# Ovintiv Inc.: Form 10-Q for the period ended Mar 31, 2025

- Company: [Ovintiv Inc.](/companies/ovv.md) (CIK 1792580)
- Form: 10-Q
- Filed: 2025-05-06
- Accepted by EDGAR: May 6, 2025, 17:05 ET
- Period: 2025-03-31
- Accession: 0000950170-25-064603
- Inline XBRL: yes
- Main document: https://www.sec.gov/Archives/edgar/data/1792580/000095017025064603/ovv-20250331.htm
- All documents and exhibits: https://www.sec.gov/Archives/edgar/data/1792580/000095017025064603/

## Figures reported in this filing

Standardized XBRL line items for the period ended 2025-03-31.

| Line item | Period | Value | XBRL concept |
| --- | --- | ---: | --- |
| Revenue | 3 months, 2025-01-01 to 2025-03-31 | $2.38bn | us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax |
| Operating income | 3 months, 2025-01-01 to 2025-03-31 | −$89.0m | us-gaap:OperatingIncomeLoss |
| Interest expense | 3 months, 2025-01-01 to 2025-03-31 | $97.0m | us-gaap:InterestExpense |
| Income tax | 3 months, 2025-01-01 to 2025-03-31 | −$34.0m | us-gaap:IncomeTaxExpenseBenefit |
| Net income | 3 months, 2025-01-01 to 2025-03-31 | −$159.0m | us-gaap:NetIncomeLoss |
| Diluted EPS | 3 months, 2025-01-01 to 2025-03-31 | −$0.61 | us-gaap:EarningsPerShareDiluted |
| Basic EPS | 3 months, 2025-01-01 to 2025-03-31 | −$0.61 | us-gaap:EarningsPerShareBasic |
| Diluted shares (weighted) | 3 months, 2025-01-01 to 2025-03-31 | 260,400,000 shares | us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding |
| Operating cash flow | 3 months, 2025-01-01 to 2025-03-31 | $873.0m | us-gaap:NetCashProvidedByUsedInOperatingActivities |
| Capital expenditure | 3 months, 2025-01-01 to 2025-03-31 | $617.0m | us-gaap:PaymentsToAcquirePropertyPlantAndEquipment |
| Dividends paid | 3 months, 2025-01-01 to 2025-03-31 | $78.0m | us-gaap:PaymentsOfDividendsCommonStock |
| Share repurchases | 3 months, 2025-01-01 to 2025-03-31 | $0 | us-gaap:PaymentsForRepurchaseOfCommonStock |
| Cash and equivalents | at 2025-03-31 | $8.0m | us-gaap:CashAndCashEquivalentsAtCarryingValue |
| Current assets | at 2025-03-31 | $1.35bn | us-gaap:AssetsCurrent |
| Total assets | at 2025-03-31 | $19.61bn | us-gaap:Assets |
| Current liabilities | at 2025-03-31 | $3.16bn | us-gaap:LiabilitiesCurrent |
| Total liabilities | at 2025-03-31 | $9.53bn | us-gaap:Liabilities |
| Long-term debt | at 2025-03-31 | $4.39bn | us-gaap:LongTermDebtNoncurrent |
| Current portion of debt | at 2025-03-31 | $1.14bn | us-gaap:LongTermDebtCurrent |
| Shareholders' equity | at 2025-03-31 | $10.08bn | us-gaap:StockholdersEquity |

## Management's discussion and analysis

As filed, 63,165 characters.

The MD&A is intended to provide a narrative description of the Company’s business from management’s perspective, which includes an overview of Ovintiv’s condensed consolidated results for the three months ended March 31, 2025, and period-over-period comparison. This MD&A should be read in conjunction with the unaudited interim Condensed Consolidated Financial Statements and accompanying notes for the period ended March 31, 2025 (“Consolidated Financial Statements”), which are included in Part I, Item 1 of this Quarterly Report on Form 10-Q and the audited Consolidated Financial Statements and accompanying notes and MD&A for the year ended December 31, 2024, which are included in Items 8 and 7, respectively, of the 2024 Annual Report on Form 10‑K.

Common industry terms and abbreviations are used throughout this MD&A and are defined in the Definitions, Conversions and Conventions sections of this Quarterly Report on Form 10-Q. This MD&A includes the following sections:

- Executive Overview
- Results of Operations
- Liquidity and Capital Resources
- Non-GAAP Measures

### Executive Overview

### Strategy

Ovintiv aims to be a leading North American energy producer and is focused on developing its high-quality multi-basin portfolio of oil and natural gas producing plays. Ovintiv is committed to delivering quality returns from its capital investment, generating significant cash flows and providing durable cash returns to its shareholders through the commodity price cycle. The Company aims to achieve its strategic priorities through execution excellence, disciplined capital allocation, and commercial acumen and risk management. In addition, the Company is dedicated to driving progress in areas of environmental, social, and governance, aligning with its commitment to corporate responsibility.

In support of the Company’s commitment to enhancing shareholder value, Ovintiv utilizes its capital allocation framework to provide competitive returns to shareholders while strengthening its balance sheet.

Ovintiv continually monitors and evaluates changing market conditions to maximize cash flows, mitigate risks and renew its premium well inventory. The Company’s high-quality assets, located in the United States and Canada, form a multi-basin, multi-product portfolio which enables flexible and efficient investment of capital that supports the Company’s strategy.

Ovintiv seeks to deliver results in a socially and environmentally responsible manner. Best practices are deployed across its assets, allowing the Company to capitalize on operational efficiencies and decrease emissions intensity. The Company’s sustainability reporting, which outlines its key metrics, targets and relative progress achieved, can be found in the Company Outlook section of this MD&A and on the Company’s sustainability website.

Underpinning Ovintiv’s strategy are core values of one, agile, innovative and driven, which guide the organization to be collaborative, responsive, flexible and determined. The Company is committed to excellence with a passion to drive corporate financial performance and shareholder value.

For additional information on Ovintiv’s strategy, its reporting segments and the plays in which the Company operates, refer to Items 1 and 2 of the 2024 Annual Report on Form 10-K.

In evaluating its operations and assessing its leverage, Ovintiv reviews performance-based measures such as Non‑GAAP Cash Flow and debt-based metrics such as Debt to Adjusted Capitalization, Debt to EBITDA and Debt to Adjusted EBITDA, which are non-GAAP measures and do not have any standardized meaning under U.S. GAAP. These measures may not be similar to measures presented by other issuers and should not be viewed as a substitute for measures reported under U.S. GAAP. Additional information regarding these measures, including reconciliations to the closest GAAP measure, can be found in the Non-GAAP Measures section of this MD&A.

### Highlights

During the first quarter of 2025, the Company focused on commencing its 2025 capital investment plan aimed at maximizing profitability through operational and capital efficiencies, and delivering cash from operating activities. In conjunction with closing the Montney Acquisition, as discussed below, the Company was also focused on integrating the new assets into its existing operations. Higher upstream product revenues in the first quarter of 2025 compared to 2024, primarily resulted from higher average realized natural gas prices, excluding the impact of risk management activities, and higher plant condensate production volumes, partially offset by lower oil production volumes and lower realized oil prices. Higher realized average natural gas prices of 35 percent were primarily due to higher NYMEX benchmark prices and exposure to other downstream benchmark prices. Plant condensate production volumes increased due to the Montney Acquisition during the quarter. Oil production volumes decreased primarily as a result of the sale of the Company’s Uinta assets during the quarter. Average realized oil prices decreased six percent primarily due to lower benchmark prices. Ovintiv continues to focus on optimizing realized prices from the diversification of the Company’s downstream markets.

### Significant Developments

- On January 31, 2025, the Company closed its previously announced acquisition of certain Montney assets from Paramount Resources Ltd. (“Paramount”), in an all-cash transaction of approximately $2.308 billion (C$3.328 billion), after preliminary closing adjustments (“Montney Acquisition”). The acquisition added approximately 109,000 net acres in the core of the liquids-rich Alberta Montney. The transaction had an effective date of October 1, 2024.
- On January 22, 2025, the Company closed its previously announced divestiture of substantially all of its Uinta assets, comprising approximately 126,000 net acres in the Uinta Basin of Utah, to FourPoint Resources, LLC, for approximately $1.9 billion, after preliminary closing and other adjustments. The transaction had an effective date of October 1, 2024.

