8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): November 7, 2023

Ovintiv Inc.

(Exact Name of Registrant as Specified in its Charter)

Delaware (State or Other Jurisdiction of Incorporation)	001-39191 (Commission File Number)	84-4427672 (I.R.S. Employer Identification No.)
Suite 1700, 370 - 17th Street Denver, Colorado (Address of principal executive offices)		80202 (Zip Code)

(303) 623-2300

(Registrant’s telephone number, including area code)

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.01 per share	OVV	New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

ITEM 2.02 Results of Operations and Financial Condition.

On November 7, 2023, Ovintiv Inc. (the “Company”) issued a news release announcing its financial and operating results for its third quarter ended September 30, 2023. In connection with this announcement, the Company provided an earnings release and certain selected and supplemental financial information. A copy of the news release and supplemental financial information are attached as Exhibit 99.1 and 99.2 to this Current Report on Form 8-K.

The information contained in this report, including Exhibits 99.1 and 99.2 attached hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Exchange Act or Securities Act of 1933, as amended, except as expressly set forth by specific reference in such a filing.

ITEM 8.01 Other Events.

Quarterly Dividend

In its November 7, 2023 news release, the Company also announced that its Board of Directors had declared a quarterly dividend of $0.30 per share on the Company’s outstanding common stock. The dividend is payable on December 29, 2023 to holders of record at the close of business on December 15, 2023. A copy of the news release is attached as Exhibit 99.1 to this Current Report on Form 8-K.

ITEM 9.01 Financial Statements and Exhibits.

(d) Exhibits

Exhibit No.	Exhibit Description
Exhibit 99.1	News Release dated November 7, 2023.
Exhibit 99.2	Selected and Supplemental Financial Information.
Exhibit 104	Cover Page Interactive Data File (embedded within the Inline XBRL document).

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Dated: November 7, 2023

OVINTIV INC.
(Registrant)
By:	/s/ Dawna I. Gibb
	Name: Dawna I. Gibb
	Title: Assistant Corporate Secretary

EX-99.1

Exhibit 99.1 news release

Ovintiv Reports Third Quarter 2023 Financial and Operating Results

Strong Well Results and Successful Acquisition Integration Drive Increased Full Year Production Guidance

Highlights:

•Generated net earnings of $406 million, cash from operating activities of $906 million, Non-GAAP Cash Flow of $1,112 million and Non-GAAP Free Cash Flow of $278 million after capital expenditures of $834 million

•Third quarter production was at or above the high end of guidance on every product with average total production volumes of 572 thousand barrels of oil equivalent per day (“MBOE/d”), including 214 thousand barrels per day (“Mbbls/d”) of oil and condensate, 87 Mbbls/d of other NGLs (C2 to C4) and 1,625 million cubic feet per day (“MMcf/d”) of natural gas

•Increased full year 2023 production guidance and tightened the range for full year capital guidance

•Returned $127 million to shareholders through the combination of base dividend payments and share buybacks

•Received regulatory approval for the renewal of the Company’s normal course issuer bid, or NCIB program, enabling the Company to purchase up to approximately 26.7 million shares of common stock over a 12-month period ending October 2, 2024

DENVER, November 7, 2023 – Ovintiv Inc. (NYSE, TSX: OVV) (“Ovintiv” or the “Company”) today announced its third quarter 2023 financial and operating results. The Company plans to hold a conference call and webcast at 10:00 a.m. MT (12:00 p.m. ET) on November 8, 2023. Please see dial-in details within this release, as well as additional details on the Company's website at www.ovintiv.com underPresentations and Events – Ovintiv.

“Our outstanding third quarter results are a reflection of the momentum we have been building all year,” said Ovintiv President and CEO, Brendan McCracken. “Strong well performance across the portfolio, combined with the seamless integration of our new Permian assets, has allowed us to significantly exceed our oil and condensate guidance, reflecting both enhanced capital efficiency and higher returns on our invested capital.”

Third Quarter 2023 Financial and Operating Results

•The Company recorded net earnings of $406 million, or $1.47 per diluted share of common stock. Included in net earnings were net losses on risk management of $282 million, before tax.

•Cash from operating activities was $906 million, Non-GAAP Cash Flow was $1,112 million and capital investment totaled approximately $834 million, resulting in $278 million of Non-GAAP Free Cash Flow.

•Third quarter capital investment of $834 million was lower than the third quarter guidance range of $840 million to $890 million resulting from capital efficiencies.

•Third quarter average total production volumes were at the high end or above Company guidance on all products at approximately 572 MBOE/d, including 214 Mbbls/d of oil and condensate, 87 Mbbls/d of other NGLs and 1,625 MMcf/d of natural gas.

•Upstream operating expense was $4.48 per barrel of oil equivalent ("BOE"). Upstream transportation and processing costs were $7.40 per BOE. Production, mineral and other taxes were $1.70 per BOE, or 4.3% of upstream revenue. These costs were below the bottom end of guidance on a combined basis.

•Excluding the impact of hedges, third quarter average realized prices were $78.86 per barrel for oil and condensate (96% of WTI), $18.39 per barrel for other NGLs (C2-C4) and $2.33 per thousand cubic feet ("Mcf") for natural gas (91% of NYMEX) resulting in a total average realized price of $38.95 per BOE. Including the impact of hedges, the average realized prices for oil and condensate was $77.94 (95% of WTI), other NGLs was unchanged, and the average realized price for natural gas was $2.51 per Mcf (98% of NYMEX) resulting in a total average realized price of $39.12 per BOE.

Ovintiv Inc. 1

Guidance

The Company issued its fourth quarter 2023 guidance and favorably revised its full year guidance. Full year production guidance was increased due to strong well productivity across the portfolio and faster than expected integration of recently acquired Permian assets. Full year capital efficiency is expected to improve by approximately six percent compared to the guidance issued following the completion of the Permian asset acquisition in June. Full year production volumes are expected to average 550 to 560 MBOE/d, with full year capital investment of $2.745 billion to $2.785 billion.

		Full Year 2023
Guidance Updates	4Q 2023	As of June 2023	As of July 2023	Updated
Total Production (MBOE/d)	560 – 580	521 – 546	535 – 550	550 – 560
Oil & Condensate (Mbbls/d)	220 – 227	186 – 196	190 – 196	196 – 198
NGLs (C2 - C4) (Mbbls/d)	84 – 88	80 – 85	83 – 87	87– 89
Natural Gas (MMcf/d)	1,550 – 1,600	1,525 – 1,575	1,575 – 1,625	1,615 – 1,630
Capital Investment ($ Millions)	$660 – $700	$2,680 – $2,980	$2,680 – $2,850	$2,745 – $2,785

Ovintiv expects production in the fourth quarter to be the high point for the year resulting from strong well productivity across the portfolio along with the acceleration of acquired Permian wells turned in line (TIL). The Company expects all acquired Permian wells in progress to be on production by year end. Total Company oil and condensate production is expected to average 220 to 227 Mbbls/d in the fourth quarter.

2024 Outlook

In 2024, Ovintiv expects to deliver total Company average oil and condensate production volumes of approximately 200 Mbbls/d with total capital investment of $2.1 billion to $2.5 billion. The Company’s production profile is expected to stabilize at approximately 200 Mbbls/d by the second quarter of 2024, one quarter sooner than originally planned.

Returns to Shareholders

Ovintiv remains committed to its capital allocation framework, which returns at least 50% of post base dividend Non-GAAP Free Cash Flow to shareholders through buybacks and/or variable dividends.

In the third quarter of 2023, the Company returned approximately $127 million to shareholders through share buybacks totaling approximately $45 million and its base dividend of approximately $82 million.

On September 13, 2023, the Company purchased one million shares of Ovintiv common stock from the 15 million shares offered for sale by NMB Stock Trust, a Delaware statutory trust, in a secondary public offering. The total consideration paid was approximately $45 million, or $45.45 per share, and the shares were cancelled during the third quarter of 2023. The share purchase accelerates Ovintiv’s expected fourth quarter share purchases under its existing shareholder return framework. Share buybacks in the fourth quarter are expected to total approximately $53 million.

Continued Balance Sheet Focus

Ovintiv had approximately $3.1 billion in total liquidity as of September 30, 2023, which included available credit facilities of $3,150 million, available uncommitted demand lines of $273 million, and cash and cash equivalents of $3 million, net of outstanding commercial paper of $359 million.

Ovintiv reported Non-GAAP Debt to EBITDA of 1.4 times and Non-GAAP Debt to Adjusted EBITDA of 1.5 times as of September 30, 2023.

The Company remains committed to maintaining a strong balance sheet and is currently rated investment grade by four credit rating agencies. Ovintiv maintains a long-term leverage target of 1.0 times Non-GAAP Debt to Adjusted EBITDA at mid-cycle prices, with an associated long-term total debt target of $4.0 billion.

Dividend Declared

On November 7, 2023, Ovintiv’s Board declared a quarterly dividend of $0.30 per share of common stock payable on December 29, 2023, to shareholders of record as of December 15, 2023.

Ovintiv Inc. 2

Asset Highlights

Permian

Permian production averaged 194 MBOE/d (83% liquids) in the third quarter. TheCompany had 83 net wells TIL. Ovintiv plans to invest approximately $1.43 to $1.47 billion in the play in 2023 to bring on 170 to 180 net wells.

Montney

Montney production averaged 229 MBOE/d (21% liquids) in the third quarter. The Company had 22 net wells TIL. Ovintiv plans to invest approximately $540 to $580 million in the play in 2023 to bring on 75 to 80 net wells.

Uinta

Uinta production averaged 24 MBOE/d (84% liquids) in the third quarter. The Company had ten net wells TIL. Ovintiv plans to invest approximately $415 to $435 million in the play in 2023 to bring on 21 to 26 net wells. Capital investment in 2023 includes drilling and completion expenditures on wells that will not TIL until 2024.

Anadarko

Anadarko production averaged 119 MBOE/d (60% liquids) in the third quarter. The Company had one net well TIL. Ovintiv plans to invest approximately $190 to $210 million in the play in 2023 to bring on 26 net wells.

For additional information, please refer to the Third Quarter 2023 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 Documents Library.

Conference Call Information

A conference call and webcast to discuss the Company’s third quarter results will be held at 10:00 a.m. MT (12:00 p.m. ET) on November 8, 2023.

To join the conference call without operator assistance, you may register and enter your phone number at https://emportal.ink/3nQ9Md7 to receive an instant automated call back. You can also dial direct to be entered to the call by an Operator. Please dial 888-664-6383 (toll-free in North America) or 416-764-8650 (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.

