Helium Evolution Proclaims Grant of Inventory Choices

• Generated third quarter internet earnings of $1.19 billion , Non-GAAP Money Move of $948 million and Non-GAAP Free Money Move of $437 million
• Returned $387 million to shareholders within the third quarter by way of share buybacks and base dividends
• Diminished Web Debt by $294 million in the course of the third quarter; $991 million of Web Debt discount 12 months thus far
• Repurchased roughly $504 million of its senior notes within the open market in the course of the third quarter; this may end in curiosity financial savings of roughly $30 million yearly
• Elevated full 12 months 2022 whole manufacturing steerage by 5 thousand barrels of oil equal per day (“MBOE/d”) to 505 to 515 MBOE/d
• Closed the beforehand introduced divestitures of sure Uinta and Bakken belongings
• Obtained regulatory approval for the renewal of the Firm’s Regular Course Issuer Bid (“NCIB”) program, which allows Ovintiv to buy, for cancellation or return to treasury, as much as roughly 25 million shares of widespread inventory till October 2, 2023
• Delivered third quarter whole manufacturing of 516 MBOE/d, on the excessive finish of Firm steerage

 Ovintiv Inc. (NYSE: OVV) (TSX: OVV) (“Ovintiv” or the “Firm”) right now introduced its third quarter 2022 monetary and working outcomes. The Firm plans to carry a convention name and webcast at 8:00 a.m. MT ( 10:00 a.m. ET ) on November 9, 2022 . Please see dial-in particulars inside this launch, in addition to further particulars on the Firm’s web site at www.ovintiv.com .

“Our robust leads to the third quarter spotlight our continued execution throughout the enterprise and exhibit that our technique continues to generate superior returns and substantial free money circulate,” stated Ovintiv President and CEO, Brendan McCracken . “We now have now purchased again greater than 5% of our shares excellent and the mixture of our robust portfolio, main capital effectivity, and disciplined capital allocation is about to see us ship sturdy money returns which are increased than our E&P friends and the broader S&P 500.”

Third Quarter 2022 Monetary and Working Outcomes

• The Firm reported internet earnings of $1.19 billion after-tax, or $4.63 per diluted share within the third quarter.
• Third quarter money from working actions was $962 million , Non-GAAP Money Move was $948 million and capital funding totaled $511 million , leading to $437 million of Non-GAAP Free Money Move.
• Third quarter whole manufacturing was 516 MBOE/d, together with 179 thousand barrels per day (“Mbbls/d”) of oil and condensate, 87 Mbbls/d of different NGLs and 1,500 million cubic ft per day (“MMcf/d”) of pure fuel.
• Whole Prices had been $17.16 per barrel of oil equal (“BOE”). Per unit prices had been increased within the quarter as a consequence of increased electrical energy prices related to higher-than-expected NYMEX pure fuel costs and timing of exercise associated to discretionary workovers.
• Excluding the affect of danger administration losses, third quarter common realized costs had been $90.29 per barrel for oil and condensate (99% of WTI), $31.49 per barrel for different NGLs (C2-C4) and $6.60 per thousand cubic ft (“Mcf”) for pure fuel (80% of NYMEX) leading to a complete common realized value of $55.83 per BOE.

2022 Steerage
Ovintiv’s full 12 months capital funding is anticipated to whole roughly $1.8 billion , on the excessive finish of the earlier capital steerage vary. Whole BOE volumes have elevated to 505 to 515 MBOE/d, reflecting robust new properly manufacturing efficiency from the Montney . Fourth quarter and full 12 months 2022 oil and condensate manufacturing volumes have been adjusted to incorporate the anticipated affect of manufacturing clean-up on returning oil volumes following the decision of line stress points within the Anadarko and the choice to delay the completion of sure wells throughout the U.S. belongings to protect capital self-discipline. Full 12 months whole price steerage stays unchanged. The steerage assumes commodity costs of $80 /bbl for WTI oil and $7 /Mcf for NYMEX pure fuel for the fourth quarter.

Returns to Shareholders
In July 2022 , Ovintiv elevated its returns to shareholders from 25% to 50% of the earlier quarter’s Non-GAAP Free Money Move after base dividends by share buybacks.

Within the third quarter of 2022, the Firm delivered roughly $387 million to shareholders by its base dividend of roughly $62 million and share buybacks totaling roughly $325 million . Fourth quarter shareholder returns are anticipated to whole roughly $250 million , consisting of share buybacks of roughly $188 million and base dividend funds of roughly $62 million , bringing whole direct shareholder returns because the third quarter of 2021 to roughly $1.14 billion .