### Financial Results

#### Three months ended March 31, 2025

- Reported a net loss of $159 million, or $0.61 per share diluted, including a non-cash ceiling test impairment of $557 million, after tax, or $2.14 per share diluted.
- Generated cash from operating activities of $873 million and Non-GAAP Cash Flow of $1,004 million.
- Paid dividends of $0.30 per share of common stock totaling $78 million.
- Had approximately $3.5 billion in total liquidity as at March 31, 2025, which included available credit facilities of $3.5 billion, available uncommitted demand lines of $92 million, and cash and cash equivalents of $8 million, net of outstanding commercial paper of $85 million.
- Reported Debt to EBITDA of 1.6 times and Non-GAAP Debt to Adjusted EBITDA of 1.2 times.

### Capital Investment

#### During the three months ended March 31, 2025

- Commenced the Company’s 2025 capital plan with expenditures totaling $617 million.
- Focused on highly efficient capital activity to benefit from short-cycle high margin and/or low-cost projects which provide flexibility to respond to fluctuations in commodity prices, as discussed in the Company Outlook section of this MD&A.

### Production

#### During the three months ended March 31, 2025

- Produced average liquids volumes of 294.4 Mbbls/d, which accounted for 50 percent of total production volumes. Average oil and plant condensate volumes of 205.7 Mbbls/d, represented 70 percent of total liquids production volumes.
- Produced average natural gas volumes of 1,764 MMcf/d, which accounted for 50 percent of total production volumes.
- Produced average total volumes of 588.3 MBOE/d.

### Operating Expenses

#### During the three months ended March 31, 2025

- Incurred upstream transportation and processing expenses of $391 million or $7.36 per BOE. Total transportation and processing expenses were $398 million, a decrease of $21 million compared to 2024, primarily due to an expired pipeline transportation contract, divestitures in the quarter and a higher U.S./Canadian dollar exchange rate, partially offset by increased activity related to the Montney Acquisition during the quarter.
- Incurred upstream operating expenses of $205 million or $3.89 per BOE, a decrease of $31 million compared to 2024, primarily due to the sale of the Company’s Uinta assets during the quarter and operational efficiencies in Permian, partially offset by increased activity related to the Montney Acquisition during the quarter.
- Incurred production, mineral and other taxes of $87 million, which represents approximately 4.4 percent of upstream product revenues.

Additional information on the items above and other expenses can be found in the Results of Operations section of this MD&A.

In 2024, Ovintiv reassessed its reportable segments and reclassified its Market Optimization segment to present the Company’s market optimization activities in their respective USA and Canadian operating segments, which they support (“Segment Reclassification”). Additional information on the Segment Reclassification can be found in Note 3 to the Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q.

### 2025 Outlook

### Industry Outlook

#### Oil and Natural Gas Markets

The oil and gas industry is cyclical and commodity prices are inherently volatile. Oil prices reflect global supply and demand dynamics as well as the geopolitical and macroeconomic environment.

Oil prices for the remainder of 2025 are expected to be impacted by the interplay between the pace of global economic growth and demand for oil, OPEC+ and non-OPEC+ production levels and continued supply and price uncertainties resulting from geopolitical events. Supply and the accumulation of global oil inventories are expected to be impacted by changes in geopolitical volatility, OPEC+ and non-OPEC+ production levels, and consumer demand behavior.

Natural gas prices are primarily impacted by structural changes in supply and demand, deviations from seasonally normal weather, as well as volatility in regional markets.

Natural gas prices for the remainder of 2025 are expected to be impacted by the interplay between natural gas production and associated natural gas from oil production, changes in demand from the power generation sector, changes in export levels of U.S. liquefied natural gas, impacts from seasonal weather, as well as supply chain constraints or other disruptions resulting from geopolitical events.

Political developments, including trade wars and policy changes, have heightened global uncertainty and financial market volatility. U.S. sanctions and tariffs on certain products can disrupt global supply and demand, leading to commodity price volatility. These actions can provoke retaliatory measures from other countries, further increasing economic volatility and the risk of a potential global recession.

### Company Outlook

The Company will continue to exercise discretion and discipline, and intends to optimize capital allocation through the remainder of 2025 as the commodity price environment evolves. Ovintiv pursues innovative ways to maximize cash flows and to reduce operating and administrative expenses.

Markets for oil and natural gas are exposed to different price risks and are inherently volatile. The Company enters into derivative financial instruments to mitigate price volatility and provide more certainty around cash flows. As at March 31, 2025, the Company has hedged approximately 50.0 Mbbls/d of expected oil and condensate production and 500 MMcf/d of expected natural gas production for the remainder of the year. In addition, Ovintiv proactively utilizes transportation contracts to diversify the Company’s sales markets, thereby reducing significant exposure to any given market and regional pricing.

Additional information on Ovintiv’s hedging program can be found in Note 19 to the Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q.

#### Capital Investment

The Company has commenced its 2025 capital investment program, focusing on maximizing returns from high-margin oil and condensate, and generating cash flows in excess of capital expenditures.

During the first quarter of 2025, the Company invested $617 million, near the low end of its first quarter guidance of $600 million to $650 million. The Company expects to meet its full year 2025 capital investment guidance range of $2,150 million to $2,250 million.

Ovintiv continually strives to improve well performance and lower costs through innovative techniques. Ovintiv’s large-scale cube development model utilizes multi-well pads and advanced completion designs to maximize returns and resource recovery from its reservoirs. Ovintiv’s disciplined capital program and continuous innovation create flexibility to allocate capital in changing commodity markets to maximize cash flows while preserving the long-term value of the Company’s multi-basin portfolio.

#### Production

During the first quarter of 2025, total average production volumes were 588.3 MBOE/d, which was in line with the first quarter guidance range of 575.0 MBOE/d to 595.0 MBOE/d. Average oil and plant condensate production volumes were 205.7 Mbbls/d, which exceeded the first quarter guidance range of 200.0 Mbbls/d to 204.0 Mbbls/d. Average other NGL production volumes were 88.7 Mbbls/d and average natural gas production volumes were 1,764 MMcf/d, which were in line with first quarter guidance ranges of 85.0 Mbbls/d to 90.0 Mbbls/d and 1,750 MMcf/d to 1,800 MMcf/d, respectively.

The Company expects to meet its full year 2025 total production guidance range of 595.0 MBOE/d to 615.0 MBOE/d, including oil and plant condensate production volumes of approximately 202.0 Mbbls/d to 208.0 Mbbls/d, other NGLs production volumes of approximately 87.0 Mbbls/d to 92.0 Mbbls/d and natural gas production volumes of approximately 1,825 MMcf/d to 1,875 MMcf/d.

#### Operating Expenses

Ovintiv promotes a collaborative culture that values knowledge exchange, open communication, continuous improvement and learning. This culture stimulates innovation and fosters the creation of best practices resulting in efficiency improvements and enhanced operational performance for the Company.

The Company is on track to achieve its full year upstream transportation and processing cost guidance range of approximately $7.50 per BOE to $8.00 per BOE, operating expenses of approximately $3.75 per BOE to $4.25 per BOE, and total production, mineral and other taxes of approximately 3.75 to 4.50 percent of upstream revenues.

Additional information on Ovintiv’s second quarter and full year 2025 Corporate Guidance can be accessed on the Company’s website at www.ovintiv.com.

#### Environmental, Social and Governance

Ovintiv recognizes the importance of implementing and maintaining sustainable practices to reduce its environmental footprint. The Company voluntarily participates in emission reduction programs and has adopted a range of strategies to help reduce emissions from its operations. These strategies include incorporating new and proven technologies, optimizing processes in its operations and working closely with third-party providers to develop best practices. The Company continues to look for innovative techniques and efficiencies in support of its commitment to emission reductions.

