losses of $372 million, before tax. The Company did not add
any material new risk management positions during the quarter.
Share Buyback Program Underway
As of October 31, 2021, Ovintiv had repurchased for
cancellation, approximately 791 thousand of its common shares
outstanding at an average price of $37.91 per share, for a total investment of
approximately $30 million. During the
fourth quarter, the Company plans to buyback shares equivalent to
25% of its third quarter free cash flow less base dividend
payments, or approximately $111
million.
Continued Net Debt Reduction
During the third quarter, Ovintiv reduced net debt by $409 million to $4.8
billion. The Company remains on track to reach its year-end
net debt target of $4.5 billion,
which will represent approximately $3
billion of net debt reduction since the second quarter of
2020.
During the quarter, the Company set a new net debt target of
$3 billion, which, assuming current
strip commodity prices, could be achieved as soon as year-end 2022.
Assuming commodity prices of $50 per
bbl WTI oil and $2.75 per MMBtu NYMEX
natural gas, Ovintiv expects the net debt target to be reached by
or before year-end 2023.
In August 2021, Ovintiv redeemed
its $518 million, 3.90% senior notes
due November 15, 2021. The Company
redeemed the notes at par and paid approximately $523 million in cash including accrued and unpaid
interest of $5 million. In
June 2021, Ovintiv redeemed its
$600 million 5.75% senior notes due
January 30, 2022. 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 third quarter, the Company had no outstanding
balances under its revolving credit facilities and commercial paper
programs. Ovintiv's available liquidity totaled $4.3 billion.
Dividend Declared
On November
2, 2021, Ovintiv's Board declared a dividend of $0.14 per share of common stock payable on
December 31, 2021, to common
stockholders of record as of December
15, 2021.The dividend was increased by approximately 50% in
the third quarter.
ESG Performance
The Company recently announced the
achievement of several key sustainability milestones related to
emissions reductions, social responsibility and corporate
governance. As highlighted below, Ovintiv is delivering measurable
progress against its ESG initiatives. In addition, the Company
launched a new sustainability website, highlighting Ovintiv's
data-driven approach to environmental, social and governance (ESG)
performance matters.
Key highlights of Ovintiv's recent sustainability
achievements:
- Delivering on 33% methane intensity reduction target in 2021,
four years ahead of schedule
- Expect to reduce 2021 Scope 1&2 GHG emissions intensity by
more than 20% compared to 2019
- Committed to establishing a Scope 1&2 GHG emissions
intensity target tied to 2022 employee compensation
- As of September 1, 2021, the
Company is fully aligned with the World Bank Zero Routine Flaring
by 2030 initiative, nine years ahead of the World Bank's
target
- Established emissions monitoring dashboard across all
operations
- Achieved 7th consecutive safest year ever in 2020 with a Total
Recordable Injury Frequency of 0.19
- Established a social commitment leadership team and published
inaugural social commitment framework
- Broadened the diversity of the Company's Board of
Directors
Ovintiv's full 2020 ESG data disclosure can be found at
www.ovintiv.com/sustainability.
2021 Guidance Update
The Company reiterated its
original full year 2021 capital guidance of $1.5 billion as it expects to fully offset
inflationary pressures on capital costs. Ovintiv has narrowed
the production ranges in its full year 2021 guidance as
follows:
2021
Guidance
|
|
Previous
|
Current
|
Capital Investment
($ Billion)
|
$1.5
|
$1.5
|
Oil &
Condensate (Mbbls/d)
|
190 - 195
|
191 -
194
|
Other NGLs
(Mbbls/d)
|
80 - 85
|
82 -
83
|
Natural Gas
(MMcf/d)
|
1,550
-1,575
|
1,555 -
1,570
|
Total Costs per
BOE (1)
|
$12.95 -
$13.20
|
$12.95 -
$13.20
|
(1)
|
Total Costs is a
non-GAAP measure as defined in Note 1.
|
2022 Outlook
Ovintiv views its 2021 development
program as being highly repeatable in 2022 for the same amount of
capital investment. With capital investment of approximately
$1.5 billion in 2022, the Company
expects to maintain crude and condensate production volumes
consistent with the second half of 2021, at approximately 180 to
190 Mbbls/d. This range reflects a largely flat year-over-year
production profile when including the impact of asset divestitures
which closed during the first half of 2021. Ovintiv did not enter
2021 with a material drilled-but-uncompleted (DUC) well inventory
nor does it expect to exit the year with a material number of DUC
wells.
