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What changed in Ovintiv Inc.'s 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of Ovintiv Inc.'s 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+161 added−154 removedSource: 10-K (2026-02-23) vs 10-K (2025-02-26)

Top changes in Ovintiv Inc.'s 2025 10-K

161 paragraphs added · 154 removed · 128 edited across 3 sections

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

1 edited+0 added−0 removed0 unchanged
Biggest changeItem 5. Market for Registrant’s Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities 50 Item 6. [Reserved] 52 Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations 53 Item 7A. Quantitative and Qualitative Disclosures about Market Risk 78 Item 8. Financial Statements and Supplementary Data 80
Biggest changeItem 5. Market for Registrant’s Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities 49 Item 6. [Reserved] 50 Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations 51 Item 7A. Quantitative and Qualitative Disclosures about Market Risk 78 Item 8. Financial Statements and Supplementary Data 80

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

119 edited+33 added−24 removed93 unchanged
Biggest changeOvintiv also incurs costs related to processing provided by third parties or through ownership interests in processing facilities. $ millions $/BOE 2024 2023 2024 2023 Upstream USA Operations $ 510 $ 547 $ 4.04 $ 4.54 Canadian Operations 1,043 1,056 $ 11.85 $ 12.29 Upstream Transportation and Processing 1,553 1,603 $ 7.25 $ 7.76 Other (1) 86 163 Total $ 1,639 $ 1,766 (1) Other includes pipeline transportation fees associated with previously divested assets in the USA Operations of approximately $50 million (2023 - $136 million) and other third-party transportation and processing fees in the Canadian Operations of approximately $36 million (2023 - $27 million). 2024 versus 2023 Transportation and processing expense decreased $127 million compared to 2023 primarily due to: • An expired pipeline transportation contract ($86 million), the impact of new downstream contracts in Uinta ($53 million), the sale of the Bakken assets in the second quarter of 2023 ($46 million), lower flow-through rates in Montney ($20 million), lower production volumes in Anadarko ($18 million), a higher U.S./Canadian dollar exchange rate ($17 million), the shut-in of production in Other Canadian Operations in 2024 due to low commodity prices ($11 million) and lower variable contract rates in Permian ($4 million); partially offset by: • Higher volumes in Permian, Uinta and Montney ($87 million), increased minimum volume commitments associated with certain gathering and processing assets in Montney ($20 million) and higher downstream transportation costs in Montney ($12 million). 62 Operating Operating expense includes costs paid by the Company, net of amounts capitalized, on oil and natural gas properties in which Ovintiv has a working interest.
Biggest changeOvintiv also incurs costs related to processing provided by third parties or through ownership interests in processing facilities. $ millions $/BOE 2025 2024 2025 2024 Upstream USA Operations $ 450 $ 510 $ 3.91 $ 4.04 Canadian Operations 1,235 1,043 $ 11.31 $ 11.85 Upstream Transportation and Processing 1,685 1,553 $ 7.51 $ 7.25 Other (1) 39 86 Total $ 1,724 $ 1,639 (1) Other includes pipeline transportation fees associated with previously divested assets in the USA Operations of approximately $3 million (2024 - $50 million) and other third-party transportation and processing fees with no associated production volumes in the Canadian Operations of approximately $36 million (2024 - $36 million). 2025 versus 2024 Transportation and processing expense increased $85 million compared to 2024 primarily due to: • Higher production volumes due to the Montney Acquisition during the first quarter of 2025 ($279 million) and higher natural gas production volumes in Permian ($19 million); 61 partially offset by: • The Uinta and Horn River assets sold in the first quarter of 2025 ($69 million), an expired pipeline transportation contract ($50 million), a higher U.S./Canadian dollar exchange rate ($20 million), lower downstream transportation costs in Montney ($17 million), lower midstream transportation costs in Montney ($15 million), third-party plant turnarounds in Montney in 2024 ($14 million), lower minimum volume commitment costs incurred associated with certain gathering and processing assets in Montney ($13 million), and lower natural gas production volumes in Anadarko ($12 million).
GAAP. These measures may not be similar to measures presented by other issuers and should not be viewed as a substitute for measures reported under U.S. GAAP. Additional information regarding these measures, including reconciliations to the closest GAAP measure, can be found in the Non-GAAP Measures section of this MD&A.
These measures may not be similar to measures presented by other issuers and should not be viewed as a substitute for measures reported under U.S. GAAP. Additional information regarding these measures, including reconciliations to the closest GAAP measure, can be found in the Non-GAAP Measures section of this MD&A.
Further declines in the 12‑month average trailing commodity prices could further reduce proved reserves values and result in the recognition of future ceiling test impairments. Future ceiling test impairments can also result from changes to reserves estimates, future development costs, capitalized costs and unproved property costs.
Further declines in the 12‑month average trailing commodity prices could reduce proved reserves values and result in the recognition of future ceiling test impairments. Future ceiling test impairments can also result from changes to reserves estimates, future development costs, capitalized costs and unproved property costs.
During 2024, the Company received settlement proceeds of approximately $156 million related to the previous dispositions of certain legacy assets. Accordingly, the Company recognized total net proceeds of $156 million as a gain within Other (gains) losses, net.
During 2024, the Company received settlement proceeds of approximately $156 million related to the previous dispositions of certain legacy assets. Accordingly, the Company recognized the total net proceeds of $156 million as a gain within Other (gains) losses, net.
Safety is a foundational value at Ovintiv and plays a critical role in the Company’s belief that a safe workplace is a strong indicator of a well-managed business. This safety-oriented mindset enables the Company to quickly respond to emergencies and minimize any impacts to employees and business continuity. Safety performance goals are incorporated into the Company’s annual compensation program.
Safety is a foundational value at Ovintiv and plays a critical role in the Company’s belief that a safe workplace is a strong indicator of a well-managed business. This safety-oriented mindset enables the Company to quickly respond to emergencies and minimize impacts to employees and business continuity. Safety performance goals are incorporated into the Company’s annual compensation program.
Additional information on office sublease income can be found in Note 14 to the Consolidated Financial Statements included in Item 8 of this Annual Report on Form 10-K. 61 Operating Expenses Production, Mineral and Other Taxes Production, mineral and other taxes include production and property taxes.
Additional information on office sublease income can be found in Note 14 to the Consolidated Financial Statements included in Item 8 of this Annual Report on Form 10-K. Operating Expenses Production, Mineral and Other Taxes Production, mineral and other taxes include production and property taxes.
Additional information on financial covenants can be found in Note 15 to the Consolidated Financial Statements included in Item 8 of this Annual Report on Form 10-K. 68 Sources and Uses of Cash The following table summarizes the sources and uses of the Company’s cash and cash equivalents.