In May 2025, Ovintiv published its 2024 Sustainability Report. The report highlights the Company’s 2024 environmental, social and governance results, and its progress in emissions intensity reductions with the goal to meet its Scope 1&2 GHG emissions target by 2030. As at the end of 2024, the Company had achieved a greater than 45 percent reduction in the Scope 1&2 GHG emissions intensity from 2019 levels and expects to meet its emissions intensity reduction target of 50 percent by 2030 measured against the 2019 baseline. Ovintiv remains committed to its GHG emissions reduction target and has tied the target to the Company’s annual compensation program for all employees. In addition, Ovintiv continues to work towards eliminating routine flaring in its operations.

In conjunction with the Company’s strategy, Ovintiv may acquire assets to strengthen its multi-basin portfolio. Acquisitions are thoroughly assessed and evaluated for environmental impacts and alignment with the Company’s GHG emissions target. Ovintiv continues to work to integrate sustainable practices within the acquired operations to support company-wide sustainability objectives.

The Company’s social commitment framework, which is rooted in the Company’s foundational values of integrity, safety, sustainability, trust and respect, reflects Ovintiv’s positive contributions to the communities where it operates and highlights the Company’s approach to enabling an inclusive culture.

Ovintiv remains committed to protecting the health and safety of its workforce. Safety is a foundational value at Ovintiv and plays a critical role in the Company’s belief that a safe workplace is a strong indicator of a well-managed business. This safety-oriented mindset enables the Company to quickly respond to emergencies and minimize any impacts to employees and business continuity. Safety performance goals are incorporated into the Company’s annual compensation program. Additional information on talent management and employee safety can be found in the Human Capital section of Items 1 and 2 of the 2024 Annual Report on Form 10-K.

Additional information on Ovintiv’s sustainable business practices are included in its most recent Sustainability Report on the Company’s sustainability website at sustainability.ovintiv.com.

### Results of Operations

### Selected Financial Information

| ($ millions) Product and Service Revenues | Three months ended March 31, 2025 | 2024 |
| --- | ---: | ---: |
| Upstream product revenues (1) | **$1,962** | $1,936 |
| Service revenues (2) | **3** | 2 |
| Total Product and Service Revenues | **1,965** | 1,938 |
| Sales of Purchased Product (1) | **410** | 449 |
| Gains (Losses) on Risk Management, Net | **(16)** | (54) |
| Sublease Revenues | **18** | 19 |
| Total Revenues | **2,377** | 2,352 |
| Total Operating Expenses (3) | **2,466** | 1,858 |
| Operating Income (Loss) | **(89)** | 494 |
| Total Other (Income) Expenses | **104** | 66 |
| Net Earnings (Loss) Before Income Tax | **(193)** | 428 |
| Income Tax Expense (Recovery) | **(34)** | 90 |
| Net Earnings (Loss) | **$(159)** | $338 |

(1) In conjunction with the Segment Reclassification as discussed in the Highlights section of this MD&A, prior period results have been reclassified for comparative purposes.

(2) Service revenues comprise third-party gathering and processing fees.

(3) Total Operating Expenses include non-cash items such as DD&A, impairments, accretion of asset retirement obligations and long-term incentive costs. The three months ended March 31, 2025, includes a non-cash ceiling test impairment of $730 million (2024 - nil).

### Revenues

Ovintiv’s revenues are substantially derived from sales of oil, NGLs and natural gas production. Increases or decreases in Ovintiv’s revenue, profitability and future production are highly dependent on the commodity prices the Company receives. Prices are market driven and fluctuate due to factors beyond the Company’s control, such as supply and demand, seasonality and geopolitical and economic factors. The Company’s realized prices generally reflect WTI, NYMEX, Edmonton Condensate and AECO benchmark prices, as well as other downstream benchmarks, including Houston and Dawn. The Company proactively mitigates price risk and optimizes margins by entering into firm transportation contracts to diversify market access to different sales points. Realized prices, excluding the impact of risk management activities, may differ from the benchmarks for many reasons, including quality, location, or production being sold at different market hubs.

Benchmark prices relevant to the Company are shown in the table below.

### Benchmark Prices

| (average for the period) Oil & NGLs | Three months ended March 31, 2025 | 2024 |
| --- | ---: | ---: |
| WTI ($/bbl) | **$71.42** | $76.96 |
| Houston ($/bbl) | **72.68** | 78.84 |
| Edmonton Condensate (C$/bbl) | **100.58** | 98.92 |
| **Natural Gas** |  |  |
| NYMEX ($/MMBtu) | **$3.65** | $2.24 |
| AECO (C$/Mcf) | **2.02** | 2.05 |
| Dawn (C$/MMBtu) | **5.66** | 3.40 |

35

### Production Volumes and Realized Prices

| Oil (Mbbls/d, $/bbl) | Three months ended March 31, Production Volumes (1) 2025 | 2024 | Realized Prices (2) 2025 | 2024 |
| --- | ---: | ---: | ---: | ---: |
| USA Operations | **150.3** | 170.2 | **$71.79** | $76.17 |
| Canadian Operations | **0.2** | 0.2 | **71.46** | 72.34 |
| Total | **150.5** | 170.4 | **71.79** | 76.17 |
| NGLs - Plant Condensate (Mbbls/d, $/bbl) |  |  |  |  |
| USA Operations | **10.3** | 10.6 | **58.35** | 57.97 |
| Canadian Operations | **44.9** | 29.9 | **68.02** | 71.70 |
| Total | **55.2** | 40.5 | **66.22** | 68.10 |
| NGLs - Other (Mbbls/d, $/bbl) |  |  |  |  |
| USA Operations | **70.4** | 74.6 | **21.70** | 19.35 |
| Canadian Operations | **18.3** | 13.8 | **28.92** | 30.13 |
| Total | **88.7** | 88.4 | **23.21** | 21.03 |
| Total Oil & NGLs (Mbbls/d, $/bbl) |  |  |  |  |
| USA Operations | **231.0** | 255.4 | **55.97** | 58.79 |
| Canadian Operations | **63.4** | 43.9 | **56.76** | 58.65 |
| Total | **294.4** | 299.3 | **56.14** | 58.77 |
| Natural Gas (MMcf/d, $/Mcf) |  |  |  |  |
| USA Operations | **510** | 526 | **3.15** | 2.02 |
| Canadian Operations | **1,254** | 1,122 | **2.91** | 2.30 |
| Total | **1,764** | 1,648 | **2.98** | 2.21 |
| Total Production (MBOE/d, $/BOE) |  |  |  |  |
| USA Operations | **315.9** | 343.0 | **46.02** | 46.85 |
| Canadian Operations | **272.4** | 230.8 | **26.59** | 22.30 |
| Total | **588.3** | 573.8 | **37.03** | 36.97 |
| Production Mix (%) |  |  |  |  |
| Oil & Plant Condensate | **35** | 37 |  |  |
| NGLs - Other | **15** | 15 |  |  |
| Total Oil & NGLs | **50** | 52 |  |  |
| Natural Gas | **50** | 48 |  |  |
| **Production Change** |  |  |  |  |
| Period Over Period (%) (3) |  |  |  |  |
| Total Oil & NGLs | **(2)** | 19 |  |  |
| Natural Gas | **7** | 6 |  |  |
| Total Production | **3** | 12 |  |  |

(1) Average daily.

(2) Average per-unit prices, excluding the impact of risk management activities.

(3) Includes production impacts of acquisitions and divestitures.

### Upstream Product Revenues, Excluding Realized Gains (Losses) on Risk Management

| ($ millions) | Three months ended March 31, Oil | NGLs - Plant Condensate | NGLs - Other | Natural Gas | Total |
| --- | ---: | ---: | ---: | ---: | ---: |
| **2024 Upstream Product Revenues (1)** | **$1,182** | **$252** | **$170** | **$332** | **$1,936** |
| Increase (decrease) due to: |  |  |  |  |  |
| Sales prices | (56) | (18) | 12 | 120 | 58 |
| Production volumes | (149) | 94 | 3 | 20 | (32) |
| **2025 Upstream Product Revenues** | **$977** | **$328** | **$185** | **$472** | **$1,962** |

(1) In conjunction with the Segment Reclassification as discussed in the Highlights section of this MD&A, prior period results have been reclassified for comparative purposes.