Ovintiv Inc. 3

Capital Investment and Production

(for the period ended September 30)	3Q 2023	3Q 2022
Capital Expenditures (1) ($ millions)	834	511
Oil (Mbbls/d)	170.9	133.4
NGLs – Plant Condensate (Mbbls/d)	43.3	46.0
Oil & Plant Condensate (Mbbls/d)	214.2	179.4
NGLs – Other (Mbbls/d)	86.7	86.9
Total Liquids (Mbbls/d)	300.9	266.3
Natural gas (MMcf/d)	1,625	1,500
Total production (MBOE/d)	571.8	516.3

(1)Including capitalized directly attributable internal costs.

Third Quarter Financial Summary

(for the period ended September 30) ($ millions)	3Q 2023	3Q 2022
Cash From (Used In) Operating Activities Deduct (Add Back): Net change in other assets and liabilities Net change in non-cash working capital	906 (14) (192)	962 (17) 31
Non-GAAP Cash Flow (1)	1,112	948
Non-GAAP Cash Flow (1)	1,112	948
Less: Capital Expenditures (2)	834	511
Non-GAAP Free Cash Flow (1)	278	437
Net Earnings (Loss) Before Income Tax Before-tax (Addition) Deduction: Unrealized gain (loss) on risk management Non-operating foreign exchange gain (loss)	393 (292) 17	1,274 710 (20)
Adjusted Earnings (Loss) Before Income Tax Income tax expense (recovery)	668 187	584 231
Non-GAAP Adjusted Earnings (1)	481	353

(1)Non-GAAP Cash Flow, Non-GAAP Free Cash Flow and Non-GAAP Adjusted Earnings are non-GAAP measures as defined in Note 1.

(2)Including capitalized directly attributable internal costs.

Realized Pricing Summary (Includingthe impact of realized gains (losses) on risk management)

(for the period ended September 30)	3Q 2023	3Q 2022
Liquids($/bbl)
WTI	82.26	91.55
Realized Liquids Prices
Oil	79.52	81.74
NGLs – Plant Condensate	71.61	75.73
Oil & Plant Condensate	77.94	80.20
NGLs – Other	18.39	31.49
Total NGLs	36.11	46.81
Natural Gas
NYMEX ($/MMBtu)	2.55	8.20
Realized Natural Gas Price ($/Mcf)	2.51	1.85

Ovintiv Inc. 4

(for the period ended September 30) ($/BOE, except as indicated)	3Q 2023	3Q 2022
Production, mineral and other taxes	1.70	2.29
Upstream transportation and processing	7.40	8.99
Upstream operating	4.48	4.64
Administrative, excluding long-term incentive, transaction and legal costs, and current expected credit losses	1.27	1.39

Cost Summary

Debt to EBITDA (1)

($ millions, except as indicated)	September 30, 2023	December 31, 2022
Long-Term Debt, including Current Portion	6,163	3,570
Net Earnings (Loss)	2,564	3,637
Add back (Deduct):
Depreciation, depletion and amortization	1,549	1,113
Interest	312	311
Income tax expense (recovery)	(11)	(77)
EBITDA	4,414	4,984
Debt to EBITDA (times)	1.4	0.7

Debt to Adjusted EBITDA (1)

($ millions, except as indicated)	September 30, 2023	December 31, 2022
Long-Term Debt, including Current Portion	6,163	3,570
Net Earnings (Loss)	2,564	3,637
Add back (Deduct):
Depreciation, depletion and amortization	1,549	1,113
Accretion of asset retirement obligation	18	18
Interest	312	311
Unrealized (gains) losses on risk management	(398)	(741)
Foreign exchange (gain) loss, net	(6)	15
Other (gains) losses, net	(19)	(33)
Income tax expense (recovery)	(11)	(77)
Adjusted EBITDA	4,009	4,243
Debt to Adjusted EBITDA (times)	1.5	0.8

1)Debt to EBITDA and Debt to Adjusted EBITDA are non-GAAP measures as defined in Note 1.

Ovintiv Inc. 5

Hedge Details as of September 30, 2023

Oil and Condensate Hedges ($/bbl)	4Q 2023	1Q 2024	2Q 2024	3Q 2024	4Q 2024
WTI Swaps	35 Mbbls/d $76.94	25 Mbbls/d $73.69	25 Mbbls/d $73.69	0 -	0 -
WTI Collars Call Strike Put Strike	35 Mbbls/d $87.60 $65.00	75 Mbbls/d $82.29 $64.33	75 Mbbls/d $80.39 $65.00	10 Mbbls/d $92.06 $60.00	0 - -
WTI 3-Way Options Short Call Long Put Short Put	40 Mbbls/d $104.19 $65.00 $50.00	0 - - -	0 - - -	40 Mbbls/d $89.76 $65.00 $50.00	10 Mbbls/d $89.79 $65.00 $50.00

Natural Gas Hedges ($/Mcf)	4Q 2023	1Q 2024	2Q 2024	3Q 2024	4Q 2024
NYMEX Swaps	0 -	200 MMcf/d $3.62	200 MMcf/d $3.62	200 MMcf/d $3.62	200 MMcf/d $3.62
NYMEX Collars Call Strike Put Strike	200 MMcf/d $3.68 $3.00	400 MMcf/d $5.10 $3.00	400 MMcf/d $3.40 $3.00	400 MMcf/d $3.40 $3.00	400 MMcf/d $5.57 $3.00
NYMEX 3-Way Options Call Strike Put Strike Sold Put Strike	400 MMcf/d $10.05 $4.00 $3.00	100 MMcf/d $4.79 $3.00 $2.25	200 MMcf/d $4.44 $3.00 $2.25	200 MMcf/d $4.44 $3.00 $2.25	100 MMcf/d $4.79 $3.00 $2.25
Waha Basis Swaps	30 MMcf/d ($0.61)	0 -	0 -	0 -	0 -
Waha % of NYMEX Swaps	0 -	50 MMcf/d 71%	50 MMcf/d 71%	50 MMcf/d 71%	50 MMcf/d 71%
Malin Basis Swaps	50 MMcf/d ($0.26)	0 -	0 -	0 -	0 -
AECO Basis Swaps	260 MMcf/d ($1.07)	190 MMcf/d ($1.08)	190 MMcf/d ($1.08)	190 MMcf/d ($1.08)	190 MMcf/d ($1.08)
AECO % of NYMEX Swaps	50 MMcf/d 71%	100 MMcf/d 72%	100 MMcf/d 72%	100 MMcf/d 72%	100 MMcf/d 72%

Ovintiv Inc. 6

Price Sensitivities for WTI Oil (1) ($MM)

WTI Oil Hedge Gains (Losses)
	$40	$50	$60	$70	$80	$90	$100	$110	$120
4Q 2023	$255	$190	$89	$22	($10)	($50)	($114)	($200)	($301)
1Q 2024	$243	$152	$61	$8	($14)	($90)	($181)	($272)	($363)
2Q 2024	$247	$156	$65	$8	($14)	($103)	($194)	($285)	($376)
3Q 2024	$74	$64	$18	-	-	($2)	($45)	($91)	($137)
4Q 2024	$14	$14	$5	-	-	($0)	($9)	($19)	($28)

(1)Hedge positions and hedge sensitivity estimates as of 9/30/2023. Does not include impact of basis positions.

Price Sensitivities for NYMEX Natural Gas (1) ($MM)

NYMEX Natural Gas Hedge Gains (Losses)
	$1.50	$2.00	$2.50	$3.00	$3.50	$4.00	$4.50	$5.00	$5.50
4Q 2023	$64	$55	$46	$37	$18	($6)	($15)	($24)	($33)
1Q 2024	$100	$73	$43	$11	$2	($7)	($16)	($27)	($55)
2Q 2024	$107	$79	$48	$11	($2)	($29)	($60)	($94)	($130)
3Q 2024	$108	$80	$48	$11	($2)	($29)	($60)	($95)	($131)
4Q 2024	$101	$73	$44	$11	$2	($7)	($16)	($27)	($41)

(1)Hedge positions and hedge sensitivity estimates as of 9/30/2023. Does not include impact of basis positions.

Ovintiv Inc. 7

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,” “we,” “its,” “our” or to “the Company” includes reference to subsidiaries of and partnership interests held by Ovintiv Inc. and its subsidiaries.

Please visit Ovintiv’s website and Investor Relations page at www.ovintiv.com and investor.ovintiv.com, where Ovintiv often discloses important information about the Company, its business, and its results of operations.

NI 51-101 Exemption

The Canadian securities regulatory authorities have issued a decision document (the “Decision”) granting Ovintiv exemptive relief from the requirements contained in Canada’s National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities (“NI 51-101”). As a result of the Decision, and provided that certain conditions set out in the Decision are met on an on-going basis, Ovintiv will not be required to comply with the Canadian requirements of NI 51-101 and the Canadian Oil and Gas Evaluation Handbook. The Decision permits Ovintiv to provide disclosure in respect of its oil and gas activities in the form permitted by, and in accordance with, the legal requirements imposed by the U.S. Securities and Exchange Commission (“SEC”), the Securities Act of 1933, the Securities and Exchange Act of 1934, the Sarbanes-Oxley Act of 2002 and the rules of the NYSE. The Decision also provides that Ovintiv is required to file all such oil and gas disclosures with the Canadian securities regulatory authorities on www.sedar.com as soon as practicable after such disclosure is filed with the SEC.

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, and net change in non-cash working capital.

•Non-GAAP Free Cash Flow is a non-GAAP measuredefined as Non-GAAP Cash Flow in excess of capital expenditures, excluding net acquisitions and divestitures.

•Non-GAAP Adjusted Earnings is a non-GAAP measure defined as net earnings (loss) excluding non-cash items that the Company’s 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, non-operating foreign exchange gains/losses, and gains/losses on divestitures. 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.

•Adjusted EBITDA, Debt to EBITDA and Debt to Adjusted EBITDA (Leverage Ratio) are non-GAAP measures. EBITDA is defined as trailing 12-month net earnings (loss) before income taxes, depreciation, depletion and amortization, and interest. Adjusted EBITDA is EBITDA adjusted for impairments, accretion of asset retirement obligation, unrealized gains/losses on risk management, foreign exchange gains/losses, gains/losses on divestitures and other gains/losses. Debt to EBITDA is calculated as long-term debt, including the current portion, divided by EBITDA. Debt to Adjusted EBITDA is calculated as long-term debt, including the current portion, divided by Adjusted EBITDA. Adjusted EBITDA, Debt to EBITDA and Debt to Adjusted EBITDA are a non-GAAP measures monitored by management as indicators of the Company’s overall financial strength.