Share Buyback Program
Throughout the third quarter, Ovintiv bought for cancellation, roughly 6.7 million shares of widespread inventory excellent for a complete consideration of roughly $325 million . As of September 30, 2022 , the Firm’s 2022 share repurchases totaled roughly 11.2 million shares of widespread inventory at a mean value of $47.55 per share, for a complete of $531 million . Ovintiv has allotted roughly $188 million , or 50% of third quarter non-GAAP Free Money Move after base dividends, to share repurchases within the fourth quarter.

In September, the Firm obtained regulatory approval for the renewal of its NCIB share repurchase program. This allows the Firm to buy, for cancellation or return to treasury, as much as roughly 25 million shares of widespread inventory (10% of widespread shares excellent) till October 2, 2023 . Utilizing a November 4, 2022 , closing value of $53.41 , and assuming the repurchase of 25 million shares, the 2023 NCIB program would have a money outlay of roughly $1.3 billion . Within the occasion the Firm meets its share repurchase limitation beneath the NCIB, it has the choice to pursue various strategies to repurchase further shares.

Dividend Declared
On November 8, 2022 , Ovintiv’s Board declared a quarterly dividend of $0.25 per share of widespread inventory payable on December 30, 2022 , to shareholders of report as of December 15, 2022 .

Continued Deal with Stability Sheet Power and Debt Discount
Ovintiv stays dedicated to lowering Web Debt. On the finish of the third quarter, Ovintiv’s Web Debt was roughly $3.6 billion , down $991 million because the begin of the 12 months, and Web Debt to Adjusted EBITDA was 0.9 occasions.

Throughout the 9 months ended September 30, 2022 , the Firm repurchased roughly $565 million in principal quantity of its senior notes within the open market, which included roughly $229 million in principal quantity of its 5.375 p.c senior notes due in January 2026 , roughly $151 million in principal quantity of its 6.5 p.c senior notes due in August 2034 , roughly $72 million in principal quantity of its 6.625 p.c senior notes due in August 2037 , roughly $58 million in principal quantity of its 6.5 p.c senior notes due in February 2038 and roughly $55 million in principal quantity of its 5.15 p.c senior notes due in November 2041 .

As of September 30, 2022 , the Firm had $3.4 billion in whole liquidity which included obtainable credit score services of $3.5 billion , obtainable uncommitted demand strains of $296 million , and money and money equivalents of $18 million , internet of excellent business paper of $440 million .

Non-Core Asset Gross sales
In July 2022 , Ovintiv introduced it had reached agreements with two counterparties to promote parts of its belongings situated within the Uinta and Bakken basins. Each transactions closed in the course of the third quarter. As of April 2022 , the mixed volumes from the divested belongings totaled roughly 5.0 MBOE/d, together with 4.9 Mbbls/d of oil and condensate.

Asset Highlights

Permian
Permian manufacturing averaged 116 MBOE/d (79% liquids) within the third quarter. The Firm averaged three gross rigs, drilled 18 internet wells, and had 21 internet wells turned in line (TIL).

The Firm plans to spend $650 to $700 million within the basin in 2022.

Anadarko
Anadarko manufacturing averaged 129 MBOE/d (63% liquids) within the third quarter. The Firm averaged two gross rigs, drilled 13 internet wells, and had 16 internet wells TIL.

The Firm plans to spend $350 to $400 million within the basin in 2022.

Montney
Montney manufacturing averaged 210 MBOE/d (23% liquids) within the third quarter. The Firm averaged two gross rigs, drilled 12 internet wells, and had 21 internet wells TIL.

The Firm plans to spend $300 to $350 million within the basin in 2022.

For added info, please consult with the third quarter 2022 Outcomes Presentation at: https://investor.ovintiv.com/presentations-events .

Convention Name Data
A convention name and webcast to debate the Firm’s third quarter outcomes will likely be held at 8:00 a.m. MT ( 10:00 a.m. ET ) on November 9, 2022 . To take part within the name, please dial 888-664-6383 (toll-free in North America ) or 416-764-8650 (worldwide) roughly quarter-hour previous to the convention name. The stay audio webcast of the convention name, together with slides, supplemental info and monetary statements, will likely be obtainable on Ovintiv’s web site, www.ovintiv.com beneath Traders/Shows and Occasions. The webcast will likely be archived for about 90 days.

Check with Be aware 1 Non-GAAP measures and the tables on this launch for reconciliation to comparable GAAP monetary measures.