### Oil Revenues

#### Three months ended March 31, 2025 versus March 31, 2024

Oil revenues were lower by $205 million compared to the first quarter of 2024 primarily due to:

- Lower average oil production volumes of 19.9 Mbbls/d decreased revenues by $149 million. Lower production volumes were primarily due to sale of the Uinta assets during the quarter (14.4 Mbbls/d) and natural declines in Anadarko (5.2 Mbbls/d); and
- A decrease of $4.38 per bbl, or six percent, in the average realized oil prices which decreased revenues by $56 million. The decrease reflected lower Houston and WTI benchmark prices which were down eight percent and seven percent, respectively, partially offset by higher regional pricing relative to the benchmark prices.

### NGL Revenues

#### Three months ended March 31, 2025 versus March 31, 2024

NGL revenues were higher by $91 million compared to the first quarter of 2024 primarily due to:

- Higher average plant condensate production volumes of 14.7 Mbbls/d increased revenues by $94 million. Higher production volumes were primarily due to the Montney Acquisition during the quarter (14.7 Mbbls/d).

### Natural Gas Revenues

#### Three months ended March 31, 2025 versus March 31, 2024

Natural gas revenues were higher by $140 million compared to the first quarter of 2024 primarily due to:

- An increase of $0.77 per Mcf, or 35 percent, in the average realized natural gas prices which increased revenues by $120 million. The increase reflected the higher NYMEX benchmark price which was up 63 percent and exposure to other downstream benchmark prices relating to the Company’s diversified markets in the Canadian Operations, partially offset by lower regional pricing relative to benchmark prices in the USA Operations; and
- Higher average natural gas production volumes of 116 MMcf/d increased revenues by $20 million. Higher production volumes were primarily due to the Montney Acquisition during the quarter (138 MMcf/d), successful drilling in Permian and Montney (49 MMcf/d), and lower effective royalty rates and reduced third-party plant downtime in Montney (43 MMcf/d). The higher production volumes were partially offset by the sale of the Uinta and Horn River assets during the quarter (52 MMcf/d), lower production volumes in Montney primarily related to pipeline restrictions (47 MMcf/d) and natural declines in Anadarko (19 MMcf/d).

### Sales of Purchased Product

Revenues from the sale of purchased product relate to activities that provide operational flexibility and cost mitigation for transportation commitments, product type, delivery points and customer diversification within the USA and Canadian Operations segments.

| ($ millions) | Three months ended March 31, 2025 | 2024 (1) |
| --- | ---: | ---: |
| Sales of Purchased Product | **$410** | $449 |

(1) In conjunction with the Segment Reclassification as discussed in the Highlights section of this MD&A, prior period results have been reclassified for comparative purposes.

#### Three months ended March 31, 2025 versus March 31, 2024

Sales of purchased product revenues decreased $39 million compared to the first quarter of 2024 primarily due to:

- Lower realized third-party liquids pricing ($69 million), lower realized third-party natural gas pricing ($6 million) and lower sales of third-party purchased natural gas volumes in the USA Operations ($3 million);

partially offset by:

- Higher sales of third-party purchased liquids volumes in the USA Operations ($39 million).

### Gains (Losses) on Risk Management, Net

As a means of managing commodity price volatility, Ovintiv enters into commodity derivative financial instruments on a portion of its expected oil, NGLs and natural gas production volumes. Additional information on the Company’s commodity price positions as at March 31, 2025, can be found in Note 19 to the Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q.

The following tables provide the effects of the Company’s risk management activities on revenues.

| ($ millions) Realized Gains (Losses) on Risk Management Commodity Price | Three months ended March 31, 2025 | 2024 |
| --- | ---: | ---: |
| Oil | **$-** | $(8) |
| NGLs - Other | **-** | 1 |
| Natural Gas | **30** | 53 |
| Total | **30** | 46 |
| Unrealized Gains (Losses) on Risk Management | **(46)** | (100) |
| Total Gains (Losses) on Risk Management, Net | **$(16)** | $(54) |
|  | Three months ended March 31, |  |
| (Per-unit) | **2025** | 2024 |
| Realized Gains (Losses) on Risk Management |  |  |
| Commodity Price |  |  |
| Oil ($/bbl) | **$-** | $(0.51) |
| NGLs - Other ($/bbl) | **$-** | $0.13 |
| Natural Gas ($/Mcf) | **$0.18** | $0.35 |
| Total ($/BOE) | **$0.56** | $0.87 |

Ovintiv recognizes fair value changes from its risk management activities each reporting period. The changes in fair value result from new positions and settlements that occur during each period, as well as the relationship between contract prices and the associated forward curves. Realized gains or losses on risk management activities related to commodity price mitigation are included in the USA and Canadian Operations’ revenues as the contracts are cash settled. Unrealized gains or losses on fair value changes of unsettled contracts are included in the Corporate and Other segment. Additional information on fair value changes can be found in Note 18 to the Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q.

### Sublease Revenues

Sublease revenues primarily include amounts related to the sublease of office space in The Bow office building recorded in the Corporate and Other segment. Additional information on office sublease income can be found in Note 10 to the Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q.

### Operating Expenses

### Production, Mineral and Other Taxes

Production, mineral and other taxes include production and property taxes. Production taxes are generally assessed as a percentage of oil, NGLs and natural gas production revenues. Property taxes are generally assessed based on the value of the underlying assets.

| Three months ended March 31, | $ millions 2025 | 2024 | $/BOE 2025 | 2024 |
| --- | ---: | ---: | ---: | ---: |
| USA Operations | **$83** | $80 | **$2.91** | $2.56 |
| Canadian Operations | **4** | 3 | **$0.16** | $0.17 |
| Total | **$87** | $83 | **$1.64** | $1.60 |

#### Three months ended March 31, 2025 versus March 31, 2024

Production, mineral and other taxes increased $4 million compared to the first quarter of 2024 primarily due to:

- Production tax recoveries in Anadarko in 2024 ($4 million).

### Transportation and Processing

Transportation and processing expense includes transportation costs incurred to move product from production points to sales points including gathering, compression, pipeline tariffs, trucking and storage costs. Ovintiv also incurs costs related to processing provided by third parties or through ownership interests in processing facilities.

| Three months ended March 31, Upstream | $ millions 2025 | 2024 | $/BOE 2025 | 2024 |
| --- | ---: | ---: | ---: | ---: |
| USA Operations | **$112** | $127 | **$3.92** | $4.07 |
| Canadian Operations | **279** | 251 | **$11.37** | $11.96 |
| Upstream Transportation and Processing | **391** | 378 | **$7.36** | $7.25 |
| Other (1) | **7** | 41 |  |  |
| Total | **$398** | $419 |  |  |

(1) Other includes pipeline transportation fees associated with previously divested assets in the USA Operations of nil (2024 ‑ $33 million) and other third-party transportation and processing fees with no associated volumes in the Canadian Operations of approximately $7 million (2024 ‑ $8 million).

#### Three months ended March 31, 2025 versus March 31, 2024

Transportation and processing expense decreased $21 million compared to the first quarter of 2024 primarily due to:

- An expired pipeline transportation contract ($33 million), the Uinta and Horn River assets sold during the quarter ($16 million), a higher U.S./Canadian dollar exchange rate ($15 million), and lower production volumes and rates in Anadarko ($6 million);

partially offset by:

- Higher production volumes due to the Montney Acquisition during the quarter ($52 million).

### Operating

Operating expense includes costs paid by the Company, net of amounts capitalized, on oil and natural gas properties in which Ovintiv has a working interest. These costs primarily include labor, service contract fees, chemicals, fuel, water hauling, electricity and workovers.

| Three months ended March 31, Upstream | $ millions 2025 | 2024 | $/BOE 2025 | 2024 |
| --- | ---: | ---: | ---: | ---: |
| USA Operations | **$169** | $211 | **$5.97** | $6.77 |
| Canadian Operations | **36** | 25 | **$1.46** | $1.19 |
| Upstream Operating Expense | **205** | 236 | **$3.89** | $4.52 |
| Other | **-** | 7 |  |  |
| Total | **$205** | $243 |  |  |

#### Three months ended March 31, 2025 versus March 31, 2024

Operating expense decreased $38 million compared to the first quarter of 2024 primarily due to:

- The sale of the Uinta assets during the quarter ($22 million), increased operational efficiencies in Permian ($8 million), lower salaries and benefits resulting from the corporate reorganization which commenced in 2024 ($7 million), and decreased activity in Anadarko ($4 million);

partially offset by:

- Higher production volumes due to the Montney Acquisition during the quarter ($8 million).