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.

Ovintiv Inc. 8

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, including the expectation of delivering sustainable durable returns to shareholders in future years, plans regarding share buybacks and debt reduction, and the anticipated timing of bringing wells online, 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 are 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, are based on current expectations and by their nature, involve numerous assumptions that 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, without limitation: future commodity prices and basis differentials; the Company's ability to successfully integrate the Midland Basin assets; the ability of the Company to access credit facilities and capital markets; the availability of attractive commodity or financial hedges and the enforceability of risk management programs; the Company's ability to capture and maintain gains in productivity and efficiency; the ability for the Company to generate cash returns and execute on its share buyback plan; expectations of plans, strategies and objectives of the Company, including anticipated production volumes and capital investment; the Company’s ability to manage cost inflation and expected cost structures, including expected operating, transportation, processing and labor expenses; the outlook of the oil and natural gas industry generally, including impacts from changes to the geopolitical environment; and projections made in light of, and generally consistent with, the Company's historical experience and its perception of historical industry trends; and the other assumptions contained herein.

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; revise or keep current any forward-looking statements. The forward-looking statements contained or incorporated by reference in this news release, and all subsequent forward-looking statements attributable to the Company, whether written or oral, are expressly qualified by these cautionary statements.

The reader should carefully read the risk factors described in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s most recent Annual Report on Form 10-K, Quarterly Report on Form 10-Q, and in other filings with the SEC or Canadian securities regulators, for a description of certain risks that could, among other things, cause actual results to differ from these forward-looking statements. Other unpredictable or unknown factors not discussed in this news release could also have material adverse effects on forward-looking statements.

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

Ovintiv Inc. 9

EX-99.2

Exhibit 99.2

 

Ovintiv Inc.

Selected Financial Information

(unaudited)

For the period ended September 30, 2023

U.S. Dollar / U.S. Protocol

Condensed Consolidated Statement of Earnings (unaudited)

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(US$ millions, except per share amounts)	2023			2022			2023			2022
Revenues
Product and service revenues	$	2,913		$	3,643		$	7,857		$	11,064
Gains (losses) on risk management, net		(282	)		(111	)		(193	)		(1,864	)
Sublease revenues		18			17			53			52
Total Revenues		2,649			3,549			7,717			9,252
Operating Expenses
Production, mineral and other taxes		89			109			249			321
Transportation and processing		433			468			1,340			1,327
Operating		243			228			624			596
Purchased product		846			973			2,239			3,154
Depreciation, depletion and amortization		486			291			1,269			833
Accretion of asset retirement obligation		5			4			14			14
Administrative		80			103			306			318
Total Operating Expenses		2,182			2,176			6,041			6,563
Operating Income (Loss)		467			1,373			1,676			2,689
Other (Income) Expenses
Interest		98			83			249			248
Foreign exchange (gain) loss, net		(22	)		19			-			21
Other (gains) losses, net		(2	)		(3	)		(16	)		(30	)
Total Other (Income) Expenses		74			99			233			239
Net Earnings (Loss) Before Income Tax		393			1,274			1,443			2,450
Income tax expense (recovery)		(13	)		88			214			148
Net Earnings (Loss)	$	406		$	1,186		$	1,229		$	2,302
Net Earnings (Loss) per Share of Common Stock
Basic	$	1.48		$	4.70		$	4.80		$	9.00
Diluted		1.47			4.63			4.73			8.84
Weighted Average Shares of Common Stock Outstanding (millions)
Basic		273.7			252.5			255.8			255.7
Diluted		276.3			256.2			259.7			260.4

Condensed Consolidated Statement of Comprehensive Income (unaudited)

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(US$ millions)	2023			2022			2023			2022
Net Earnings (Loss)	$	406		$	1,186		$	1,229		$	2,302
Other Comprehensive Income (Loss), Net of Tax
Foreign currency translation adjustment		(59	)		(94	)		(4	)		(125	)
Pension and other post-employment benefit plans		(2	)		(1	)		(5	)		(4	)
Other Comprehensive Income (Loss)		(61	)		(95	)		(9	)		(129	)
Comprehensive Income (Loss)	$	345		$	1,091		$	1,220		$	2,173

Ovintiv Inc. 1 Selected Financial Information

Condensed Consolidated Balance Sheet (unaudited)

	As at			As at
	September 30,			December 31,
(US$ millions)	2023			2022
Assets
Current Assets
Cash and cash equivalents	$	3		$	5
Accounts receivable and accrued revenues (net of allowances
of $5 million (2022: $4 million))		1,524			1,594
Risk management		50			53
Income tax receivable		4			43
		1,581			1,695
Property, Plant and Equipment, at cost:
Oil and natural gas properties, based on full cost accounting
Proved properties		62,950			57,054
Unproved properties		1,569			1,172
Other		931			882
Property, plant and equipment		65,450			59,108
Less: Accumulated depreciation, depletion and amortization		(50,935	)		(49,640	)
Property, plant and equipment, net		14,515			9,468
Other Assets		1,006			1,004
Risk Management		14			34
Deferred Income Taxes		199			271
Goodwill		2,585			2,584
	$	19,900		$	15,056
Liabilities and Shareholders’ Equity
Current Liabilities
Accounts payable and accrued liabilities	$	2,420		$	2,221
Current portion of operating lease liabilities		81			76
Income tax payable		151			4
Risk management		182			86
Current portion of long-term debt		709			393
		3,543			2,780
Long-Term Debt		5,454			3,177
Operating Lease Liabilities		813			814
Other Liabilities and Provisions		124			131
Risk Management		4			-
Asset Retirement Obligation		267			281
Deferred Income Taxes		143			184
		10,348			7,367
Shareholders’ Equity
Share capital - authorized 775 million shares of stock
2023 issued and outstanding: 272.9 million shares (2022: 245.7 million shares)		3			3
Paid in surplus		8,644			7,776
Retained earnings (Accumulated deficit)		(77	)		(1,081	)
Accumulated other comprehensive income		982			991
Total Shareholders’ Equity		9,552			7,689
	$	19,900		$	15,056

Ovintiv Inc. 2 Selected Financial Information

Condensed Consolidated Statement of Cash Flows (unaudited)

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(US$ millions)	2023			2022			2023			2022
Operating Activities
Net earnings (loss)	$	406		$	1,186		$	1,229		$	2,302
Depreciation, depletion and amortization		486			291			1,269			833
Accretion of asset retirement obligation		5			4			14			14
Deferred income taxes		(78	)		88			33			138
Unrealized (gain) loss on risk management		292			(710	)		132			(211	)
Unrealized foreign exchange (gain) loss		(19	)		20			(14	)		24
Foreign exchange (gain) loss on settlements		2			12			5			11
Other		18			57			(6	)		104
Net change in other assets and liabilities		(14	)		(17	)		(31	)		(42	)
Net change in non-cash working capital		(192	)		31			174			(182	)
Cash From (Used in) Operating Activities		906			962			2,805			2,991
Investing Activities
Capital expenditures		(834	)		(511	)		(2,084	)		(1,473	)
Acquisitions		(59	)		(12	)		(273	)		(34	)
Corporate acquisition, net of cash acquired		-			-			(3,225	)		-
Proceeds from divestitures		12			225			741			230
Net change in investments and other		27			34			116			82
Cash From (Used in) Investing Activities		(854	)		(264	)		(4,725	)		(1,195	)
Financing Activities
Net issuance (repayment) of revolving debt		29			225			316			440
Issuance of long-term debt		-			-			2,278			-
Repayment of long-term debt		-			(525	)		-			(1,634	)
Purchase of shares of common stock		(45	)		(325	)		(373	)		(531	)
Dividends on shares of common stock		(82	)		(62	)		(225	)		(178	)
Finance lease payments and other		(3	)		(2	)		(75	)		(68	)
Cash From (Used in) Financing Activities		(101	)		(689	)		1,921			(1,971	)
Foreign Exchange Gain (Loss) on Cash, Cash Equivalents
and Restricted Cash Held in Foreign Currency		-			1			(3	)		(2	)
Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash		(49	)		10			(2	)		(177	)
Cash, Cash Equivalents and Restricted Cash, Beginning of Period		52			8			5			195
Cash, Cash Equivalents and Restricted Cash, End of Period	$	3		$	18		$	3		$	18
Cash, End of Period	$	3		$	12		$	3		$	12
Cash Equivalents, End of Period		-			6			-			6
Restricted Cash, End of Period		-			-			-			-
Cash, Cash Equivalents and Restricted Cash, End of Period	$	3		$	18		$	3		$	18

Ovintiv Inc. 3 Selected Financial Information

 

Ovintiv Inc.

Interim Supplemental Information

(unaudited)

For the period ended September 30, 2023

U.S. Dollar / U.S. Protocol

Third quarter report

for the period ended September 30, 2023

Supplemental Financial Information (unaudited)

Financial Results

		2023												2022
(US$ millions, unless otherwise specified)		Year-to- Date			Q3			Q2			Q1			Year			Q4			Q3 Year- to-Date			Q3			Q2			Q1
Net Earnings (Loss)			1,229			406			336			487			3,637			1,335			2,302			1,186			1,357			(241	)
	Per share - basic (1)		4.80			1.48			1.35			1.99			14.34			5.39			9.00			4.70			5.28			(0.94	)
	Per share - diluted (1)		4.73			1.47			1.34			1.97			14.08			5.30			8.84			4.63			5.21			(0.94	)
Non-GAAP Adjusted Earnings (2)			1,163			481			232			450			1,769			228			1,541			353			628			560
	Per share - basic (1)		4.55			1.76			0.93			1.84			6.98			0.92			6.03			1.40			2.44			2.18
	Per share - diluted (1)		4.48			1.74			0.93			1.82			6.85			0.91			5.92			1.38			2.41			2.18
Non-GAAP Cash Flow (3)			2,662			1,112			699			851			4,110			895			3,215			948			1,224			1,043
	Per share - basic (1)		10.41			4.06			2.80			3.48			16.21			3.62			12.57			3.75			4.76			4.05
	Per share - diluted (1)		10.25			4.02			2.79			3.44			15.91			3.55			12.35			3.70			4.70			4.05
Foreign Exchange Rates (C$ per US$1)
	Average		1.346			1.341			1.343			1.353			1.301			1.358			1.283			1.306			1.277			1.266
	Period end		1.352			1.352			1.324			1.353			1.354			1.354			1.371			1.371			1.289			1.250
Non-GAAP Adjusted Earnings Summary
Net Earnings (Loss) Before Income Tax			1,443			393			437			613			3,560			1,110			2,450			1,274			1,422			(246	)
Before-tax (Addition) Deduction:
	Unrealized gain (loss) on risk management		(132	)		(292	)		142			18			741			530			211			710			513			(1,012	)
	Non-operating foreign exchange gain (loss)		7			17			(15	)		5			(14	)		10			(24	)		(20	)		(7	)		3
Adjusted Earnings (Loss) Before Income Tax			1,568			668			310			590			2,833			570			2,263			584			916			763
	Income tax expense (recovery) (4)		405			187			78			140			1,064			342			722			231			288			203
Non-GAAP Adjusted Earnings (2)			1,163			481			232			450			1,769			228			1,541			353			628			560
Non-GAAP Cash Flow Summary
Cash From (Used in) Operating Activities			2,805			906			831			1,068			3,866			875			2,991			962			1,344			685
(Add back) Deduct:
	Net change in other assets and liabilities		(31	)		(14	)		(12	)		(5	)		(57	)		(15	)		(42	)		(17	)		(13	)		(12	)
	Net change in non-cash working capital		174			(192	)		144			222			(187	)		(5	)		(182	)		31			133			(346	)
Non-GAAP Cash Flow (3)			2,662			1,112			699			851			4,110			895			3,215			948			1,224			1,043

