Ovintiv Inc.: Q1 FY2026 earnings call

What management said about Q1 FY2026, from the documents filed with the SEC on 11 May 2026: press release. Guidance figures: 5 new, 15 kept. The quarter’s numbers.

Read the filing

Key takeaways

• Production at high end of guidance: Average production was 679 MBOE/d, against 588.3 MBOE/d a year earlier; all products were at the high end of company guidance. Source
• Non-GAAP Free Cash Flow reached $634 million: Cash from operating activities was $1.1 billion and Non-GAAP Cash Flow $1.2 billion, after $605 million of capital expenditures; a year earlier free cash flow was $387 million. Source
• Net loss driven by ceiling impairments: Net loss was $630 million, or $2.35 per diluted share, including after-tax ceiling test impairments of $1.2 billion, or $4.30 per share. Source
• Oil realized price near WTI: Oil and condensate realized $70.14 per barrel including hedges, 98% of WTI; the year-earlier figure was $70.30. Source
• Net Debt below $3.3 billion: Net Debt was under $3.3 billion at April 30, 2026, about 40% lower than one year earlier. Source
• First quarter returns of $169 million: Returns comprised $84 million of buybacks for about 1.5 million shares and $85 million of base dividends. Source

“We’ve built a track record of leading execution efficiency and disciplined capital allocation and now we’ve combined those strengths with best-in-class inventory depth in the two best E&P assets, and a clean balance sheet,”

Brendan McCracken, Ovintiv President and CEO

Guidance

What changed from last quarter

• New: NuVista Energy acquisition closed; release gives about $2.8 billion, versus about $2.7 billion in the prior release. Source
• Ended: Anadarko assets sold in April for about $2.85 billion after preliminary adjustments, versus $3.0 billion agreed in the prior release. Source
• Ended: Term Credit Agreement repaid and terminated after Anadarko proceeds were received on April 9, 2026. Source
• Ended: $700 million 5.65% senior notes due 2028 redeemed on April 20, 2026. Source
• New: Board Chair retirement announced; Steven Nance elected Chair unanimously. Source
• New guidance: Second quarter 2026 guidance issued; full year 2026 guidance reiterated. Source

Quarter results and play output

• Production at high end of guidance: Average production was 679 MBOE/d, against 588.3 MBOE/d a year earlier; all products were at the high end of company guidance. Source
• Non-GAAP Free Cash Flow reached $634 million: Cash from operating activities was $1.1 billion and Non-GAAP Cash Flow $1.2 billion, after $605 million of capital expenditures; a year earlier free cash flow was $387 million. Source
• Net loss driven by ceiling impairments: Net loss was $630 million, or $2.35 per diluted share, including after-tax ceiling test impairments of $1.2 billion, or $4.30 per share. Source
• Risk management loss in revenues: The company recognized a net loss of $63 million before tax on risk management in revenues. Source
• Permian output and wells: Permian averaged 221 MBOE/d, 79% liquids, with 34 net wells turned in line during the quarter. Source
• Montney output and wells: Montney averaged 365 MBOE/d, 27% liquids, with 26 net wells turned in line during the quarter. Source

Realized prices and hedging

• Oil realized price near WTI: Oil and condensate realized $70.14 per barrel including hedges, 98% of WTI; the year-earlier figure was $70.30. Source
• Other NGLs and gas prices lower: Other NGLs realized $18.12 per barrel, down from $23.21; natural gas realized $3.24 per Mcf, 64% of NYMEX. Source
• Total realized price per BOE: Total average realized price was $36.08 per BOE, including the impact of realized hedges. Source

“With the enhanced stability of our business today, we are intensely focused on efficient execution and profitability.”

Brendan McCracken, Ovintiv President and CEO

Unit costs and capital spending

• Operating and transport costs: Upstream operating expense was $3.71 per BOE, against $3.89 a year earlier; transportation and processing was $7.53, against $7.36. Source
• Production taxes per BOE: Production, mineral and other taxes were $1.30 per BOE, down from $1.64, or 3.6% of upstream product revenue. Source
• Combined costs at low end: Combined upstream costs were at the low end of guidance for the quarter. Source
• Capital spend at low end: First quarter capital investment was $605 million, at the low end of the $600 million to $650 million guidance range. Source

Balance sheet and shareholder returns

• Net Debt below $3.3 billion: Net Debt was under $3.3 billion at April 30, 2026, about 40% lower than one year earlier. Source
• Net Debt of $6.4 billion at March 31: Net Debt was approximately $6.4 billion at March 31, 2026. Source
• Total liquidity about $2.8 billion: Total liquidity was approximately $2.8 billion at March 31, 2026. Source
• First quarter returns of $169 million: Returns comprised $84 million of buybacks for about 1.5 million shares and $85 million of base dividends. Source
• Year-to-date buybacks reach $180 million: Year-to-date share buybacks to April 30, 2026 totaled about 3.2 million shares for $180 million. Source

“We take our role as a responsible producer seriously,”

Brendan McCracken, Ovintiv President and CEO

Portfolio and execution focus

• Portfolio and innovation credited: Management credits disciplined portfolio management and stacked innovation for the quarter's results. Source
• Inventory depth in two E&P assets: Management points to inventory depth in its two E&P assets, combined with its track record of execution efficiency. Source
• Focus on execution and profitability: Management says the business has greater stability and is focused on efficient execution and profitability. Source

Sustainability, safety and board

• Scope 1 and 2 emissions target progress: The company reports having achieved more than 85% of its goal to cut Scope 1 and 2 intensity by 50% by 2030 versus 2019. Source
• Safety program expanded: The Leading with Safety program was expanded and Safe Decision-Making training introduced, focused on serious injury prevention. Source
• New independent director joins board: Gregory Hill joined the board as an independent director in January 2026, as board refreshment continues. Source
• 2025 Sustainability Report released: The 2025 Sustainability Report, the 21st annual report, was released on the company website on May 11, 2026. Source

Coming up, as management said on 11 May 2026

• Dividend payable June 30: The $0.30 per share dividend declared May 11 is payable June 30 to holders of record on June 15, 2026. Source

Figures management reported

Risks management discussed

• Financial: Ceiling test impairments of $1.2 billion after tax, driven by a weaker SEC 12-month trailing oil price. Source
• External: Basis differentials for gas, oil and condensate are managed alongside the hedge book. Source
• Financial: Net loss of $63 million before tax recognized on risk management in revenues. Source

Earlier plans management reported on

• Not stated: Company remains committed to a strong balance sheet and holds investment grade ratings from four agencies. Source
• Met: All products were at the high end of company guidance for the quarter. Source
• Met: Capital investment was at the low end of the guidance range. Source
• Met: Combined upstream costs were at the low end of guidance. Source

Other quarters

• Q2 FY2026 earnings call
• Q4 FY2025 earnings call
• Q3 FY2025 earnings call
• Q2 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.