Even with a fourth quarter net loss of $60 million or 23 cents a share, Denver-based Ovintiv still recorded $1.1 billion or $4.21 per share in full-year net earnings. It also indicated it intends to expand its production efforts in Oklahoma.
A firm with a significant exploration effort in Oklahoma, Ovintiv reported it generated $3.7 billion in cash from operating activities throughout the year after capital expenditures of $2.3 billion. It also produced aerage total volumes of 585,000 barrels of oil equivalent a day including 211,000 barrels a day of oil and condensate.
Ovintiv also returned more than $900 million to shareholders through base dividend payments and share buybacks. During the year, it also sold its Unita assets in Utah for approximately $2 billion.
“2024 was another year of exceptional delivery on our durable returns strategy,” said Ovintiv President and CEO, Brendan McCracken. “Our team’s continued focus on value creation drove strong financial results, created lasting efficiencies and boosted shareholder returns.”
The fourth quarter saw $1 billion in cash from operating activities and $552 million in capital expenditures. It also delivered an aerage of 580,000 barrels of oil equivalent a day and 210,000 barrels of oil a day. However, Ovintiv also reported a fourth quarter net loss of $60 million or 23 cents a share. Its net losses on risk management totaled $16 million before tax.
Regarding the company’s 2025 outlook, it anticipates production in the first quarter to be “the low point for the year.” Its production is expected to stabilize in the second quarter the “remain largely flat through the end of the year.” The firm stated its 2025 capital program will be $2.15 to $2.25 billion resulting in delivered production volumes of up to 615,000 barrels of oil equivalent a day.
Under asset highlights, Ovintiv showed the firm put no new wells into production in Oklahoma during the fourth quarter but expects to bring on nearly 35 wells during the year.
Anadarko
Anadarko production averaged 100 MBOE/d (56% liquids) in the fourth quarter. The Company did not bring on any wells in the quarter. Ovintiv plans to invest approximately $300 million to $325 million in the play in 2025 to bring on 25 to 35 net wells.
Permian
Permian production averaged 208 MBOE/d (80% liquids) in the fourth quarter. The Company had 42 net wells turned in line (TIL). In 2025, Ovintiv plans to invest approximately $1.2 billion to $1.3 billion in the play to bring on 130 to 140 net wells.
Montney
Montney production averaged 235 MBOE/d (20% liquids) in the fourth quarter. The Company had 13 net wells TIL. In 2025, Ovintiv plans to invest approximately $575 million to $625 million in the play to bring on 75 to 85 net wells.