The second quarter of Denver-based Ovintiv proved to be a strong one with $340 million or $1.27 per share in net earnings and more than $1 billion in cash from operating activities.
Known in Oklahoma for its major drilling efforts in the past several years in the STACK, the company second quarter production was at the high-end of more than the guidance range with an average total production volumes of 594 thousand barrels of oil equivalent a day. That included 212 thousand barrels of oil a day in additon to 1,740 million cubic feet per day of natural gas.
What does it mean for the company? More money to be invested in more exploration.
We expect to generate approximately $1.9 billion of Non-GAAP Free Cash Flow in 2024 – an increase of more than 60% year-over-year. Importantly, we believe the capital efficiency of our 2024 program is repeatable next year and beyond,” stated Ovintiv President and CEO Brendan McCracken.
“Our second quarter results demonstrate our focus on strong, consistent operational execution, enabling us to raise our production guidance for the second time this year.”
Ovintiv had been quiet in the past year or two in Oklahoma but now the company indicated it will invest nearly $125 million in the Anadarko play with intentions of bringing on seven to ten net wells.
Of course, the Anadarko goals are nothing like the Permian where Ovintiv had 40 net wells turned in line in the just-completed quarter and intends to pour most of its money, $1.35 to $1.45 billion to bring on 120 to 130 net wells for all of 2024.
In Canada’s Montney play, Ovintiv will invest up to $475 million to bring on nearly 70 wells. In the Uinta play of Utah, the company will invest $350 million hoping to add 30 net wells.
