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): February 27, 2024

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 February 27, 2024 Ovintiv Inc. (the “Company”) issued a news release announcing its financial and operating results for its fourth quarter and full year ended December 31, 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 Exhibits 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 they 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 9.01 Financial Statements and Exhibits.

(d) Exhibits

Exhibit No.	Exhibit Description
Exhibit 99.1	News Release dated February 27, 2024.
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: February 27, 2024

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 Fourth Quarter and Year-End 2023 Financial and Operating Results

Strong 2023 Operational Execution; Enhanced Capital Efficiency Expected in 2024

Highlights:

Full Year 2023

•Generated net earnings of $2.1 billion, cash from operating activities of $4.2 billion, Non-GAAP Cash Flow of $3.9 billion and Non-GAAP Free Cash Flow of $1.2 billion after capital expenditures of $2.7 billion

•Exceeded high end of full year production guidance on every product with average total volumes of 566 thousand barrels of oil equivalent per day (“MBOE/d”), including 202 thousand barrels per day (“Mbbls/d”) of oil and condensate, 90 Mbbls/d of other NGLs (C2 to C4) and 1,642 million cubic feet per day (“MMcf/d”) of natural gas

•Returned $733 million to shareholders through the combination of base dividend payments and share buybacks

•Acquired and seamlessly integrated high-quality Permian assets comprising approximately 65,000 net acres of largely undeveloped land directly adjacent to the Company’s existing Permian operations

•Closed the sale of the Company’s Bakken assets, representing Ovintiv’s exit from the play

•Announced the Company’s inclusion on the S&P 400 index effective June 20, 2023

Fourth Quarter 2023

•Generated fourth quarter net earnings of $856 million, cash from operating activities of $1.4 billion, Non-GAAP Cash Flow of $1.2 billion and Non-GAAP Free Cash Flow of $577 million after capital expenditures of $660 million

•Delivered average quarterly production volumes of 605 MBOE/d, including 240 Mbbls/d of oil and condensate, 91 Mbbls/d of other NGLs and 1,645 MMcf/d of natural gas; all exceeding the high end of Company guidance

•Reduced total debt by $426 million

2024 Outlook

•Announced 2024 capital program of approximately $2.2 to $2.4 billion, which is expected to deliver total production volumes of 545 to 575 MBOE/d, including oil and condensate volumes of 202 to 208 Mbbls/d

DENVER, February 27, 2024 – Ovintiv Inc. (NYSE, TSX: OVV) (“Ovintiv” or the “Company”) today announced its fourth quarter and year-end 2023 financial and operating results. The Company plans to hold a conference call and webcast at 8:00 a.m. MT (10:00 a.m. ET) on February 28, 2024. Please see dial-in details within this release, as well as additional details on the Company's website at www.ovintiv.com under Presentations and Events – Ovintiv.

“2023 marked a year of exceptionally strong execution for our Company,” said President and CEO, Brendan McCracken. “Our focus on operational excellence led to multiple quarters of positive guidance revisions, as we repeatedly outperformed our production targets without increasing spending. From volumes, to capital, to per unit costs, we beat our 2023 targets and enhanced the capital efficiency of the business. Our durable-returns strategy is set to deliver again in 2024, as we plan to produce higher oil and condensate volumes with less capital and generate about $450 million more free cash flow than 2023.”

Full Year and Fourth Quarter 2023 Financial and Operating Results

•The Company recorded full year net earnings of $2,085 million, or $7.90 per diluted share of common stock. Included in net earnings were income tax expense of $425 million and net gains on risk management of $151 million, before tax.

•Fourth quarter net earnings totaled $856 million, or $3.11 per diluted share of common stock.Included in net earnings were income tax expense of $211 million and net gains on risk management of $344 million, before tax.

•Full year capital investment of $2,744 million was below the full year 2023 guidance range of approximately $2,745 million to $2,785 million.

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•Fourth quarter capital investment of $660 million was at the low end of the guidance range of approximately $660 million to $700 million.

•Full year upstream operating expense was $4.03 per barrel of oil equivalent ("BOE"). Upstream transportation and processing costs were $7.76 per BOE. Production, mineral and other taxes were $1.66 per BOE, or 4.4% of upstream revenue. These costs were below the bottom end of guidance on a combined basis.

•Fourth quarter upstream operating expense was $4.09 per BOE. Upstream transportation and processing costs were $6.89 per BOE. Production, mineral and other taxes were $1.67 per BOE, or 4.2% of upstream revenue. These costs were below the bottom end of guidance on a combined basis.

•Excluding the impact of hedges, full year average realized prices were $75.19 per barrel for oil and condensate (97% of WTI), $18.09 per barrel for other NGLs (C2-C4) and $2.74 per thousand cubic feet ("Mcf") for natural gas (100% of NYMEX) resulting in a total average realized price of $37.67 per BOE.

•Including the impact of hedges, full year average realized prices for oil and condensate was $74.88 (96% of WTI), other NGLs was unchanged, and the average realized price for natural gas was $2.71 per Mcf (99% of NYMEX) resulting in a total average realized price of $37.46 per BOE.

•Excluding the impact of hedges, fourth quarter average realized prices were $75.66 per barrel for oil and condensate (97% of WTI), $18.85 per barrel for other NGLs (C2-C4) and $2.50 per Mcf for natural gas (87% of NYMEX) resulting in a total average realized price of $39.66 per BOE.

•Including the impact of hedges, fourth quarter average realized prices for oil and condensate was $75.46 (96% of WTI), other NGLs was unchanged, and the average realized price for natural gas was $2.65 per Mcf (92% of NYMEX) resulting in a total average realized price of $39.99 per BOE.

2024 Guidance

The Company issued the following first quarter and full year 2024 guidance:

2024 Guidance	1Q 2024	Full Year 2024
Total Production (MBOE/d)	560 – 575	545 – 575
Oil & Condensate (Mbbls/d)	208 – 212	202 – 208
NGLs (C2 - C4) (Mbbls/d)	86 – 89	85 – 90
Natural Gas (MMcf/d)	1,575 – 1,625	1,550 – 1,650
Capital Investment ($ Millions)	$580 – $620	$2,200 – $2,400

Ovintiv expects production in the first quarter to be the high point for the year, with oil and condensate volumes expected to average 208 to 212 Mbbls/d. This includes the impacts of refinery turnarounds in Salt Lake City, weather and planned maintenance, which are expected to reduce first quarter volumes by approximately 8 Mbbls/d. Oil and condensate production is expected to stabilize in the second quarter and remain largely flat through the end of the year for an annual average of 202 to 208 Mbbls/d. The Company expects to realize a greater than 18% improvement in capital efficiency for its oil and condensate production versus its original 2023 guidance.

Inventory Renewal

Since 2021, Ovintiv has added approximately 1,650 net premium drilling locations to its inventory through the combination of the Permian acquisition in 2023, low-cost strategic bolt-on transactions and its organic inventory appraisal and assessment programs. This represents an addition of more than seven years of drilling inventory based on the number of wells the Company expects to drill in 2024. Approximately two thirds of the inventory additions, or about 1,100 net locations, are located in the Permian.

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 fourth quarter of 2023, the Company returned approximately $135 million to shareholders through share buybacks totaling approximately $53 million and its base dividend of approximately $82 million.

Full year shareholder returns totaled approximately $733 million, consisting of share buybacks of approximately $426 million, or approximately 10 million shares of common stock, and base dividend payments of approximately $307 million.

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Share buybacks in the first quarter of 2024 are expected to total approximately $248 million.

Continued Balance Sheet Focus

Ovintiv had approximately $3.5 billion in total liquidity as of December 31, 2023, which included available credit facilities of $3,486 million, available uncommitted demand lines of $234 million, and cash and cash equivalents of $3 million, net of outstanding commercial paper of $270 million. Ovintiv reported total debt of $5.7 billion at year-end.

Non-GAAP Debt to EBITDA was 1.2 times and Non-GAAP Debt to Adjusted EBITDA was 1.3 times as of December 31, 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 February 27, 2024, Ovintiv’s Board declared a quarterly dividend of $0.30 per share of common stock payable on March 28, 2024, to shareholders of record as of March 15, 2024.

Asset Highlights

Permian

Permian production averaged 220 MBOE/d (84% liquids) in the fourth quarter. TheCompany had 60 net wells turned in line (TIL). Ovintiv plans to invest approximately $1.35 billion to $1.45 billion in the play in 2024 to bring on 120 to 130 net wells.

