Ovintiv (OVV) Q4 2025 Earnings Call Transcript

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Feb. 24, 2026, 10 a.m. ET

• President & CEO — Brendan McCracken

• Chief Financial Officer — Corey [Surname not provided]

• Chief Operating Officer — Gregory Dean Givens

• Head of Investor Relations — Jason Verhaest

• Operator

Brendan McCracken: Thanks, Jason. Good morning, everybody, and convey you for joining us. We are excited contiguous to update the marketplace connected our latest results and the culmination of respective years of strategical translation astatine Ovintiv Inc. With relentless absorption and discipline, our squad has remade our portfolio, reset our equilibrium sheet, grown profitability, and built 1 of the deepest inventory positions successful our industry. We person done each that portion delivering superior returns connected invested capital, some done the drill spot but besides done astute transactions. All along, we person been guided by a precise elemental formula.

Superior and durable returns volition accrue to the institution that builds a heavy inventory successful the champion resource, creates a competitory execution vantage done its civilization and expertise, and has the subject to allocate superior to the highest returns, and get those returns connected a afloat rhythm ground each the mode to the bottommost line. Year to date, successful 2026, we person closed the NuVista acquisition and reached an statement to merchantability our Anadarko assets. This means our portfolio translation is implicit and it leaves america with a precise focused and precocious prime portfolio successful 2 of the champion plays successful North America, the Permian and the Montney.

Proceeds from the Anadarko merchantability volition spell to the equilibrium sheet, marking the accomplishment of our indebtedness people and rightsizing our superior structure. The enhanced resilience of the concern means that we tin instrumentality much currency to shareholders, and the caller shareholder instrumentality model that we unveiled contiguous does conscionable that.

Several years ago, we made the strategical determination to absorption our portfolio and physique precocious prime inventory extent successful the Permian and the Montney. Approximately 80% of the remaining sub-$50 breakeven lipid locations successful North America are located successful those 2 basins. Bolstering our positions successful these plays wherever we person competitory vantage means we tin proceed to present durable returns for galore years to come. Since 2023, we person accrued our Permian and Montney drilling inventory by much than 3,200 locations astatine an mean outgo of $1,400,000 per nett 10,000-foot location, and we did it without diluting our shareholders oregon stressing our equilibrium sheet.

This inventory beingness enlargement has been unmatched by our peers and leaves america with 1 of the astir invaluable inventory positions successful the industry. Our sequencing betwixt inventory additions and indebtedness was cautiously managed. We recognized the value of reducing debt, and we balanced that nonsubjective with timely transactions that our squad generated to enactment our shareholders into premium inventory for the close price. This greatly extended our premium inventory duration. We person present cleared some of these hurdles, and that represents a worldly derisking lawsuit for our shareholders.