Ovintiv Inc. Q2 2024 10-Q Filed

TL;DR

Ovintiv's Q2 10-Q is in: significant derivative assets/liabilities show price risk management is active.

AI Summary

Ovintiv Inc. filed its 10-Q for the period ending June 30, 2024. The filing details financial performance and risk management activities, including significant derivative assets and liabilities related to price risk management. The company, headquartered in Denver, CO, operates in the crude petroleum and natural gas sector.

Why It Matters

This filing provides investors with a quarterly update on Ovintiv's financial health and its exposure to commodity price fluctuations through its risk management strategies.

Risk Assessment

Risk Level: medium — The company's significant derivative assets and liabilities indicate substantial exposure to commodity price volatility, a common risk in the oil and gas sector.

Key Numbers

• N/A — Revenue (Specific revenue figures are not detailed in the provided header information.)
• N/A — Net Income (Specific net income figures are not detailed in the provided header information.)
• N/A — Derivative Assets (The filing references derivative assets (current and noncurrent) indicating financial instruments used for hedging.)
• N/A — Derivative Liabilities (The filing references derivative liabilities (current and noncurrent) indicating financial instruments used for hedging.)

Key Players & Entities

• Ovintiv Inc. (company) — Filer of the 10-Q
• 20240630 (date) — End of the reporting period
• 370 - 17TH STREET, SUITE 1700, DENVER, CO 80202 (address) — Company's business and mail address
• 000000000 (dollar_amount) — IRS Number

FAQ

Filing Documents

• ovv-20240630.htm (10-Q) — 6020KB
• ovv-ex10_1.htm (EX-10.1) — 2206KB
• ovv-ex31_1.htm (EX-31.1) — 13KB
• ovv-ex31_2.htm (EX-31.2) — 12KB
• ovv-ex32_1.htm (EX-32.1) — 5KB
• ovv-ex32_2.htm (EX-32.2) — 5KB
• img247355521_0.jpg (GRAPHIC) — 8KB
• 0000950170-24-087984.txt ( ) — 26070KB
• ovv-20240630.xsd (EX-101.SCH) — 1834KB
• ovv-20240630_htm.xml (XML) — 6591KB

Financial Statements

Financial Statements 6 Condensed Consolidated Statement of Earnings 6 Condensed Consolidated Statement of Comprehensive Income 6 Condensed Consolidated Balance Sheet 7 Condensed Consolidated Statement of Changes in Shareholders' Equity 8 Condensed Consolidated Statement of Cash Flows 10 Notes to Condensed Consolidated Financial Statements 11 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 35 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 58 Item 4.

Controls and Procedures

Controls and Procedures 60 PART II Item 1.

Legal Proceedings

Legal Proceedings 61 Item 1A.

Risk Factors

Risk Factors 61 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 61 Item 3. Defaults Upon Senior Securities 62 Item 4. Mine Safety Disclosures 62 Item 5. Other Information 62 Item 6. Exhibits 62

Signatures

Signatures 63 2 DEFINITIONS Unless the context otherwise requires or otherwise expressly stated, all references in this Quarterly Report on Form 10-Q to "Ovintiv," the "Company," "us," "we," "our," and "ours" refer to Ovintiv Inc. and its consolidated subsidiaries. In addition, the following are other abbreviations and definitions of certain terms used within this Quarterly Report on Form 10Q: "AECO" means Alberta Energy Company and is the Canadian benchmark price for natural gas. "ASU" means Accounting Standards Update. "bbl" or "bbls" means barrel or barrels. "BOE" means barrels of oil equivalent. "Btu" means British thermal units, a measure of heating value. "CORRA" means Canadian Overnight Repo Rate Average. "DD&A" means depreciation, depletion and amortization expenses. "FASB" means Financial Accounting Standards Board. "GHG" means greenhouse gas. "Mbbls/d" means thousand barrels per day. "MBOE/d" means thousand barrels of oil equivalent per day. "Mcf" means thousand cubic feet. "MD&A" means Management's Discussion and Analysis of Financial Condition and Results of Operations. "MMBOE" means million barrels of oil equivalent. "MMBtu" means million Btu. "MMcf/d" means million cubic feet per day. "NCIB" means normal course issuer bid. "NGL" or "NGLs" means natural gas liquids. "NYMEX" means New York Mercantile Exchange. "NYSE" means New York Stock Exchange. "OPEC" means Organization of the Petroleum Exporting Countries. "SEC" means United States Securities and Exchange Commission. "S&P 400" means Standard and Poor's MidCap 400 index. "TSX" means Toronto Stock Exchange. "U.S.", "United States" or "USA" means United States of America. "U.S. GAAP" means U.S. Generally Accepted Accounting Principles. "WTI" means West Texas Intermediate. CONVERSIONS In this Quarterly Report on Form 10-Q, a conversion of natural gas volumes to BOE is on the basis of six Mcf to one bbl. BOE is based on a generic energy equ

