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Ovintiv 8-K Report, Financial Results (May 7, 2024)

Reports
Earnings & Results·Other Events·Exhibits & Filings
Filing Date
Filed May 7, 2024
Period End
May 7, 2024
Security
OVV
In the record · 2020–202610-K710-Q218-K127

OVV filed 7 annual reports (10-K), 21 quarterly reports (10-Q) and 127 current reports (8-K) between 2020 and 2026.

  1. Material agreement8-K · Jan ’20Jan ’20
  2. Leadership change8-K · Jul ’21Jul ’21
  3. Deal closed8-K · Jun ’23Jun ’23
  4. Material agreement8-K · Oct ’26Oct ’26

01—Abstract

Summary

Summary of the 8-K filed May 7, 2024. Cited figures are marked; the original filing is the authoritative source.

Ovintiv Inc. (NYSE, TSX: OVV) reported first quarter 2024 results on May 7, 2024, with net earnings of $338 milliona, or $1.24 per diluted share, and cash from operating activities of $659 million.

Non-GAAP Cash Flow was $1,035 millionb and Non-GAAP Free Cash Flow was $444 million after capital expenditures of $591 million. First quarter production averaged 574 MBOE/d, including 211 Mbbls/d of oil and condensate, 88 Mbbls/d of other NGLs and 1,648 MMcf/d of natural gas. Realized prices including hedges were $37.84 per BOE, and net losses on risk management were $54 million before tax.

The company raised its full-year 2024 production guidance to 560 to 575 MBOE/d while leaving full-year capital guidance unchanged at $2.2 billion to $2.4 billionc. Management also raised its expectation for 2024 Non-GAAP Free Cash Flow from $1.6 billion to $1.9 billion. In the quarter, Ovintiv returned $328 million to shareholders through $248 million of share buybacks and about $80 million of base dividends, and expects second-quarter buybacks of approximately $182 million.

The Board declared a quarterly dividend of $0.30d per share, payable June 28, 2024 to holders of record on June 14, 2024. Balance sheet metrics were stable, with approximately $3.0 billion of total liquidity at March 31, 2024, Non-GAAP Debt to Adjusted EBITDA of 1.3 times, and long-term debt including current portion of $6,198 million.

The company stated it is rated investment grade by four credit rating agencies and targets a long-term leverage ratio of 1.0 times at mid-cycle prices. The filing also includes the 2023 Sustainability Report release and a conference call on May 8, 2024.

02—Key points

Key Highlights

  1. Net earnings of $338 million ($1.24 per diluted share) in Q1 2024, against net earnings of $487 million in Q1 2023 as shown in the supplemental statements.
  2. Non-GAAP Free Cash Flow of $444 million after capital expenditures of $591 million; Non-GAAP Cash Flow was $1,035 million.
  3. Production averaged 574 MBOE/d in Q1 2024, at the high end of or above guidance on every product, and full-year 2024 production guidance was raised to 560 to 575 MBOE/d.
  4. Full-year 2024 capital investment guidance was unchanged at $2.2 billion to $2.4 billion, and 2024 Non-GAAP Free Cash Flow expectations were raised from $1.6 billion to $1.9 billion.
  5. Returned $328 million to shareholders in Q1 2024 ($248 million in buybacks and about $80 million in base dividends), with about $182 million of buybacks expected in Q2 2024.
  6. Quarterly dividend of $0.30 per share declared, payable June 28, 2024 to holders of record on June 14, 2024.
  7. Debt to EBITDA and Debt to Adjusted EBITDA were both 1.3 times at March 31, 2024, with about $3.0 billion of total liquidity.

03—Questions

Frequently Asked Questions

  1. How did Ovintiv perform in the first quarter of 2024?

    Ovintiv reported net earnings of $338 million, or $1.24 per diluted share, and cash from operating activities of $659 million. Non-GAAP Free Cash Flow was $444 million after $591 million of capital expenditures.

  2. Did Ovintiv change its 2024 guidance?

    Yes, the company raised full-year 2024 production guidance to 560 to 575 MBOE/d and raised its 2024 Non-GAAP Free Cash Flow expectation from $1.6 billion to $1.9 billion. Full-year capital guidance of $2.2 billion to $2.4 billion was left unchanged.

  3. What dividend did Ovintiv declare?

    The Board declared a quarterly dividend of $0.30 per share, payable June 28, 2024 to shareholders of record as of June 14, 2024.

  4. How much did Ovintiv return to shareholders in the quarter?

    Ovintiv returned $328 million in Q1 2024 through share buybacks totaling $248 million and base dividends of approximately $80 million. The company expects about $182 million of share buybacks in the second quarter.

  5. How strong is Ovintiv's balance sheet?

    At March 31, 2024, the company had approximately $3.0 billion of total liquidity and Non-GAAP Debt to Adjusted EBITDA of 1.3 times. It stated it is rated investment grade by four credit rating agencies and targets a long-term leverage ratio of 1.0 times at mid-cycle prices.

04—Continue

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