### Purchased Product

Purchased product expense includes purchases of oil, NGLs and natural gas from third parties that are used to provide operational flexibility and cost mitigation for transportation commitments, product type, delivery points and customer diversification within the USA and Canadian Operations segments.

| ($ millions) | Three months ended March 31, 2025 | 2024 |
| --- | ---: | ---: |
| Purchased Product | **$402** | $440 |

#### Three months ended March 31, 2025 versus March 31, 2024

Purchased product expense decreased $38 million compared to the first quarter of 2024 primarily due to:

- Lower third-party liquids purchase prices ($70 million), lower third-party purchased natural gas volumes in the USA Operations ($4 million), and lower third-party natural gas purchase prices ($3 million);

partially offset by:

- Higher third-party purchased liquids volumes in the USA Operations ($39 million).

### Depreciation, Depletion & Amortization

Proved properties within each country cost center are depleted using the unit-of-production method based on proved reserves as discussed in Note 1 to the Consolidated Financial Statements included in Item 8 of the 2024 Annual Report on Form 10-K. Depletion rates are impacted by impairments, acquisitions, divestitures and foreign exchange rates, as well as fluctuations in 12-month average trailing prices which affect proved reserves volumes. Corporate assets are carried at cost and depreciated on a straight-line basis over the estimated service lives of the assets.

Additional information can be found under Upstream Assets and Reserve Estimates in the Critical Accounting Estimates section of the MD&A included in Item 7 of the 2024 Annual Report on Form 10-K.

| Three months ended March 31, Upstream | $ millions 2025 | 2024 | $/BOE 2025 | 2024 |
| --- | ---: | ---: | ---: | ---: |
| USA Operations | **$375** | $489 | **$13.17** | $15.69 |
| Canadian Operations | **165** | 72 | **$6.72** | $3.42 |
| Upstream DD&A | **540** | 561 | **$10.19** | $10.75 |
| Corporate & Other | **5** | 5 |  |  |
| Total | **$545** | $566 |  |  |

#### Three months ended March 31, 2025 versus March 31, 2024

DD&A decreased $21 million compared to the first quarter of 2024 primarily due to:

- Lower depletion rates and production volumes in the USA Operations primarily due to the sale of the Uinta assets during the quarter ($72 million and $42 million, respectively);

partially offset by:

- Higher depletion rates and production volumes in the Canadian Operations primarily due to the Montney Acquisition during the quarter ($86 million and $11 million, respectively).

The upstream depletion rate in the USA Operations decreased $2.52 per BOE primarily due to a lower depletable base resulting from the sale of the Uinta assets during the quarter. The upstream depletion rate in the Canadian Operations increased $3.30 per BOE primarily due to a higher depletable base resulting from the Montney Acquisition during the quarter.

### Ceiling Test Impairment

Under full cost accounting, the carrying amount of Ovintiv’s oil and natural gas properties within each country cost center is subject to a ceiling test performed quarterly. Ceiling test impairments are recognized when the capitalized costs, net of accumulated depletion and the related deferred income taxes, exceed the sum of the estimated after-tax future net cash flows from proved reserves as calculated under SEC requirements using the 12-month average trailing prices and discounted at 10 percent. The 12‑month average trailing price is calculated as the average of the price on the first day of each month within the trailing 12‑month period.

In the first quarter of 2025, the Company recognized a before-tax non-cash ceiling test impairment of $730 million in the Canadian Operations. The non-cash impairment primarily resulted from the 12-month average trailing prices used in the ceiling test at March 31, 2025, which were lower than the market prices used for the Montney Acquisition on January 31, 2025.

The 12-month average trailing prices used in the ceiling test calculations were based on the benchmark prices below. The benchmark prices were adjusted for basis differentials to determine local reference prices, transportation costs and tariffs, heat content and quality.

| 12-Month Average Trailing Reserves Pricing (1) | Oil & NGLs WTI ($/bbl) | Edmonton Condensate (C$/bbl) | Natural Gas Henry Hub ($/MMBtu) | AECO (C$/MMBtu) |
| --- | ---: | ---: | ---: | ---: |
| **March 31, 2025** | **$74.52** | **$100.94** | **$2.44** | **$1.38** |
| December 31, 2024 | 75.48 | 99.60 | 2.13 | 1.26 |
| March 31, 2024 | 77.48 | 100.91 | 2.45 | 2.36 |

(1) All prices were held constant in all future years when estimating net revenues and reserves.

Future declines in the 12‑month average trailing commodity prices could reduce proved reserves values and result in the recognition of future ceiling test impairments. Future ceiling test impairments can also result from changes to reserves estimates, future development costs, capitalized costs and unproved property costs. Proceeds received from oil and natural gas divestitures are typically deducted from the Company’s capitalized costs and can reduce the risk of ceiling test impairments.

The Company believes that the discounted after-tax future net cash flows from proved reserves required to be used in the ceiling test calculation are not indicative of the fair market value of Ovintiv’s oil and natural gas properties or the future net cash flows expected to be generated from such properties. The discounted after-tax future net cash flows do not consider the fair market value of unamortized unproved properties, or probable or possible liquids and natural gas reserves. In addition, there is no consideration given to the effect of future changes in commodity prices. Ovintiv manages its business using estimates of reserves and resources based on forecast prices and costs. Additional information on the ceiling test calculation can be found in Note 9 to the Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10‑Q.

### Administrative

Administrative expense represents costs associated with corporate functions provided by Ovintiv staff. These expenses primarily include salaries and benefits, operating leases, office, information technology, restructuring and long-term incentive costs.

| Three months ended March 31, | $ millions 2025 | 2024 | $/BOE 2025 | 2024 |
| --- | ---: | ---: | ---: | ---: |
| Administrative, excluding Long-Term Incentive Costs, | **$72** | $75 | **$1.36** | $1.43 |
| Restructuring Costs, and Legal Costs (1) |  |  |  |  |
| Long-term incentive costs | **10** | 15 | **0.19** | 0.29 |
| Restructuring costs | **10** | - | **0.18** | - |
| Legal costs | **1** | 12 | **0.02** | 0.23 |
| Total Administrative | **$93** | $102 | **$1.75** | $1.95 |

(1) Includes costs related to The Bow office lease of $28 million (2024 - $29 million), half of which is recovered from sublease revenues.

#### Three months ended March 31, 2025 versus March 31, 2024

Administrative expense decreased $9 million compared to the first quarter of 2024 primarily due to:

- Lower legal costs ($11 million) and lower long-term incentive costs ($5 million);

partially offset by:

- Restructuring costs incurred primarily related to the corporate reorganization which commenced in 2024 ($10 million).

In 2024, Ovintiv undertook a plan to reduce its workforce by approximately 10 percent as part of a corporate reorganization. Additional information on restructuring charges and long-term incentive costs can be found in Notes 16 and 17 to the Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q.

### Other (Income) Expenses

| ($ millions) | Three months ended March 31, 2025 | 2024 |
| --- | ---: | ---: |
| Interest | **$97** | $98 |
| Foreign Exchange (Gain) Loss, Net | **10** | (28) |
| Other (Gains) Losses, Net | **(3)** | (4) |
| Total Other (Income) Expenses | **$104** | $66 |

### Interest

Interest expense primarily includes interest on Ovintiv’s short-term and long-term debt. Additional information on changes in interest can be found in Note 5 to the Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q.

#### Three months ended March 31, 2025 versus March 31, 2024

Interest expense decreased $1 million compared to the first quarter of 2024 primarily due to:

- Lower interest expense on short-term borrowings ($4 million);

partially offset by:

- Financing fees incurred related to the termination of two term facilities following the closing of the Uinta divestiture and Montney Acquisition ($5 million).

### Foreign Exchange (Gain) Loss, Net

Foreign exchange gains and losses primarily result from the impact of fluctuations in the Canadian to U.S. dollar exchange rate. Additional information on changes in foreign exchange gains or losses can be found in Note 6 to the Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q. Additional information on foreign exchange rates and the effects of foreign exchange rate changes can be found in Part I, Item 3 of this Quarterly Report on Form 10-Q.