"We are confident in our ability to maintain our capital
efficiency in 2022," said McCracken. "Our teams have been
relentless in finding ways to offset cost inflation and make better
wells. Our Permian, Anadarko, and Montney assets are all generating superior
returns on invested capital as evidenced by the fact that each
asset is on track to generate between $1.0 to $1.1
billion of upstream operating free cash flow in 2021. Our
multi-basin portfolio, repeatable load-leveled program, pacesetter
cost performance, and rigorous supply chain management provide a
strong position to continue delivering industry leading capital
efficiency as we head into 2022."
Asset Highlights
Ovintiv continued to demonstrate
industry-leading capital efficiencies across its Core 3 assets
during the third quarter. Despite inflationary pressures,
program-leading, or "pacesetter" well cost performance was repeated
in each of the three assets during the quarter.
Permian
Permian production averaged 126 MBOE/d (81%
liquids) in the quarter. The Company averaged three gross rigs,
drilled 17 net wells, and had 20 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. During the quarter, the 13
well Falcon East development in Midland County had an average
lateral length of 13,500 feet, was drilled at an average rate of
over 2,000 feet per day and was completed using simul-frac at a
rate of over 3,300 feet per day. Completion efficiency for all 20
net TILs in the quarter averaged over 3,000 feet per day, with 95%
of these wells completed using simul-frac. In addition, three of
the five pads brought online during the quarter used 100% local,
wet sand, generating savings of approximately $100,000 per well.
Anadarko
Anadarko production averaged 134 MBOE/d (62%
liquids) in the quarter. The Company averaged two gross rigs,
drilled 12 net wells, and had 10 net wells TIL.
In the STACK area, D&C costs have averaged $430 per foot year-to-date and are 10% lower than
the 2020 program average. In addition to achieving best in class
D&C costs, year-to-date 2021 STACK well results have
demonstrated a significant uplift in performance, driven by
enhanced artificial lift and optimized completion design.
The Anadarko team lowered facility costs in the quarter to
approximately $300,000 per well, 27%
below the 2020 program average. This cost reduction was driven by
development optimization, including an increase in the number of
wells drilled per pad and efficiently reoccupying older
locations.
Montney
Montney production averaged 229 MBOE/d (25%
liquids) in the quarter. The Company averaged four gross rigs,
drilled 23 net wells and had 16 net wells TIL.
Montney year-to-date D&C
costs have averaged $410 per foot and
are 9% lower than the 2020 program average. During the quarter,
Ovintiv drilled three of its longest laterals ever in the
Montney. The longest of these was
drilled at over 15,300 feet, 13% more than the previous company
record. Industry wide, these wells mark three of the top five
longest laterals drilled in the basin to date. About 90% of the
completed wells in the quarter utilized an optimized casing design
that saved approximately $120,000 per
well. The 2021 Montney program is achieving better than expected
well performance across all fluid windows. In the liquids-rich
fairway of Pipestone, the 8 well
16-27 development has produced an average of 993 BOE/d (63%
condensate) per well over the first 180 days of production.
Base Assets
Bakken production averaged 25 MBOE/d (80%
liquids) in the quarter. The Company averaged one net rig, drilled
four net wells and had two net wells TIL. The Bakken program is
continuing to demonstrate exceptional performance through optimized
completion and wellbore designs. The Kestrel 3 well development has
achieved an IP120 production rate of 1,330 barrels of oil per day
per well.
For additional information, please refer to the 3Q 2021 Results
Presentation at
https://investor.ovintiv.com/presentations-events.
Conference Call Information
A conference call and
webcast to discuss the Company's third quarter results will be held
at 9:00 a.m. MT (11:00 a.m. ET) on November
3, 2021. To participate in the call, please dial
888-664-6383 (toll-free in North
America) or 416-764-8650 (international) approximately 15
minutes prior to the conference call. The live audio webcast of the
conference call, including slides and financial statements, will be
available on Ovintiv's website, www.ovintiv.com under
Investors/Presentations and Events. The webcast will be archived
for approximately 90 days.