Additional information on financial covenants can be found in Note 15 to the Consolidated Financial Statements included in Item 8 of this Annual Report on Form 10-K. Sources and Uses of Cash The following table summarizes the sources and uses of the Company’s cash and cash equivalents.
This MD&A includes the following sections: • Executive Overview • Results of Operations • Liquidity and Capital Resources • Accounting Policies and Estimates • Non-GAAP Measures Executive Overview Strategy Ovintiv aims to be a leading North American energy producer and is focused on developing its high-quality multi-basin portfolio of oil and natural gas producing plays as part of its strategy outlined in Items 1 and 2 of this Annual Report on Form 10-K.
This MD&A includes the following sections: • Executive Overview • Results of Operations • Liquidity and Capital Resources • Accounting Policies and Estimates • Non-GAAP Measures Execu tive Overview Strategy Ovintiv aims to be a leading North American energy producer and is focused on developing its high-quality multi-basin portfolio of oil and natural gas producing plays as part of its strategy outlined in Items 1 and 2 of this Annual Report on Form 10-K.
Additional information on the Company’s Canadian Operations segment and the Bow office lease can be found in the Results of Operations section in this MD&A and in the Consolidated Financial Statements included in Item 8 of this Annual Report on Form 10-K. Ovintiv is currently in compliance with all financial covenants under the Credit Facilities.
Additional information on the Company’s Canadian Operations segment and the Bow office lease can be found in the Results of Operations section in this MD&A and in the Consolidated Financial Statements included in Item 8 of this Annual Report on Form 10‑K. Ovintiv is currently in compliance with all financial covenants under the Credit Facilities and Term Credit Agreement.
These strategies include incorporating new and proven technologies, optimizing processes in its operations and working closely with third-party providers to develop best practices. The Company continues to look for innovative techniques and efficiencies in support of its commitment to emission reductions. In May 2024, Ovintiv published its 2023 Sustainability Report.
These strategies include incorporating new and proven technologies, optimizing processes in its operations and working closely with third-party providers to develop best practices. The Company continues to look for innovative techniques and efficiencies in support of its commitment to emission reductions. In May 2025, Ovintiv published its 2024 Sustainability Report.
Ovintiv remains committed to its GHG emissions reduction target and has tied the target to the Company’s annual compensation program for all employees. In addition, Ovintiv continues to work towards eliminating routine flaring in its operations. In conjunction with the Company’s strategy, Ovintiv may acquire assets to strengthen its multi-basin portfolio.
Ovintiv remains committed to its GHG emissions reduction target and has tied the target to the Company’s annual compensation program for all employees. In addition, Ovintiv continues to work towards eliminating routine flaring in its operations. In conjunction with the Company’s strategy, Ovintiv may acquire assets to strengthen its portfolio.
This MD&A should be read in conjunction with the audited Consolidated Financial Statements and accompanying notes for the year ended December 31, 2024 (“Consolidated Financial Statements”), which are included in Item 8 of this Annual Report on Form 10-K.
This MD&A should be read in conjunction with the audited Consolidated Financial Statements and accompanying notes for the year ended December 31, 2025 (“Consolidated Financial Statements”), which are included in Item 8 of this Annual Report on Form 10-K.
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations The MD&A is intended to provide a narrative description of the Company’s business from management’s perspective, which includes an overview of Ovintiv’s consolidated 2024 results and year-over-year comparisons between 2024 and 2023 results.
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations The MD&A is intended to provide a narrative description of the Company’s business from management’s perspective, which includes an overview of Ovintiv’s consolidated 2025 results and year-over-year comparisons between 2025 and 2024 results.
Additional information on the Company’s commodity price positions as at December 31, 2024 can be found in Note 25 to the Consolidated Financial Statements included in Item 8 of this Annual Report on Form 10-K.
Additional information on the Company’s commodity price positions as at December 31, 2025, can be found in Note 25 to the Consolidated Financial Statements included in Item 8 of this Annual Report on Form 10-K.
Natural gas prices for 2025 are expected to be impacted by the interplay between natural gas production and associated natural gas from oil production, changes in demand from the power generation sector, changes in export levels of U.S. liquefied natural gas, impacts from seasonal weather, as well as supply chain constraints or other disruptions resulting from geopolitical events.
Natural gas prices for 2026 are expected to be impacted by the interplay between natural gas production and associated natural gas from oil production, changes in demand from the power generation sector, changes in export levels of U.S. and Canadian liquefied natural gas, impacts from seasonal weather, as well as supply chain constraints or other disruptions resulting from geopolitical events.
Ovintiv closely monitors the accessibility of cost-effective credit and ensures that sufficient liquidity is in place to fund capital expenditures and dividend payments. In addition, the Company may use cash and cash equivalents, cash from operating activities, or proceeds from asset divestitures to fund its operations and capital allocation framework or to manage its capital structure as discussed below.
Ovintiv closely monitors the accessibility of cost-effective credit and ensures that sufficient liquidity is in place to fund capital expenditures and dividend payments. In addition, the Company may use cash and cash equivalents, cash from operating activities, or proceeds from asset divestitures to fund its operations and shareholder return framework or to manage its capital structure as discussed below.
Discussion and analysis of 2022 results and year-over-year comparisons between 2023 and 2022 results that are not included in this Form 10-K, can be found in Item 7 of the 2023 Annual Report on Form 10-K.
Discussion and analysis of 2023 results and year-over-year comparisons between 2024 and 2023 results that are not included in this Form 10-K, can be found in Item 7 of the 2024 Annual Report on Form 10-K.
The report highlights the Company’s 2023 environmental, social and governance results, and its progress in emissions intensity reductions with the goal to meet its Scope 1&2 GHG emissions target by 2030.
The report highlights the Company’s 2024 environmental, social and governance results, and its progress in emissions intensity reductions with the goal to meet its Scope 1&2 GHG emissions target by 2030.
At December 31, 2024, $38 million in cash and cash equivalents was held by Canadian subsidiaries. The cash held by Canadian subsidiaries is accessible and may be subject to additional U.S. income taxes and Canadian withholding taxes if repatriated. The Company’s capital structure consists of total shareholders’ equity plus long-term debt, including any current portion.
At December 31, 2025, $33 million in cash and cash equivalents was held by Canadian subsidiaries. The cash held by Canadian subsidiaries is accessible and may be subject to additional U.S. income taxes and Canadian withholding taxes if repatriated. The Company’s capital structure consists of total shareholders’ equity plus long-term debt, including any current portion.
The Company continues to have full access to two committed revolving U.S. dollar denominated credit facilities totaling $3.5 billion, which include a $2.2 billion revolving credit facility for Ovintiv Inc. and a $1.3 billion revolving credit facility for a Canadian subsidiary (collectively, the “Credit Facilities”).