(1) Net Earnings (Loss), Non-GAAP Adjusted Earnings and Non-GAAP Cash Flow per share are calculated using the weighted average number of shares of common stock outstanding as follows:

		2023								2022
(millions)		Year-to- Date		Q3		Q2		Q1		Year		Q4		Q3 Year- to-Date		Q3		Q2		Q1
Weighted Average Shares of Common Stock Outstanding
	Basic		255.8		273.7		249.4		244.3		253.6		247.5		255.7		252.5		257.2		257.4
	Diluted		259.7		276.3		250.8		247.7		258.4		251.8		260.4		256.2		260.6		257.4

(2) Non-GAAP Adjusted Earnings is a non-GAAP measure defined as net earnings (loss) excluding 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, non‑operating foreign exchange gains/losses, and gains/losses on divestitures. 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.

(3) 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, and net change in non-cash working capital.

(4) Calculated using the applicable U.S. federal and state statutory income tax rate of 23.0 percent and the applicable Canadian federal and provincial statutory income tax rate of 23.9 percent (2022 - 23.0 percent and 23.9 percent, respectively).

Financial Metrics

		2023		2022
	Year-to- Date		Year
Debt to Capitalization	39%		32%
Debt to Adjusted Capitalization (1)	26%		19%
Debt to EBITDA (1)	1.4x		0.7x
Debt to Adjusted EBITDA (1)	1.5x		0.8x

(1) Debt to Adjusted Capitalization, Debt to EBITDA and Debt to Adjusted EBITDA are non-GAAP measures monitored by Management as indicators of the Company’s overall financial strength. Non-GAAP measures are defined and calculated in the Non-GAAP Definitions and Reconciliations document following this Supplemental Information report.

Ovintiv Inc. 1 Supplemental Information (prepared in US$)

Third quarter report

for the period ended September 30, 2023

Supplemental Operating Information (unaudited)

Production Volumes by Product

				2023								2022
(average)		% of Oil & NGLs		Year-to- Date		Q3		Q2		Q1		Year		Q4		Q3 Year- to-Date		Q3		Q2		Q1
	Oil (Mbbls/d)		53		147.1		170.9		142.4		127.3		131.6		132.0		131.5		133.4		132.8		128.3
	NGLs - Plant Condensate (Mbbls/d)		15		41.9		43.3		43.5		38.7		44.0		42.7		44.4		46.0		42.6		44.6
Oil & Plant Condensate (Mbbls/d)			68		189.0		214.2		185.9		166.0		175.6		174.7		175.9		179.4		175.4		172.9
	Butane (Mbbls/d)		7		20.9		20.4		23.2		19.1		19.3		19.0		19.4		19.8		19.8		18.7
	Propane (Mbbls/d)		12		33.1		33.2		34.9		31.3		31.5		32.2		31.2		31.0		31.3		31.3
	Ethane (Mbbls/d)		13		35.9		33.1		38.7		35.8		34.7		37.5		33.8		36.1		35.9		29.2
NGLs - Other (Mbbls/d)			32		89.9		86.7		96.8		86.2		85.5		88.7		84.4		86.9		87.0		79.2
Oil & NGLs (Mbbls/d)			100		278.9		300.9		282.7		252.2		261.1		263.4		260.3		266.3		262.4		252.1
Natural Gas (MMcf/d)					1,641		1,625		1,743		1,555		1,494		1,561		1,471		1,500		1,426		1,487
Total (MBOE/d)					552.3		571.8		573.0		511.4		510.0		523.6		505.5		516.3		500.0		499.9

Production Volumes by Segment

		2023								2022
(average)		Year-to- Date		Q3		Q2		Q1		Year		Q4		Q3 Year- to-Date		Q3		Q2		Q1
Oil (Mbbls/d)
	USA Operations		147.0		170.8		142.4		127.2		131.5		131.9		131.4		133.3		132.7		128.2
	Canadian Operations		0.1		0.1		-		0.1		0.1		0.1		0.1		0.1		0.1		0.1
			147.1		170.9		142.4		127.3		131.6		132.0		131.5		133.4		132.8		128.3
NGLs - Plant Condensate (Mbbls/d)
	USA Operations		10.8		11.2		10.5		10.6		10.4		11.0		10.1		11.1		10.1		9.2
	Canadian Operations		31.1		32.1		33.0		28.1		33.6		31.7		34.3		34.9		32.5		35.4
			41.9		43.3		43.5		38.7		44.0		42.7		44.4		46.0		42.6		44.6
Oil & Plant Condensate (Mbbls/d)
	USA Operations		157.8		182.0		152.9		137.8		141.9		142.9		141.5		144.4		142.8		137.4
	Canadian Operations		31.2		32.2		33.0		28.2		33.7		31.8		34.4		35.0		32.6		35.5
			189.0		214.2		185.9		166.0		175.6		174.7		175.9		179.4		175.4		172.9
NGLs - Other (Mbbls/d)
	USA Operations		74.5		71.8		78.1		73.7		71.7		75.1		70.5		74.1		72.6		64.8
	Canadian Operations		15.4		14.9		18.7		12.5		13.8		13.6		13.9		12.8		14.4		14.4
			89.9		86.7		96.8		86.2		85.5		88.7		84.4		86.9		87.0		79.2
NGLs - Total (Mbbls/d)
	USA Operations		85.3		83.0		88.6		84.3		82.1		86.1		80.6		85.2		82.7		74.0
	Canadian Operations		46.5		47.0		51.7		40.6		47.4		45.3		48.2		47.7		46.9		49.8
			131.8		130.0		140.3		124.9		129.5		131.4		128.8		132.9		129.6		123.8
Oil & NGLs (Mbbls/d)
	USA Operations		232.3		253.8		231.0		211.5		213.6		218.0		212.0		218.5		215.4		202.2
	Canadian Operations		46.6		47.1		51.7		40.7		47.5		45.4		48.3		47.8		47.0		49.9
			278.9		300.9		282.7		252.2		261.1		263.4		260.3		266.3		262.4		252.1
Natural Gas (MMcf/d)
	USA Operations		515		508		530		507		492		506		487		502		485		475
	Canadian Operations		1,126		1,117		1,213		1,048		1,002		1,055		984		998		941		1,012
			1,641		1,625		1,743		1,555		1,494		1,561		1,471		1,500		1,426		1,487
Total (MBOE/d)
	USA Operations		318.1		338.5		319.2		296.1		295.5		302.3		293.3		302.1		296.1		281.3
	Canadian Operations		234.2		233.3		253.8		215.3		214.5		221.3		212.2		214.2		203.9		218.6
			552.3		571.8		573.0		511.4		510.0		523.6		505.5		516.3		500.0		499.9

Ovintiv Inc. 2 Supplemental Information (prepared in US$)

Third quarter report

for the period ended September 30, 2023

Supplemental Financial & Operating Information (unaudited)

Results of Operations

Revenues and Realized Gains (Losses) on Risk Management

		2023											2022
(US$ millions)		Year-to- Date			Q3			Q2		Q1			Year			Q4			Q3 Year- to-Date			Q3			Q2			Q1
USA Operations
Revenues, excluding Realized Gains (Losses) on    Risk Management (1)
	Oil		3,059			1,267			944		848			4,524			995			3,529			1,143			1,311			1,075
	NGLs (2)		506			174			149		183			1,045			198			847			270			311			266
	Natural Gas		344			103			86		155			1,108			251			857			349			302			206
			3,909			1,544			1,179		1,186			6,677			1,444			5,233			1,762			1,924			1,547
Realized Gains (Losses) on Risk Management (3)
	Oil		(19	)		(19	)		-		-			(594	)		(75	)		(519	)		(141	)		(235	)		(143	)
	NGLs (2)		-			-			-		-			-			-			-			-			-			-
	Natural Gas		22			15			5		2			(529	)		(122	)		(407	)		(183	)		(148	)		(76	)
			3			(4	)		5		2			(1,123	)		(197	)		(926	)		(324	)		(383	)		(219	)
Canadian Operations
Revenues, excluding Realized Gains (Losses) on    Risk Management (1)
	Oil		2			2			-		-			3			1			2			1			1			-
	NGLs (2)		739			258			245		236			1,358			290			1,068			326			382			360
	Natural Gas		919			244			222		453			2,104			550			1,554			562			577			415
			1,660			504			467		689			3,465			841			2,624			889			960			775
Realized Gains (Losses) on Risk Management (3)
	Oil		-			-			-		-			-			-			-			-			-			-
	NGLs (2)		-			-			-		-			(125	)		(16	)		(109	)		(26	)		(51	)		(32	)
	Natural Gas		(65	)		13			-		(78	)		(1,366	)		(324	)		(1,042	)		(471	)		(374	)		(197	)
			(65	)		13			-		(78	)		(1,491	)		(340	)		(1,151	)		(497	)		(425	)		(229	)

(1) Excludes other revenues with no associated production volumes, but includes intercompany marketing fees transacted between the Company’s operating segments.

(2) Includes plant condensate.

(3) Excludes realized gains or losses from other derivative contracts with no associated production volumes and foreign exchange risk management positions.