Refer to Note 1 Non-GAAP measures and the tables in this
release for reconciliation to comparable GAAP financial
measures.
Capital Investment and Production
(for the three months
ended September 30)
|
3Q 2021
|
3Q 2020
|
Capital
Expenditures (1) ($ millions)
|
365
|
351
|
Oil
(Mbbls/d)
|
136.8
|
138.9
|
NGLs – Plant
Condensate (Mbbls/d)
|
51.9
|
47.2
|
Oil & Plant
Condensate (Mbbls/d)
|
188.7
|
186.1
|
NGLs – Other
(Mbbls/d)
|
84.9
|
83.8
|
Total Liquids
(Mbbls/d)
|
273.6
|
269.9
|
Natural gas
(MMcf/d)
|
1,566
|
1,442
|
Total production
(MBOE/d)
|
534.7
|
510.2
|
(1)
|
Including capitalized
directly attributable internal costs.
|
Third Quarter Summary
(for the three
months ended September 30) ($ millions, except as indicated)
|
3Q 2021
|
3Q 2020
|
Cash From (Used
In) Operating Activities Deduct (Add Back): Net change in other assets and
liabilities Net change in non-cash working
capital
Current tax on sale of assets
|
812
(10)
(23)
-
|
493
(47)
142
-
|
Non-GAAP Cash Flow
(1)
|
845
|
398
|
Non-GAAP Cash Flow
Margin (1) ($/BOE)
|
17.17
|
8.49
|
|
|
|
Non-GAAP Cash
Flow (1)
|
845
|
398
|
Less: Capital
Expenditures (2)
|
365
|
351
|
Non-GAAP Free Cash
Flow (1)
|
480
|
47
|
|
|
|
Net Earnings
(Loss) Before Income Tax Before-tax (Addition)
Deduction:
Unrealized gain (loss) on risk management Impairments Restructuring charges
Non-operating foreign
exchange gain (loss) Gain (loss) on divestitures
Gain on debt
retirement
|
(71)
(579)
-
(2)
(11)
-
-
|
(1,560)
(243)
(1,336)
(7)
21
-
6
|
Adjusted Net Earnings
(Loss) Before Income Tax Income tax expense (recovery)
|
521
130
|
(1)
7
|
Non-GAAP Operating
Earnings (Loss) (1)
|
391
|
(8)
|
(1)
|
Non-GAAP cash flow,
non-GAAP cash flow margin, non-GAAP free cash flow and non-GAAP
operating earnings (loss) are non-GAAP measures as defined in Note
1.
|
(2)
|
Including capitalized
directly attributable internal costs.
|
Realized Pricing Summary
(for the three months
ended September 30)
|
3Q 2021
|
3Q 2020
|
Liquids ($/bbl)
|
|
|
WTI
|
70.56
|
40.93
|
Realized Liquids
Prices (1)
|
|
|
Oil
|
53.31
|
41.39
|
NGLs – Plant
Condensate
|
59.34
|
39.99
|
Oil & Plant
Condensate
|
54.97
|
41.04
|
NGLs –
Other
|
23.86
|
9.99
|
Total
NGLs
|
37.31
|
20.81
|
|
|
|
Natural
Gas
|
|
|
NYMEX
($/MMBtu)
|
4.01
|
1.98
|
Realized Natural
Gas Price (1) ($/Mcf)
|
3.02
|
2.15
|
(1)
|
Prices include the
impact of realized gain (loss) on risk management.