Montney

Montney production averaged 234 MBOE/d (22% liquids) in the fourth quarter. The Company had 15 net wells TIL. Ovintiv plans to invest approximately $425 million to $475 million in the play in 2024 to bring on 60 to 70 net wells.

Uinta

Uinta production averaged 34 MBOE/d (86% liquids) in the fourth quarter. The Company had eight net wells TIL. Ovintiv plans to invest approximately $300 million to $350 million in the play in 2024 to bring on 25 to 30 net wells.

Anadarko

Anadarko production averaged 113 MBOE/d (59% liquids) in the fourth quarter. The Company had four net wells TIL. Ovintiv plans to invest approximately $100 million to $125 million in the play in 2024 to bring on seven to ten net wells.

Year-End 2023 Reserves

SEC proved reserves at year-end 2023 were 2.2 billion BOE, of which approximately 48% were liquids and 62% were proved developed. Total proved reserves replacement including the impact of commodity prices and acquisitions was 106% of 2023 production. Ovintiv's reserve life index at year-end was approximately 11 years.

For additional information, please refer to the Fourth Quarter and Year-end 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 fourth quarter and year-end 2023 results will be held at 8:00 a.m. MT (10:00 a.m. ET) on February 28, 2024.

To join the conference call without operator assistance, you may register and enter your phone number at https://emportal.ink/3Segm9H 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.

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Capital Investment and Production

(for the period ended December 31)	4Q 2023	4Q 2022	2023	2022
Capital Expenditures (1) ($ millions)	660	358	2,744	1,831
Oil (Mbbls/d)	194.1	132.0	158.9	131.6
NGLs – Plant Condensate (Mbbls/d)	46.1	42.7	42.9	44.0
Oil & Plant Condensate (Mbbls/d)	240.2	174.7	201.8	175.6
NGLs – Other (Mbbls/d)	90.9	88.7	90.2	85.5
Total Liquids (Mbbls/d)	331.1	263.4	292.0	261.1
Natural gas (MMcf/d)	1,645	1,561	1,642	1,494
Total production (MBOE/d)	605.2	523.6	565.6	510.0

(1) Including capitalized directly attributable internal costs.

Financial Summary

(for the period ended December 31) ($ millions)	4Q 2023	4Q 2022	2023	2022
Cash From (Used In) Operating Activities Deduct (Add Back): Net change in other assets and liabilities Net change in non-cash working capital	1,362 (31) 156	875 (15) (5)	4,167 (62) 330	3,866 (57) (187)
Non-GAAP Cash Flow (1)	1,237	895	3,899	4,110
Non-GAAP Cash Flow (1)	1,237	895	3,899	4,110
Less: Capital Expenditures (2)	660	358	2,744	1,831
Non-GAAP Free Cash Flow (1)	577	537	1,155	2,279
Net Earnings (Loss) Before Income Tax Before-tax (Addition) Deduction: Unrealized gain (loss) on risk management Non-operating foreign exchange gain (loss)	1,067 326 (9)	1,110 530 10	2,510 194 (2)	3,560 741 (14)
Adjusted Earnings (Loss) Before Income Tax Income tax expense (recovery)	750 103	570 342	2,318 508	2,833 1,064
Non-GAAP Adjusted Earnings (1)	647	228	1,810	1,769

(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.

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

(for the period ended December 31)	4Q 2023	4Q 2022	2023	2022
Liquids($/bbl)
WTI	78.32	82.65	77.62	94.23
Realized Liquids Prices
Oil	76.64	75.85	76.06	81.88
NGLs – Plant Condensate	70.46	72.01	70.51	80.74
Oil & Plant Condensate	75.46	74.91	74.88	81.59
NGLs – Other	18.85	22.95	18.09	31.45
Total NGLs	36.20	38.88	34.98	48.20
Natural Gas
NYMEX ($/MMBtu)	2.88	6.26	2.74	6.64
Realized Natural Gas Price ($/Mcf)	2.65	2.49	2.71	2.42

Cost Summary

(for the period ended December 31) ($/BOE, except as indicated)	2023	2022
Production, mineral and other taxes	1.66	2.23
Upstream transportation and processing	7.76	8.75
Upstream operating	4.03	4.15
Administrative, excluding long-term incentive, transaction and legal costs, and current expected credit losses	1.35	1.39

Debt to EBITDA (1)

($ millions, except as indicated)	December 31, 2023	December 31, 2022
Long-Term Debt, including Current Portion	5,737	3,570
Net Earnings (Loss)	2,085	3,637
Add back (Deduct):
Depreciation, depletion and amortization	1,825	1,113
Interest	355	311
Income tax expense (recovery)	425	(77)
EBITDA	4,690	4,984
Debt to EBITDA (times)	1.2	0.7

Debt to Adjusted EBITDA(1)

($ millions, except as indicated)	December 31, 2023	December 31, 2022
Long-Term Debt, including Current Portion	5,737	3,570
Net Earnings (Loss)	2,085	3,637
Add back (Deduct):
Depreciation, depletion and amortization	1,825	1,113
Accretion of asset retirement obligation	19	18
Interest	355	311
Unrealized (gains) losses on risk management	(194)	(741)
Foreign exchange (gain) loss, net	19	15
Other (gains) losses, net	(20)	(33)
Income tax expense (recovery)	425	(77)
Adjusted EBITDA	4,514	4,243
Debt to Adjusted EBITDA (times)	1.3	0.8

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

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Hedge Details as of December 31, 2023

Oil and Condensate Hedges ($/bbl)	1Q 2024	2Q 2024	3Q 2024	4Q 2024	1Q 2025
WTI Swaps	25 Mbbls/d $73.69	25 Mbbls/d $73.69	0 -	0 -	0 -
WTI Collars Call Strike Put Strike	75 Mbbls/d $82.29 $64.33	75 Mbbls/d $80.39 $65.00	10 Mbbls/d $92.06 $60.00	0 - -	0 - -
WTI 3-Way Options Short Call Long Put Short Put	0 - - -	0 - - -	40 Mbbls/d $89.76 $65.00 $50.00	32 Mbbls/d $85.36 $65.00 $50.00	0 - - -

Natural Gas Hedges ($/Mcf)	1Q 2024	2Q 2024	3Q 2024	4Q 2024	1Q 2025
NYMEX Swaps	200 MMcf/d $3.62	200 MMcf/d $3.62	200 MMcf/d $3.62	200 MMcf/d $3.62	0 -
NYMEX Collars Call Strike Put Strike	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	0 - -
NYMEX 3-Way Options Call Strike Put Strike Sold Put Strike	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	200 MMcf/d $4.58 $3.00 $2.25	300 MMcf/d $4.99 $3.00 $2.25
Waha % of NYMEX Swaps	50 MMcf/d 71%	50 MMcf/d 71%	50 MMcf/d 71%	50 MMcf/d 71%	0 -
AECO Nominal Basis Swaps	190 MMcf/d ($1.08)	190 MMcf/d ($1.08)	190 MMcf/d ($1.08)	190 MMcf/d ($1.08)	190 MMcf/d ($1.08)
AECO % of NYMEX Swaps	100 MMcf/d 72%	100 MMcf/d 72%	100 MMcf/d 72%	100 MMcf/d 72%	100 MMcf/d 72%

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Price Sensitivities for WTI Oil (1) ($MM) (Before-Tax)

WTI Oil Hedge Gains (Losses)
	$40	$50	$60	$70	$80	$90	$100	$110	$120
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	$44	$44	$15	-	-	($14)	($43)	($73)	($102)
1Q 2025	-	-	-	-	-	-	-	-	-

(1)Hedge positions and hedge sensitivity estimates as of 12/31/2023. Does not include impact of basis positions.

Price Sensitivities for NYMEX Natural Gas (1) ($MM) (Before-Tax)

NYMEX Natural Gas Hedge Gains (Losses)
	$1.50	$2.00	$2.50	$3.00	$3.50	$4.00	$4.50	$5.00	$5.50
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	$108	$80	$48	$11	$2	($7)	($18)	($33)	($52)
1Q 2025	$20	$20	$14	-	-	-	($1)	($6)	($14)

(1)Hedge positions and hedge sensitivity estimates as of 12/31/2023. Does not include impact of basis positions.

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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.sedarplus.ca 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. Forecasted Non-GAAP Free Cash Flow represents forecasted Non-GAAP Cash Flow based on $75 WTI and $2.50 NYMEX and utilizing the midpoint of production guidance. Due to its forward-looking nature, management cannot reliably predict certain of the necessary components of the most directly comparable forward-looking GAAP measures, such as changes in operating assets and liabilities. Accordingly, Ovintiv is unable to present a quantitative reconciliation of such forward-looking non-GAAP financial measure to its most directly comparable forward-looking GAAP financial measure. Amounts excluded from this non-GAAP measure in future periods could be significant.