The Company has full access to two committed revolving U.S. dollar denominated credit facilities totaling $3.5 billion, which include a $2.2 billion revolving credit facility for Ovintiv Inc. and a $1.3 billion revolving credit facility for a Canadian subsidiary (collectively, the “Credit Facilities”).
Contractual commitments relating to transportation and processing commitments, and drilling and field services can be found in Note 27 to the Consolidated Financial Statements included in Item 8 of this Annual Report on Form 10‑K.
Additional information can be found in Note 25 to the Consolidated Financial Statements included in Item 8 of this Annual Report on Form 10‑K. Contractual commitments relating to transportation and processing commitments, and drilling and field services can be found in Note 27 to the Consolidated Financial Statements included in Item 8 of this Annual Report on Form 10‑K.
The Company has assessed its goodwill for impairment at December 31, 2024 and no impairment was recognized. The reporting units’ fair values were substantially in excess of the carrying values and as a result were not at risk of failing the impairment test as at December 31, 2024.
The Company has assessed its goodwill for impairment at December 31, 2025, and no impairment was recognized. The reporting units’ fair values were in excess of the carrying values and as a result were not at risk of failing the impairment test as at December 31, 2025.
Management monitors Debt to Adjusted Capitalization as a proxy for the Company’s financial covenant under the Credit Facilities which require Debt to Adjusted Capitalization to be less than 60 percent.
Management monitors Debt to Adjusted Capitalization as a proxy for the Company’s financial covenant under the Credit Facilities and Term Credit Agreement which require Debt to Adjusted Capitalization to be less than 60 percent.
The most significant assumptions used to determine a reporting unit’s fair value include estimations of oil and natural gas reserves, including both proved reserves and risk-adjusted unproved reserves, estimates of market prices considering forward commodity price curves as of the measurement date, market discount rates and estimates of operating, administrative, and capital costs adjusted for inflation.
The most significant assumptions used to determine a reporting unit’s fair value include estimations of oil and natural gas reserves, including both proved reserves and risk-adjusted unproved reserves assessed by Ovintiv’s internal reservoir engineers, estimates of market prices considering forward commodity price curves as of the measurement date, market discount rates and estimates of operating, administrative, and capital costs adjusted for inflation.
Material Cash Requirements Ovintiv’s material cash requirements include various contractual obligations arising from long-term debt, operating leases, risk management liabilities and asset retirement obligations which are recognized in the Company’s Consolidated Balance Sheet. The Company expects to fund long-term material cash requirements primarily with cash from operating activities.
Material Cash Requirements Ovintiv’s material cash requirements include various contractual obligations arising from long-term debt, operating leases, risk management liabilities and asset retirement obligations which are recognized in the Company’s Consolidated Balance Sheet. The Company expects to fund long-term material cash requirements primarily with cash from operating activities. Interest payments include scheduled cash payments on long-term debt and other obligations.
The Company’s social commitment framework, which is rooted in the Company’s foundational values of integrity, safety, sustainability, trust and respect, reflects Ovintiv’s positive contributions to the communities where it operates and highlights the Company’s approach to enabling an inclusive culture that embraces diversity of thought, background and experience. Ovintiv remains committed to protecting the health and safety of its workforce.
The Company’s social commitment framework, which is rooted in the Company’s foundational values of integrity, safety, sustainability, trust and respect, reflects Ovintiv’s positive contributions to the communities where it operates and highlights the Company’s approach to enabling an inclusive culture. Ovintiv remains committed to protecting the health and safety of its workforce.
As at December 31, 2024, the Company has a taxable temporary difference of approximately $137 million in respect of unremitted earnings that continue to be permanently reinvested for which a deferred income tax liability of $7 million has not been recognized and becomes subject to taxation upon the remittance of dividends.
As at December 31, 2025, the Company has a taxable temporary difference of approximately $261 million in respect of unremitted earnings that continue to be permanently reinvested for which a deferred income tax liability of $13 million has not been recognized and becomes subject to taxation upon the remittance of dividends.
Ovintiv has a U.S. shelf registration statement under which the Company may issue from time to time, debt securities, common stock, preferred stock, warrants, units, share purchase contracts and share purchase units in the U.S. The U.S. shelf registration statement expires in March 2026.
Ovintiv has a U.S. shelf registration statement under which the Company may issue from time to time, debt securities, common stock, preferred stock, warrants, units, share purchase contracts and share purchase units in the U.S. The U.S. shelf registration statement expires in March 2026 and is intended to be renewed by the Company.
Normal Course Issuer Bid On September 26, 2024, the Company announced it had received regulatory approval for the renewal of its NCIB program, which enables the Company to purchase, for cancellation or return to treasury, up to approximately 25.9 million shares of common stock over a 12-month period from October 3, 2024 to October 2, 2025.
Normal Course Issuer Bid On September 29, 2025, the Company announced it had received regulatory approval for the renewal of its NCIB program, which enables the Company to purchase, for cancellation or return to treasury, up to approximately 22.3 million shares of common stock over a 12-month period from October 3, 2025, to October 2, 2026.
Moreover, acquisitions 64 of oil and natural gas assets are transacted at market prices, which may be higher than the SEC average trailing prices at the reporting date and could result in the recognition of a ceiling test impairment.
Moreover, acquisitions of oil and natural gas properties are transacted at market prices, which may be higher than the SEC 12-month average trailing prices at the reporting date and could result in the recognition of a ceiling test impairment.
The transaction had an effective date of October 1, 2024. • On January 22, 2025, the Company closed its previously announced divestiture of substantially all of its Uinta assets, comprising approximately 126,000 net acres in the Uinta Basin of Utah, to FourPoint Resources, LLC, for approximately $2.0 billion before closing adjustments.
The transaction had an effective date of October 1, 2024. • On January 22, 2025, the Company closed its previously announced divestiture of substantially all of its Uinta assets, comprising approximately 126,000 net acres in the Uinta Basin of Utah, to FourPoint Resources, LLC, for approximately $1.9 billion, after closing and other adjustments.
Depending on the Company’s credit rating and market demand, the Company may issue from its two U.S. commercial paper (“CP”) programs, which include a $1.5 billion program for Ovintiv Inc. and a $1.0 billion program for a Canadian subsidiary. As at December 31, 2024, the Company had no balance outstanding under its U.S. CP program.
Depending on the Company’s credit rating and market demand, the Company may issue from its two U.S. commercial paper (“CP”) programs, which include a $1.5 billion program for Ovintiv Inc. and a $1.0 billion program for a Canadian subsidiary. As at December 31, 2025, the Company had $351 million outstanding under its U.S.