#### Three months ended March 31, 2025 versus March 31, 2024

Net foreign exchange loss of $10 million compared to a gain of $28 million during the first quarter of 2024 primarily due to:

- Realized foreign exchange losses on the settlement of U.S. dollar risk management contracts issued from Canada ($98 million) and unrealized foreign exchange losses on the translation of intercompany notes compared to gains in 2024 ($71 million);

partially offset by:

- Unrealized foreign exchange gains on the translation of U.S. dollar risk management contracts issued from Canada compared to losses in 2024 ($93 million) and higher realized foreign exchange gains on the settlement of intercompany notes ($40 million).

### Other (Gains) Losses, Net

Other (gains) losses, net, primarily includes other non-recurring revenues or expenses and may also include items such as interest income, reclamation charges related to decommissioned assets, and adjustments related to other assets.

Other gains in the first quarter of 2025 includes interest income of $5 million primarily generated from short-term investments (2024 - $2 million).

### Income Tax

During the first quarter of 2025, current income tax expense was $43 million compared to an expense of $32 million in 2024 primarily due to the resolution of prior period items in Canada in 2025.

During the first quarter of 2025, the deferred income tax recovery was $77 million compared to an expense of $58 million in 2024 primarily due to the impact of the non-cash ceiling test impairment recognized in Canada.

The determination of income and other tax liabilities of the Company and its subsidiaries requires interpretation of complex domestic and foreign tax laws and regulations, that are subject to change. The Company’s interpretation of tax laws may differ from the interpretation of the tax authorities. As a result, there are tax matters under review for which the timing of resolution is uncertain. The Company believes that the provision for income taxes is adequate.

Additional information on income taxes can be found in Note 7 to the Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q.

### Liquidity and Capital Resources

### Sources of Liquidity

The Company has the flexibility to access cash equivalents and a range of funding alternatives at competitive rates through committed revolving credit facilities as well as debt and equity capital markets. Ovintiv closely monitors the accessibility of cost-effective credit and ensures that sufficient liquidity is in place to fund capital expenditures and dividend payments. In addition, the Company may use cash and cash equivalents, cash from operating activities, or proceeds from asset divestitures to fund its operations and capital allocation framework or to manage its capital structure as discussed below.

The Company’s capital structure consists of total shareholders’ equity plus long-term debt, including any current portion. The Company’s objectives when managing its capital structure are to maintain financial flexibility to preserve Ovintiv’s access to capital markets and its ability to meet financial obligations and finance internally generated growth, as well as potential acquisitions. Ovintiv has a practice of maintaining capital discipline and strategically managing its capital structure by adjusting capital spending, adjusting dividends paid to shareholders, issuing new shares of common stock, purchasing shares of common stock for cancellation or return to treasury, issuing new debt and repaying or repurchasing existing debt.

| ($ millions, except as indicated) | As at March 31, 2025 | 2024 |
| --- | ---: | ---: |
| Cash and Cash Equivalents | **$8** | $5 |
| Available Credit Facilities | **3,500** | 3,250 |
| Available Uncommitted Demand Lines (1) | **92** | 237 |
| Issuance of U.S. Commercial Paper | **(85)** | (495) |
| Total Liquidity | **$3,515** | $2,997 |
| Long-Term Debt, including current portion | **$5,538** | $6,198 |
| Total Shareholders’ Equity | **$10,080** | $10,262 |
| Debt to Capitalization (%) (2) | **35** | 38 |
| Debt to Adjusted Capitalization (%) (2) | **24** | 26 |

(1) Includes three uncommitted demand lines totaling $296 million, net of $204 million in related undrawn letters of credit (2024 - $285 million and $48 million, respectively).

(2) These measures are defined in the Non-GAAP Measures section of this MD&A.

The Company has full access to two committed revolving U.S. dollar denominated credit facilities totaling $3.5 billion, which include a $2.2 billion revolving credit facility for Ovintiv Inc. and a $1.3 billion revolving credit facility for a Canadian subsidiary (collectively, the “Credit Facilities”). The Credit Facilities, which mature in December 2029, provide financial flexibility and allow the Company to fund its operations or capital investment program. At March 31, 2025, there were no outstanding amounts under the revolving Credit Facilities.

Depending on the Company’s credit rating and market demand, the Company may issue from its two U.S. CP programs, which include a $1.5 billion program for Ovintiv Inc. and a $1.0 billion program for a Canadian subsidiary. As at March 31, 2025, the Company had $85 million of commercial paper outstanding under its U.S. CP program maturing at various dates with a weighted average interest rate of approximately 4.91 percent, which is supported by the Company’s Credit Facilities. All of Ovintiv’s credit ratings are investment grade as at March 31, 2025.

The available Credit Facilities, uncommitted demand lines, and cash and cash equivalents, net of outstanding commercial paper, provide Ovintiv with total liquidity of approximately $3.5 billion as at March 31, 2025. At March 31, 2025, Ovintiv also had approximately $204 million in undrawn letters of credit issued in the normal course of business as collateral security.

Ovintiv has a U.S. shelf registration statement under which the Company may issue from time to time, debt securities, common stock, preferred stock, warrants, units, share purchase contracts and share purchase units in the U.S. The U.S. shelf registration statement expires in March 2026.

The obligations under the Company’s existing debt securities are fully and unconditionally guaranteed on a senior unsecured basis by Ovintiv Canada ULC, an indirect wholly-owned subsidiary of the Company. Additional information on the Company’s Canadian Operations segment and the Bow office lease can be found in the Results of Operations section in this MD&A and in the Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q, and the MD&A and audited Consolidated Financial Statements and accompanying notes for the year ended December 31, 2024, which are included in Items 7 and 8, respectively, of the 2024 Annual Report on Form 10-K.

Ovintiv is currently in compliance with all financial covenants under the Credit Facilities. Management monitors Debt to Adjusted Capitalization, which is a non-GAAP measure defined in the Non-GAAP Measures section of this MD&A, as a proxy for Ovintiv’s financial covenant under the Credit Facilities, which requires Debt to Adjusted Capitalization to be less than 60 percent. As at March 31, 2025, the Company’s Debt to Adjusted Capitalization was 24 percent. The definitions used in the covenant under the Credit Facilities adjust capitalization for cumulative historical ceiling test impairments recorded in conjunction with the Company’s January 1, 2012 adoption of U.S. GAAP. Additional information on financial covenants can be found in Note 15 to the Consolidated Financial Statements included in Item 8 of the 2024 Annual Report on Form 10‑K.

### Sources and Uses of Cash

The following table summarizes the sources and uses of the Company’s cash and cash equivalents.

| ($ millions) Activity Type Sources of Cash, Cash Equivalents and Restricted Cash | Three months ended March 31, 2025 | 2024 |
| --- | ---: | ---: |
| Cash from operating activities Operating | **$873** | $659 |
| Proceeds from divestitures Investing | **1,884** | 2 |
| Corporate acquisition Investing | **-** | 12 |
| Net issuance of revolving debt Financing | **85** | 461 |
| Other Investing | **148** | 6 |
|  | **2,990** | 1,140 |
| Uses of Cash and Cash Equivalents |  |  |
| Capital expenditures Investing | **617** | 591 |
| Acquisitions Investing | **2,310** | 190 |
| Purchase of shares of common stock Financing | **-** | 250 |
| Dividends on shares of common stock Financing | **78** | 80 |
| Other Financing | **19** | 29 |
|  | **3,024** | 1,140 |
| Foreign Exchange Gain (Loss) on Cash, Cash Equivalents and Restricted Cash Held in Foreign Currency | **-** | 2 |
| Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash | **$(34)** | $2 |

### Operating Activities

Net cash from operating activities in the first quarter of 2025 was $873 million and was primarily a reflection of the impacts from production volumes, average realized commodity prices, realized gains/losses on risk management and changes in non‑cash working capital.

Additional detail on changes in non-cash working capital can be found in Note 20 to the Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q. Ovintiv expects it will continue to meet the payment terms of its suppliers.