•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 Target/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 first quarter and fiscal year 2024 guidance, the expectation of delivering sustainable durable returns to shareholders in future years, plans regarding share buybacks and debt reduction, and timing and expectations regarding capital efficiencies and well completion and performance, 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 year ended December 31, 2023

U.S. Dollar / U.S. Protocol

Condensed Consolidated Statement of Earnings (unaudited)

For the years ended December 31 (US$ millions, except per share amounts)	2023			2022			2021
Revenues
Product and service revenues	$	10,661		$	14,263		$	10,468
Gains (losses) on risk management, net		151			(1,867	)		(1,883	)
Sublease revenues		71			68			73
Total Revenues		10,883			12,464			8,658
Operating Expenses
Production, mineral and other taxes		342			415			293
Transportation and processing		1,766			1,786			1,616
Operating		859			802			625
Purchased product		2,815			4,055			2,951
Depreciation, depletion and amortization		1,825			1,113			1,190
Accretion of asset retirement obligation		19			18			22
Administrative		393			422			442
Total Operating Expenses		8,019			8,611			7,139
Operating Income (Loss)		2,864			3,853			1,519
Other (Income) Expenses
Interest		355			311			340
Foreign exchange (gain) loss, net		19			15			(23	)
Other (gains) losses, net		(20	)		(33	)		(37	)
Total Other (Income) Expenses		354			293			280
Net Earnings (Loss) Before Income Tax		2,510			3,560			1,239
Income tax expense (recovery)		425			(77	)		(177	)
Net Earnings (Loss)	$	2,085		$	3,637		$	1,416
Net Earnings (Loss) per Share of Common Stock
Basic	$	8.02		$	14.34		$	5.44
Diluted		7.90			14.08			5.32
Weighted Average Shares of Common Stock Outstanding (millions)
Basic		259.9			253.6			260.4
Diluted		263.9			258.4			266.4

Condensed Consolidated Statement of Comprehensive Income (unaudited)

For the years ended December 31 (US$ millions)	2023			2022			2021
Net Earnings (Loss)	$	2,085		$	3,637		$	1,416
Other Comprehensive Income (Loss), Net of Tax
Foreign currency translation adjustment		63			(107	)		2
Pension and other post-employment benefit plans		(4	)		6			14
Other Comprehensive Income (Loss)		59			(101	)		16
Comprehensive Income (Loss)	$	2,144		$	3,536		$	1,432

Ovintiv Inc. 1 Selected Financial Information

Condensed Consolidated Balance Sheet (unaudited)

	As at			As at
	December 31,			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))		1,442			1,594
Risk management		214			53
Income tax receivable		17			43
		1,676			1,695
Property, Plant and Equipment, at cost:
Oil and natural gas properties, based on full cost accounting
Proved properties		64,084			57,054
Unproved properties		1,486			1,172
Other		907			882
Property, plant and equipment		66,477			59,108
Less: Accumulated depreciation, depletion and amortization		(51,837	)		(49,640	)
Property, plant and equipment, net		14,640			9,468
Other Assets		1,015			1,004
Risk Management		4			34
Deferred Income Taxes		53			271
Goodwill		2,599			2,584
	$	19,987		$	15,056
Liabilities and Shareholders’ Equity
Current Liabilities
Accounts payable and accrued liabilities	$	2,209		$	2,221
Current portion of operating lease liabilities		87			76
Income tax payable		232			4
Risk management		-			86
Current portion of long-term debt		284			393
		2,812			2,780
Long-Term Debt		5,453			3,177
Operating Lease Liabilities		832			814
Other Liabilities and Provisions		132			131
Risk Management		2			-
Asset Retirement Obligation		276			281
Deferred Income Taxes		110			184
		9,617			7,367
Shareholders’ Equity
Share capital - authorized 775 million shares of stock
2023 issued and outstanding: 271.7 million shares (2022: 245.7 million shares)		3			3
Paid in surplus		8,620			7,776
Retained earnings (Accumulated deficit)		697			(1,081	)
Accumulated other comprehensive income		1,050			991
Total Shareholders’ Equity		10,370			7,689
	$	19,987		$	15,056

Ovintiv Inc. 2 Selected Financial Information

Condensed Consolidated Statement of Cash Flows (unaudited)

For the years ended December 31 (US$ millions)	2023			2022			2021
Operating Activities
Net earnings (loss)	$	2,085		$	3,637		$	1,416
Depreciation, depletion and amortization		1,825			1,113			1,190
Accretion of asset retirement obligation		19			18			22
Deferred income taxes		144			(87	)		(21	)
Unrealized (gain) loss on risk management		(194	)		(741	)		488
Unrealized foreign exchange (gain) loss		(6	)		14			21
Foreign exchange (gain) loss on settlements		6			8			(11	)
Other		20			148			104
Net change in other assets and liabilities		(62	)		(57	)		(39	)
Net change in non-cash working capital		330			(187	)		(41	)
Cash From (Used in) Operating Activities		4,167			3,866			3,129
Investing Activities
Capital expenditures		(2,744	)		(1,831	)		(1,519	)
Acquisitions		(277	)		(286	)		(11	)
Corporate acquisition, net of cash acquired		(3,225	)		-			-
Proceeds from divestitures		772			228			1,025
Net change in investments and other		(45	)		103			(20	)
Cash From (Used in) Investing Activities		(5,519	)		(1,786	)		(525	)
Financing Activities
Net issuance (repayment) of revolving debt		(109	)		393			(950	)
Issuance of long-term debt		2,278			-			-
Repayment of long-term debt		-			(1,634	)		(1,137	)
Purchase of shares of common stock		(426	)		(719	)		(111	)
Dividends on shares of common stock		(307	)		(239	)		(122	)
Finance lease payments and other		(77	)		(69	)		(99	)
Cash From (Used in) Financing Activities		1,359			(2,268	)		(2,419	)
Foreign Exchange Gain (Loss) on Cash, Cash Equivalents
and Restricted Cash Held in Foreign Currency		(9	)		(2	)		-
Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash		(2	)		(190	)		185
Cash, Cash Equivalents and Restricted Cash, Beginning of Year		5			195			10
Cash, Cash Equivalents and Restricted Cash, End of Year	$	3		$	5		$	195
Cash, End of Year	$	3		$	5		$	26
Cash Equivalents, End of Year		-			-			169
Restricted Cash, End of Year		-			-			-
Cash, Cash Equivalents and Restricted Cash, End of Year	$	3		$	5		$	195

Ovintiv Inc. 3 Selected Financial Information

 

Ovintiv Inc.

Supplemental Information

(unaudited)

For the year ended December 31, 2023

U.S. Dollar / U.S. Protocol

Fourth quarter report

for the year ended December 31, 2023

Supplemental Financial Information (unaudited)

