With a big presence and huge success in Oklahoma’s STACK play, Ovintiv Inc. reported a big jump in net earnings for the third quarter of the year.
It generated net earnings of $406 million, cash from operating activities of $906 million and free cash flow of $278 million.
The $406 million was a sizeable gain over the $336 million in net earnings reported for the second quarter of 2023 by the Denver-based company. The cash from operating activities also improved compared to the $831 million three months earlier.
“Our outstanding third quarter results are a reflection of the momentum we have been building all year,” said Ovintiv President and CEO, Brendan McCracken.
He added that third quarter production was at or above the high end of guidance on every product with average total production volumes of 572 thousand barrels of oil equivalent a day, including 214 thousand barrels a day of oil and condensate.
“Strong well performance across the portfolio, combined with the seamless integration of our new Permian assets, has allowed us to significantly exceed our oil and condensate guidance, reflecting both enhanced capital efficiency and higher returns on our invested capital,” added McCracken.
The company issued its fourth quarter 2023 guidance and favorably revised its full year guidance. Full year production guidance was increased due to strong well productivity across the portfolio and faster than expected integration of recently acquired Permian assets. Full year capital efficiency is expected to improve by approximately six percent compared to the guidance issued following the completion of the Permian asset acquisition in June. Full year production volumes are expected to average 550 to 560 MBOE/d, with full year capital investment of $2.745 billion to $2.785 billion.