01—Abstract
Summary
Summary of the 8-K filed July 30, 2024. Cited figures are marked; the original filing is the authoritative source.
Ovintiv Inc. (NYSE, TSX: OVV) reported second quarter 2024 results on July 30, 2024, with net earnings of $340 milliona, or $1.27 per diluted share, and cash from operating activities of $1,020 million.
Non-GAAP Cash Flow was $1,025 millionb and Non-GAAP Free Cash Flow was $403 million after capital expenditures of $622 million. Second quarter average total production was 594 MBOE/d, and the company returned $262 million to shareholders through base dividends and share buybacks during the quarter. Management raised its full-year 2024 total production guidance to 570 to 580 MBOE/d from 545 to 575 MBOE/d, and narrowed full-year capital investment guidance to $2.25 billion to $2.35 billion, with the midpoint unchanged at $2.3 billion.
The company said it expects approximately $1.9 billionc of Non-GAAP Free Cash Flow in 2024. Third-quarter guidance calls for 565 to 580 MBOE/d of production and $530 to $570 million of capital investment. Ovintiv reported Debt to EBITDA of 1.2 times and Debt to Adjusted EBITDA of 1.2 times, with approximately $3.1 billion of total liquidity as of June 30, 2024.
The Board declared a quarterly dividend of $0.30d per share, payable September 27, 2024 to holders of record on September 13, 2024. Share buybacks in the third quarter are expected to total approximately $162 million.
02—Key points
Key Highlights
- Net earnings of $340 million ($1.27 per diluted share) and cash from operating activities of $1,020 million for Q2 2024
- Non-GAAP Free Cash Flow of $403 million after $622 million of capital expenditures
- Average total production of 594 MBOE/d, with production at the high end of or above guidance on every product
- Full-year 2024 production guidance raised to 570 to 580 MBOE/d; capital guidance narrowed to $2.25 billion to $2.35 billion
- Expected full-year 2024 Non-GAAP Free Cash Flow of approximately $1.9 billion
- Quarterly dividend of $0.30 per share declared, payable September 27, 2024
- Total liquidity of approximately $3.1 billion and Debt to Adjusted EBITDA of 1.2 times as of June 30, 2024
03—Questions
Frequently Asked Questions
How did Ovintiv perform in the second quarter of 2024?
Ovintiv reported net earnings of $340 million, or $1.27 per diluted share, along with cash from operating activities of $1,020 million and Non-GAAP Free Cash Flow of $403 million. Average total production was approximately 594 MBOE/d.
Did Ovintiv change its 2024 guidance?
Yes. Full-year total production guidance was raised to 570 to 580 MBOE/d from 545 to 575 MBOE/d. Full-year capital investment guidance was narrowed to $2.25 billion to $2.35 billion, with the midpoint unchanged at $2.3 billion.
What dividend did the company declare?
The Board declared a quarterly dividend of $0.30 per share, payable September 27, 2024 to shareholders of record as of September 13, 2024.
How much did Ovintiv return to shareholders and what is planned next?
The company returned $262 million to shareholders in the second quarter through base dividends and share buybacks. Third-quarter share buybacks are expected to total approximately $162 million.
What is Ovintiv's balance sheet position?
As of June 30, 2024, Ovintiv had approximately $3.1 billion in total liquidity and reported Debt to EBITDA and Debt to Adjusted EBITDA of 1.2 times. The company is rated investment grade by four credit rating agencies and targets 1.0 times Non-GAAP Debt to Adjusted EBITDA at mid-cycle prices.
04—Continue