Non-GAAP Cash Flow in the first quarter of 2025 was $1,004 million and was primarily impacted by the items affecting cash from operating activities which are discussed below and in the Results of Operations section of this MD&A.

#### Three months ended March 31, 2025 versus March 31, 2024

Net cash from operating activities increased $214 million compared to the first quarter of 2024 primarily due to:

- Changes in non-cash working capital ($244 million), higher realized commodity prices ($58 million), lower operating expense, excluding non-cash long-term incentive costs ($40 million) and lower transportation and processing expense ($21 million);

partially offset by:

- Realized foreign exchange losses on U.S. dollar risk management contracts issued from Canada in 2025 ($98 million), lower production volumes ($32 million), lower realized gains on risk management in revenues compared to 2024 ($16 million) and an increase in current income tax expense ($11 million).

### Investing Activities

Cash used in investing activities in the first quarter of 2025 was $895 million primarily due to the Montney Acquisition and capital expenditures, partially offset by the sale of the Company’s Uinta assets. Capital expenditures, and acquisition and divestiture activities are summarized in Notes 3 and 8, respectively, to the Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10‑Q.

Capital expenditures increased $26 million compared to the first quarter of 2024, primarily due to increased drilling and completions activity in Anadarko, increased completions activity in Permian, and increased capital activity in Montney due to the Montney Acquisition during the quarter, partially offset by decreased capital activity due to the sale of the Uinta assets during the quarter.

Acquisitions in the first quarter of 2025 were $2,310 million, which primarily included the Montney Acquisition. Acquisitions in the first quarter of 2024 were $190 million, which primarily included property purchases with oil and liquids-rich potential in the USA Operations.

Divestitures in the first quarter of 2025 were $1,884 million, which primarily included the sale of the Uinta assets in Utah.

Additional information regarding the Montney Acquisition and the sale of the Uinta assets can be found in Note 8 to the Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q.

### Financing Activities

Net cash from and/or used in financing activities has been impacted by Ovintiv’s strategic objective to return value to shareholders by repaying existing debt, purchasing shares of common stock and paying dividends.

Net cash used in financing activities in the first quarter of 2025 was $12 million compared to net cash from financing activities of $102 million in 2024. The change was primarily due to a decrease in the net issuance of revolving debt in 2025 compared to 2024 ($376 million), partially offset by purchases of shares of common stock in 2024 ($250 million).

The Company’s long-term debt, including the current portion of $1,144 million, totaled $5,538 million at March 31, 2025. The Company’s long-term debt at December 31, 2024, including the current portion of $600 million, totaled $5,453 million. The Company has $1,059 million of fixed rate long-term debt due in the next twelve months consisting of $600 million due in May 2025 and $459 million due in January 2026. The Company intends to repay the 2025 maturing balance of $600 million using a combination of available cash on hand and/or proceeds from short-term borrowings.

In support of the Company’s commitment to enhancing shareholder value, Ovintiv utilizes its capital allocation framework to provide competitive returns to shareholders while strengthening its balance sheet. The Company’s share buyback program was temporarily paused in the fourth quarter of 2024 to recover the transaction proceeds differential between the Montney Acquisition and the Uinta divestiture of $377 million. Cumulatively, through the fourth quarter of 2024 and the first quarter of 2025, the Company applied approximately $368 million in cash from the buyback pause to debt reduction. The Company has resumed share buybacks in the second quarter of 2025 in accordance with its capital allocation framework.

For additional information on long-term debt, refer to Note 11 to the Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q. Further details on the Company’s debt-based metrics can be found in the Non-GAAP measures section of this MD&A.

#### Dividends

The Company pays quarterly dividends to common shareholders at the discretion of the Board of Directors.

| ($ millions, except as indicated) | Three months ended March 31, 2025 | 2024 |
| --- | ---: | ---: |
| Dividend Payments | **$78** | $80 |
| Dividend Payments ($/share) | **$0.30** | $0.30 |

On May 6, 2025, the Board of Directors declared a dividend of $0.30 per share of common stock payable on June 30, 2025, to common shareholders of record as of June 13, 2025.

#### Normal Course Issuer Bid

On September 26, 2024, the Company announced it had received regulatory approval for the renewal of its NCIB program, which enables the Company to purchase, for cancellation or return to treasury, up to approximately 25.9 million shares of common stock over a 12-month period from October 3, 2024 to October 2, 2025. The Company has resumed activity under the renewed NCIB program in conjunction with its capital allocation framework in the second quarter of 2025.

For additional information on the NCIB, refer to Note 13 to the Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q.

### Material Cash Requirements

For information on material cash requirements, refer to the Material Cash Requirements section of the MD&A included in Item 7 of the 2024 Annual Report on Form 10-K.

### Commitments and Contingencies

For information on commitments and contingencies, refer to Note 21 to the Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q.

### Critical Accounting Estimates

There have been no significant changes to the Company’s critical accounting policies and use of estimates from the disclosures reported in the Critical Accounting Estimates section of the MD&A included in Item 7 of the 2024 Annual Report on Form 10‑K.

### Non-GAAP Measures

Certain measures in this document do not have any standardized meaning as prescribed by U.S. GAAP and, therefore, are considered non-GAAP measures. These measures may not be comparable to similar measures presented by other issuers and should not be viewed as a substitute for measures reported under U.S. GAAP. These measures are commonly used in the oil and gas industry and by Ovintiv to provide shareholders and potential investors with additional information regarding the Company’s liquidity and its ability to generate funds to finance its operations. Non-GAAP measures include: Non-GAAP Cash Flow, Debt to Adjusted Capitalization, Debt to EBITDA and Debt to Adjusted EBITDA. Management’s use of these measures is discussed further below.

### Cash from Operating Activities and Non-GAAP Cash Flow

Non-GAAP Cash Flow is a non-GAAP measure defined as cash from (used in) operating activities excluding net change in other assets and liabilities, and net change in non-cash working capital.

Management believes this measure is useful to the Company and its investors as a measure of operating and financial performance across periods and against other companies in the industry, and is an indication of the Company’s ability to generate cash to finance capital investment programs, to service debt and to meet other financial obligations. This measure is used, along with other measures, in the calculation of certain performance targets for the Company’s management and employees.

| ($ millions) | Three months ended March 31, 2025 | 2024 |
| --- | ---: | ---: |
| Cash From (Used in) Operating Activities | **$873** | $659 |
| (Add back) deduct: |  |  |
| Net change in other assets and liabilities | **(11)** | (12) |
| Net change in non-cash working capital | **(120)** | (364) |
| Non-GAAP Cash Flow | **$1,004** | $1,035 |

### Debt to Capitalization and Debt to Adjusted Capitalization

Debt to Adjusted Capitalization is a non-GAAP measure which adjusts capitalization for historical ceiling test impairments that were recorded as at December 31, 2011. Management monitors Debt to Adjusted Capitalization as a proxy for the Company’s financial covenant under the Credit Facilities which require Debt to Adjusted Capitalization to be less than 60 percent. Adjusted Capitalization includes debt, total shareholders’ equity and an equity adjustment for cumulative historical ceiling test impairments recorded as at December 31, 2011 in conjunction with the Company’s January 1, 2012, adoption of U.S. GAAP.

| ($ millions, except as indicated) | March 31, 2025 | December 31, 2024 |
| --- | ---: | ---: |
| Debt (Long-Term Debt, including Current Portion) | **$5,538** | $5,453 |
| Total Shareholders’ Equity | **10,080** | 10,331 |
| Capitalization | **$15,618** | $15,784 |
| Debt to Capitalization | **35%** | 35% |
| Debt (Long-Term Debt, including Current Portion) | **$5,538** | $5,453 |
| Total Shareholders’ Equity | **10,080** | 10,331 |
| Equity Adjustment for Impairments at December 31, 2011 | **7,746** | 7,746 |
| Adjusted Capitalization | **$23,364** | $23,530 |
| Debt to Adjusted Capitalization | **24%** | 23% |

48

### Debt to EBITDA and Debt to Adjusted EBITDA

Debt to EBITDA and Debt to Adjusted EBITDA are non-GAAP measures. EBITDA is defined as trailing 12-month net earnings (loss) before income taxes, depreciation, depletion and amortization, and interest. Adjusted EBITDA is EBITDA adjusted for impairments, accretion of asset retirement obligation, unrealized gains/losses on risk management, foreign exchange gains/losses, gains/losses on divestitures and other gains/losses.