Financial Results

		2023															2022
(US$ millions, unless otherwise specified)		Year			Q4			Q3			Q2			Q1			Year			Q4			Q3			Q2			Q1
Net Earnings (Loss)			2,085			856			406			336			487			3,637			1,335			1,186			1,357			(241	)
	Per share - basic (1)		8.02			3.14			1.48			1.35			1.99			14.34			5.39			4.70			5.28			(0.94	)
	Per share - diluted (1)		7.90			3.11			1.47			1.34			1.97			14.08			5.30			4.63			5.21			(0.94	)
Non-GAAP Adjusted Earnings (2)			1,810			647			481			232			450			1,769			228			353			628			560
	Per share - basic (1)		6.96			2.38			1.76			0.93			1.84			6.98			0.92			1.40			2.44			2.18
	Per share - diluted (1)		6.86			2.35			1.74			0.93			1.82			6.85			0.91			1.38			2.41			2.18
Non-GAAP Cash Flow (3)			3,899			1,237			1,112			699			851			4,110			895			948			1,224			1,043
	Per share - basic (1)		15.00			4.54			4.06			2.80			3.48			16.21			3.62			3.75			4.76			4.05
	Per share - diluted (1)		14.77			4.49			4.02			2.79			3.44			15.91			3.55			3.70			4.70			4.05
Foreign Exchange Rates (C$ per US$1)
	Average		1.350			1.362			1.341			1.343			1.353			1.301			1.358			1.306			1.277			1.266
	Period end		1.323			1.323			1.352			1.324			1.353			1.354			1.354			1.371			1.289			1.250
Non-GAAP Adjusted Earnings Summary
Net Earnings (Loss) Before Income Tax			2,510			1,067			393			437			613			3,560			1,110			1,274			1,422			(246	)
Before-tax (Addition) Deduction:
	Unrealized gain (loss) on risk management		194			326			(292	)		142			18			741			530			710			513			(1,012	)
	Non-operating foreign exchange gain (loss)		(2	)		(9	)		17			(15	)		5			(14	)		10			(20	)		(7	)		3
Adjusted Earnings (Loss) Before Income Tax			2,318			750			668			310			590			2,833			570			584			916			763
	Income tax expense (recovery) (4)		508			103			187			78			140			1,064			342			231			288			203
Non-GAAP Adjusted Earnings (2)			1,810			647			481			232			450			1,769			228			353			628			560
Non-GAAP Cash Flow Summary
Cash From (Used in) Operating Activities			4,167			1,362			906			831			1,068			3,866			875			962			1,344			685
(Add back) Deduct:
	Net change in other assets and liabilities		(62	)		(31	)		(14	)		(12	)		(5	)		(57	)		(15	)		(17	)		(13	)		(12	)
	Net change in non-cash working capital		330			156			(192	)		144			222			(187	)		(5	)		31			133			(346	)
Non-GAAP Cash Flow (3)			3,899			1,237			1,112			699			851			4,110			895			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		Q4		Q3		Q2		Q1		Year		Q4		Q3		Q2		Q1
Weighted Average Shares of Common Stock Outstanding
	Basic		259.9		272.3		273.7		249.4		244.3		253.6		247.5		252.5		257.2		257.4
	Diluted		263.9		275.4		276.3		250.8		247.7		258.4		251.8		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 23.7 percent (2022 - 23.0 percent and 23.9 percent, respectively).

Financial Metrics

		2023		2022
	Year		Year
Debt to Capitalization	36%		32%
Debt to Adjusted Capitalization (1)	24%		19%
Debt to EBITDA (1)	1.2x		0.7x
Debt to Adjusted EBITDA (1)	1.3x		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$)

Fourth quarter report

for the year ended December 31, 2023

Supplemental Operating Information (unaudited)

Production Volumes by Product

				2023										2022
(average)		% of Oil & NGLs		Year		Q4		Q3		Q2		Q1		Year		Q4		Q3		Q2		Q1
	Oil (Mbbls/d)		54		158.9		194.1		170.9		142.4		127.3		131.6		132.0		133.4		132.8		128.3
	NGLs - Plant Condensate (Mbbls/d)		15		42.9		46.1		43.3		43.5		38.7		44.0		42.7		46.0		42.6		44.6
Oil & Plant Condensate (Mbbls/d)			69		201.8		240.2		214.2		185.9		166.0		175.6		174.7		179.4		175.4		172.9
	Butane (Mbbls/d)		7		21.1		21.7		20.4		23.2		19.1		19.3		19.0		19.8		19.8		18.7
	Propane (Mbbls/d)		12		33.7		35.2		33.2		34.9		31.3		31.5		32.2		31.0		31.3		31.3
	Ethane (Mbbls/d)		12		35.4		34.0		33.1		38.7		35.8		34.7		37.5		36.1		35.9		29.2
NGLs - Other (Mbbls/d)			31		90.2		90.9		86.7		96.8		86.2		85.5		88.7		86.9		87.0		79.2
Oil & NGLs (Mbbls/d)			100		292.0		331.1		300.9		282.7		252.2		261.1		263.4		266.3		262.4		252.1
Natural Gas (MMcf/d)					1,642		1,645		1,625		1,743		1,555		1,494		1,561		1,500		1,426		1,487
Total (MBOE/d)					565.6		605.2		571.8		573.0		511.4		510.0		523.6		516.3		500.0		499.9

Production Volumes by Segment

		2023										2022
(average)		Year		Q4		Q3		Q2		Q1		Year		Q4		Q3		Q2		Q1
Oil (Mbbls/d)
	USA Operations		158.8		194.0		170.8		142.4		127.2		131.5		131.9		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
			158.9		194.1		170.9		142.4		127.3		131.6		132.0		133.4		132.8		128.3
NGLs - Plant Condensate (Mbbls/d)
	USA Operations		10.9		11.3		11.2		10.5		10.6		10.4		11.0		11.1		10.1		9.2
	Canadian Operations		32.0		34.8		32.1		33.0		28.1		33.6		31.7		34.9		32.5		35.4
			42.9		46.1		43.3		43.5		38.7		44.0		42.7		46.0		42.6		44.6
Oil & Plant Condensate (Mbbls/d)
	USA Operations		169.7		205.3		182.0		152.9		137.8		141.9		142.9		144.4		142.8		137.4
	Canadian Operations		32.1		34.9		32.2		33.0		28.2		33.7		31.8		35.0		32.6		35.5
			201.8		240.2		214.2		185.9		166.0		175.6		174.7		179.4		175.4		172.9
NGLs - Other (Mbbls/d)
	USA Operations		74.6		74.6		71.8		78.1		73.7		71.7		75.1		74.1		72.6		64.8
	Canadian Operations		15.6		16.3		14.9		18.7		12.5		13.8		13.6		12.8		14.4		14.4
			90.2		90.9		86.7		96.8		86.2		85.5		88.7		86.9		87.0		79.2
NGLs - Total (Mbbls/d)
	USA Operations		85.5		85.9		83.0		88.6		84.3		82.1		86.1		85.2		82.7		74.0
	Canadian Operations		47.6		51.1		47.0		51.7		40.6		47.4		45.3		47.7		46.9		49.8
			133.1		137.0		130.0		140.3		124.9		129.5		131.4		132.9		129.6		123.8
Oil & NGLs (Mbbls/d)
	USA Operations		244.3		279.9		253.8		231.0		211.5		213.6		218.0		218.5		215.4		202.2
	Canadian Operations		47.7		51.2		47.1		51.7		40.7		47.5		45.4		47.8		47.0		49.9
			292.0		331.1		300.9		282.7		252.2		261.1		263.4		266.3		262.4		252.1
Natural Gas (MMcf/d)
	USA Operations		517		524		508		530		507		492		506		502		485		475
	Canadian Operations		1,125		1,121		1,117		1,213		1,048		1,002		1,055		998		941		1,012
			1,642		1,645		1,625		1,743		1,555		1,494		1,561		1,500		1,426		1,487
Total (MBOE/d)
	USA Operations		330.4		367.1		338.5		319.2		296.1		295.5		302.3		302.1		296.1		281.3
	Canadian Operations		235.2		238.1		233.3		253.8		215.3		214.5		221.3		214.2		203.9		218.6
			565.6		605.2		571.8		573.0		511.4		510.0		523.6		516.3		500.0		499.9

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

Fourth quarter report

for the year ended December 31, 2023

Supplemental Financial & Operating Information (unaudited)

Results of Operations

Revenues and Realized Gains (Losses) on Risk Management

		2023														2022
(US$ millions)		Year			Q4			Q3			Q2		Q1			Year			Q4			Q3			Q2			Q1
USA Operations
Revenues, excluding Realized Gains (Losses) on    Risk Management (1)
	Oil		4,431			1,372			1,267			944		848			4,524			995			1,143			1,311			1,075
	NGLs (2)		676			170			174			149		183			1,045			198			270			311			266
	Natural Gas		458			114			103			86		155			1,108			251			349			302			206
			5,565			1,656			1,544			1,179		1,186			6,677			1,444			1,762			1,924			1,547
Realized Gains (Losses) on Risk Management (3)
	Oil		(24	)		(5	)		(19	)		-		-			(594	)		(75	)		(141	)		(235	)		(143	)
	NGLs (2)		-			-			-			-		-			-			-			-			-			-
	Natural Gas		33			11			15			5		2			(529	)		(122	)		(183	)		(148	)		(76	)
			9			6			(4	)		5		2			(1,123	)		(197	)		(324	)		(383	)		(219	)
Canadian Operations
Revenues, excluding Realized Gains (Losses) on    Risk Management (1)
	Oil		3			1			2			-		-			3			1			1			1			-
	NGLs (2)		1,023			284			258			245		236			1,358			290			326			382			360
	Natural Gas		1,186			267			244			222		453			2,104			550			562			577			415
			2,212			552			504			467		689			3,465			841			889			960			775
Realized Gains (Losses) on Risk Management (3)
	Oil		-			-			-			-		-			-			-			-			-			-
	NGLs (2)		1			1			-			-		-			(125	)		(16	)		(26	)		(51	)		(32	)
	Natural Gas		(54	)		11			13			-		(78	)		(1,366	)		(324	)		(471	)		(374	)		(197	)
			(53	)		12			13			-		(78	)		(1,491	)		(340	)		(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$)