Additional information on Ovintiv’s 2025 Corporate Guidance can be accessed on the Company’s website at www.ovintiv.com . Environmental, Social and Governance Ovintiv recognizes the importance of implementing and maintaining sustainable practices to reduce its environmental footprint. The Company voluntarily participates in emission reduction programs and has adopted a range of strategies to help reduce emissions from its operations.
Additional information on Ovintiv’s 2026 Corporate Guidance can be accessed on the Company’s website at www.ovintiv.com . 55 Sustainability Ovintiv recognizes the importance of implementing and maintaining sustainable practices to manage its environmental footprint. The Company participates in emission reduction programs and has adopted a range of strategies to help reduce emissions from its operations.
($ millions, except as indicated) 2024 2023 Cash From (Used in) Operating Activities $ 3,721 $ 4,167 (Add back) deduct: Net change in other assets and liabilities (74 ) (62 ) Net change in non-cash working capital (247 ) 330 Non-GAAP Cash Flow $ 4,042 $ 3,899 Debt to Capitalization and Debt to Adjusted Capitalization Debt to Adjusted Capitalization is a non-GAAP measure which adjusts capitalization for historical ceiling test impairments that were recorded as at December 31, 2011.
($ millions, except as indicated) 2025 2024 Cash From (Used in) Operating Activities $ 3,652 $ 3,721 (Add back) deduct: Net change in other assets and liabilities (40 ) (74 ) Net change in non-cash working capital (93 ) (247 ) Non-GAAP Cash Flow $ 3,785 $ 4,042 Debt to Capitalization and Debt to Adjusted Capitalization Debt to Adjusted Capitalization is a non-GAAP measure which adjusts capitalization for historical ceiling test impairments that were recorded as at December 31, 2011.
Additional information on restructuring charges and long-term incentive costs can be found in Notes 21 and 22 to the Consolidated Financial Statements included in Item 8 of this Annual Report on Form 10-K. 65 Other (Income) Expenses ($ millions) 2024 2023 Interest $ 412 $ 355 Foreign Exchange (Gain) Loss, Net (19 ) 19 Other (Gains) Losses, Net (165 ) (20 ) Total Other (Income) Expenses $ 228 $ 354 Interest Interest expense primarily includes interest on Ovintiv’s short-term and long-term debt.
Additional information on restructuring charges and long-term incentive costs can be found in Notes 21 and 22 to the Consolidated Financial Statements included in Item 8 of this Annual Report on Form 10-K. 64 Other (Income) Expenses ($ millions) 2025 2024 Interest $ 376 $ 412 Foreign Exchange (Gain) Loss, Net 31 (19 ) Other (Gains) Losses, Net (46 ) (165 ) Total Other (Income) Expenses $ 361 $ 228 Interest Interest expense primarily includes interest on Ovintiv’s short-term and long-term debt.
Additional information on foreign exchange rates and the effects of foreign exchange rate changes can be found in Item 7A of this Annual Report on Form 10-K. 2024 versus 2023 Net foreign exchange gain of $19 million compared to a loss of $19 million in 2023 primarily due to: • Unrealized foreign exchange gains on the translation of intercompany notes compared to losses in 2023 ($71 million), realized foreign exchange gains on the settlement of intercompany notes compared to losses in 2023 ($49 million) and gains on other monetary revaluations compared to losses in 2023 ($26 million); partially offset by: • Unrealized foreign exchange losses on the translation of U.S. dollar risk management contracts issued from Canada compared to gains in 2023 ($112 million).
Additional information on foreign exchange rates and the effects of foreign exchange rate changes can be found in Item 7A of this Annual Report on Form 10-K. 2025 versus 2024 Net foreign exchange loss of $31 million compared to a gain of $19 million in 2024 primarily due to: • Unrealized foreign exchange losses on the translation of intercompany notes compared to gains in 2024 ($99 million), higher realized foreign exchange losses on the settlement of U.S. dollar risk management contracts issued from Canada ($95 million) and losses on other monetary revaluations compared to gains in 2024 ($33 million); partially offset by: • Unrealized foreign exchange gains on the translation of U.S. dollar risk management contracts issued from Canada compared to losses in 2024 ($177 million).
The acquisition will add approximately 109,000 net acres in the core of the liquids-rich Alberta Montney.
The acquisition added approximately 109,000 net acres in the core of the liquids-rich Alberta Montney.
The Credit Facilities provide financial flexibility and allow the Company to fund its operations or capital investment program. At December 31, 2024, there were no outstanding amounts under the revolving Credit Facilities.
The Credit Facilities, which mature in December 2029, provide financial flexibility and allow the Company to fund its operations or capital investment program. At December 31, 2025, there were no outstanding amounts under the revolving Credit Facilities.
As at the end of 2024, the Company had achieved a greater than 45 percent reduction in the Scope 1&2 GHG emissions intensity from 2019 levels and is on track to meet its emissions intensity reduction target of 50 percent by 2030 measured against the 2019 baseline.
As at the end of 2025, the Company had achieved a greater than 43 percent reduction in the Scope 1&2 GHG emissions intensity from 2019 levels and expects to meet its emissions intensity reduction target of 50 percent by 2030 measured against the 2019 baseline.
($ millions) 2024 2023 Purchased Product $ 1,546 $ 2,815 2024 versus 2023 Purchased product expense decreased $1,269 million compared to 2023 primarily due to: • Lower third-party purchased volumes in the USA Operations ($1,169 million) and lower natural gas benchmark prices ($119 million); partially offset by: • Higher purchase prices on third-party oil volumes ($19 million). 63 Depreciation, Depletion & Amortization Proved properties within each country cost center are depleted using the unit-of-production method based on proved reserves as discussed in Note 1 to the Consolidated Financial Statements included in Item 8 of this Annual Report on Form 10-K.
($ millions) 2025 2024 Purchased Product $ 1,447 $ 1,546 2025 versus 2024 Purchased product expense decreased $99 million compared to 2024 primarily due to: • Lower third-party liquids purchase prices ($396 million); partially offset by: • Higher third-party purchased liquids volumes in the USA Operations ($263 million) and higher third-party natural gas purchase prices ($36 million). 62 Depreciation, Depletion & Amortization Proved properties within each country cost center are depleted using the unit-of-production method based on proved reserves as discussed in Note 1 to the Consolidated Financial Statements included in Item 8 of this Annual Report on Form 10-K.
Management monitors Debt to Adjusted Capitalization, which is a non-GAAP measure defined in the Non-GAAP Measures section of this MD&A, as a proxy for Ovintiv’s financial covenant under the Credit Facilities, which requires Debt to Adjusted Capitalization to be less than 60 percent. As at December 31, 2024, the Company’s Debt to Adjusted Capitalization was 23 percent.
Management monitors Debt to Adjusted Capitalization, which is a non-GAAP measure defined in the Non-GAAP Measures section of this MD&A, as a proxy for Ovintiv’s financial covenant under the Credit Facilities and Term Credit Agreement, which requires Debt to Adjusted Capitalization to be less than 60 percent.