Capital Funding and Manufacturing

Third Quarter 2022 Abstract

Realized Pricing Abstract

Whole Prices

Debt to Adjusted Capitalization

Hedge Volumes ⁽¹⁾ as of September 30, 2022

Value Sensitivities for WTI Oil ⁽¹⁾ ($MM)

Value Sensitivities for NYMEX Pure Gasoline ⁽¹⁾ ($MM)

Vital info
Except in any other case famous, Ovintiv stories in U.S. {dollars} and manufacturing, gross sales and reserves estimates are reported on an after-royalties foundation. Except in any other case specified or the context in any other case requires, references to Ovintiv or to the Firm consists of reference to subsidiaries of and partnership pursuits held by Ovintiv Inc. and its subsidiaries.

NOTE 1: Non-GAAP measures

Sure measures on this information launch wouldn’t have any standardized which means as prescribed by U.S. GAAP and, subsequently, are thought of non-GAAP measures. These measures is probably not corresponding to related measures introduced by different firms and shouldn’t be seen as an alternative choice to measures reported beneath U.S. GAAP. These measures are generally used within the oil and fuel business and/or by Ovintiv to offer shareholders and potential traders with further info concerning the Firm’s liquidity and its capability to generate funds to finance its operations. For added info concerning non-GAAP measures, see the Firm’s web site. This information launch comprises references to non-GAAP measures as follows:

• Non-GAAP Money Move is a non-GAAP measure outlined as money from (utilized in) working actions excluding internet change in different belongings and liabilities, internet change in non-cash working capital and present tax on sale of belongings.
• Non-GAAP Money Move Margin is a non-GAAP measure outlined as Non-GAAP Money Move per BOE of manufacturing.
• Non-GAAP Free Money Move is a non-GAAP measure outlined as Non-GAAP Money Move in extra of capital expenditures, excluding internet acquisitions and divestitures.
• Non-GAAP Working Earnings is a non-GAAP measure outlined as internet earnings excluding non-recurring or non-cash objects that Administration believes reduces the comparability of the Firm’s monetary efficiency between intervals. These things could embrace, however usually are not restricted to, unrealized good points/losses on danger administration, impairments, restructuring costs, non-operating international trade good points/losses, good points/losses on divestitures and good points/losses debt retirement. Revenue taxes consists of changes to normalize the impact of earnings taxes calculated utilizing the estimated annual efficient earnings tax charge. As well as, any valuation allowances are excluded within the calculation of earnings taxes.
• Whole Prices is a non-GAAP measure which incorporates the summation of manufacturing, mineral and different taxes, upstream transportation and processing expense, upstream working expense and administrative expense, excluding the affect of long-term incentive, restructuring and authorized prices, and present anticipated credit score losses. It’s calculated as whole working bills excluding non-upstream working prices and non-cash objects which embrace working bills from the Market Optimization and Company and Different segments, depreciation, depletion and amortization, impairments, accretion of asset retirement obligation, long-term incentive, restructuring and authorized prices, and present anticipated credit score losses. When introduced on a per BOE foundation, Whole Prices is split by manufacturing volumes. Administration believes this measure is beneficial to the Firm and its traders as a measure of operational effectivity throughout intervals.
• Web Debt is outlined as long-term debt, together with the present portion, much less money and money equivalents. Adjusted EBITDA is outlined as trailing 12-month internet earnings (loss) earlier than earnings taxes, DD&A, impairments, accretion of asset retirement obligation, curiosity, unrealized good points/losses on danger administration, international trade good points/losses, good points/losses on divestitures and different good points/losses. Web Debt to Adjusted EBITDA is a non-GAAP measure monitored by administration as an indicator of the Firm’s general monetary power.
• Debt to Adjusted Capitalization is a non-GAAP measure which adjusts capitalization for historic ceiling check impairments that had been recorded as at December 31, 2011 . Administration screens Debt to Adjusted Capitalization as a proxy for the Firm’s monetary covenant beneath the Credit score Services which require debt to adjusted capitalization to be lower than 60 p.c. Adjusted Capitalization consists of debt, whole shareholders’ fairness and an fairness adjustment for cumulative historic ceiling check impairments recorded as at December 31, 2011 , at the side of the Firm’s January 1, 2012 adoption of U.S. GAAP.

ADVISORY REGARDING OIL AND GAS INFORMATION – The conversion of pure fuel volumes to barrels of oil equal (BOE) is on the premise of six thousand cubic ft to at least one barrel. BOE relies on a generic vitality equivalency conversion technique primarily relevant on the burner tip and doesn’t signify financial worth equivalency on the wellhead. Readers are cautioned that BOE could also be deceptive, significantly if utilized in isolation. The time period “liquids” is used to signify oil, NGLs and condensate. The time period “condensate” refers to plant condensate.

