Highlights:
Full Year 2025
Generated cash from operating activities of $3.7 billion, Non-GAAP Cash Flow of $3.8 billion and Non-GAAP Free Cash Flow of $1.6 billion after capital expenditures of $2.1 billion
Produced average total volumes of 615 thousand barrels of oil equivalent per day ("MBOE/d"), including 209 thousand barrels per day ("Mbbls/d") of oil and condensate, 95 Mbbls/d of other NGLs (C2 to C4) and 1,862 million cubic feet per day ("MMcf/d") of natural gas
Returned more than $600 million to shareholders through the combination of base dividend payments and share buybacks
Announced the acquisition of NuVista Energy Ltd., adding approximately 100 MBOE/d of production, 930 net 10,000-foot equivalent well locations, and approximately 140,000 net acres of land for approximately $2.7 billion; the acquisition closed on February 3, 2026
Announced the planned sale of its Anadarko assets; subsequently announced in February 2026 that an agreement was reached to sell the assets for total cash proceeds of $3.0 billion
Fourth Quarter 2025
Generated fourth quarter cash from operating activities of $954 million, Non-GAAP Cash Flow of $973 million and Non-GAAP Free Cash Flow of $508 million after capital expenditures of $465 million
Delivered average quarterly production volumes of 623 MBOE/d, including 209 Mbbls/d of oil and condensate, 97 Mbbls/d of other NGLs and 1,905 MMcf/d of natural gas
2026 Outlook
Announced full year 2026 capital program of approximately $2.25 to $2.35 billion, which is expected to deliver total production volumes of 620 to 645 MBOE/d, including oil and condensate volumes of 205 to 212 Mbbls/d
Announced new shareholder return framework, which will increase 2026 shareholder returns to at least 75% of full year Non-GAAP Free Cash Flow through the combination of the base dividend and share buybacks; share buybacks are expected to commence immediately
DENVER, Feb. 23, 2026 /CNW/ - Ovintiv Inc. (NYSE:OVV) (TSX:OVV) ("Ovintiv" or the "Company") today announced its fourth quarter and year-end 2025 financial and operating results. The Company plans to hold a conference call and webcast at 8:00 a.m. MT (10:00 a.m. ET) on February 24, 2026. Please see dial-in details within this release, as well as additional details on the Company's website at www.ovintiv.com under Presentations and Events, Ovintiv.
"We have transformed our company into an industry leader by executing at a high level, boosting our profitability, and completely transforming both our portfolio and balance sheet while deepening our inventory in the two most valuable basins by over 3,200 drilling locations at an unmatched cost per location," said Ovintiv President and CEO, Brendan McCracken. "Now we are introducing a new shareholder return framework that will deliver increased returns to our shareholders. These actions set the stage for continued value creation."
Full Year 2025 Financial and Operating Results
The Company recorded full year net earnings of $1.2 billion, or $4.78 per share diluted, including non-cash ceiling test impairments of $703 million, after tax, or $2.71 per share diluted.
Full year net gains on risk management in revenues totaled $172 million, before tax.
Full year capital investment of $2,147 million was in line with the full year 2025 guidance range of approximately $2,125 million to $2,175 million.
Full year upstream operating expense was $3.80 per barrel of oil equivalent ("BOE"). Upstream transportation and processing costs were $7.51 per BOE. Production, mineral and other taxes were $1.27 per BOE, or 4.0% of upstream product revenue. These costs were at the low end of guidance on a combined basis.
Including the impact of hedges, full year average realized price for oil and condensate was $64.48 per barrel (99% of WTI), $18.94 per barrel for other NGLs, and $2.54 per Mcf (74% of NYMEX) for natural gas, resulting in a total average realized price of $32.59 per BOE.
Fourth Quarter 2025 Financial and Operating Results
Fourth quarter net earnings totaled $946 million, or $3.70 per share diluted, including non-cash ceiling test impairments of $38 million, after tax, or $0.15 per share diluted.
Fourth quarter net gains on risk management in revenues totaled $75 million, before tax.
Fourth quarter capital investment of $465 million was in line with the guidance range of approximately $440 million to $490 million.
Fourth quarter upstream operating expense was $3.80 per BOE. Upstream transportation and processing costs were $7.47 per BOE. Production, mineral and other taxes were $0.94 per BOE, or 3.2% of upstream product revenue. These costs were at the low end of guidance on a combined basis.
Including the impact of hedges, fourth quarter average realized price for oil and condensate was $59.55 per barrel (101% of WTI), $17.44 per barrel for other NGLs, and $2.65 per Mcf (75% of NYMEX) for natural gas, resulting in a total average realized price of $30.74 per BOE.
2026 GuidanceThe Company issued the following 2026 guidance:
2026 Guidance (1)
1Q 2026 (2)
Post-Anadarko Sale Close QuarterlyRun-Rate
Full Year 2026
Total Production (MBOE/d)
660, 680
610, 635
620, 645
Oil & Condensate (Mbbls/d)
220, 225
202, 208
205, 212
NGLs (C2 to C4) (Mbbls/d)
96, 100
75, 80
80, 85
Natural Gas (MMcf/d)
2,075, 2,125
2,000, 2,100
2,000, 2,100
Capital Investment ($ Millions)
$600, $650
$540, $590
$2,250, $2,350
1.