Ovintiv Inc. 3 Supplemental Information (prepared in US$)

Third quarter report

for the period ended September 30, 2023

Supplemental Financial & Operating Information (unaudited)

Results of Operations (continued)

Per-Unit Results, Excluding the Impact of Realized Gains (Losses) on Risk Management (1)

		2023								2022
(US$/BOE)		Year-to- Date		Q3		Q2		Q1		Year		Q4		Q3 Year- to-Date		Q3		Q2		Q1
Total USA Operations Netback
	Price		45.02		49.62		40.56		44.52		61.91		51.96		65.37		63.44		71.39		61.08
	Production, mineral and other taxes		2.73		2.71		2.49		3.01		3.72		3.23		3.89		3.83		4.25		3.56
	Transportation and processing		4.82		3.98		5.10		5.51		5.80		5.81		5.80		6.14		5.91		5.31
	Operating		6.27		6.66		5.73		6.39		5.99		6.05		5.96		6.73		5.53		5.58
	Netback		31.20		36.27		27.24		29.61		46.40		36.87		49.72		46.74		55.70		46.63
Total Canadian Operations Netback
	Price		25.95		23.46		20.26		35.50		44.26		41.30		45.30		45.11		51.70		39.44
	Production, mineral and other taxes		0.19		0.24		0.14		0.19		0.18		0.19		0.15		0.12		0.15		0.19
	Transportation and processing		12.51		12.36		11.57		13.80		12.80		12.85		12.78		13.01		13.67		11.72
	Operating		0.92		1.30		0.10		1.50		1.62		1.52		1.65		1.69		1.35		1.90
	Netback		12.33		9.56		8.45		20.01		29.66		26.74		30.72		30.29		36.53		25.63
Total Operations Netback
	Price		36.94		38.95		31.56		40.72		54.49		47.45		56.94		55.83		63.36		51.62
	Production, mineral and other taxes		1.65		1.70		1.43		1.83		2.23		1.95		2.32		2.29		2.58		2.08
	Transportation and processing		8.09		7.40		7.97		9.00		8.75		8.78		8.73		8.99		9.08		8.12
	Operating		4.00		4.48		3.23		4.33		4.15		4.13		4.16		4.64		3.83		3.98
	Netback		23.20		25.37		18.93		25.56		39.36		32.59		41.73		39.91		47.87		37.44

(1) Netback is a common metric used in the oil and gas industry to measure operating performance on a per-unit basis and is considered a non-GAAP measure. The netbacks disclosed above have been calculated on a BOE basis using upstream product revenues, excluding the impact of realized gains and losses on risk management, less costs associated with delivering the product to market, including production, mineral and other taxes, transportation and processing expense and operating expense. For additional information regarding non-GAAP measures, including Netback reconciliations, see the Non-GAAP Definitions and Reconciliations document following this Supplemental Information report.

Other Per-unit Results

		2023								2022
(US$/BOE)		Year-to- Date		Q3		Q2		Q1		Year		Q4		Q3 Year- to-Date		Q3		Q2		Q1
Administrative Expense			2.03		1.53		3.23		1.25		2.27		2.17		2.30		2.16		1.56		3.20
Administrative Expense, Excluding Long-Term Incentive,
	Transaction and Legal Costs, and Current Expected
	Credit Losses (1)		1.34		1.27		1.28		1.52		1.39		1.35		1.40		1.39		1.36		1.48

(1) Transaction costs refer to costs primarily incurred to facilitate the Permian Acquisition as defined in Note 8 of the interim Condensed Consolidated Financial Statements included in Part 1, Item 1 of Ovintiv’s Quarterly Report on Form 10-Q.

Ovintiv Inc. 4 Supplemental Information (prepared in US$)

Third quarter report

for the period ended September 30, 2023

Supplemental Oil and Gas Operating Statistics (unaudited)

Operating Statistics

Per-Unit Prices, Excluding the Impact of Realized Gains (Losses) on Risk Management

		2023								2022
(US$)		Year-to- Date		Q3		Q2		Q1		Year		Q4		Q3 Year- to-Date		Q3		Q2		Q1
Oil Price ($/bbl)
	USA Operations		76.26		80.69		72.83		74.06		94.25		82.08		98.37		93.22		108.58		93.16
	Canadian Operations		85.74		100.64		-		71.44		87.28		81.48		88.58		82.86		100.11		82.80
	Total Operations		76.26		80.70		72.83		74.06		94.25		82.08		98.36		93.21		108.57		93.15
NGLs - Plant Condensate Price ($/bbl)
	USA Operations		58.98		59.96		55.09		61.84		73.22		57.95		78.77		66.62		86.56		85.09
	Canadian Operations		74.48		75.67		70.99		77.22		93.22		82.41		96.59		86.65		107.78		96.22
	Total Operations		70.49		71.61		67.14		73.01		88.52		76.14		92.53		81.82		102.74		93.93
Oil & Plant Condensate Price ($/bbl)
	USA Operations		75.08		79.42		71.61		73.12		92.72		80.24		96.97		91.18		107.02		92.62
	Canadian Operations		74.50		75.75		70.99		77.21		93.20		82.41		96.57		86.64		107.76		96.19
	Total Operations		74.98		78.86		71.50		73.81		92.81		80.63		96.89		90.29		107.16		93.35
NGLs - Other Price ($/bbl)
	USA Operations		16.29		16.91		13.43		18.73		29.35		20.03		32.69		29.82		34.88		33.55
	Canadian Operations		25.30		25.50		18.62		35.17		42.39		39.07		43.49		41.12		47.84		41.23
	Total Operations		17.83		18.39		14.43		21.11		31.45		22.95		34.46		31.49		37.03		34.94
NGLs - Total Price ($/bbl)
	USA Operations		21.68		22.72		18.39		24.14		34.88		24.85		38.48		34.61		41.21		39.95
	Canadian Operations		58.21		59.76		52.05		64.31		78.44		69.42		81.30		74.41		89.37		80.36
	Total Operations		34.55		36.11		30.78		37.19		50.84		40.22		54.49		48.91		58.64		56.21
Oil & NGLs Price ($/bbl)
	USA Operations		56.21		61.73		51.94		54.16		71.44		59.49		75.59		70.37		82.70		73.68
	Canadian Operations		58.25		59.84		52.06		64.32		78.46		69.44		81.32		74.43		89.39		80.37
	Total Operations		56.55		61.43		51.96		55.80		72.72		61.20		76.65		71.10		83.90		75.00
Natural Gas Price ($/Mcf)
	USA Operations		2.46		2.22		1.79		3.40		6.18		5.42		6.45		7.55		6.87		4.82
	Canadian Operations		2.99		2.38		2.02		4.80		5.75		5.67		5.78		6.11		6.73		4.56
	Total Operations		2.82		2.33		1.95		4.34		5.89		5.59		6.00		6.60		6.78		4.64
Total Price ($/BOE)
	USA Operations		45.02		49.62		40.56		44.52		61.91		51.96		65.37		63.44		71.39		61.08
	Canadian Operations		25.95		23.46		20.26		35.50		44.26		41.30		45.30		45.11		51.70		39.44
	Total Operations		36.94		38.95		31.56		40.72		54.49		47.45		56.94		55.83		63.36		51.62

Ovintiv Inc. 5 Supplemental Information (prepared in US$)

Third quarter report

for the period ended September 30, 2023

Supplemental Oil and Gas Operating Statistics (unaudited)

Operating Statistics (continued)

Per-unit Impact of Realized Gains (Losses) on Risk Management

		2023											2022
(US$)		Year-to- Date			Q3			Q2		Q1			Year			Q4			Q3 Year- to-Date			Q3			Q2			Q1
Oil ($/bbl)
	USA Operations		(0.46	)		(1.18	)		-		-			(12.38	)		(6.24	)		(14.46	)		(11.48	)		(19.42	)		(12.43	)
	Canadian Operations		-			-			-		-			-			-			-			-			-			-
	Total Operations		(0.46	)		(1.18	)		-		-			(12.37	)		(6.23	)		(14.44	)		(11.47	)		(19.41	)		(12.41	)
NGLs - Plant Condensate ($/bbl)
	USA Operations		-			-			-		-			-			-			-			-			-			-
	Canadian Operations		-			-			-		-			(10.15	)		(5.57	)		(11.60	)		(8.02	)		(17.14	)		(10.06	)
	Total Operations		-			-			-		-			(7.78	)		(4.13	)		(8.96	)		(6.09	)		(13.07	)		(7.99	)
Oil & Plant Condensate ($/bbl)
	USA Operations		(0.43	)		(1.12	)		-		-			(11.48	)		(5.76	)		(13.43	)		(10.60	)		(18.05	)		(11.59	)
	Canadian Operations		-			-			-		-			(10.13	)		(5.56	)		(11.57	)		(8.00	)		(17.10	)		(10.03	)
	Total Operations		(0.35	)		(0.92	)		-		-			(11.22	)		(5.72	)		(13.06	)		(10.09	)		(17.87	)		(11.27	)
NGLs - Other ($/bbl)
	USA Operations		-			-			-		-			-			-			-			-			-			-
	Canadian Operations		-			-			-		-			-			-			-			-			-			-
	Total Operations		-			-			-		-			-			-			-			-			-			-
NGLs - Total ($/bbl)
	USA Operations		-			-			-		-			-			-			-			-			-			-
	Canadian Operations		-			-			-		-			(7.20	)		(3.89	)		(8.26	)		(5.86	)		(11.87	)		(7.16	)
	Total Operations		-			-			-		-			(2.64	)		(1.34	)		(3.09	)		(2.10	)		(4.30	)		(2.88	)
Oil & NGLs ($/bbl)
	USA Operations		(0.30	)		(0.80	)		-		-			(7.62	)		(3.78	)		(8.96	)		(7.00	)		(11.96	)		(7.88	)
	Canadian Operations		-			-			-		-			(7.19	)		(3.89	)		(8.25	)		(5.85	)		(11.85	)		(7.14	)
	Total Operations		(0.24	)		(0.66	)		-		-			(7.55	)		(3.79	)		(8.83	)		(6.80	)		(11.94	)		(7.74	)
Natural Gas ($/Mcf)
	USA Operations		0.15			0.32			0.10		0.03			(2.94	)		(2.57	)		(3.07	)		(3.97	)		(3.39	)		(1.78	)
	Canadian Operations		(0.21	)		0.12			-		(0.82	)		(3.74	)		(3.35	)		(3.87	)		(5.12	)		(4.35	)		(2.16	)
	Total Operations		(0.09	)		0.18			0.03		(0.54	)		(3.47	)		(3.10	)		(3.61	)		(4.75	)		(4.00	)		(2.04	)
Total ($/BOE)
	USA Operations		0.03			(0.12	)		0.17		0.05			(10.50	)		(7.00	)		(11.59	)		(11.68	)		(14.24	)		(8.66	)
	Canadian Operations		(1.00	)		0.60			-		(3.97	)		(18.91	)		(16.80	)		(19.83	)		(25.19	)		(22.62	)		(11.65	)
	Total Operations		(0.41	)		0.17			0.10		(1.64	)		(14.04	)		(11.14	)		(15.05	)		(17.28	)		(17.66	)		(9.97	)

