Mr. Brendan McCracken reports

OVINTIV REPORTS FIRST QUARTER 2023 FINANCIAL AND OPERATING RESULTS

Ovintiv Inc. has released its first quarter 2023 financial and operating results. The company plans to hold a conference call and webcast at 9 a.m. MT (11 a.m. ET) on May 10, 2023. Please see dial-in details within this release, as well as additional details on the company's website under presentations and events -- Ovintiv. (Ovintiv reports in U.S. dollars unless otherwise noted.)

"Picking up where we left off in the fourth quarter, our first quarter outperformance reflects the combination of strong well results and cost-efficiencies," said Ovintiv president and chief executive officer Brendan McCracken. "For the past two quarters, our average Permian well performance was among the highest oil volumes per lateral foot in Ovintiv's history in the play.

"The combination of strong wells across the portfolio and our leading capital efficiency are delivering substantial non-[generally accepted accounting principle] free cash flow, durable returns on invested capital and substantial cash returns to our shareholders. Our recently announced transactions will further build on our momentum and are expected to drive more-than-25-per-cent-higher cash returns per share over the next 12 months following the close of the transactions and more-than-40-per-cent-higher cash returns per share in 2024."

First quarter 2023 financial and operating results:

• The company recorded net earnings of $487-million, or $1.97 per diluted share of common stock.
• Cash from operating activities was $1,068-million, non-GAAP cash flow was $851-million and capital investment totalled approximately $610-million, resulting in $241-million of non-GAAP free cash flow.
• First quarter average total production volumes were above company guidance on all products at approximately 511,000 barrels of oil equivalent per day, including 166,000 barrels per day of oil and condensate, 86 Mbbl/d of other natural gas liquids, and 1,555 million cubic feet per day of natural gas.
• Upstream operating expense was $4.33 per barrel of oil equivalent. Upstream transportation and processing costs were $9 per boe. Production, mineral and other taxes were $1.83 per boe. These costs were below the midpoint of guidance on a combined basis.
• Including the impact of hedges, first quarter average realized prices were $73.81 per barrel for oil and condensate (97 per cent of West Texas Intermediate), $21.11 per barrel for other NGLs (C2-C4), and $3.80 per thousand cubic feet (Mcf) for natural gas (111 per cent of New York Mercantile Exchange) resulting in a total average realized price of $39.08 per boe. Excluding the impact of hedges, the average realized prices for oil and condensate and other NGLs were unchanged, while the average realized price for natural gas was $4.34 per Mcf (127 per cent of NYMEX).

2023 guidance

The company issued its second quarter 2023 guidance and confirmed the full-year guidance announced in April. Full-year 2023 guidance ranges for oil and condensate, and total production volumes were updated in April to reflect pro forma operations assuming integration of the recently announced Midland basin acquisition and the Bakken divestiture.

2024 outlook

Ovintiv expects to deliver 2024 total company average oil and condensate production volumes of greater than 200 Mbbl/d with total capital investment of $2.1-billion to $2.5-billion, following the integration of the recently announced Midland basin acquisition and the Bakken divestiture.

Conference call information

A conference call and a webcast to discuss the company's first quarter results will be held at 9 a.m. MT (11 a.m. ET) on May 10, 2023.

To join the conference call without operator assistance, you may register and enter your phone number to receive an instant automated callback. You can also dial direct to be entered to the call by an operator. Please dial 888-664-6383 (toll-free in North America) or 416-764-8650 (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 under investors/presentations and events. The webcast will be archived for approximately 90 days.

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