The following table provides the effects of the Company’s risk management activities on revenues. $ millions Per-Unit 2024 2023 2024 2023 Realized Gains (Losses) on Risk Management Commodity Price Oil ($/bbl) $ (34 ) $ (24 ) $ (0.55 ) $ (0.40 ) NGLs - Plant Condensate ($/bbl) (1 ) 1 $ (0.04 ) $ 0.05 NGLs - Other ($/bbl) 4 - $ 0.13 $ - Natural Gas ($/Mcf) 298 (21 ) $ 0.47 $ (0.03 ) Other (1) 4 1 $ - $ - Total ($/BOE) 271 (43 ) $ 1.25 $ (0.21 ) Unrealized Gains (Losses) on Risk Management (136 ) 194 Total Gains (Losses) on Risk Management, Net $ 135 $ 151 (1) Other primarily includes realized gains or losses from other derivative contracts with no associated production volumes.
The following table provides the effects of the Company’s risk management activities on revenues. $ millions Per-Unit 2025 2024 2025 2024 Realized Gains (Losses) on Risk Management Commodity Price Oil ($/bbl) $ 40 $ (34 ) $ 0.77 $ (0.55 ) NGLs - Plant Condensate ($/bbl) - (1 ) $ - $ (0.04 ) NGLs - Other ($/bbl) 8 4 $ 0.24 $ 0.13 Natural Gas ($/Mcf) 118 298 $ 0.18 $ 0.47 Other (1) - 4 $ - $ - Total ($/BOE) 166 271 $ 0.74 $ 1.25 Unrealized Gains (Losses) on Risk Management 6 (136 ) Total Gains (Losses) on Risk Management, Net $ 172 $ 135 (1) Other primarily includes realized gains from other derivative contracts with no associated production volumes.
Ovintiv pursues innovative ways to maximize cash flows, and to reduce operating and administrative expenses. Markets for oil and natural gas are exposed to different price risks and are inherently volatile. The Company enters into derivative financial instruments to mitigate price volatility and provide more certainty around cash flows.
Markets for oil and natural gas are exposed to different price risks and are inherently volatile. The Company enters into derivative financial instruments to mitigate price volatility and provide more certainty around cash flows.
In addition, the Company is dedicated to driving progress in areas of environmental, social, and governance, aligning with its commitment to corporate responsibility. In support of the Company’s commitment to enhancing shareholder value, Ovintiv utilizes its capital allocation framework to provide competitive returns to shareholders while strengthening its balance sheet.
In addition, the Company is dedicated to driving progress in the area of sustainability, aligning with its commitment to corporate responsibility. In support of the Company’s commitment to enhancing shareholder value, Ovintiv utilizes its shareholder return framework to provide competitive returns to shareholders while strengthening its balance sheet.
($ millions, except as indicated) December 31, 2024 December 31, 2023 Debt (Long-Term Debt, including Current Portion) $ 5,453 $ 5,737 Total Shareholders’ Equity 10,331 10,370 Capitalization $ 15,784 $ 16,107 Debt to Capitalization 35% 36% Debt (Long-Term Debt, including Current Portion) $ 5,453 $ 5,737 Total Shareholders’ Equity 10,331 10,370 Equity Adjustment for Impairments at December 31, 2011 7,746 7,746 Adjusted Capitalization $ 23,530 $ 23,853 Debt to Adjusted Capitalization 23% 24% 76 Debt to EBITDA and Debt to Adjusted EBITDA Debt to EBITDA and Debt to Adjusted EBITDA are non-GAAP measures.
($ millions, except as indicated) December 31, 2025 December 31, 2024 Debt (Long-Term Debt, including Current Portion) $ 5,202 $ 5,453 Total Shareholders’ Equity 11,195 10,331 Capitalization $ 16,397 $ 15,784 Debt to Capitalization 32% 35% Debt (Long-Term Debt, including Current Portion) $ 5,202 $ 5,453 Total Shareholders’ Equity 11,195 10,331 Equity Adjustment for Impairments at December 31, 2011 7,746 7,746 Adjusted Capitalization $ 24,143 $ 23,530 Debt to Adjusted Capitalization 22% 23% 76 Debt to EBITDA and Debt to Adjusted EBITDA Debt to EBITDA and Debt to Adjusted EBITDA are non-GAAP measures.
All acquisitions are thoroughly assessed and evaluated for environmental impacts and alignment with the Company’s GHG emissions target. Ovintiv works to integrate sustainable practices within the acquired operations to support company-wide sustainability objectives.
Acquisitions are assessed and evaluated for environmental impacts and alignment with the Company’s GHG emissions target. Ovintiv continues to work to integrate sustainable practices within acquired operations to support company-wide sustainability objectives, while maintaining its 2030 GHG emissions target.
($ millions, except as indicated) December 31, 2024 December 31, 2023 Debt (Long-Term Debt, including Current Portion) $ 5,453 $ 5,737 Net Earnings (Loss) 1,125 2,085 Add back (deduct): Depreciation, depletion and amortization 2,290 1,825 Interest 412 355 Income tax expense (recovery) 226 425 EBITDA $ 4,053 $ 4,690 Debt to EBITDA (times) 1.3 1.2 Debt (Long-Term Debt, including Current Portion) $ 5,453 $ 5,737 Net Earnings (Loss) 1,125 2,085 Add back (deduct): Depreciation, depletion and amortization 2,290 1,825 Impairments 450 - Accretion of asset retirement obligation 19 19 Interest 412 355 Unrealized (gains) losses on risk management 136 (194 ) Foreign exchange (gain) loss, net (19 ) 19 Other (gains) losses, net (165 ) (20 ) Income tax expense (recovery) 226 425 Adjusted EBITDA $ 4,474 $ 4,514 Debt to Adjusted EBITDA (times) 1.2 1.3 77
($ millions, except as indicated) December 31, 2025 December 31, 2024 Debt (Long-Term Debt, including Current Portion) $ 5,202 $ 5,453 Net Earnings (Loss) 1,242 1,125 Add back (deduct): Depreciation, depletion and amortization 2,179 2,290 Interest 376 412 Income tax expense (recovery) (472 ) 226 EBITDA $ 3,325 $ 4,053 Debt to EBITDA (times) 1.6 1.3 Debt (Long-Term Debt, including Current Portion) $ 5,202 $ 5,453 Net Earnings (Loss) 1,242 1,125 Add back (deduct): Depreciation, depletion and amortization 2,179 2,290 Impairments 920 450 Accretion of asset retirement obligation 28 19 Interest 376 412 Unrealized (gains) losses on risk management (6 ) 136 Foreign exchange (gain) loss, net 31 (19 ) Other (gains) losses, net (46 ) (165 ) Income tax expense (recovery) (472 ) 226 Adjusted EBITDA $ 4,252 $ 4,474 Debt to Adjusted EBITDA (times) 1.2 1.2 77
Oil & NGLs Natural Gas WTI ($/bbl) Edmonton Condensate (C$/bbl) Henry Hub ($/MMBtu) AECO (C$/MMBtu) 12-Month Average Trailing Reserves Pricing (1) 2024 75.48 99.60 2.13 1.26 2023 78.22 104.61 2.64 2.78 (1) All prices were held constant in all future years when estimating net revenues and reserves.