Ovintiv Inc. 6 Supplemental Information (prepared in US$)

Third quarter report

for the period ended September 30, 2023

Supplemental Oil and Gas Operating Statistics (unaudited)

Operating Statistics (continued)

Per-Unit Results, Including the Impact of Realized Gains (Losses) on Risk Management

		2023								2022
(US$)		Year-to- Date		Q3		Q2		Q1		Year		Q4		Q3 Year- to-Date		Q3		Q2		Q1
Oil Price ($/bbl)
	USA Operations		75.80		79.51		72.83		74.06		81.87		75.84		83.91		81.74		89.16		80.73
	Canadian Operations		85.74		100.64		-		71.44		87.28		81.48		88.58		82.86		100.11		82.80
	Total Operations		75.80		79.52		72.83		74.06		81.88		75.85		83.92		81.74		89.16		80.74
NGLs - Plant Condensate Price ($/bbl)
	USA Operations		58.98		59.96		55.09		61.84		73.22		57.95		78.77		66.62		86.56		85.09
	Canadian Operations		74.48		75.67		70.99		77.22		83.07		76.84		84.99		78.63		90.64		86.16
	Total Operations		70.49		71.61		67.14		73.01		80.74		72.01		83.57		75.73		89.67		85.94
Oil & Plant Condensate Price ($/bbl)
	USA Operations		74.65		78.30		71.61		73.12		81.24		74.48		83.54		80.58		88.97		81.03
	Canadian Operations		74.50		75.75		70.99		77.21		83.07		76.85		85.00		78.64		90.66		86.16
	Total Operations		74.63		77.94		71.50		73.81		81.59		74.91		83.83		80.20		89.29		82.08
NGLs - Other Price ($/bbl)
	USA Operations		16.29		16.91		13.43		18.73		29.35		20.03		32.69		29.82		34.88		33.55
	Canadian Operations		25.30		25.50		18.62		35.17		42.39		39.07		43.49		41.12		47.84		41.23
	Total Operations		17.83		18.39		14.43		21.11		31.45		22.95		34.46		31.49		37.03		34.94
NGLs - Total Price ($/bbl)
	USA Operations		21.68		22.72		18.39		24.14		34.88		24.85		38.48		34.61		41.21		39.95
	Canadian Operations		58.21		59.76		52.05		64.31		71.24		65.53		73.04		68.55		77.50		73.20
	Total Operations		34.55		36.11		30.78		37.19		48.20		38.88		51.40		46.81		54.34		53.33
Oil & NGLs Price ($/bbl)
	USA Operations		55.91		60.93		51.94		54.16		63.82		55.71		66.63		63.37		70.74		65.80
	Canadian Operations		58.25		59.84		52.06		64.32		71.27		65.55		73.07		68.58		77.54		73.23
	Total Operations		56.31		60.77		51.96		55.80		65.17		57.41		67.82		64.30		71.96		67.26
Natural Gas Price ($/Mcf)
	USA Operations		2.61		2.54		1.89		3.43		3.24		2.85		3.38		3.58		3.48		3.04
	Canadian Operations		2.78		2.50		2.02		3.98		2.01		2.32		1.91		0.99		2.38		2.40
	Total Operations		2.73		2.51		1.98		3.80		2.42		2.49		2.39		1.85		2.78		2.60
Total Price ($/BOE)
	USA Operations		45.05		49.50		40.73		44.57		51.41		44.96		53.78		51.76		57.15		52.42
	Canadian Operations		24.95		24.06		20.26		31.53		25.35		24.50		25.47		19.92		29.08		27.79
	Total Operations		36.53		39.12		31.66		39.08		40.45		36.31		41.89		38.55		45.70		41.65
Total Netback ($/BOE)
	USA Operations		31.23		36.15		27.41		29.66		35.90		29.87		38.13		35.06		41.46		37.97
	Canadian Operations		11.33		10.16		8.45		16.04		10.75		9.94		10.89		5.10		13.91		13.98
	Total Operations		22.79		25.54		19.03		23.92		25.32		21.45		26.68		22.63		30.21		27.47

Ovintiv Inc. 7 Supplemental Information (prepared in US$)

Third quarter report

for the period ended September 30, 2023

Supplemental Oil and Gas Operating Statistics (unaudited)

Results by Play

		2023								2022
(average)		Year-to- Date		Q3		Q2		Q1		Year		Q4		Q3 Year- to-Date		Q3		Q2		Q1
Oil Production (Mbbls/d)
USA Operations
	Permian		85.8		121.4		75.6		59.6		62.7		65.4		61.7		60.8		62.6		61.8
	Anadarko		31.9		30.2		32.4		33.1		35.5		34.4		36.0		35.9		36.5		35.4
	Uinta		16.5		18.9		17.8		12.8		17.9		15.4		18.7		19.9		19.6		16.6
	Bakken (1)		12.6		-		16.4		21.5		15.3		16.5		14.9		16.5		14.0		14.3
	Other (2)		0.2		0.3		0.2		0.2		0.1		0.2		0.1		0.2		-		0.1
Total USA Operations			147.0		170.8		142.4		127.2		131.5		131.9		131.4		133.3		132.7		128.2
Canadian Operations
	Montney		0.1		0.1		-		0.1		0.1		0.1		0.1		0.1		0.1		0.1
	Other (2)		-		-		-		-		-		-		-		-		-		-
Total Canadian Operations			0.1		0.1		-		0.1		0.1		0.1		0.1		0.1		0.1		0.1
Total			147.1		170.9		142.4		127.3		131.6		132.0		131.5		133.4		132.8		128.3
NGLs - Plant Condensate Production (Mbbls/d)
USA Operations
	Permian		3.8		4.6		3.7		3.0		3.1		3.2		3.1		3.4		3.1		2.7
	Anadarko		5.9		6.1		5.6		5.8		5.9		6.2		5.7		6.3		5.7		5.4
	Uinta		0.2		0.4		0.2		0.2		0.2		0.4		0.2		0.2		0.2		0.2
	Bakken (1)		0.8		-		0.9		1.5		1.1		1.1		1.1		1.2		1.1		0.9
	Other (2)		0.1		0.1		0.1		0.1		0.1		0.1		-		-		-		-
Total USA Operations			10.8		11.2		10.5		10.6		10.4		11.0		10.1		11.1		10.1		9.2
Canadian Operations
	Montney		31.1		32.1		33.0		28.1		33.6		31.7		34.3		34.9		32.5		35.3
	Other (2)		-		-		-		-		-		-		-		-		-		0.1
Total Canadian Operations			31.1		32.1		33.0		28.1		33.6		31.7		34.3		34.9		32.5		35.4
Total			41.9		43.3		43.5		38.7		44.0		42.7		44.4		46.0		42.6		44.6
Oil & Plant Condensate Production (Mbbls/d)
USA Operations
	Permian		89.6		126.0		79.3		62.6		65.8		68.6		64.8		64.2		65.7		64.5
	Anadarko		37.8		36.3		38.0		38.9		41.4		40.6		41.7		42.2		42.2		40.8
	Uinta		16.7		19.3		18.0		13.0		18.1		15.8		18.9		20.1		19.8		16.8
	Bakken (1)		13.4		-		17.3		23.0		16.4		17.6		16.0		17.7		15.1		15.2
	Other (2)		0.3		0.4		0.3		0.3		0.2		0.3		0.1		0.2		-		0.1
Total USA Operations			157.8		182.0		152.9		137.8		141.9		142.9		141.5		144.4		142.8		137.4
Canadian Operations
	Montney		31.2		32.2		33.0		28.2		33.7		31.8		34.4		35.0		32.6		35.4
	Other (2)		-		-		-		-		-		-		-		-		-		0.1
Total Canadian Operations			31.2		32.2		33.0		28.2		33.7		31.8		34.4		35.0		32.6		35.5
Total			189.0		214.2		185.9		166.0		175.6		174.7		175.9		179.4		175.4		172.9

(1) Production volumes associated with Bakken were included in USA Operations until the asset was divested on June 12, 2023.

(2) Other Operations includes production volumes from plays that are not part of the Company’s current focus.

Ovintiv Inc. 8 Supplemental Information (prepared in US$)

Third quarter report

for the period ended September 30, 2023

Supplemental Oil and Gas Operating Statistics (unaudited)

Results by Play (continued)

		2023								2022
(average)		Year-to- Date		Q3		Q2		Q1		Year		Q4		Q3 Year- to-Date		Q3		Q2		Q1
NGLs - Other Production (Mbbls/d)
USA Operations
	Permian		31.0		35.1		31.0		26.8		26.3		27.0		26.1		26.8		26.2		25.4
	Anadarko		37.1		35.2		37.8		38.5		37.3		39.3		36.5		38.6		38.2		32.7
	Uinta		1.0		1.2		1.1		0.7		0.9		0.9		0.8		1.0		0.8		0.7
	Bakken (1)		5.3		-		8.1		7.7		7.1		7.9		6.9		7.6		7.3		5.9
	Other (2)		0.1		0.3		0.1		-		0.1		-		0.2		0.1		0.1		0.1
Total USA Operations			74.5		71.8		78.1		73.7		71.7		75.1		70.5		74.1		72.6		64.8
Canadian Operations
	Montney		15.4		14.9		18.7		12.5		13.8		13.6		13.9		12.8		14.4		14.4
	Other (2)		-		-		-		-		-		-		-		-		-		-
Total Canadian Operations			15.4		14.9		18.7		12.5		13.8		13.6		13.9		12.8		14.4		14.4
Total			89.9		86.7		96.8		86.2		85.5		88.7		84.4		86.9		87.0		79.2
NGLs - Total Production (Mbbls/d)
USA Operations
	Permian		34.8		39.7		34.7		29.8		29.4		30.2		29.2		30.2		29.3		28.1
	Anadarko		43.0		41.3		43.4		44.3		43.2		45.5		42.2		44.9		43.9		38.1
	Uinta		1.2		1.6		1.3		0.9		1.1		1.3		1.0		1.2		1.0		0.9
	Bakken (1)		6.1		-		9.0		9.2		8.2		9.0		8.0		8.8		8.4		6.8
	Other (2)		0.2		0.4		0.2		0.1		0.2		0.1		0.2		0.1		0.1		0.1
Total USA Operations			85.3		83.0		88.6		84.3		82.1		86.1		80.6		85.2		82.7		74.0
Canadian Operations
	Montney		46.5		47.0		51.7		40.6		47.4		45.3		48.2		47.7		46.9		49.7
	Other (2)		-		-		-		-		-		-		-		-		-		0.1
Total Canadian Operations			46.5		47.0		51.7		40.6		47.4		45.3		48.2		47.7		46.9		49.8
Total			131.8		130.0		140.3		124.9		129.5		131.4		128.8		132.9		129.6		123.8
Oil & NGLs Production (Mbbls/d)
USA Operations
	Permian		120.6		161.1		110.3		89.4		92.1		95.6		90.9		91.0		91.9		89.9
	Anadarko		74.9		71.5		75.8		77.4		78.7		79.9		78.2		80.8		80.4		73.5
	Uinta		17.7		20.5		19.1		13.7		19.0		16.7		19.7		21.1		20.6		17.5
	Bakken (1)		18.7		-		25.4		30.7		23.5		25.5		22.9		25.3		22.4		21.1
	Other (2)		0.4		0.7		0.4		0.3		0.3		0.3		0.3		0.3		0.1		0.2
Total USA Operations			232.3		253.8		231.0		211.5		213.6		218.0		212.0		218.5		215.4		202.2
Canadian Operations
	Montney		46.6		47.1		51.7		40.7		47.5		45.4		48.3		47.8		47.0		49.8
	Other (2)		-		-		-		-		-		-		-		-		-		0.1
Total Canadian Operations			46.6		47.1		51.7		40.7		47.5		45.4		48.3		47.8		47.0		49.9
Total			278.9		300.9		282.7		252.2		261.1		263.4		260.3		266.3		262.4		252.1

