Financial Instruments and Risk Management (Tables)

6 Months Ended

Jun. 30, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Risk Management Positions

	Notional Volumes	Term	Average Price	Fair Value
Oil and NGL Contracts			US$/bbl
Fixed Price Contracts
Ethane Fixed Price	5.0 Mbbls/d	2024	10.28	$	2
WTI Three-Way Options
Sold call / bought put / sold put	45.0 Mbbls/d	2024	86.75 / 65.00 / 50.00		(9	)
Sold call / bought put / sold put	25.3 Mbbls/d	2025	85.52 / 65.00 / 50.00		(8	)
WTI Costless Collars
Sold call / bought put	5.0 Mbbls/d	2024	92.06 / 60.00		-
Basis Contracts (1)		2024			-
Oil and NGLs Fair Value Position					(15	)
Natural Gas Contracts			US$/Mcf
Fixed Price Contracts
NYMEX Fixed Price	200 MMcf/d	2024	3.62		27
NYMEX Three-Way Options
Sold call / bought put / sold put	200 MMcf/d	2024	4.51 / 3.00 / 2.25		10
Sold call / bought put / sold put	500 MMcf/d	2025	4.54 / 3.00 / 2.25		(9	)
NYMEX Costless Collars
Sold call / bought put	400 MMcf/d	2024	4.49 / 3.00		26
Basis Contracts (2)		2024			46
		2025			28
Natural Gas Fair Value Position					128
Foreign Currency Contracts
Fair Value Position (3)		2024			1
Total Fair Value Position				$	114

(1)Ovintiv has entered into oil differential swaps associated with Canadian condensate and WTI.

(2)Ovintiv has entered into natural gas basis swaps associated with AECO, Waha and NYMEX.

(3)Ovintiv has entered into U.S. dollar denominated fixed-for-floating average currency swaps to protect against fluctuations between the Canadian and U.S. dollars.

Earnings Impact of Realized and Unrealized Gains (Losses) on Risk Management Positions

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2024			2023			2024			2023
Realized Gains (Losses) on Risk Management
Commodity and Other Derivatives:
Revenues (1)	$	69		$	5		$	115		$	(71	)
Foreign Currency Derivatives:
Foreign exchange		(1	)		(3	)		(1	)		(7	)
Interest Rate Derivatives:
Interest Rate (2)		-			1			-			1
	$	68		$	3		$	114		$	(77	)
Unrealized Gains (Losses) on Risk Management
Commodity and Other Derivatives:
Revenues (3)	$	8		$	142		$	(92	)	$	160
Foreign Currency Derivatives:
Foreign exchange		(2	)		9			(10	)		15
	$	6		$	151		$	(102	)	$	175
Total Realized and Unrealized Gains (Losses) on Risk Management, net
Commodity and Other Derivatives:
Revenues (1) (3)	$	77		$	147		$	23		$	89
Foreign Currency Derivatives:
Foreign exchange		(3	)		6			(11	)		8
Interest Rate Derivatives:
Interest Rate (2)		-			1			-			1
	$	74		$	154		$	12		$	98

(1)Includes a realized gain of $4 million for the three and six months ended June 30, 2024, respectively (2023 - nil, respectively), related to other derivative contracts.

(2)The interest rate swap was executed and settled during the three months ended June 30, 2023, in relation to the senior notes issuance described in Note 12. The gain was recognized in interest expense.

(3)There were no unrealized gains or losses related to other derivative contracts for the three or six months ended June 30, 2024 or 2023.

Reconciliation of Unrealized Risk Management Positions

	2024						2023
	Fair Value			Total Unrealized Gain (Loss)			Total Unrealized Gain (Loss)
Fair Value of Contracts, Beginning of Year	$	212
Change in Fair Value of Contracts in Place at Beginning of Year
and Contracts Entered into During the Period		12		$	12		$	98
Settlement of Other Derivative Contracts		4
Fair Value of Contracts Realized During the Period		(114	)		(114	)		77
Fair Value of Contracts, End of Period	$	114		$	(102	)	$	175

Unrealized Risk Management Positions

	As at		As at
	June 30,		December 31,
	2024		2023
Risk Management Assets
Current	$	117	$	214
Long-term		10		4
		127		218
Risk Management Liabilities
Current		7		-
Long-term		6		2
		13		2
Other Derivative Contract Liabilities
Current in accounts payable and accrued liabilities		-		4
		-		4
Net Risk Management Assets (Liabilities) and Other Derivative Contracts	$	114	$	212