Oil & NGLs Natural Gas WTI ($/bbl) Edmonton Condensate (C$/bbl) Henry Hub ($/MMBtu) AECO (C$/MMBtu) 12-Month Average Trailing Reserves Pricing (1) 2025 65.34 90.09 3.39 1.76 2024 75.48 99.60 2.13 1.26 (1) All prices were held constant in all future years when estimating net revenues and reserves.
($ millions) Activity Type 2024 2023 Sources of Cash, Cash Equivalents and Restricted Cash Cash from operating activities Operating $ 3,721 $ 4,167 Proceeds from divestitures Investing 163 772 Corporate acquisition Investing 12 - Issuance of long-term debt Financing - 2,278 3,896 7,217 Uses of Cash and Cash Equivalents Capital expenditures Investing 2,303 2,744 Acquisitions Investing 205 277 Corporate acquisition, net of cash acquired Investing - 3,225 Net repayment of revolving debt Financing 284 109 Purchase of shares of common stock Financing 597 426 Dividends on shares of common stock Financing 316 307 Other Financing/Investing 158 122 3,863 7,210 Foreign Exchange Gain (Loss) on Cash, Cash Equivalents and Restricted Cash Held in Foreign Currency 6 (9 ) Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash $ 39 $ (2 ) Operating Activities Net cash from operating activities in 2024 was $3,721 million and was primarily a reflection of the impacts from average realized commodity prices, production volumes, changes in non‑cash working capital and realized gains/losses on risk management.
($ millions) Activity Type 2025 2024 Sources of Cash, Cash Equivalents and Restricted Cash Cash from operating activities Operating $ 3,652 $ 3,721 Proceeds from divestitures Investing 1,927 163 Corporate acquisition Investing - 12 Net issuance of revolving debt Financing 351 - Other Financing 102 - 6,032 3,896 Uses of Cash and Cash Equivalents Capital expenditures Investing 2,147 2,303 Acquisitions Investing 2,537 205 Net repayment of revolving debt Financing - 284 Repayment of long-term debt Financing 600 - Purchase of shares of common stock Financing 307 597 Dividends on shares of common stock Financing 308 316 Other Financing/Investing 127 158 6,026 3,863 Foreign Exchange Gain (Loss) on Cash, Cash Equivalents and Restricted Cash Held in Foreign Currency (13 ) 6 Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash $ (7 ) $ 39 68 Operating Activities Net cash from operating activities in 2025 was $3,652 million and was primarily a reflection of the impacts from production volumes, average realized commodity prices, realized gains/losses on risk management and changes in non‑cash working capital.
Investing Activities The Company’s primary investing activities are capital expenditures, acquisitions and proceeds from divestitures, which are summarized in Notes 2 and 8 to the Consolidated Financial Statements included in Item 8 of this Annual Report on Form 10‑K. 69 2024 and 2023 Net cash used in investing activities in 2024 was $2,457 million primarily due to capital expenditures and acquisitions in the USA Operations.
Investing Activities The Company’s primary investing activities are capital expenditures, acquisitions and proceeds from divestitures, which are summarized in Notes 2 and 8 to the Consolidated Financial Statements included in Item 8 of this Annual Report on Form 10‑K. 2025 and 2024 Net cash used in investing activities in 2025 was $2,884 million primarily due to the Montney Acquisition and capital expenditures, partially offset by the sale of the Company’s Uinta assets.
This represents approximately 4.5 percent of upstream product revenues which was within the full year 2024 guidance range of four percent to five percent of upstream product revenues.
This represents approximately four percent of upstream product revenues which was within the full year 2025 guidance range of 3.75 to 4.50 percent of upstream product revenues.
During 2024, the Company purchased for cancellation, approximately 12.7 million shares of common stock for total consideration of approximately $597 million. For additional information on the NCIB, refer to Note 18 to the Consolidated Financial Statements included in Item 8 of this Annual Report on Form 10-K.
During 2025, under the previous NCIB program, which extended from October 3, 2024, to October 2, 2025, the Company purchased for cancellation, approximately 7.8 million shares of common stock for total consideration of approximately $307 million. 70 For additional information on the NCIB, refer to Note 18 to the Consolidated Financial Statements included in Item 8 of this Annual Report on Form 10-K.
Ovintiv also had approximately $204 million in undrawn letters of credit issued in the normal course of business as collateral security, primarily related to sales arrangements.
Ovintiv also had approximately $185 million in undrawn letters of credit issued in the normal course of business as collateral security.
The 12‑month average trailing price is calculated as the average of the price on the first day of each month within the trailing 12‑month period. In 2024, the Company recognized a before-tax non-cash ceiling test impairment of $450 million in the Canadian Operations.
The 12‑month average trailing price is calculated as the average of the price on the first day of each month within the trailing 12‑month period. In 2025, the Company recognized before-tax non-cash ceiling test impairments of $871 million and $49 million in the Canadian Operations and USA Operations, respectively.
In 2025, the Company expects to incur full year upstream transportation and processing costs of approximately $7.50 per BOE to $8.00 per BOE, upstream operating expenses of approximately $3.75 per BOE to $4.25 per BOE, and total production, mineral and other taxes of approximately 3.75 to 4.50 percent of upstream revenues.
In 2026, following the close of the Anadarko divestiture, the Company expects to incur upstream transportation and processing costs of approximately $8.75 per BOE to $9.25 per BOE, upstream operating expenses of approximately $3.00 per BOE to $3.50 per BOE, and total production, mineral and other taxes of approximately 3.25 to 3.75 percent of upstream product revenues.
($ millions, except as indicated) 2024 2023 Cash and Cash Equivalents $ 42 $ 3 Available Credit Facilities 3,500 3,486 Available Uncommitted Demand Lines (1) 91 234 Issuance of U.S.
($ millions, except as indicated) 2025 2024 Cash and Cash Equivalents $ 35 $ 42 Available Credit Facilities 3,500 3,500 Available Uncommitted Demand Lines (1) 125 91 Available Term Credit Agreement (2) 1,200 - Issuance of U.S.
