01—Abstract
Summary
Summary of the 10-Q filed May 11, 2026. Cited figures are marked; the original filing is the authoritative source.
Ovintiv Inc. reported a first-quarter 2026 net loss of $630 milliona, or $2.35 per diluted share, compared with a net loss of $159 million in the first quarter of 2025.
The loss was driven primarily by non-cash ceiling test impairments of $1,485 millionb (USA Operations $1,111 million; Canadian Operations $374 million), against $730 million of impairments in the prior-year quarter. Total revenues rose to $2,532 million from $2,377 million, with product and service revenues of $2,221 million versus $1,965 million. Cash from operating activities was $1,056 million and Non-GAAP Cash Flow was $1,239 million, compared with $873 million and $1,004 million a year earlier.
The quarter was shaped by the February 3, 2026 acquisition of NuVista Energy Ltd., valued at approximately $2.8 billionc (C$3.8 billion), which added about 930 net well locations and 140,000 net acres in the Alberta Montney. Funding came from roughly 30.1 million issued shares and about $1.2 billion in cash, primarily from a $1.2 billion Term Credit Agreement. Long-term debt, including the current portion, rose to $6,398 million from $5,202 million at year-end 2025, and Debt to EBITDA increased to 2.4 times.
Production averaged 678.9 MBOE/d, and the company paid $85 milliond in dividends and repurchased about 1.5 million shares for roughly $84 million. Subsequent to quarter end, the company closed the divestiture of its Anadarko assets on April 9, 2026 for proceeds of approximately $2.9 billion, used to repay the Term Credit Agreement balance, and redeemed its $700 million 5.65% senior notes on April 20, 2026 at a cost of about $737 million including accrued interest and a $20 million make-whole payment. The Board declared a $0.30 per share dividend on May 11, 2026.
02—Key points
Key Highlights
- Net loss of $630 million ($2.35 per diluted share) in Q1 2026, versus a net loss of $159 million ($0.61 per share) in Q1 2025, driven by $1,485 million of pre-tax ceiling test impairments.
- Total revenues of $2,532 million, up from $2,377 million, with product and service revenues of $2,221 million versus $1,965 million.
- Cash from operating activities of $1,056 million and Non-GAAP Cash Flow of $1,239 million, versus $873 million and $1,004 million in Q1 2025.
- NuVista Acquisition closed February 3, 2026 (approximately $2.8 billion, C$3.8 billion), adding about 930 net well locations and 140,000 net acres in the Alberta Montney; NuVista's revenues of $159 million are included from the close date.
- Long-term debt, including current portion, increased to $6,398 million from $5,202 million at December 31, 2025, and Debt to EBITDA rose to 2.4 times from 1.6 times.
- Anadarko divestiture closed April 9, 2026 for approximately $2.9 billion; the Term Credit Agreement was repaid and terminated, and the 5.65% senior notes due 2028 were redeemed April 20, 2026.
- Full-year 2026 guidance includes capital investment of $2,250 million to $2,350 million and total production of 620.0 to 645.0 MBOE/d; a $0.30 per share dividend was declared on May 11, 2026.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed May 11, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $2.53B$2.38B | +6.5% |
| Operating Expenses | $3.29B$2.47B | +33.3% |
| Operating Income | -$754.00M-$89.00M | −747.2% |
| Interest Expense | $104.00M$97.00M | +7.2% |
| Net Income | -$630.00M-$159.00M | −296.2% |
| EPS (Basic) | $-2.35$-0.61 | −285.2% |
| EPS (Diluted) | $-2.35$-0.61 | −285.2% |
| Shares Outstanding (Basic) | 268.20M260.40M | +3.0% |
| Shares Outstanding (Diluted) | 268.20M260.40M | +3.0% |
05—Questions
Frequently Asked Questions
Why did Ovintiv report a larger net loss in the first quarter of 2026?
The net loss of $630 million was primarily driven by non-cash ceiling test impairments of $1,485 million before tax, comprising $1,111 million in the USA Operations and $374 million in the Canadian Operations. The filing states the USA impairments primarily resulted from declines in the 12-month average trailing prices, and the Canadian impairment reflected trailing prices below the market prices used for the NuVista Acquisition. Impairments were $730 million in the first quarter of 2025.
How was the NuVista Acquisition financed and what did it add?
The company issued approximately 30.1 million shares of common stock valued at about $1.3 billion and paid cash consideration of approximately $1.2 billion, primarily funded by the $1.2 billion Term Credit Agreement. The acquisition added approximately 930 net well locations and 140,000 net acres in the core of the condensate-rich Montney in Alberta.
How did the company's leverage and liquidity change?
Long-term debt including current portion rose to $6,398 million at March 31, 2026 from $5,202 million at year-end 2025, and Debt to Adjusted Capitalization increased to 25% from 22%. Total liquidity was approximately $2.8 billion at March 31, 2026, including $3.4 billion of available credit facilities and $824 million of commercial paper outstanding. The Anadarko proceeds and Term Credit Agreement repayment in April 2026 were subsequent events.
What are the company's capital return actions?
Ovintiv paid $0.30 per share in dividends totaling $85 million in the first quarter of 2026 and repurchased about 1.5 million shares for approximately $84 million, with buybacks resuming in March 2026. Under its updated shareholder return framework announced February 23, 2026, the company commits to returning between 50% and 100% of annual Non-GAAP Cash Flow in excess of capital expenditures through base dividends and share buybacks. The Board declared a further $0.30 per share dividend on May 11, 2026, payable June 30, 2026.
What did the Anadarko divestiture and senior note redemption mean for the balance sheet?
The Anadarko assets, comprising approximately 360,000 net acres in Oklahoma, were sold on April 9, 2026 for proceeds of approximately $2.9 billion, after which the Term Credit Agreement was repaid and terminated. The company redeemed its $700 million 5.65% senior notes on April 20, 2026 for approximately $737 million including accrued interest and a $20 million make-whole payment, which is expected to produce annualized interest savings of about $40 million. The filing states that following this repayment the company has no fixed rate long-term debt due until 2030 and beyond.
06—Continue