Ovintiv Reports First Quarter 2023 Financial and Operating Results.

DENVER: Ovintiv Inc. (NYSE: OVV) (TSX: OVV) ("Ovintiv" or the "Company") today announced its first quarter 2023 financial and operating results. The Company plans to hold a conference call and webcast at 9:00 a.m. MT (11:00 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 at www.ovintiv.com under Presentations and Events - Ovintiv.

"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 CEO, 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-GAAP Free Cash Flow, durable returns on invested capital and substantial cash returns(1) to our shareholders. Our recently announced transactions will further build on our momentum and are expected to drive more than 25% higher cash returns per share over the next twelve months following the close of the transactions and more than 40% 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 totaled 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 MBOE/d, including 166 Mbbls/d of oil and condensate, 86 Mbbls/d of other NGLs and 1,555 MMcf/d of natural gas.

Upstream operating expense was $4.33 per barrel of oil equivalent ("BOE"). Upstream transportation and processing costs were $9.00 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% of WTI), $21.11 per barrel for other NGLs (C2-C4) and $3.80 per thousand cubic feet ("Mcf") for natural gas (111% of NYMEX) resulting in a total average realized price of $39.08 per BOE. Excluding the impact of hedges, the average realized prices for oil and...