Fourth quarter report

for the year ended December 31, 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		Q4		Q3		Q2		Q1		Year		Q4		Q3		Q2		Q1
Total USA Operations Netback
	Price		46.15		49.03		49.62		40.56		44.52		61.91		51.96		63.44		71.39		61.08
	Production, mineral and other taxes		2.71		2.65		2.71		2.49		3.01		3.72		3.23		3.83		4.25		3.56
	Transportation and processing		4.54		3.80		3.98		5.10		5.51		5.80		5.81		6.14		5.91		5.31
	Operating		6.15		5.85		6.66		5.73		6.39		5.99		6.05		6.73		5.53		5.58
	Netback		32.75		36.73		36.27		27.24		29.61		46.40		36.87		46.74		55.70		46.63
Total Canadian Operations Netback
	Price		25.76		25.21		23.46		20.26		35.50		44.26		41.30		45.11		51.70		39.44
	Production, mineral and other taxes		0.18		0.16		0.24		0.14		0.19		0.18		0.19		0.12		0.15		0.19
	Transportation and processing		12.29		11.65		12.36		11.57		13.80		12.80		12.85		13.01		13.67		11.72
	Operating		1.04		1.38		1.30		0.10		1.50		1.62		1.52		1.69		1.35		1.90
	Netback		12.25		12.02		9.56		8.45		20.01		29.66		26.74		30.29		36.53		25.63
Total Operations Netback
	Price		37.67		39.66		38.95		31.56		40.72		54.49		47.45		55.83		63.36		51.62
	Production, mineral and other taxes		1.66		1.67		1.70		1.43		1.83		2.23		1.95		2.29		2.58		2.08
	Transportation and processing		7.76		6.89		7.40		7.97		9.00		8.75		8.78		8.99		9.08		8.12
	Operating		4.03		4.09		4.48		3.23		4.33		4.15		4.13		4.64		3.83		3.98
	Netback		24.22		27.01		25.37		18.93		25.56		39.36		32.59		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		Q4		Q3		Q2		Q1		Year		Q4		Q3		Q2		Q1
Administrative Expense			1.91		1.57		1.53		3.23		1.25		2.27		2.17		2.16		1.56		3.20
Administrative Expense, Excluding Long-Term Incentive,
	Transaction and Legal Costs, and Current Expected
	Credit Losses (1)		1.35		1.36		1.27		1.28		1.52		1.39		1.35		1.39		1.36		1.48

(1) Transaction costs refer to costs primarily incurred to facilitate the Permian Acquisition as defined in Note 9 of the Consolidated Financial Statements included in Part II, Item 8 of Ovintiv’s Annual Report on Form 10-K.

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

Fourth quarter report

for the year ended December 31, 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$)		Year		Q4		Q3		Q2		Q1		Year		Q4		Q3		Q2		Q1
Oil Price ($/bbl)
	USA Operations		76.46		76.91		80.69		72.83		74.06		94.25		82.08		93.22		108.58		93.16
	Canadian Operations		81.59		75.10		100.64		-		71.44		87.28		81.48		82.86		100.11		82.80
	Total Operations		76.46		76.91		80.70		72.83		74.06		94.25		82.08		93.21		108.57		93.15
NGLs - Plant Condensate Price ($/bbl)
	USA Operations		58.53		57.24		59.96		55.09		61.84		73.22		57.95		66.62		86.56		85.09
	Canadian Operations		74.52		74.65		75.67		70.99		77.22		93.22		82.41		86.65		107.78		96.22
	Total Operations		70.46		70.38		71.61		67.14		73.01		88.52		76.14		81.82		102.74		93.93
Oil & Plant Condensate Price ($/bbl)
	USA Operations		75.31		75.83		79.42		71.61		73.12		92.72		80.24		91.18		107.02		92.62
	Canadian Operations		74.54		74.65		75.75		70.99		77.21		93.20		82.41		86.64		107.76		96.19
	Total Operations		75.19		75.66		78.86		71.50		73.81		92.81		80.63		90.29		107.16		93.35
NGLs - Other Price ($/bbl)
	USA Operations		16.27		16.21		16.91		13.43		18.73		29.35		20.03		29.82		34.88		33.55
	Canadian Operations		26.78		30.94		25.50		18.62		35.17		42.39		39.07		41.12		47.84		41.23
	Total Operations		18.09		18.85		18.39		14.43		21.11		31.45		22.95		31.49		37.03		34.94
NGLs - Total Price ($/bbl)
	USA Operations		21.66		21.61		22.72		18.39		24.14		34.88		24.85		34.61		41.21		39.95
	Canadian Operations		58.89		60.71		59.76		52.05		64.31		78.44		69.42		74.41		89.37		80.36
	Total Operations		34.98		36.20		36.11		30.78		37.19		50.84		40.22		48.91		58.64		56.21
Oil & NGLs Price ($/bbl)
	USA Operations		57.29		59.94		61.73		51.94		54.16		71.44		59.49		70.37		82.70		73.68
	Canadian Operations		58.93		60.75		59.84		52.06		64.32		78.46		69.44		74.43		89.39		80.37
	Total Operations		57.55		60.06		61.43		51.96		55.80		72.72		61.20		71.10		83.90		75.00
Natural Gas Price ($/Mcf)
	USA Operations		2.43		2.34		2.22		1.79		3.40		6.18		5.42		7.55		6.87		4.82
	Canadian Operations		2.89		2.58		2.38		2.02		4.80		5.75		5.67		6.11		6.73		4.56
	Total Operations		2.74		2.50		2.33		1.95		4.34		5.89		5.59		6.60		6.78		4.64
Total Price ($/BOE)
	USA Operations		46.15		49.03		49.62		40.56		44.52		61.91		51.96		63.44		71.39		61.08
	Canadian Operations		25.76		25.21		23.46		20.26		35.50		44.26		41.30		45.11		51.70		39.44
	Total Operations		37.67		39.66		38.95		31.56		40.72		54.49		47.45		55.83		63.36		51.62

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

Fourth quarter report

for the year ended December 31, 2023

Supplemental Oil and Gas Operating Statistics (unaudited)

Operating Statistics (continued)

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

		2023														2022
(US$)		Year			Q4			Q3			Q2		Q1			Year			Q4			Q3			Q2			Q1
Oil ($/bbl)
	USA Operations		(0.40	)		(0.27	)		(1.18	)		-		-			(12.38	)		(6.24	)		(11.48	)		(19.42	)		(12.43	)
	Canadian Operations		-			-			-			-		-			-			-			-			-			-
	Total Operations		(0.40	)		(0.27	)		(1.18	)		-		-			(12.37	)		(6.23	)		(11.47	)		(19.41	)		(12.41	)
NGLs - Plant Condensate ($/bbl)
	USA Operations		-			-			-			-		-			-			-			-			-			-
	Canadian Operations		0.09			0.10			-			-		-			(10.15	)		(5.57	)		(8.02	)		(17.14	)		(10.06	)
	Total Operations		0.05			0.08			-			-		-			(7.78	)		(4.13	)		(6.09	)		(13.07	)		(7.99	)
Oil & Plant Condensate ($/bbl)
	USA Operations		(0.38	)		(0.25	)		(1.12	)		-		-			(11.48	)		(5.76	)		(10.60	)		(18.05	)		(11.59	)
	Canadian Operations		-			-			-			-		-			(10.13	)		(5.56	)		(8.00	)		(17.10	)		(10.03	)
	Total Operations		(0.31	)		(0.20	)		(0.92	)		-		-			(11.22	)		(5.72	)		(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	)		(5.86	)		(11.87	)		(7.16	)
	Total Operations		-			-			-			-		-			(2.64	)		(1.34	)		(2.10	)		(4.30	)		(2.88	)
Oil & NGLs ($/bbl)
	USA Operations		(0.27	)		(0.19	)		(0.80	)		-		-			(7.62	)		(3.78	)		(7.00	)		(11.96	)		(7.88	)
	Canadian Operations		-			-			-			-		-			(7.19	)		(3.89	)		(5.85	)		(11.85	)		(7.14	)
	Total Operations		(0.21	)		(0.14	)		(0.66	)		-		-			(7.55	)		(3.79	)		(6.80	)		(11.94	)		(7.74	)
Natural Gas ($/Mcf)
	USA Operations		0.17			0.23			0.32			0.10		0.03			(2.94	)		(2.57	)		(3.97	)		(3.39	)		(1.78	)
	Canadian Operations		(0.13	)		0.11			0.12			-		(0.82	)		(3.74	)		(3.35	)		(5.12	)		(4.35	)		(2.16	)
	Total Operations		(0.03	)		0.15			0.18			0.03		(0.54	)		(3.47	)		(3.10	)		(4.75	)		(4.00	)		(2.04	)
Total ($/BOE)
	USA Operations		0.07			0.18			(0.12	)		0.17		0.05			(10.50	)		(7.00	)		(11.68	)		(14.24	)		(8.66	)
	Canadian Operations		(0.60	)		0.56			0.60			-		(3.97	)		(18.91	)		(16.80	)		(25.19	)		(22.62	)		(11.65	)
	Total Operations		(0.21	)		0.33			0.17			0.10		(1.64	)		(14.04	)		(11.14	)		(17.28	)		(17.66	)		(9.97	)

