“Our third quarter results continued to build on our strong track record of operational and financial execution,” said Ovintiv President and CEO, Brendan McCracken.
“Once again, we exceeded the high end of our production guidance and raised our targets for full year volumes. Our teams continue to be focused on delivering leading returns at the bottom line and I’m pleased to see our third quarter free cash flow move even higher than the second quarter, even though commodity prices were lower.”
Ovintiv, active in Oklahoma, stated its third quarter production was above the high-end of the guidance range on every product with average total production volumes of 593 thousand barrels of oil equivalent per day, including 212 thousand barrels per day of oil and condensate, 93 Mbbls/d of other NGLs and 1,725 million cubic feet per day of natural gas.
Anadarko production averaged 103 MBOE/d (57% liquids) in the third quarter. The Company had nine net wells TIL during the quarter. Ovintiv plans to invest approximately $100 to $125 million in the play in 2024 to bring on seven to ten net wells.
Permian production averaged 207 MBOE/d (80% liquids) in the third quarter. The Company had 32 net wells turned in line (“TIL”). Ovintiv plans to invest approximately $1.35 to $1.45 billion in the play in 2024 to bring on 120 to 130 net wells.
Montney production averaged 245 MBOE/d (19% liquids) in the third quarter. The Company had 11 net wells TIL. Ovintiv plans to invest approximately $425 to $475 million in the play in 2024 to bring on 60 to 70 net wells.
Uinta production averaged 37 MBOE/d (85% liquids) in the third quarter. The Company had 11 net wells TIL. Ovintiv plans to invest approximately $300 to $350 million in the play in 2024 to bring on 25 to 30 net wells.
During the quarter, Ovintiv returned $240 million to shareholders through the combination of base dividend payments and share buybacks and also reduced total debt by $210 million to $5.88 billion.
Because of the strong quarter, Ovintiv leadership agreed to raise the full year production guidance range to 583 MBOE/d to 587 MBOE/d, including oil and condensate of 209 Mbbls/d to 211 Mbbls/d and natural gas of 1,700 MMcf/d to 1,715 MMcf/d
Ovintiv had approximately $3.3 billion in total liquidity as of September 30, 2024, which included available credit facilities of $3.4 billion, available uncommitted demand lines of $232 million, and cash and cash equivalents of $9 million, net of outstanding commercial paper of $324 million.
Total long-term debt including the current portion was $5.88 billion as of September 30, 2024. Debt reduction during the third quarter totaled approximately $210 million.In the fourth quarter, Ovintiv expects to receive cash of approximately $150 million from the settlement of a legacy asset disposition. These proceeds will be allocated entirely to debt repayment.
The Company remains committed to supporting a strong balance sheet and is currently rated investment grade by four credit rating agencies. Ovintiv maintains a long-term leverage target of 1.0 times Non-GAAP Debt to Adjusted EBITDA at mid-cycle prices, with an associated long-term total debt target of $4.0 billion.
As of the end of the third quarter, Ovintiv reported Non-GAAP Debt to EBITDA of 1.1 times and Non-GAAP Debt to Adjusted EBITDA of 1.2 times.
Dividend Declared
On November 7, 2024, Ovintiv’s Board declared a quarterly dividend of $0.30 per share of common stock payable on December 31, 2024, to shareholders of record as of December 13, 2024.
Asset Highlights
Permian
Permian production averaged 207 MBOE/d (80% liquids) in the third quarter. The Company had 32 net wells turned in line (“TIL”). Ovintiv plans to invest approximately $1.35 to $1.45 billion in the play in 2024 to bring on 120 to 130 net wells.
Montney
Montney production averaged 245 MBOE/d (19% liquids) in the third quarter. The Company had 11 net wells TIL. Ovintiv plans to invest approximately $425 to $475 million in the play in 2024 to bring on 60 to 70 net wells.
Uinta
Uinta production averaged 37 MBOE/d (85% liquids) in the third quarter. The Company had 11 net wells TIL. Ovintiv plans to invest approximately $300 to $350 million in the play in 2024 to bring on 25 to 30 net wells.
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Anadarko
Anadarko production averaged 103 MBOE/d (57% liquids) in the third quarter. The Company had nine net wells TIL during the quarter. Ovintiv plans to invest approximately $100 to $125 million in the play in 2024 to bring on seven to ten net wells.