Assumes the Anadarko disposition closes April 1, 2026.
2.
Includes volumes associated with the NuVista transaction following closing of the acquisition on February 3, 2026.
New Shareholder Return FrameworkFull year 2025 shareholder returns totaled approximately $612 million, consisting of share buybacks of approximately $304 million, or approximately 7.8 million shares of common stock, and base dividend payments of approximately $308 million.
Ovintiv's planned 2026 shareholder returns will increase to at least 75% of full year Non-GAAP Free Cash Flow. Longer term, the Company has revised its shareholder return framework, such that 50% to 100% of annual Non-GAAP Free Cash Flow is returned to shareholders via the combination of base dividend payments and share buybacks. To enable execution of the new framework, the Ovintiv Board of Directors has authorized a share buyback program totaling $3.0 billion. Ovintiv expects to commence share buybacks immediately.
Continued Balance Sheet Focus Ovintiv had approximately $4.5 billion in total liquidity as at December 31, 2025, which included available credit facilities of $3.5 billion, an available Term Credit Agreement of $1.2 billion, available uncommitted demand lines of $125 million, and cash and cash equivalents of $35 million, net of outstanding commercial paper of $351 million.
Non-GAAP Debt to EBITDA was 1.6 times and Non-GAAP Debt to Adjusted EBITDA was 1.2 times as of December 31, 2025.
Following the close of the Anadarko disposition, Ovintiv expects its Net Det to total approximately $3.6 billion.
The Company remains committed to maintaining a strong balance sheet and is currently rated investment grade by four credit rating agencies.
Dividend DeclaredOn February 23, 2026, Ovintiv's Board declared a quarterly dividend of $0.30 per share of common stock payable on March 31, 2026, to shareholders of record as of March 13, 2026.
Asset Highlights
PermianPermian production averaged 219 MBOE/d (79% liquids) in the fourth quarter and 215 MBOE/d for the year. The Company had 30 net wells turned in line ("TIL") in the quarter and 136 TILs for the year. In 2026, Ovintiv plans to invest approximately $1.325 billion to $1.375 billion in the play to run approximately 5 rigs and bring on 125 to 135 net wells. 2026 oil and condensate production is expected to average 117 to 123 Mbbls/d and natural gas production is expected to average 270 to 295 MMcf/d.
Montney Montney production averaged 305 MBOE/d (25% liquids) in the fourth quarter and 299 MBOE/d for the year. The Company had 20 net wells TIL in the quarter and 96 TILs for the year. In 2026, Ovintiv plans to invest approximately $875 million to $925 million to run approximately 6 rigs and bring on 130 to 140 net wells. 2026 oil and condensate production is expected to average 80 to 84 Mbbls/d and natural gas production is expected to average 1.7 to 1.8 Bcf/d.
Year-End 2025 ReservesSEC proved reserves at year-end 2025 were 2.3 billion BOE, of which approximately 50% were liquids and 64% were proved developed. Total proved reserves replacement excluding the impact of acquisitions and divestitures was 150% of 2025 production. Ovintiv's reserve life index at year end was greater than 10 years.
For additional information, please refer to the Fourth Quarter and Year-end 2025 Results Presentation available on Ovintiv's website, www.ovintiv.com under Presentations and Events, Ovintiv. Supplemental Information, and Non-GAAP Definitions and Reconciliations, are available on Ovintiv's website under Financial Documents Library.
Conference Call Information
A conference call and webcast to discuss the Company's fourth quarter and year-end 2025 results will be held at 8:00 a.m. MT (10:00 a.m. ET) on February 24, 2026.
To join the conference call without operator assistance, you may register and enter your phone number at https://emportal.ink/4bsVAgj to receive an instant automated call back. You can also dial direct to be entered to the call by an Operator. Please dial 888-510-2154 (toll-free in North America) or 437-900-0527 (international) approximately 15 minutes prior to the call.
The live audio webcast of the conference call, including slides and financial statements, will be available on Ovintiv's website, www.ovintiv.com under Investors/Presentations and Events. The webcast will be archived for approximately 90 days.
Refer to Note 1 Non-GAAP measures and the tables in this release for reconciliation to comparable GAAP financial measures.
Capital Investment and Production
(for the period ended December 31)
4Q 2025
4Q 2024
2025
2024
Capital Expenditures (1) ($ millions)
465
552
2,147
2,303
Oil (Mbbls/d)
140.9
167.1
142.7
168.3
NGLs, Plant Condensate (Mbbls/d)
67.8
42.6
66.7
42.9
Oil & Plant Condensate (Mbbls/d)
208.7
209.7
209.4
211.2
NGLs, Other (Mbbls/d)
97.2
90.1
94.8
90.8
Total Liquids (Mbbls/d)
305.9
299.8
304.2
302.0
Natural Gas (MMcf/d)
1,905
1,680
1,862
1,698
Total Production (MBOE/d)
623.4
579.9
614.5
585.0
(1) Including capitalized directly attributable internal costs.
Financial Summary
(for the period ended December 31)
($ millions)
4Q 2025