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

Fourth quarter report

for the year ended December 31, 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$)		Year		Q4		Q3		Q2		Q1		Year		Q4		Q3		Q2		Q1
Oil Price ($/bbl)
	USA Operations		76.06		76.64		79.51		72.83		74.06		81.87		75.84		81.74		89.16		80.73
	Canadian Operations		81.59		75.10		100.64		-		71.44		87.28		81.48		82.86		100.11		82.80
	Total Operations		76.06		76.64		79.52		72.83		74.06		81.88		75.85		81.74		89.16		80.74
NGLs - Plant Condensate Price ($/bbl)
	USA Operations		58.53		57.24		59.96		55.09		61.84		73.22		57.95		66.62		86.56		85.09
	Canadian Operations		74.61		74.75		75.67		70.99		77.22		83.07		76.84		78.63		90.64		86.16
	Total Operations		70.51		70.46		71.61		67.14		73.01		80.74		72.01		75.73		89.67		85.94
Oil & Plant Condensate Price ($/bbl)
	USA Operations		74.93		75.58		78.30		71.61		73.12		81.24		74.48		80.58		88.97		81.03
	Canadian Operations		74.54		74.65		75.75		70.99		77.21		83.07		76.85		78.64		90.66		86.16
	Total Operations		74.88		75.46		77.94		71.50		73.81		81.59		74.91		80.20		89.29		82.08
NGLs - Other Price ($/bbl)
	USA Operations		16.27		16.21		16.91		13.43		18.73		29.35		20.03		29.82		34.88		33.55
	Canadian Operations		26.78		30.94		25.50		18.62		35.17		42.39		39.07		41.12		47.84		41.23
	Total Operations		18.09		18.85		18.39		14.43		21.11		31.45		22.95		31.49		37.03		34.94
NGLs - Total Price ($/bbl)
	USA Operations		21.66		21.61		22.72		18.39		24.14		34.88		24.85		34.61		41.21		39.95
	Canadian Operations		58.89		60.71		59.76		52.05		64.31		71.24		65.53		68.55		77.50		73.20
	Total Operations		34.98		36.20		36.11		30.78		37.19		48.20		38.88		46.81		54.34		53.33
Oil & NGLs Price ($/bbl)
	USA Operations		57.02		59.75		60.93		51.94		54.16		63.82		55.71		63.37		70.74		65.80
	Canadian Operations		58.93		60.75		59.84		52.06		64.32		71.27		65.55		68.58		77.54		73.23
	Total Operations		57.34		59.92		60.77		51.96		55.80		65.17		57.41		64.30		71.96		67.26
Natural Gas Price ($/Mcf)
	USA Operations		2.60		2.57		2.54		1.89		3.43		3.24		2.85		3.58		3.48		3.04
	Canadian Operations		2.76		2.69		2.50		2.02		3.98		2.01		2.32		0.99		2.38		2.40
	Total Operations		2.71		2.65		2.51		1.98		3.80		2.42		2.49		1.85		2.78		2.60
Total Price ($/BOE)
	USA Operations		46.22		49.21		49.50		40.73		44.57		51.41		44.96		51.76		57.15		52.42
	Canadian Operations		25.16		25.77		24.06		20.26		31.53		25.35		24.50		19.92		29.08		27.79
	Total Operations		37.46		39.99		39.12		31.66		39.08		40.45		36.31		38.55		45.70		41.65
Total Netback ($/BOE)
	USA Operations		32.82		36.91		36.15		27.41		29.66		35.90		29.87		35.06		41.46		37.97
	Canadian Operations		11.65		12.58		10.16		8.45		16.04		10.75		9.94		5.10		13.91		13.98
	Total Operations		24.01		27.34		25.54		19.03		23.92		25.32		21.45		22.63		30.21		27.47

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

Fourth quarter report

for the year ended December 31, 2023

Supplemental Oil and Gas Operating Statistics (unaudited)

Results by Play

		2023										2022
(average)		Year		Q4		Q3		Q2		Q1		Year		Q4		Q3		Q2		Q1
Oil Production (Mbbls/d)
USA Operations
	Permian		99.5		140.2		121.4		75.6		59.6		62.7		65.4		60.8		62.6		61.8
	Anadarko		30.6		26.8		30.2		32.4		33.1		35.5		34.4		35.9		36.5		35.4
	Uinta		19.1		26.8		18.9		17.8		12.8		17.9		15.4		19.9		19.6		16.6
	Bakken (1)		9.4		-		-		16.4		21.5		15.3		16.5		16.5		14.0		14.3
	Other (2)		0.2		0.2		0.3		0.2		0.2		0.1		0.2		0.2		-		0.1
Total USA Operations			158.8		194.0		170.8		142.4		127.2		131.5		131.9		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			158.9		194.1		170.9		142.4		127.3		131.6		132.0		133.4		132.8		128.3
NGLs - Plant Condensate Production (Mbbls/d)
USA Operations
	Permian		4.1		4.9		4.6		3.7		3.0		3.1		3.2		3.4		3.1		2.7
	Anadarko		5.9		6.0		6.1		5.6		5.8		5.9		6.2		6.3		5.7		5.4
	Uinta		0.3		0.4		0.4		0.2		0.2		0.2		0.4		0.2		0.2		0.2
	Bakken (1)		0.6		-		-		0.9		1.5		1.1		1.1		1.2		1.1		0.9
	Other (2)		-		-		0.1		0.1		0.1		0.1		0.1		-		-		-
Total USA Operations			10.9		11.3		11.2		10.5		10.6		10.4		11.0		11.1		10.1		9.2
Canadian Operations
	Montney		32.0		34.8		32.1		33.0		28.1		33.6		31.7		34.9		32.5		35.3
	Other (2)		-		-		-		-		-		-		-		-		-		0.1
Total Canadian Operations			32.0		34.8		32.1		33.0		28.1		33.6		31.7		34.9		32.5		35.4
Total			42.9		46.1		43.3		43.5		38.7		44.0		42.7		46.0		42.6		44.6
Oil & Plant Condensate Production (Mbbls/d)
USA Operations
	Permian		103.6		145.1		126.0		79.3		62.6		65.8		68.6		64.2		65.7		64.5
	Anadarko		36.5		32.8		36.3		38.0		38.9		41.4		40.6		42.2		42.2		40.8
	Uinta		19.4		27.2		19.3		18.0		13.0		18.1		15.8		20.1		19.8		16.8
	Bakken (1)		10.0		-		-		17.3		23.0		16.4		17.6		17.7		15.1		15.2
	Other (2)		0.2		0.2		0.4		0.3		0.3		0.2		0.3		0.2		-		0.1
Total USA Operations			169.7		205.3		182.0		152.9		137.8		141.9		142.9		144.4		142.8		137.4
Canadian Operations
	Montney		32.1		34.9		32.2		33.0		28.2		33.7		31.8		35.0		32.6		35.4
	Other (2)		-		-		-		-		-		-		-		-		-		0.1
Total Canadian Operations			32.1		34.9		32.2		33.0		28.2		33.7		31.8		35.0		32.6		35.5
Total			201.8		240.2		214.2		185.9		166.0		175.6		174.7		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$)

Fourth quarter report

for the year ended December 31, 2023

Supplemental Oil and Gas Operating Statistics (unaudited)

Results by Play (continued)