FORWARD-LOOKING STATEMENTS AND RISK

FORWARD-LOOKING STATEMENTS AND RISK This Quarterly Report on Form 10-Q, and the other documents incorporated herein by reference (if any), contain certain forward-looking statements or information (collectively, "forward-looking statements") within the meaning of applicable securities legislation, including Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). All statements, except for statements of historical fact, that relate to the anticipated future activities, plans, strategies, objectives or expectations of the Company are forward-looking statements. When used in this Quarterly Report on Form 10Q, and the other documents incorporated herein by reference (if any), the use of words and phrases including "anticipates," "believes," "continue," "could," "estimates," "expects," "focused on," "forecast," "guidance," "intends," "maintain," "may," "opportunities," "outlook," "plans," "potential," "strategy," "targets," "will," "would" and other similar terminology is intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words or phrases. Without limiting the generality of the foregoing, forward-looking statements contained in this Quarterly Report on Form 10Q include: expectations of plans, strategies and objectives of the Company, including anticipated reserves development; the Company's ability to consummate any future acquisition and divestiture transactions; the Company's ability to successfully integrate any acquired assets (including the Permian Acquisition as defined in Note 9 to the Condensed Consolidated Financial Statements under Part I, Item 1 of this Quarterly Report on Form 10-Q) into its business; drilling plans and programs, including the amount and availability of capital to complete these plans and programs; the composition of the Company's assets and the anticipated capital

Financi al Statements

Item 1. Financi al Statements Condensed Consolidated State ment of Earnings (unaudited) Three Months Ended Six Months Ended June 30, June 30, (US$ millions, except per share amounts) 2024 2023 2024 2023 Revenues (Note 3) Product and service revenues (Note 4) $ 2,193 $ 2,352 $ 4,580 $ 4,944 Gains (losses) on risk management, net (Note 19) 77 147 23 89 Sublease revenues (Note 11) 18 18 37 35 Total Revenues 2,288 2,517 4,640 5,068 Operating Expenses (Note 3) Production, mineral and other taxes 89 76 172 160 Transportation and processing 413 452 832 907 Operating 237 175 480 381 Purchased product 333 692 773 1,393 Depreciation, depletion and amortization 580 419 1,146 783 Accretion of asset retirement obligation 4 4 9 9 Administrative 76 168 178 226 Total Operating Expenses 1,732 1,986 3,590 3,859 Operating Income (Loss) 556 531 1,050 1,209 Other (Income) Expenses Interest (Note 5) 105 80 203 151 Foreign exchange (gain) loss, net (Note 6) ( 10 ) 25 ( 38 ) 22 Other (gains) losses, net ( 5 ) ( 11 ) ( 9 ) ( 14 ) Total Other (Income) Expenses 90 94 156 159 Net Earnings (Loss) Before Income Tax 466 437 894 1,050 Income tax expense (recovery) (Note 7) 126 101 216 227 Net Earnings (Loss) $ 340 $ 336 $ 678 $ 823 Net Earnings (Loss) per Share of Common Stock (Note 14) Basic $ 1.28 $ 1.35 $ 2.53 $ 3.33 Diluted 1.27 1.34 2.51 3.28 Weighted Average Shares of Common Stock Outstanding (millions) (Note 14) Basic 266.2 249.4 267.9 246.9 Diluted 268.1 250.8 270.6 250.8 Condensed Consolidated Statement o f Comprehensive Income (unaudited) Three Months Ended Six Months Ended June 30, June 30, (US$ millions) 2024 2023 2024 2023 Net Earnings (Loss)

View Full Filing

View this 10-Q filing on SEC EDGAR