The Company had lower upstream product revenues in 2024 compared to 2023, which primarily resulted from lower average realized natural gas prices, excluding the impact of risk management activities, partially offset by higher total production volumes. Decreases in average realized natural gas prices of 38 percent, were primarily due to lower benchmark prices.
The Company had lower upstream product revenues in 2025 compared to 2024, which primarily resulted from lower oil production volumes and lower average realized liquids prices, excluding the impact of risk management activities, partially offset by higher plant condensate production volumes and higher average realized natural gas prices, excluding the impact of risk management activities.
Supply and the accumulation of global oil inventories are expected to be impacted by changes in OPEC+ and non-OPEC+ production levels, consumer demand behavior and geopolitical volatility. Natural gas prices are primarily impacted by structural changes in supply and demand, deviations from seasonally normal weather, as well as volatility in regional markets.
Natural gas prices are primarily impacted by structural changes in supply and demand, deviations from seasonally normal weather, as well as volatility in regional markets. Oil prices for 2026 are expected to be impacted by the interplay between the pace of global economic growth, global oil demand, OPEC+ and non-OPEC+ production, geopolitical events, and macroeconomic uncertainties.
Production • Produced average liquids volumes of 302.0 Mbbls/d, which accounted for 52 percent of total production volumes.
Production • Produced average liquids volumes of 304.2 Mbbls/d, which accounted for 50 percent of total production volumes.
Benchmark Prices (average for the period) 2024 2023 Oil & NGLs WTI ($/bbl) $ 75.72 $ 77.62 Houston ($/bbl) 77.24 78.95 Edmonton Condensate (C$/bbl) 100.34 103.76 Natural Gas NYMEX ($/MMBtu) $ 2.27 $ 2.74 AECO (C$/Mcf) 1.44 2.93 Dawn (C$/MMBtu) 2.79 3.15 58 Production Volumes and Realized Prices Production Volumes (1) Realized Prices (2) 2024 2023 2024 2023 Oil (Mbbls/d, $/bbl) USA Operations 167.9 158.8 $ 73.90 $ 76.46 Canadian Operations 0.4 0.1 70.38 81.59 Total 168.3 158.9 73.90 76.46 NGLs – Plant Condensate (Mbbls/d, $/bbl) USA Operations 11.2 10.9 57.83 58.53 Canadian Operations 31.7 32.0 71.97 74.52 Total 42.9 42.9 68.28 70.46 NGLs – Other (Mbbls/d, $/bbl) USA Operations 75.8 74.6 18.02 16.27 Canadian Operations 15.0 15.6 27.45 26.78 Total 90.8 90.2 19.57 18.09 Total Oil & NGLs (Mbbls/d, $/bbl) USA Operations 254.9 244.3 56.57 57.29 Canadian Operations 47.1 47.7 57.80 58.93 Total 302.0 292.0 56.76 57.55 Natural Gas (MMcf/d, $/Mcf) USA Operations 537 517 1.62 2.43 Canadian Operations 1,161 1,125 1.73 2.89 Total 1,698 1,642 1.70 2.74 Total Production (MBOE/d, $/BOE) USA Operations 344.4 330.4 44.39 46.15 Canadian Operations 240.6 235.2 19.67 25.76 Total 585.0 565.6 34.22 37.67 Production Mix (%) Oil & Plant Condensate 36 36 NGLs – Other 16 16 Total Oil & NGLs 52 52 Natural Gas 48 48 Production Change – Year Over Year (%) (3) Total Oil & NGLs 3 12 Natural Gas 3 10 Total Production 3 11 (1) Average daily.
Benchmark Prices (average for the period) 2025 2024 Oil & NGLs WTI ($/bbl) $ 64.81 $ 75.72 Houston ($/bbl) 65.85 77.24 Edmonton Condensate (C$/bbl) 88.95 100.34 Natural Gas NYMEX ($/MMBtu) $ 3.43 $ 2.27 AECO (C$/Mcf) 1.86 1.44 Dawn (C$/MMBtu) 4.57 2.79 57 Production Volumes and Realized Prices Production Volumes (1) Realized Prices (2) 2025 2024 2025 2024 Oil (Mbbls/d, $/bbl) USA Operations 142.3 167.9 $ 65.66 $ 73.90 Canadian Operations 0.4 0.4 63.17 70.38 Total 142.7 168.3 65.65 73.90 NGLs - Plant Condensate (Mbbls/d, $/bbl) USA Operations 11.3 11.2 50.99 57.83 Canadian Operations 55.4 31.7 62.22 71.97 Total 66.7 42.9 60.32 68.28 NGLs - Other (Mbbls/d, $/bbl) USA Operations 76.0 75.8 17.40 18.02 Canadian Operations 18.8 15.0 23.94 27.45 Total 94.8 90.8 18.70 19.57 Total Oil & NGLs (Mbbls/d, $/bbl) USA Operations 229.6 254.9 48.97 56.57 Canadian Operations 74.6 47.1 52.59 57.80 Total 304.2 302.0 49.86 56.76 Natural Gas (MMcf/d, $/Mcf) USA Operations 515 537 2.38 1.62 Canadian Operations 1,347 1,161 2.36 1.73 Total 1,862 1,698 2.36 1.70 Total Production (MBOE/d, $/BOE) USA Operations 315.3 344.4 39.54 44.39 Canadian Operations 299.2 240.6 23.73 19.67 Total 614.5 585.0 31.85 34.22 Production Mix (%) Oil & Plant Condensate 34 36 NGLs - Other 16 16 Total Oil & NGLs 50 52 Natural Gas 50 48 Production Change - Year Over Year (%) (3) Total Oil & NGLs 1 3 Natural Gas 10 3 Total Production 5 3 (1) Average daily.
Commercial Paper - (270 ) Total Liquidity $ 3,633 $ 3,453 Long-Term Debt, including current portion $ 5,453 $ 5,737 Total Shareholders’ Equity $ 10,331 $ 10,370 Debt to Capitalization (%) (2) 35 36 Debt to Adjusted Capitalization (%) (2) 23 24 (1) Includes three uncommitted demand lines totaling $295 million, net of $204 million in related undrawn letters of credit (2023 - $289 million and $55 million, respectively).
Commercial Paper (351 ) - Total Liquidity $ 4,509 $ 3,633 Long-Term Debt, including current portion $ 5,202 $ 5,453 Total Shareholders’ Equity $ 11,195 $ 10,331 Debt to Capitalization (%) (3) 32 35 Debt to Adjusted Capitalization (%) (3) 22 23 (1) Includes three uncommitted demand lines totaling $310 million, net of $185 million in related undrawn letters of credit (2024 - $295 million and $204 million, respectively).