		2023										2022
(average)		Year		Q4		Q3		Q2		Q1		Year		Q4		Q3		Q2		Q1
NGLs - Other Production (Mbbls/d)
USA Operations
	Permian		33.0		39.0		35.1		31.0		26.8		26.3		27.0		26.8		26.2		25.4
	Anadarko		36.3		33.7		35.2		37.8		38.5		37.3		39.3		38.6		38.2		32.7
	Uinta		1.2		1.8		1.2		1.1		0.7		0.9		0.9		1.0		0.8		0.7
	Bakken (1)		4.0		-		-		8.1		7.7		7.1		7.9		7.6		7.3		5.9
	Other (2)		0.1		0.1		0.3		0.1		-		0.1		-		0.1		0.1		0.1
Total USA Operations			74.6		74.6		71.8		78.1		73.7		71.7		75.1		74.1		72.6		64.8
Canadian Operations
	Montney		15.6		16.3		14.9		18.7		12.5		13.8		13.6		12.8		14.4		14.4
	Other (2)		-		-		-		-		-		-		-		-		-		-
Total Canadian Operations			15.6		16.3		14.9		18.7		12.5		13.8		13.6		12.8		14.4		14.4
Total			90.2		90.9		86.7		96.8		86.2		85.5		88.7		86.9		87.0		79.2
NGLs - Total Production (Mbbls/d)
USA Operations
	Permian		37.1		43.9		39.7		34.7		29.8		29.4		30.2		30.2		29.3		28.1
	Anadarko		42.2		39.7		41.3		43.4		44.3		43.2		45.5		44.9		43.9		38.1
	Uinta		1.5		2.2		1.6		1.3		0.9		1.1		1.3		1.2		1.0		0.9
	Bakken (1)		4.6		-		-		9.0		9.2		8.2		9.0		8.8		8.4		6.8
	Other (2)		0.1		0.1		0.4		0.2		0.1		0.2		0.1		0.1		0.1		0.1
Total USA Operations			85.5		85.9		83.0		88.6		84.3		82.1		86.1		85.2		82.7		74.0
Canadian Operations
	Montney		47.6		51.1		47.0		51.7		40.6		47.4		45.3		47.7		46.9		49.7
	Other (2)		-		-		-		-		-		-		-		-		-		0.1
Total Canadian Operations			47.6		51.1		47.0		51.7		40.6		47.4		45.3		47.7		46.9		49.8
Total			133.1		137.0		130.0		140.3		124.9		129.5		131.4		132.9		129.6		123.8
Oil & NGLs Production (Mbbls/d)
USA Operations
	Permian		136.6		184.1		161.1		110.3		89.4		92.1		95.6		91.0		91.9		89.9
	Anadarko		72.8		66.5		71.5		75.8		77.4		78.7		79.9		80.8		80.4		73.5
	Uinta		20.6		29.0		20.5		19.1		13.7		19.0		16.7		21.1		20.6		17.5
	Bakken (1)		14.0		-		-		25.4		30.7		23.5		25.5		25.3		22.4		21.1
	Other (2)		0.3		0.3		0.7		0.4		0.3		0.3		0.3		0.3		0.1		0.2
Total USA Operations			244.3		279.9		253.8		231.0		211.5		213.6		218.0		218.5		215.4		202.2
Canadian Operations
	Montney		47.7		51.2		47.1		51.7		40.7		47.5		45.4		47.8		47.0		49.8
	Other (2)		-		-		-		-		-		-		-		-		-		0.1
Total Canadian Operations			47.7		51.2		47.1		51.7		40.7		47.5		45.4		47.8		47.0		49.9
Total			292.0		331.1		300.9		282.7		252.2		261.1		263.4		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$)

Fourth quarter report

for the year ended December 31, 2023

Supplemental Oil and Gas Operating Statistics (unaudited)

Results by Play (continued)

		2023										2022
(average)		Year		Q4		Q3		Q2		Q1		Year		Q4		Q3		Q2		Q1
Natural Gas Production (MMcf/d)
USA Operations
	Permian		185		213		195		171		158		149		156		149		146		145
	Anadarko		283		277		285		289		281		286		286		290		287		279
	Uinta		22		30		24		20		15		16		19		16		15		13
	Bakken (1)		23		-		-		44		49		36		39		41		32		32
	Other (2)		4		4		4		6		4		5		6		6		5		6
Total USA Operations			517		524		508		530		507		492		506		502		485		475
Canadian Operations
	Montney		1,095		1,094		1,092		1,177		1,017		970		1,023		970		907		978
	Other (2)		30		27		25		36		31		32		32		28		34		34
Total Canadian Operations			1,125		1,121		1,117		1,213		1,048		1,002		1,055		998		941		1,012
Total			1,642		1,645		1,625		1,743		1,555		1,494		1,561		1,500		1,426		1,487
Total Production (MBOE/d)
USA Operations
	Permian		167.3		219.5		193.9		138.9		115.8		117.0		121.7		115.9		116.2		114.0
	Anadarko		119.9		112.8		119.0		124.0		124.2		126.3		127.6		129.1		128.2		120.1
	Uinta		24.3		33.9		24.4		22.4		16.3		21.6		19.8		23.6		23.0		19.7
	Bakken (1)		17.9		-		-		33.0		38.8		29.6		32.0		32.1		27.7		26.4
	Other (2)		1.0		0.9		1.2		0.9		1.0		1.0		1.2		1.4		1.0		1.1
Total USA Operations			330.4		367.1		338.5		319.2		296.1		295.5		302.3		302.1		296.1		281.3
Canadian Operations
	Montney		230.2		233.6		229.1		247.8		210.1		209.1		215.8		209.5		198.2		212.9
	Other (2)		5.0		4.5		4.2		6.0		5.2		5.4		5.5		4.7		5.7		5.7
Total Canadian Operations			235.2		238.1		233.3		253.8		215.3		214.5		221.3		214.2		203.9		218.6
Total			565.6		605.2		571.8		573.0		511.4		510.0		523.6		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$)

Fourth quarter report

for the year ended December 31, 2023

Supplemental Oil and Gas Operating Statistics (unaudited)

Results by Play (continued)

		2023														2022
(US$ millions)		Year			Q4			Q3		Q2			Q1			Year		Q4		Q3			Q2			Q1
Capital Expenditures, Excluding Capitalized Internal Costs
USA Operations
	Permian		1,360			335			524		295			206			632		130		181			165			156
	Anadarko		180			24			3		55			98			375		55		99			118			103
	Uinta		396			123			136		76			61			117		3		27			58			29
	Bakken (1)		105			(2	)		-		42			65			243		73		81			42			47
	Other (2)		7			2			3		1			1			7		3		-			2			2
Total USA Operations			2,048			482			666		469			431			1,374		264		388			385			337
Canadian Operations
	Montney		544			127			130		152			135			295		50		81			97			67
	Other (2)		(2	)		-			-		-			(2	)		5		-		7			(2	)		-
Total Canadian Operations			542			127			130		152			133			300		50		88			95			67
Total Capital Expenditures, Excluding Capitalized Internal Costs			2,590			609			796		621			564			1,674		314		476			480			404
Capitalized Directly Attributable Internal Costs
USA Operations
	Permian		83			29			16		19			19			60		15		15			13			17
	Anadarko		21			5			5		4			7			31		9		7			7			8
	Uinta		31			9			8		7			7			9		3		1			2			3
	Bakken (1)		5			-			-		2			3			18		4		5			4			5
	Other (2)		1			-			-		1			-			1		-		-			(1	)		2
Total USA Operations			141			43			29		33			36			119		31		28			25			35
Canadian Operations
	Montney		6			6			6		(15	)		9			33		10		7			5			11
	Other (2)		1			1			-		-			-			1		-		-			1			-
Total Canadian Operations			7			7			6		(15	)		9			34		10		7			6			11
Total Capitalized Directly Attributable Internal Costs			148			50			35		18			45			153		41		35			31			46
Total Capital Expenditures
USA Operations
	Permian		1,443			364			540		314			225			692		145		196			178			173
	Anadarko		201			29			8		59			105			406		64		106			125			111
	Uinta		427			132			144		83			68			126		6		28			60			32
	Bakken (1)		110			(2	)		-		44			68			261		77		86			46			52
	Other (2)		8			2			3		2			1			8		3		-			1			4
Total USA Operations			2,189			525			695		502			467			1,493		295		416			410			372
Canadian Operations
	Montney		550			133			136		137			144			328		60		88			102			78
	Other (2)		(1	)		1			-		-			(2	)		6		-		7			(1	)		-
Total Canadian Operations			549			134			136		137			142			334		60		95			101			78
Corporate & Other			6			1			3		1			1			4		3		-			-			1
Total Capital Expenditures			2,744			660			834		640			610			1,831		358		511			511			451
Net Acquisitions & (Divestitures)			(495	)		(27	)		47		(702	)		187			58		254		(213	)		3			14
Net Capital Investment			2,249			633			881		(62	)		797			1,889		612		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$)

