NuVista Energy Acquisition
Ovintiv has entered into an agreement to acquire NuVista Energy, adding significant inventory in the Montney oil window. The transaction is expected to boost free cash flow per share by 10% and is leverage-neutral at closing.
Strong Financial Performance
Ovintiv delivered cash flow per share of $3.47 and free cash flow of $351 million, both exceeding consensus estimates. The company reduced net debt by $126 million and returned approximately $235 million to shareholders.
Montney and Permian Growth
Ovintiv has increased its Permian and Montney drilling inventory by more than 3,200 locations since 2023. The company plans to divest Anadarko assets to accelerate debt reduction, aiming to be below $4 billion in debt by the end of 2026.
Efficiency Improvements
Ovintiv achieved capital efficiency by lowering full-year capital by $50 million due to efficiency savings. Updated full-year guidance includes a 10,000 BOE per day increase in production for $50 million less in capital.
AECO Exposure Reduction
The NuVista acquisition is expected to reduce Ovintiv's AECO exposure from 30% to 25% by 2026, due to diversified market access and firm transportation agreements.