(1) Production volumes associated with Bakken were included in USA Operations until the asset was divested on June 12, 2023.

(2) Other Operations includes production volumes from plays that are not part of the Company’s current focus.

Ovintiv Inc. 9 Supplemental Information (prepared in US$)

Third quarter report

for the period ended September 30, 2023

Supplemental Oil and Gas Operating Statistics (unaudited)

Results by Play (continued)

		2023								2022
(average)		Year-to- Date		Q3		Q2		Q1		Year		Q4		Q3 Year- to-Date		Q3		Q2		Q1
Natural Gas Production (MMcf/d)
USA Operations
	Permian		175		195		171		158		149		156		147		149		146		145
	Anadarko		285		285		289		281		286		286		285		290		287		279
	Uinta		20		24		20		15		16		19		15		16		15		13
	Bakken (1)		31		-		44		49		36		39		35		41		32		32
	Other (2)		4		4		6		4		5		6		5		6		5		6
Total USA Operations			515		508		530		507		492		506		487		502		485		475
Canadian Operations
	Montney		1,096		1,092		1,177		1,017		970		1,023		952		970		907		978
	Other (2)		30		25		36		31		32		32		32		28		34		34
Total Canadian Operations			1,126		1,117		1,213		1,048		1,002		1,055		984		998		941		1,012
Total			1,641		1,625		1,743		1,555		1,494		1,561		1,471		1,500		1,426		1,487
Total Production (MBOE/d)
USA Operations
	Permian		149.8		193.9		138.9		115.8		117.0		121.7		115.4		115.9		116.2		114.0
	Anadarko		122.4		119.0		124.0		124.2		126.3		127.6		125.8		129.1		128.2		120.1
	Uinta		21.1		24.4		22.4		16.3		21.6		19.8		22.1		23.6		23.0		19.7
	Bakken (1)		23.9		-		33.0		38.8		29.6		32.0		28.8		32.1		27.7		26.4
	Other (2)		0.9		1.2		0.9		1.0		1.0		1.2		1.2		1.4		1.0		1.1
Total USA Operations			318.1		338.5		319.2		296.1		295.5		302.3		293.3		302.1		296.1		281.3
Canadian Operations
	Montney		229.1		229.1		247.8		210.1		209.1		215.8		206.9		209.5		198.2		212.9
	Other (2)		5.1		4.2		6.0		5.2		5.4		5.5		5.3		4.7		5.7		5.7
Total Canadian Operations			234.2		233.3		253.8		215.3		214.5		221.3		212.2		214.2		203.9		218.6
Total			552.3		571.8		573.0		511.4		510.0		523.6		505.5		516.3		500.0		499.9

(1) Production volumes associated with Bakken were included in USA Operations until the asset was divested on June 12, 2023.

(2) Other Operations includes total production volumes from plays that are not part of the Company’s current focus. Canadian Other Operations primarily includes natural gas volumes in Horn River.

Ovintiv Inc. 10 Supplemental Information (prepared in US$)

Third quarter report

for the period ended September 30, 2023

Supplemental Oil and Gas Operating Statistics (unaudited)

Results by Play (continued)

		2023											2022
(US$ millions)		Year-to- Date			Q3		Q2			Q1			Year		Q4		Q3 Year- to-Date			Q3			Q2			Q1
Capital Expenditures, Excluding Capitalized Internal Costs
USA Operations
	Permian		1,025			524		295			206			632		130		502			181			165			156
	Anadarko		156			3		55			98			375		55		320			99			118			103
	Uinta		273			136		76			61			117		3		114			27			58			29
	Bakken (1)		107			-		42			65			243		73		170			81			42			47
	Other (2)		5			3		1			1			7		3		4			-			2			2
Total USA Operations			1,566			666		469			431			1,374		264		1,110			388			385			337
Canadian Operations
	Montney		417			130		152			135			295		50		245			81			97			67
	Other (2)		(2	)		-		-			(2	)		5		-		5			7			(2	)		-
Total Canadian Operations			415			130		152			133			300		50		250			88			95			67
Total Capital Expenditures, Excluding Capitalized Internal Costs			1,981			796		621			564			1,674		314		1,360			476			480			404
Capitalized Directly Attributable Internal Costs
USA Operations
	Permian		54			16		19			19			60		15		45			15			13			17
	Anadarko		16			5		4			7			31		9		22			7			7			8
	Uinta		22			8		7			7			9		3		6			1			2			3
	Bakken (1)		5			-		2			3			18		4		14			5			4			5
	Other (2)		1			-		1			-			1		-		1			-			(1	)		2
Total USA Operations			98			29		33			36			119		31		88			28			25			35
Canadian Operations
	Montney		-			6		(15	)		9			33		10		23			7			5			11
	Other (2)		-			-		-			-			1		-		1			-			1			-
Total Canadian Operations			-			6		(15	)		9			34		10		24			7			6			11
Total Capitalized Directly Attributable Internal Costs			98			35		18			45			153		41		112			35			31			46
Total Capital Expenditures
USA Operations
	Permian		1,079			540		314			225			692		145		547			196			178			173
	Anadarko		172			8		59			105			406		64		342			106			125			111
	Uinta		295			144		83			68			126		6		120			28			60			32
	Bakken (1)		112			-		44			68			261		77		184			86			46			52
	Other (2)		6			3		2			1			8		3		5			-			1			4
Total USA Operations			1,664			695		502			467			1,493		295		1,198			416			410			372
Canadian Operations
	Montney		417			136		137			144			328		60		268			88			102			78
	Other (2)		(2	)		-		-			(2	)		6		-		6			7			(1	)		-
Total Canadian Operations			415			136		137			142			334		60		274			95			101			78
Corporate & Other			5			3		1			1			4		3		1			-			-			1
Total Capital Expenditures			2,084			834		640			610			1,831		358		1,473			511			511			451
Net Acquisitions & (Divestitures)			(468	)		47		(702	)		187			58		254		(196	)		(213	)		3			14
Net Capital Investment			1,616			881		(62	)		797			1,889		612		1,277			298			514			465

(1) Capital expenditures associated with Bakken were included in USA Operations until the asset was divested on June 12, 2023.

(2) Other Operations includes capital expenditures in plays that are not part of the Company’s current focus.

Ovintiv Inc. 11 Supplemental Information (prepared in US$)

Third quarter report

for the period ended September 30, 2023

Supplemental Oil and Gas Operating Statistics (unaudited)

Results by Play (continued)

		2023								2022
		Year-to- Date		Q3		Q2		Q1		Year		Q4		Q3 Year- to-Date		Q3		Q2		Q1
Drilling Activity (net wells drilled)
USA Operations
	Permian		88		45		26		17		62		15		47		18		16		13
	Anadarko		11		2		2		7		54		10		44		13		18		13
	Uinta		21		10		8		3		12		-		12		2		5		5
	Bakken (1)		11		-		6		5		25		7		18		8		8		2
Total USA Operations			131		57		42		32		153		32		121		41		47		33
Canadian Operations
	Montney		68		19		23		26		52		8		44		12		16		16
	Other (2)		-		-		-		-		3		-		3		3		-		-
Total Canadian Operations			68		19		23		26		55		8		47		15		16		16
Total			199		76		65		58		208		40		168		56		63		49
Completions Activity (net wells on production)
USA Operations
	Permian		124		83		27		14		66		16		50		21		11		18
	Anadarko		21		1		7		13		57		8		49		16		15		18
	Uinta		13		10		3		-		11		3		8		2		6		-
	Bakken (1)		16		-		8		8		19		6		13		9		-		4
Total USA Operations			174		94		45		35		153		33		120		48		32		40
Canadian Operations
	Montney		62		22		29		11		63		11		52		21		12		19
Total Canadian Operations			62		22		29		11		63		11		52		21		12		19
Total			236		116		74		46		216		44		172		69		44		59

(1) Net wells drilled and net wells on production associated with Bakken were included in USA Operations until the asset was divested on June 12, 2023.

(2) Other Operations includes net wells drilled in plays that are not part of the Company’s current focus.

Ovintiv Inc. 12 Supplemental Information (prepared in US$)

 

Ovintiv Inc.

Non-GAAP Definitions and Reconciliations

(unaudited)

For the period ended September 30, 2023

U.S. Dollar / U.S. Protocol

For the period ended September 30, 2023

(US$ millions, except per share amounts or as indicated)

Non-GAAP Cash Flow, Non-GAAP Cash Flow Per Share (CFPS) and Non-GAAP Free Cash Flow - Non-GAAP Cash Flow is defined as cash from (used in) operating activities excluding net change in other assets and liabilities, and net change in non-cash working capital. Non-GAAP CFPS is Non-GAAP Cash Flow divided by the weighted average number of shares of common stock outstanding. Non-GAAP Free Cash Flow is defined as Non-GAAP Cash Flow in excess of capital expenditures, excluding net acquisitions and divestitures. Management believes these measures are useful to the Company and its investors as a measure of operating and financial performance across periods and against other companies in the industry, and are an indication of the Company’s ability to generate cash to finance capital programs, to service debt and to meet other financial obligations. These measures are used, along with other measures, in the calculation of certain performance targets for the Company’s management and employees.