ADVISORY REGARDING FORWARD-LOOKING STATEMENTS – This information launch comprises forward-looking statements or info (collectively, “forward-looking statements”) inside the which means of relevant securities laws, together with Part 27A of the Securities Act of 1933, as amended, and Part 21E of the Securities Trade Act of 1934, as amended.  All statements, apart from statements of historic truth, that relate to the anticipated future actions, plans, methods, targets or expectations of the Firm are forward-looking statements.  When used on this information launch, the usage of phrases and phrases together with “anticipates,” “believes,” “proceed,” “might,” “estimates,” “expects,” “targeted on,” “forecast,” “steerage,” “intends,” “keep,” “could,” “alternatives,” “outlook,” “plans,” “potential,” “technique,” “targets,” “will,” “would” and different related terminology is meant to establish forward-looking statements, though not all forward-looking statements include such figuring out phrases or phrases.  Readers are cautioned towards unduly counting on forward-looking statements that are based mostly on present expectations and, by their nature, contain quite a few assumptions which are topic to each identified and unknown dangers and uncertainties (a lot of that are past our management) which will trigger such statements to not happen, or precise outcomes to vary materially and/or adversely from these expressed or implied.  These assumptions embrace, with out limitation: future commodity costs and foundation differentials; the flexibility of the Firm to entry credit score services and capital markets;  future international trade charges; the Firm’s capability to seize and keep good points in productiveness and effectivity; knowledge contained in key modeling statistics; availability of engaging commodity or monetary hedges; advantages from know-how and innovation; assumed tax, royalty and regulatory regimes; expectations and projections made in gentle of the Firm’s historic expertise; and the opposite assumptions contained herein.  Dangers and uncertainties which will have an effect on the Firm’s monetary or working efficiency embrace: market and commodity value volatility; uncertainties, prices and dangers concerned in our operations, together with hazards and dangers incidental to each the drilling and completion of wells and the manufacturing, transportation, advertising and marketing and sale of oil, NGL and pure fuel; availability of apparatus, companies, sources and personnel required to carry out the Firm’s working actions; service or materials price inflation; our capability to generate adequate money circulate to fulfill our obligations and scale back debt; the affect of a pandemic, epidemic or different widespread outbreak of an infectious illness (akin to the continuing COVID-19 pandemic) on commodity costs and the Firm’s operations; our capability to safe sufficient transportation and storage for oil, NGL and pure fuel; interruptions to grease, NGL and pure fuel manufacturing; discretion of the Firm’s Board of Administrators to declare and pay dividends; the timing and prices related to drilling and finishing wells; enterprise interruption, property and casualty losses (together with climate associated losses) and the extent to which insurance coverage covers any such losses; counterparty and credit score danger; the actions of members of OPEC and different state-controlled oil firms with respect to grease, NGLs and pure fuel manufacturing; the affect of adjustments in our credit standing and entry to liquidity; adjustments in political or financial situations in america and Canada ; dangers related to know-how, together with digital, cyber and bodily safety breaches; adjustments in royalty, tax, environmental, GHG, carbon, accounting and different legal guidelines or laws or the interpretations thereof; our capability to well timed receive environmental or different crucial authorities permits or approvals; dangers related to present and potential lawsuits and regulatory actions; dangers associated to the purported causes and affect of local weather change; the affect of disputes arising with our companions; the Firm’s capability to accumulate or discover further oil and pure fuel reserves; imprecision of oil and pure fuel reserves estimates and estimates of recoverable portions; dangers related to previous and future acquisitions or divestitures; our capability to repurchase the Firm’s excellent shares of widespread inventory; the existence of other makes use of for the Firm’s money sources which can be superior to the fee of dividends or share repurchases; land, authorized, regulatory and possession complexities inherent within the U.S., Canada ; failure to attain or keep our price and effectivity initiatives; dangers and uncertainties described in “Threat Elements” and “Administration’s Dialogue and Evaluation of Monetary Situation and Outcomes of Operations” sections of the Firm’s most up-to-date Annual Report on Type 10-Ok and Quarterly Report on Type 10-Q; and different dangers and uncertainties impacting the Firm’s enterprise as described occasionally within the Firm’s filings with the SEC or Canadian securities regulators.

Additional info on Ovintiv Inc. is obtainable on the Firm’s web site, www.ovintiv.com , or by contacting:

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SOURCE Ovintiv Inc.

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