01—Abstract
Summary
Summary of the 8-K filed May 6, 2025. Cited figures are marked; the original filing is the authoritative source.
Ovintiv Inc. (NYSE, TSX: OVV) reported first quarter 2025 results on May 6, 2025, with a net loss of $159 milliona, or $(0.61) per diluted share, which included a non-cash ceiling test impairment of $557 million after tax.
Cash from operating activities was $873 millionb, Non-GAAP Cash Flow was $1,004 million, and Non-GAAP Free Cash Flow was $387 million after capital investment of approximately $617 million. Average total production was approximately 588 MBOE/d, and the company closed the acquisition of Montney assets for approximately $2.3 billion and the divestiture of Uinta assets for approximately $1.9 billion, both after preliminary closing adjustments. Management stated it is maintaining its 2025 capital plans, with full-year guidance of 595 to 615 MBOE/d of production and $2.15 billion to $2.25 billion of capital investment, and it has flexibility to lower capital if commodity prices deteriorate.
The company said it has resumed share buybacks in the second quarter, expects to repurchase approximately $146 millionc after recovering a remaining transaction proceeds differential of $9 million, and repurchased about 1.2 million shares for $40 million in April. Ovintiv reported total liquidity of approximately $3.5 billion as of March 31, 2025, Debt to EBITDA of 1.6 times, and Non-GAAP Debt to Adjusted EBITDA of 1.2 times.
The Board declared a quarterly dividend of $0.30d per share, payable June 30, 2025 to holders of record as of June 13, 2025. The filing furnishes the news release and supplemental financial information as Exhibits 99.1 and 99.2 and states that this information is not deemed filed for purposes of Section 18 of the Exchange Act.
02—Key points
Key Highlights
- Net loss of $159 million, or $(0.61) per diluted share, including a non-cash ceiling test impairment of $557 million after tax
- Cash from operating activities of $873 million, Non-GAAP Cash Flow of $1,004 million, and Non-GAAP Free Cash Flow of $387 million after capital expenditures of $617 million
- Average total production of approximately 588 MBOE/d, above the midpoint of guidance
- Closed the Montney asset acquisition for approximately $2.3 billion and the Uinta asset divestiture for approximately $1.9 billion, both after preliminary closing adjustments
- Full-year 2025 guidance reiterated at 595 to 615 MBOE/d production and $2.15 billion to $2.25 billion capital investment; second-quarter production guidance of 585 to 605 MBOE/d
- Share buybacks resumed in the second quarter, with approximately $40 million repurchased in April at an average price of $32.40 per share
- Quarterly dividend of $0.30 per share declared, payable June 30, 2025 to holders of record as of June 13, 2025
03—Questions
Frequently Asked Questions
How did Ovintiv perform financially in the first quarter of 2025?
Ovintiv reported a net loss of $159 million, or $(0.61) per diluted share, which included a non-cash ceiling test impairment of $557 million after tax. Cash from operating activities was $873 million, and Non-GAAP Free Cash Flow was $387 million after capital expenditures of $617 million.
What acquisitions and divestitures did Ovintiv complete in the quarter?
Ovintiv closed the previously announced acquisition of certain Montney assets in an all-cash transaction for approximately $2.3 billion after preliminary closing adjustments, and the divestiture of Uinta assets for approximately $1.9 billion after preliminary closing adjustments.
Is Ovintiv changing its capital plans or guidance?
Ovintiv said it is maintaining its capital investment plans and reiterated full-year 2025 guidance of 595 to 615 MBOE/d production and $2.15 billion to $2.25 billion of capital investment. The company stated it has full flexibility to lower capital and will do so if commodity prices deteriorate.
How is Ovintiv returning cash to shareholders and managing its balance sheet?
Ovintiv expects to return at least 50% of post base dividend Non-GAAP Free Cash Flow through buybacks and/or variable dividends. It resumed buybacks in the second quarter, expects to repurchase approximately $146 million after recovering a remaining transaction proceeds differential of $9 million, and declared a $0.30 per share quarterly dividend. Total liquidity was approximately $3.5 billion as of March 31, 2025, with Debt to EBITDA of 1.6 times and Non-GAAP Debt to Adjusted EBITDA of 1.2 times.
04—Continue