|
Total Costs
(for the three months
ended September 30)
($ millions, except
as indicated)
|
3Q 2021
|
3Q 2020
|
Total Operating
Expenses
|
1,789
|
2,696
|
Deduct (Add
Back):
|
|
|
Market optimization
operating expenses
|
808
|
380
|
Corporate & other
operating expenses
|
1
|
-
|
Depreciation,
depletion and amortization
|
297
|
406
|
Impairments
|
-
|
1,336
|
Accretion of asset
retirement obligation
|
5
|
8
|
Long-term incentive
costs
|
31
|
2
|
Restructuring and
legal costs
|
6
|
7
|
Current expected
credit losses
|
-
|
(1)
|
Total Costs
(1)
|
641
|
558
|
Divided
by:
|
|
|
Production Volumes
(MMBOE)
|
49.2
|
46.9
|
Total Costs
(1) ($/BOE)
|
13.03
|
11.85
|
Drivers Included
in Total Costs
(1) ($/BOE)
|
|
|
Production, mineral
and other taxes
|
1.57
|
0.99
|
Upstream
transportation and processing
|
7.17
|
6.62
|
Upstream operating,
excluding long-term incentive costs
|
2.85
|
2.69
|
Administrative,
excluding long-term incentive costs,
restructuring and legal costs, and current expected credit
losses
|
1.44
|
1.55
|
Total Costs
(1) ($/BOE)
|
13.03
|
11.85
|
(1)
|
Total Costs is a
non-GAAP measure as defined in Note 1. Total Costs per BOE is
calculated using whole dollars and volumes.
|
Debt to Adjusted Capitalization
($ millions, except
as indicated)
|
September 30,
2021
|
December 31,
2020
|
Long-Term Debt,
including current portion
|
4,791
|
6,885
|
Total Shareholders'
Equity
|
3,797
|
3,837
|
Equity Adjustment for
Impairments at December 31, 2011
|
7,746
|
7,746
|
Adjusted
Capitalization
|
16,334
|
18,468
|
Debt to Adjusted
Capitalization (1)
|
29%
|
37%
|
(1)
|
Debt to Adjusted
Capitalization is a non-GAAP measure as defined in Note
1.
|
Hedge Volumes as of September 30,
2021
Oil and Condensate
Hedges ($/bbl)
|
4Q
2021
|
2022
|
WTI
Swaps
|
30
Mbbls/d
|
5
Mbbls/d
|
Swap Price
|
$46.37
|
$60.16
|
WTI 3-Way
Options
|
85
Mbbls/d
|
75
Mbbls/d
|
Short Call
|
$53.92
|
$70.79
|
Long
Put
|
$44.66
|
$60.82
|
Short Put
|
$34.79
|
$49.33
|
WTI Costless
Collars
|
15
Mbbls/d
|
-
|
Short Call
|
$45.84
|
Long Put
|
$35.00
|
Natural Gas Hedges
($/Mcf)
|
4Q
2021
|
2022
|
NYMEX
Swaps
|
165
MMcf/d
|
200
MMcf/d
|
Swap Price
|
$2.51
|
$2.67
|
NYMEX 3-Way
Options
|
980
MMcf/d
|
398
MMcf/d
|
Short Call
|
$3.36
|
$3.02
|
Long
Put
|
$2.89
|
$2.75
|
Short Put
|
$2.50
|
$2.00
|
NYMEX Costless
Collars
|
-
|
200
MMcf/d
|
Short Call
|
$2.85
|
Long Put
|
$2.55
|
NYMEX Short Call
Options
|
-
|
330
MMcf/d
|
Sold Call
Strike
|
$2.38
|
NYMEX
Swaption
|
-
|
165
MMcf/d
|
Swaption
Strike
|
$2.51
|
Price Sensitivities for WTI Oil (1)
($MM)
WTI Oil Hedge
Gains (Losses) by Quarter
|
Period
|
$40
|
$50
|
$60
|
$70
|
$80
|
$90
|
4Q21
|
$56
|
(10)
|
(106)
|
(224)
|
(344)
|
(463)
|
Full Year
2022
|
$351
|
296
|
42
|
(54)
|
(288)
|
(580)
|
(1)
|
Hedge positions and
hedge sensitivity estimates based on hedge positions as at
09/30/2021. Does not include impact of basis positions.
|
Price Sensitivities for NYMEX Natural Gas (1)
($MM)
NYMEX Natural Gas
Hedge Gains (Losses) by Quarter
|
Period
|
$2.50
|
$3.00
|
$3.50
|
$4.00
|
$4.50
|
$5.00
|
$5.50
|
4Q21
|
$35
|
(7)
|
(28)
|
(81)
|
(133)
|
(186)
|
(239)
|
Full Year
2022
|
$38
|
(139)
|
(372)
|
(608)
|
(844)
|
(1,080)
|
(1,316)
|
(1)
|
Hedge positions and
hedge sensitivity estimates based on hedge positions as at
09/30/2021. Does not include impact of basis positions.
|
Note: Company has
additional hedges on Butane, Propane and Ethane in the fourth
quarter of 2021 only, that are not included in the above
tables.
|
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 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.
