Mr. Brendan McCracken reports

OVINTIV REPORTS SECOND QUARTER 2023 FINANCIAL AND OPERATING RESULTS

Ovintiv Inc. has released its second 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 July 28, 2023. Please see dial-in details within this release, as well as additional details on the company's website under presentations and events -- Ovintiv.

"Our outstanding second quarter results demonstrate our capability to use innovation to increase well productivity per lateral foot and drive returns," said Ovintiv President and CEO, Brendan McCracken. "We have seamlessly integrated the newly acquired Midland Basin assets into our existing Permian operations. Our team is already deploying the same drilling and completion designs that have been delivering exceptional results on our legacy position and our first, fully Ovintiv-designed wells are expected to be online late in the fourth quarter.

Our high-graded portfolio and our leading capital efficiency have positioned us to deliver superior durable returns for our shareholders for many years to come."

Second Quarter 2023 Financial and Operating Results

• The Company recorded net earnings of $336 million, or $1.34 per diluted share of common stock. Included in net earnings were net gains on risk management of $147 million, before tax.
• Cash from operating activities was $831 million, Non-GAAP Cash Flow was $699 million and capital investment totaled approximately $640 million, resulting in $59 million of Non-GAAP Free Cash Flow.
• Second quarter capital investment was lower than the second quarter guidance range of $670 million to $710 million resulting from capital efficiencies.
• Second quarter average total production volumes were above Company guidance on all products at approximately 573 MBOE/d, including 186 Mbbls/d of oil and condensate, 97 Mbbls/d of other NGLs and 1,743 MMcf/d of natural gas.
• Upstream operating expense was $3.23 per barrel of oil equivalent ("BOE"), which included a recovery of prior years' costs of $23 million. Upstream transportation and processing costs were $7.97 per BOE. Production, mineral and other taxes were $1.43 per BOE. These costs were below the midpoint of guidance on a combined basis.
• Excluding the impact of hedges, second quarter average realized prices were $71.50 per barrel for oil and condensate (97% of WTI), $14.43 per barrel for other NGLs (C2-C4) and $1.95 per thousand cubic feet ("Mcf") for natural gas (93% of NYMEX) resulting in a total average realized price of $31.56 per BOE. Including 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 $1.98 per Mcf (94% of NYMEX).

2023 Guidance

The Company issued its third quarter 2023 guidance and revised its full year guidance. Full year production guidance was increased due to strong well productivity across the portfolio and lower royalty rates in the Montney. Full year capital guidance was decreased due to execution efficiencies and cost savings.

Ovintiv expects capital investment in the third quarter to be the high point for the year as a result of the high level of activity in the Midland Basin assets at the time of acquisition. The Company expects the vast majority of the acquired wells in progress to be on production by year-end. Total company oil and condensate production is expected to average 210 Mbbls/d in the second half of the year, with volumes growing from the third quarter to the fourth quarter. On a combined basis, per unit upstream operating expense and upstream transportation and processing expense are expected to be five percent lower in the second half of the year compared to the original full year 2023 guidance.

2024 Outlook

In 2024, Ovintiv expects to deliver total company average oil and condensate production volumes of greater than 200 Mbbls/d with total capital investment of $2.1 billion to $2.5 billion. The Company's production profile is expected to normalize by mid-year 2024 with second-half 2024 oil and condensate production stabilizing at 200 Mbbls/d.

Returns to Shareholders

Ovintiv remains committed to its capital allocation framework, which returns at least 50% of post base dividend Non-GAAP Free Cash Flow to shareholders through buybacks and/or variable dividends.

In the second quarter of 2023, the Company returned approximately $172 million to shareholders through share buybacks totaling approximately $90 million and its base dividend of approximately $82 million.

During the second quarter, Ovintiv purchased for cancellation, approximately 2.5 million shares of common stock at an average price of $35.84 per share.

Continued Balance Sheet Focus

Ovintiv had $3.2 billion in total liquidity as of June 30, 2023, which included available credit facilities of $3,150 million, available uncommitted demand lines of $278 million, and cash and cash equivalents of $52 million, net of outstanding commercial paper of $330 million. The Company's long-term debt totaled $6.1 billion.

Ovintiv reported Debt to EBITDA of 1.2 times and Non-GAAP Debt to Adjusted EBITDA of 1.7 times as of June 30, 2023.

The Company remains committed to maintaining 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 with an associated long-term total debt target of $4.0 billion.

Dividend Declared

On July 27, 2023, Ovintiv's Board declared a quarterly dividend of $0.30 per share of common stock payable on September 29, 2023, to shareholders of record as of September 15, 2023.

Asset Highlights

Permian

Permian production averaged 139 MBOE/d (79% liquids) in the second quarter. The Company had 27 net wells turned in line ("TIL"). Ovintiv plans to invest approximately $1.4 to $1.5 billion in the play in 2023 to bring on 150 to 170 net wells TIL.

Montney

Montney production averaged 248 MBOE/d (21% liquids) in the second quarter. The Company had 29 net wells TIL. Ovintiv plans to invest approximately $500 to $600 million in the play in 2023 to bring on 70 to 80 net wells TIL.

Uinta

Uinta production averaged 22 MBOE/d (85% liquids) in the second quarter. The Company had three net wells TIL. Ovintiv plans to invest approximately $400 to $450 million in the play in 2023 to bring on 25 to 30 net wells TIL.

Anadarko

Anadarko production averaged 124 MBOE/d (61% liquids) in the second quarter. The Company had seven net wells TIL. Ovintiv plans to invest approximately $175 to $200 million in the play in 2023 to bring on 20 to 25 net wells TIL.

For additional information, please refer to the Second Quarter 2023 Results Presentation available on Ovintiv's website 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 second quarter results will be held at 9:00 a.m. MT (11:00 a.m. ET) on July 28, 2023.

To join the conference call without operator assistance, you may register and enter your phone number to receive an instant automated call back. 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.

Note 1 Non-GAAP measures

Important information

Ovintiv reports in U.S. dollars unless otherwise noted. Production, sales and reserves estimates are reported on an after-royalties basis, unless otherwise noted.

We seek Safe Harbor.