Management believes these measures are useful to the Company and its investors as a measure of financial leverage and the Company’s ability to service its debt and other financial obligations. These measures are used, along with other measures, in the calculation of certain financial performance targets for the Company’s management and employees.

| ($ millions, except as indicated) | March 31, 2025 | December 31, 2024 |
| --- | ---: | ---: |
| Debt (Long-Term Debt, including Current Portion) | **$5,538** | $5,453 |
| Net Earnings (Loss) | **628** | 1,125 |
| Add back (deduct): |  |  |
| Depreciation, depletion and amortization | **2,269** | 2,290 |
| Interest | **411** | 412 |
| Income tax expense (recovery) | **102** | 226 |
| EBITDA | **$3,410** | $4,053 |
| Debt to EBITDA (times) | **1.6** | 1.3 |
| Debt (Long-Term Debt, including Current Portion) | **$5,538** | $5,453 |
| Net Earnings (Loss) | **628** | 1,125 |
| Add back (deduct): |  |  |
| Depreciation, depletion and amortization | **2,269** | 2,290 |
| Impairments | **1,180** | 450 |
| Accretion of asset retirement obligation | **20** | 19 |
| Interest | **411** | 412 |
| Unrealized (gains) losses on risk management | **82** | 136 |
| Foreign exchange (gain) loss, net | **19** | (19) |
| Other (gains) losses, net | **(164)** | (165) |
| Income tax expense (recovery) | **102** | 226 |
| Adjusted EBITDA | **$4,547** | $4,474 |
| Debt to Adjusted EBITDA (times) | **1.2** | 1.2 |

49

## Market risk

As filed, 5,872 characters.

The primary objective of the following information is to provide forward-looking quantitative and qualitative information about Ovintiv’s potential exposure to market risks. The term “market risk” refers to the Company’s risk of loss arising from adverse changes in oil, NGL and natural gas prices, foreign currency exchange rates and interest rates. The following disclosures are not meant to be precise indicators of expected future losses but rather indicators of reasonably possible losses. The forward-looking information provides indicators of how the Company views and manages ongoing market risk exposures.

### COMMODITY PRICE RISK

Commodity price risk arises from the effect fluctuations in future commodity prices, including oil, NGLs and natural gas, may have on future revenues, expenses and cash flows. Realized pricing is primarily driven by the prevailing worldwide price for oil and spot market prices applicable to the Company’s natural gas production. Pricing for oil, NGLs and natural gas production is volatile and unpredictable as discussed in Part 1, Item 2 of this Quarterly Report on Form 10‑Q in the Executive Overview section in Management’s Discussion and Analysis of Financial Condition and Results of Operations and in Item 1A. “Risk Factors” of the 2024 Annual Report on Form 10‑K. To partially mitigate exposure to commodity price risk, the Company may enter into various derivative financial instruments including futures, forwards, swaps, options and costless collars. The use of these derivative instruments is governed under formal policies and is subject to limits established by the Board of Directors and may vary from time to time. Both exchange traded and over-the-counter traded derivative instruments may be subject to margin-deposit requirements, and the Company may be required from time to time to deposit cash or provide letters of credit with exchange brokers or counterparties to satisfy these margin requirements. For additional information relating to the Company’s derivative and financial instruments, see Note 19 to the Condensed Consolidated Financial Statements under Part I, Item 1 of this Quarterly Report on Form 10‑Q.

The table below summarizes the sensitivity of the fair value of the Company’s risk management positions to fluctuations in commodity prices, with all other variables held constant. The Company has used a 10 percent variability to assess the potential impact of commodity price changes. Fluctuations in commodity prices could have resulted in unrealized gains (losses) impacting pre-tax net earnings as follows:

| (US$ millions) | March 31, 2025 10% Price Increase | 10% Price Decrease |
| --- | ---: | ---: |
| Oil price | $(44) | $50 |
| Natural gas price | (53) | 44 |

### FOREIGN EXCHANGE RISK

Foreign exchange risk arises from changes in foreign exchange rates that may affect the fair value or future cash flows from the Company’s financial assets or liabilities. As Ovintiv operates primarily in the United States and Canada, fluctuations in the exchange rate between the U.S. and Canadian dollars can have a significant effect on the Company’s reported results.

The table below summarizes selected foreign exchange impacts on Ovintiv’s financial results when compared to the same period in 2024.

| Increase (Decrease) in: | $ millions | $/BOE |
| --- | ---: | ---: |
| Capital Investment | $(8) |  |
| Transportation and Processing Expense (1) | (15) | $(0.29) |
| Operating Expense (1) | (1) | (0.03) |
| Administrative Expense | (2) | (0.04) |
| Depreciation, Depletion and Amortization (1) | (4) | (0.08) |

(1) Reflects upstream operations.

Foreign exchange gains and losses also arise when monetary assets and monetary liabilities denominated in foreign currencies are translated and settled, and primarily include:

- U.S. dollar denominated financing debt issued from Canada
- U.S. dollar denominated risk management assets and liabilities held in Canada
- U.S. dollar denominated cash and short-term investments held in Canada
- Foreign denominated intercompany loans

To partially mitigate the effect of foreign exchange fluctuations on future commodity revenues and expenses, the Company may enter into foreign currency derivative contracts. As at March 31, 2025, Ovintiv has entered into $51 million notional U.S. dollar denominated currency swaps at an average exchange rate of C$1.3875 to US$1, which mature monthly throughout the second quarter of 2025.

As at March 31, 2025, Ovintiv did not have any U.S. dollar denominated financing debt issued from Canada that was subject to foreign exchange exposure.

The table below summarizes the sensitivity to foreign exchange rate fluctuations, with all other variables held constant. The Company has used a 10 percent variability to assess the potential impact from Canadian to U.S. foreign currency exchange rate changes. Fluctuations in foreign currency exchange rates could have resulted in unrealized gains (losses) impacting pre-tax net earnings as follows:

| (US$ millions) | March 31, 2025 10% Rate Increase | 10% Rate Decrease |
| --- | ---: | ---: |
| Foreign currency exchange | $37 | $(45) |

### INTEREST RATE RISK

Interest rate risk arises from changes in market interest rates that may affect the fair value or future cash flows from the Company’s financial assets or liabilities. The Company may partially mitigate its exposure to interest rate changes by holding a mix of both fixed and floating rate debt and may also enter into interest rate derivatives to partially mitigate effects of fluctuations in market interest rates.

As at March 31, 2025, Ovintiv had floating rate revolving credit and term loan borrowings of $85 million. Accordingly, on a before-tax basis, the sensitivity for each one percent change in interest rates on floating rate revolving credit and term loan borrowings was $1 million.

## Controls and procedures

As filed, 1,391 characters.

### DISCLOSURE CONTROLS AND PROCEDURES

Ovintiv’s Chief Executive Officer and Chief Financial Officer performed an evaluation of the effectiveness of the Company’s disclosure controls and procedures as defined in Rules 13a-15(e) and 15d-15(e) of the Exchange Act. The Company’s disclosure controls and procedures are designed to ensure that information required to be disclosed by the Company in reports it files or submits under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the rules and forms of the SEC, and to ensure that the information required to be disclosed by the Company in reports that it files or submits under the Exchange Act, is accumulated and communicated to the Company’s management, including the principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure. Based on this evaluation, the Chief Executive Officer and Chief Financial Officer have concluded that the Company’s disclosure controls and procedures were effective as of March 31, 2025.

### CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING

There were no changes in the Company’s internal controls over financial reporting during the first quarter of 2025 that have materially affected, or are reasonably likely to affect, the Company’s internal controls over financial reporting.

## Risk factors

As filed, 176 characters.

There have been no material changes to the risk factors previously disclosed in Item 1A., "Risk Factors" of our Annual Report on Form 10-K for the year ended December 31, 2024.

Filed May 6, 2025.
Source: SEC EDGAR, the filing index for accession 0000950170-25-064603. Last ingested by Listed: Nov 3, 2026, 21:35 ET. No prices; not investment advice.