Fourth quarter report

for the year ended December 31, 2023

Supplemental Oil and Gas Operating Statistics (unaudited)

Results by Play (continued)

		2023										2022
		Year		Q4		Q3		Q2		Q1		Year		Q4		Q3		Q2		Q1
Drilling Activity (net wells drilled)
USA Operations
	Permian		113		25		45		26		17		62		15		18		16		13
	Anadarko		11		-		2		2		7		54		10		13		18		13
	Uinta		33		12		10		8		3		12		-		2		5		5
	Bakken (1)		11		-		-		6		5		25		7		8		8		2
Total USA Operations			168		37		57		42		32		153		32		41		47		33
Canadian Operations
	Montney		96		28		19		23		26		52		8		12		16		16
	Other (2)		-		-		-		-		-		3		-		3		-		-
Total Canadian Operations			96		28		19		23		26		55		8		15		16		16
Total			264		65		76		65		58		208		40		56		63		49
Completions Activity (net wells on production)
USA Operations
	Permian		184		60		83		27		14		66		16		21		11		18
	Anadarko		25		4		1		7		13		57		8		16		15		18
	Uinta		21		8		10		3		-		11		3		2		6		-
	Bakken (1)		16		-		-		8		8		19		6		9		-		4
Total USA Operations			246		72		94		45		35		153		33		48		32		40
Canadian Operations
	Montney		77		15		22		29		11		63		11		21		12		19
Total Canadian Operations			77		15		22		29		11		63		11		21		12		19
Total			323		87		116		74		46		216		44		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 year ended December 31, 2023

U.S. Dollar / U.S. Protocol

For the year ended December 31, 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			Q4 2023				YTD 2023
Cash from (used in) Operating Activities		$		1,362		$		4,167
Deduct (add back):
	Net change in other assets and liabilities			(31	)			(62	)
	Net change in non-cash working capital			156				330
Non-GAAP Cash Flow		$		1,237		$		3,899
Per Share - Basic		$		4.54		$		15.00
Per Share - Diluted				4.49				14.77
Non-GAAP Free Cash Flow
Non-GAAP Cash Flow		$		1,237		$		3,899
Deduct:
	Capital expenditures			660				2,744
Non-GAAP Free Cash Flow		$		577		$		1,155

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			Q4 2023				YTD 2023
Net Earnings (Loss) Before Income Tax		$		1,067		$		2,510
Before-tax (Addition) Deduction:
	Unrealized gain (loss) on risk management			326				194
	Non-operating foreign exchange gain (loss)			(9	)			(2	)
Adjusted Earnings (Loss) Before Income Tax				750				2,318
	Income tax expense (recovery)			103				508
Non-GAAP Adjusted Earnings		$		647		$		1,810
Per Share - Basic		$		2.38		$		6.96
Per Share - Diluted				2.35				6.86

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	$		5,737
Total Shareholders' Equity			10,370
Capitalization	$		16,107
Debt to Capitalization		36%

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	$		5,737
Total Shareholders' Equity			10,370
Equity Adjustment for Impairments at December 31, 2011			7,746
Adjusted Capitalization	$		23,853
Debt to Adjusted Capitalization		24%

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.

			Q1 2023			Q2 2023			Q3 2023				Q4 2023			YTD 2023
Long-Term Debt, Including Current Portion															$		5,737
Net Earnings (Loss)		$		487	$		336	$		406		$		856	$		2,085
Add back (deduct):
	Depreciation, depletion and amortization			364			419			486				556			1,825
	Interest			71			80			98				106			355
	Income tax expense (recovery)			126			101			(13	)			211			425
EBITDA		$		1,048	$		936	$		977		$		1,729	$		4,690
Debt to EBITDA (times)																	1.2

			Q1 2023				Q2 2023				Q3 2023				Q4 2023				YTD 2023
Long-Term Debt, Including Current Portion																		$		5,737
Net Earnings (Loss)		$		487		$		336		$		406		$		856		$		2,085
Add back (deduct):
	Depreciation, depletion and amortization			364				419				486				556				1,825
	Accretion of asset retirement obligation			5				4				5				5				19
	Interest			71				80				98				106				355
	Unrealized (gains) losses on risk management			(18	)			(142	)			292				(326	)			(194	)
	Foreign exchange (gain) loss, net			(3	)			25				(22	)			19				19
	Other (gains) losses, net			(3	)			(11	)			(2	)			(4	)			(20	)
	Income tax expense (recovery)			126				101				(13	)			211				425
Adjusted EBITDA		$		1,029		$		812		$		1,250		$		1,423		$		4,514
Debt to Adjusted EBITDA (times)																				1.3

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.

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.

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		Q4		Q3		Q2		Q1		Year		Q4		Q3		Q2		Q1
USA Operations
	Upstream Product Revenue (2,3)			5,565		1,656		1,544		1,179		1,186		6,677		1,444		1,762		1,924		1,547
	Production, mineral and other taxes			327		90		84		73		80		401		90		106		115		90
	Transportation and processing			547		128		124		148		147		626		162		170		159		135
	Operating (4)			743		198		208		167		170		646		168		187		149		142
				3,948		1,240		1,128		791		789		5,004		1,024		1,299		1,501		1,180
Canadian Operations
	Upstream Product Revenue (2,3)			2,212		552		504		467		689		3,465		841		889		960		775
	Production, mineral and other taxes			15		3		5		3		4		14		4		3		3		4
	Transportation and processing			1,056		256		265		268		267		1,002		261		257		253		231
	Operating (4)			88		29		28		2		29		127		31		34		25		37
				1,053		264		206		194		389		2,322		545		595		679		503
Total Operations
	Upstream Product Revenue (2,3)			7,777		2,208		2,048		1,646		1,875		10,142		2,285		2,651		2,884		2,322
	Production, mineral and other taxes			342		93		89		76		84		415		94		109		118		94
	Transportation and processing			1,603		384		389		416		414		1,628		423		427		412		366
	Operating (4)			831		227		236		169		199		773		199		221		174		179
				5,001		1,504		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		Q4		Q3		Q2		Q1		Year		Q4		Q3		Q2		Q1
USA Operations				120,609,505		33,771,820		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				85,848,365		21,907,316		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				206,457,870		55,679,136		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		Q4		Q3		Q2		Q1		Year		Q4		Q3		Q2		Q1
Total USA Operations
	Price			46.14		49.03		49.58		40.59		44.50		61.90		51.93		63.41		71.40		61.10
	Production, mineral and other taxes			2.71		2.66		2.70		2.51		3.00		3.72		3.24		3.81		4.27		3.55
	Transportation and processing			4.54		3.79		3.98		5.10		5.52		5.80		5.83		6.12		5.90		5.33
	Operating			6.16		5.86		6.68		5.75		6.38		5.99		6.04		6.73		5.53		5.61
	Netback			32.73		36.72		36.22		27.23		29.60		46.39		36.82		46.75		55.70		46.61
Total Canadian Operations
	Price			25.77		25.20		23.48		20.22		35.56		44.25		41.30		45.10		51.74		39.39
	Production, mineral and other taxes			0.17		0.14		0.23		0.13		0.21		0.18		0.20		0.15		0.16		0.20
	Transportation and processing			12.30		11.69		12.35		11.60		13.78		12.80		12.82		13.04		13.63		11.74
	Operating			1.03		1.32		1.30		0.09		1.50		1.62		1.52		1.72		1.35		1.88
	Netback			12.27		12.05		9.60		8.40		20.07		29.65		26.76		30.19		36.59		25.56
Total Operations
	Price			37.67		39.66		38.93		31.57		40.73		54.48		47.44		55.81		63.38		51.61
	Production, mineral and other taxes			1.66		1.67		1.69		1.46		1.82		2.23		1.95		2.29		2.59		2.09
	Transportation and processing			7.76		6.90		7.39		7.98		8.99		8.74		8.78		8.99		9.05		8.13
	Operating			4.03		4.08		4.49		3.24		4.32		4.15		4.13		4.65		3.82		3.98
Netback				24.22		27.01		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	Feb. 27, 2024
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Feb. 27, 2024
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