Non-GAAP Cash Flow			Q3 2023				YTD 2023
Cash from (used in) Operating Activities		$		906		$		2,805
Deduct (add back):
	Net change in other assets and liabilities			(14	)			(31	)
	Net change in non-cash working capital			(192	)			174
Non-GAAP Cash Flow		$		1,112		$		2,662
Per Share - Basic		$		4.06		$		10.41
Per Share - Diluted				4.02				10.25
Non-GAAP Free Cash Flow
Non-GAAP Cash Flow		$		1,112		$		2,662
Deduct:
	Capital expenditures			834				2,084
Non-GAAP Free Cash Flow		$		278		$		578

Non-GAAP Adjusted Earnings - is defined as Net Earnings (Loss) excluding 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, non-operating foreign exchange gains/losses, and gains/losses on divestitures. 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.

Non-GAAP Adjusted Earnings			Q3 2023				YTD 2023
Net Earnings (Loss) Before Income Tax		$		393		$		1,443
Before-tax (Addition) Deduction:
	Unrealized gain (loss) on risk management			(292	)			(132	)
	Non-operating foreign exchange gain (loss)			17				7
Adjusted Earnings (Loss) Before Income Tax				668				1,568
	Income tax expense (recovery)			187				405
Non-GAAP Adjusted Earnings		$		481		$		1,163
Per Share - Basic		$		1.76		$		4.55
Per Share - Diluted				1.74				4.48

Debt to Capitalization - Capitalization includes debt and total shareholders’ equity. Debt to Capitalization is monitored by management as an indicator of the Company’s overall financial strength.

Debt to Capitalization		YTD 2023
Long-Term Debt, Including Current Portion	$		6,163
Total Shareholders' Equity			9,552
Capitalization	$		15,715
Debt to Capitalization		39%

Ovintiv Inc. 1 Non-GAAP Definitions and Reconciliations

Debt to Adjusted Capitalization - Debt to Adjusted Capitalization is a non-GAAP measure and is a proxy for Ovintiv’s financial covenant under the Company’s credit facilities which require debt to adjusted capitalization to be less than 60 percent. Adjusted Capitalization includes 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.

Debt to Adjusted Capitalization		YTD 2023
Long-Term Debt, Including Current Portion	$		6,163
Total Shareholders' Equity			9,552
Equity Adjustment for Impairments at December 31, 2011			7,746
Adjusted Capitalization	$		23,461
Debt to Adjusted Capitalization		26%

EBITDA, Debt to EBITDA, Adjusted EBITDA and Debt to Adjusted EBITDA (Leverage Ratio) - EBITDA is defined as trailing 12-month net earnings (loss) before income taxes, DD&A, and interest. Adjusted EBITDA is defined as EBITDA adjusted for impairments, accretion of asset retirement obligation, unrealized gains/losses on risk management, foreign exchange gains/losses, gains/losses on divestitures and other gains/losses. Debt to EBITDA and Debt to Adjusted EBITDA are non-GAAP measures monitored by management as an indicator of the Company’s overall financial strength.

			Q4 2022				Q1 2023			Q2 2023			Q3 2023				Trailing 12- Months
Long-Term Debt, Including Current Portion																$		6,163
Net Earnings (Loss)		$		1,335		$		487	$		336	$		406		$		2,564
Add back (deduct):
	Depreciation, depletion and amortization			280				364			419			486				1,549
	Interest			63				71			80			98				312
	Income tax expense (recovery)			(225	)			126			101			(13	)			(11	)
EBITDA		$		1,453		$		1,048	$		936	$		977		$		4,414
Debt to EBITDA (times)																		1.4

			Q4 2022				Q1 2023				Q2 2023				Q3 2023				Trailing 12- Months
Long-Term Debt, Including Current Portion																		$		6,163
Net Earnings (Loss)		$		1,335		$		487		$		336		$		406		$		2,564
Add back (deduct):
	Depreciation, depletion and amortization			280				364				419				486				1,549
	Accretion of asset retirement obligation			4				5				4				5				18
	Interest			63				71				80				98				312
	Unrealized (gains) losses on risk management			(530	)			(18	)			(142	)			292				(398	)
	Foreign exchange (gain) loss, net			(6	)			(3	)			25				(22	)			(6	)
	Other (gains) losses, net			(3	)			(3	)			(11	)			(2	)			(19	)
	Income tax expense (recovery)			(225	)			126				101				(13	)			(11	)
Adjusted EBITDA		$		918		$		1,029		$		812		$		1,250		$		4,009
Debt to Adjusted EBITDA (times)																				1.5

Operating Margin/Operating Netback - Product revenues less costs associated with delivering the product to market, including production, mineral and other taxes, transportation and processing and operating expenses. When presented on a per BOE basis, Operating Netback is defined as indicated divided by average barrels of oil equivalent sales volumes. Operating Margin/Operating Netback is used by management as an internal measure of the profitability of a play.

Ovintiv Inc. 2 Non-GAAP Definitions and Reconciliations

Netback Calculation

Netback is a common metric used in the oil and gas industry to measure operating performance on a per-unit basis and is considered a non-GAAP measure. The netbacks disclosed below have been calculated on a BOE basis using upstream product revenues, excluding the impact of realized gains and losses on risk management, less costs associated with delivering the product to market, including production, mineral and other taxes, transportation and processing expense and operating expense.

Selected Financial Data (1)
			2023								2022
(US$ millions)			Year		Q3		Q2		Q1		Year		Q4		Q3		Q2		Q1
USA Operations
	Upstream Product Revenue (2,3)			3,909		1,544		1,179		1,186		6,677		1,444		1,762		1,924		1,547
	Production, mineral and other taxes			237		84		73		80		401		90		106		115		90
	Transportation and processing			419		124		148		147		626		162		170		159		135
	Operating (4)			545		208		167		170		646		168		187		149		142
				2,708		1,128		791		789		5,004		1,024		1,299		1,501		1,180
Canadian Operations
	Upstream Product Revenue (2,3)			1,660		504		467		689		3,465		841		889		960		775
	Production, mineral and other taxes			12		5		3		4		14		4		3		3		4
	Transportation and processing			800		265		268		267		1,002		261		257		253		231
	Operating (4)			59		28		2		29		127		31		34		25		37
				789		206		194		389		2,322		545		595		679		503
Total Operations
	Upstream Product Revenue (2,3)			5,569		2,048		1,646		1,875		10,142		2,285		2,651		2,884		2,322
	Production, mineral and other taxes			249		89		76		84		415		94		109		118		94
	Transportation and processing			1,219		389		416		414		1,628		423		427		412		366
	Operating (4)			604		236		169		199		773		199		221		174		179
				3,497		1,334		985		1,178		7,326		1,569		1,894		2,180		1,683
(1)		Segmented financial information per the notes to Ovintiv's financial statements.
(2)		Excludes the impact of realized gains and losses on risk management.
(3)		Excludes service revenues, certain other revenues and royalty adjustments with no associated production volumes.
(4)		Excludes other operating expenses with no associated production volumes.
Sales Volumes (1)
			2023								2022
(BOE)			Year		Q3		Q2		Q1		Year		Q4		Q3		Q2		Q1
USA Operations				86,837,478		31,141,172		29,044,015		26,652,510		107,860,420		27,807,460		27,788,876		26,946,920		25,317,450
Canadian Operations				63,940,968		21,465,900		23,096,801		19,378,260		78,306,370		20,363,280		19,710,448		18,555,628		19,677,060
Total				150,778,446		52,607,072		52,140,816		46,030,770		186,166,790		48,170,740		47,499,324		45,502,548		44,994,510
(1)		Numbers may not add due to the calculation of volumes, which is based on sales volumes per day on a BOE basis times the number of days in the period.
Calculated Operating Netback, excluding the Impact of Realized Gains (Losses) on Risk Management (1)
			2023								2022
(US$/BOE)			Year		Q3		Q2		Q1		Year		Q4		Q3		Q2		Q1
Total USA Operations
	Price			45.02		49.58		40.59		44.50		61.90		51.93		63.41		71.40		61.10
	Production, mineral and other taxes			2.73		2.70		2.51		3.00		3.72		3.24		3.81		4.27		3.55
	Transportation and processing			4.83		3.98		5.10		5.52		5.80		5.83		6.12		5.90		5.33
	Operating			6.28		6.68		5.75		6.38		5.99		6.04		6.73		5.53		5.61
	Netback			31.18		36.22		27.23		29.60		46.39		36.82		46.75		55.70		46.61
Total Canadian Operations
	Price			25.96		23.48		20.22		35.56		44.25		41.30		45.10		51.74		39.39
	Production, mineral and other taxes			0.19		0.23		0.13		0.21		0.18		0.20		0.15		0.16		0.20
	Transportation and processing			12.51		12.35		11.60		13.78		12.80		12.82		13.04		13.63		11.74
	Operating			0.92		1.30		0.09		1.50		1.62		1.52		1.72		1.35		1.88
	Netback			12.34		9.60		8.40		20.07		29.65		26.76		30.19		36.59		25.56
Total Operations
	Price			36.93		38.93		31.57		40.73		54.48		47.44		55.81		63.38		51.61
	Production, mineral and other taxes			1.65		1.69		1.46		1.82		2.23		1.95		2.29		2.59		2.09
	Transportation and processing			8.08		7.39		7.98		8.99		8.74		8.78		8.99		9.05		8.13
	Operating			4.01		4.49		3.24		4.32		4.15		4.13		4.65		3.82		3.98
Netback				23.19		25.36		18.89		25.59		39.35		32.57		39.87		47.91		37.40
(1)		May not add due to rounding. Ovintiv calculates reported netbacks using whole dollars and sales volumes. Accordingly, the calculations above may differ from the reported netbacks due to the effects of rounding both dollars and volumes.

Ovintiv Inc. 3 Non-GAAP Definitions and Reconciliations

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Cover	Nov. 07, 2023
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Nov. 07, 2023
Entity Registrant Name	Ovintiv Inc.
Entity Central Index Key	0001792580
Entity Emerging Growth Company	false
Entity File Number	001-39191
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	84-4427672
Entity Address, Address Line One	Suite 1700
Entity Address, Address Line Two	370 - 17th Street
Entity Address, City or Town	Denver
Entity Address, State or Province	CO
Entity Address, Postal Zip Code	80202
City Area Code	303
Local Phone Number	623-2300
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	OVV
Security Exchange Name	NYSE