- Upstream Operating Cash Flow, excluding Risk Management and
Upstream Operating Free Cash Flow – Upstream Operating Cash
Flow, excluding Risk Management is a measure that adjusts the
USA and Canadian Operations
revenues for production, mineral and other taxes, transportation
and processing expense, operating expense and the impacts of
realized risk management activities. It is calculated as total
upstream operating income excluding upstream depreciation,
depletion and amortization, and the impact of risk management
activities. Upstream Operating Free Cash Flow is defined as
Upstream Operating Cash Flow, excluding Risk Management, in excess
of upstream capital investment, excluding net acquisitions and
divestitures. Management monitors these measures as it reflects
operating performance and measures the amount of cash generated
from the Company's upstream operations.
- 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. 120
and 180-day IP rates are subject to decline over time and not
necessarily indicative of long-term performance or of ultimate
recovery
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 is intended to identify forward-looking
statements, although not all forward-looking statements contain
such identifying words or phrases. Readers are cautioned
against unduly relying on forward-looking statements which, by
their nature, involve numerous assumptions and are subject to both
known and unknown risks and uncertainties (many of which are beyond
our control) that may cause such statements not to occur, or actual
results to differ materially and/or adversely from those expressed
or implied. These assumptions include: future commodity
prices and basis differentials; the ability of the Company to
access credit facilities and shelf prospectuses; future
foreign exchange rates; the Company's ability to capture and
maintain gains in productivity and efficiency; data contained in
key modeling statistics; availability of attractive commodity or
financial hedges; benefits from technology and innovation; assumed
tax, royalty and regulatory regimes; expectations and projections
made in light of the Company's historical experience; and the other
assumptions contained herein. Risks and uncertainties that
may affect the Company's financial or operating performance
include: market and commodity price volatility; uncertainties,
costs and risks involved in our operations, including hazards and
risks incidental to both the drilling and completion of wells and
the production, transportation, marketing and sale of oil, NGL and
natural gas; availability of equipment, services, resources and
personnel required to perform the Company's operating activities;
our ability to generate sufficient cash flow to meet our
obligations; the impact of COVID-19 (or other future pandemics) on
commodity prices and to the Company's operations; our ability to
secure adequate transportation and storage for oil, NGL and natural
gas; interruptions to oil, NGL and natural gas production;
discretion of the Company's board of directors to declare and pay
dividends; the timing and costs associated with drilling and
completing wells; business interruption, property and casualty
losses (including weather related losses) and the extent to which
insurance covers any such losses; counterparty and credit risk; the
impact of changes in our credit rating and access to liquidity;
changes in political or economic conditions in the United States and Canada; risks associated with technology,
including electronic, cyber and physical security breaches; changes
in royalty, tax, environmental, greenhouse gas, carbon, accounting
and other laws or regulations or the interpretations thereof; our
ability to timely obtain environmental or other necessary
government permits or approvals; risks associated with existing and
potential lawsuits and regulatory actions; risks related to the
purported causes and impact of climate change; the impact of
disputes arising with our partners; the Company's ability to
acquire or find additional oil and natural gas reserves;
imprecision of oil and natural gas reserves estimates and estimates
of recoverable quantities; risks associated with past and future
acquisitions or divestitures; our ability to repurchase the
Company's outstanding common shares; the existence of alternative
uses for the Company's cash resources which may be superior to the
payment of dividends or share repurchases; risks and uncertainties
described in Item 1A. Risk Factors of the Company's most recent
Annual Report on Form 10-K and Quarterly Report on Form 10-Q; and
other risks and uncertainties impacting the Company's business as
described from time to time in the Company's periodic filings with
the United States Securities and Exchange Commission or Canadian
securities regulators. The assumptions, risks and
uncertainties referenced above are not exhaustive. 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.
View original content to download
multimedia:https://www.prnewswire.com/news-releases/ovintiv-reports-third-quarter-2021-financial-and-operating-results-301414692.html
SOURCE Ovintiv Inc.