Additional information on leases can be found in Note 14 to the Consolidated Financial Statements included in Item 8 of this Annual Report on Form 10-K. Risk management liabilities represent Ovintiv’s net liability positions with counterparties. Additional information can be found in Note 25 to the Consolidated Financial Statements included in Item 8 of this Annual Report on Form 10‑K.
As at December 31, 2025, the Company subleased approximately 50 percent of The Bow office space under the lease agreement. Additional information on leases can be found in Note 14 to the Consolidated Financial Statements included in Item 8 of this Annual Report on Form 10-K. Risk management liabilities represent Ovintiv’s net liability positions with counterparties.
The definitions used in the covenant under the Credit Facilities adjust capitalization for cumulative historical ceiling test impairments recorded in conjunction with the Company’s January 1, 2012 adoption of U.S. GAAP.
As at December 31, 2025, the Company’s Debt to Adjusted Capitalization was 22 percent. The definitions used in the covenant under the Credit Facilities and Term Credit Agreement adjust capitalization for cumulative historical ceiling test impairments recorded in conjunction with the Company’s January 1, 2012, adoption of U.S. GAAP.
Upstream operating expenses of $4.24 per BOE was slightly below the full year 2024 guidance range of $4.25 per BOE to $4.75 per BOE. • Incurred total production, mineral and other taxes of $333 million.
Upstream operating expenses of $3.80 per BOE was within the full year 2025 guidance range of $3.75 per BOE to $4.00 per BOE. • Incurred total production, mineral and other taxes of $286 million.
The decrease reflected lower WTI and Houston benchmark prices which were both down two percent and the lower regional pricing relative to benchmark prices.
The decrease reflected lower Houston and WTI benchmark prices which were down 15 percent and 14 percent, respectively, partially offset by higher regional pricing relative to the benchmark prices.
Additional information on the net settlement proceeds can be found in Note 8 to the Consolidated Financial Statements included in Item 8 of this Annual Report on Form 10-K.
For additional information on the segmented results, refer to Note 2 to the Consolidated Financial Statements included in Item 8 of this Annual Report on Form 10‑K.
Capital expenditures decreased $441 million compared to 2023 primarily due to decreased completions activity in Montney, Anadarko and Permian, drilling efficiencies in Uinta, and the sale of the Bakken assets in the second quarter of 2023, partially offset by increased capital inventory.
Capital expenditures decreased $156 million compared to 2024 primarily due to decreased capital activity resulting from the sale of the Uinta assets in the first quarter of 2025, and decreased capital activity and increased efficiencies in Permian, partially offset by increased capital activity in Montney primarily due to the Montney Acquisition in the first quarter of 2025 and increased capital activity in Anadarko.
As a result, the assumptions used in determining expected future taxable earnings are consistent with those used in the goodwill impairment assessment. Ovintiv recognizes the financial statement effects of a tax position when it is more likely than not, based on the technical merits, that the position will be sustained upon examination by a taxing authority.
Ovintiv recognizes the financial statement effects of a tax position when it is more likely than not, based on the technical merits, that the position will be sustained upon examination by a taxing authority.
The transaction had an effective date of October 1, 2024. • On September 26, 2024, the Company announced it had received regulatory approval for the renewal of its NCIB program, which enables the Company to purchase, for cancellation or return to treasury, up to approximately 25.9 million shares of common stock over a 12-month period from October 3, 2024 to October 2, 2025.
The Company acquired over 8,000 net acres and added approximately 120 net well locations. 52 • On September 29, 2025, the Company announced it had received regulatory approval for the renewal of its NCIB program, which enables the Company to purchase, for cancellation or return to treasury, up to approximately 22.3 million shares of common stock over a 12-month period from October 3, 2025, to October 2, 2026.
Average oil and plant condensate volumes of 211.2 Mbbls/d, or 70 percent of total liquids production volumes, exceeded full year 2024 guidance range of 209.0 Mbbls/d to 211.0 Mbbls/d. • Produced average natural gas volumes of 1,698 MMcf/d, which accounted for 48 percent of total production volumes.
Average oil and plant condensate volumes of 209.4 Mbbls/d, or 69 percent of total liquids production volumes, were within the full year 2025 guidance range of 208.0 Mbbls/d to 210.0 Mbbls/d. • Produced average natural gas volumes of 1,862 MMcf/d, which accounted for 50 percent of total production volumes.
Additional information on fair value changes can be found in Note 24 to the Consolidated Financial Statements included in Item 8 of this Annual Report on Form 10-K.
Additional information on fair value changes can be found in Note 24 to the Consolidated Financial Statements included in Item 8 of this Annual Report on Form 10-K. 60 Sublease Revenues Sublease revenues primarily include amounts related to the sublease of office space in The Bow office building recorded in the Corporate and Other segment.
(2) Service revenues comprise third-party gathering and processing fees. (3) Total Operating Expenses include non-cash items such as DD&A, impairments, accretion of asset retirement obligations and long-term incentive costs. Revenues Ovintiv’s revenues are substantially derived from sales of oil, NGLs and natural gas production.
(2) Total Operating Expenses include non-cash items such as DD&A, impairments, accretion of asset retirement obligations and long-term incentive costs. The year ended December 31, 2025, includes non-cash ceiling test impairments of $920 million (2024 - $450 million). Revenues Ovintiv’s revenues are substantially derived from sales of oil, NGLs and natural gas production.
The depletion rate in the USA Operations increased $3.04 per BOE compared to 2023 primarily due to a higher depletable base. Ceiling Test Impairment Under full cost accounting, the carrying amount of Ovintiv’s oil and natural gas properties within each country cost center is subject to a ceiling test performed quarterly.
Ceiling Test Impairment Under full cost accounting, the carrying amount of Ovintiv’s oil and natural gas properties within each country cost center is subject to a ceiling test performed quarterly.
Property taxes are generally assessed based on the value of the underlying assets. $ millions $/BOE 2024 2023 2024 2023 USA Operations $ 319 $ 327 $ 2.53 $ 2.71 Canadian Operations 14 15 $ 0.16 $ 0.18 Total $ 333 $ 342 $ 1.56 $ 1.66 2024 versus 2023 Production, mineral and other taxes decreased $9 million compared to 2023 primarily due to: • The sale of the Bakken assets in the second quarter of 2023 ($26 million), lower production volumes in Anadarko ($18 million), lower production tax rates ($9 million) and lower natural gas commodity prices ($6 million); partially offset by: • Higher volumes in Permian and Uinta ($42 million) and higher property taxes in Permian primarily due to the assets acquired in the second quarter of 2023 ($11 million).
Property taxes are generally assessed based on the value of the underlying assets. $ millions $/BOE 2025 2024 2025 2024 USA Operations $ 265 $ 319 $ 2.30 $ 2.53 Canadian Operations 21 14 $ 0.19 $ 0.16 Total $ 286 $ 333 $ 1.27 $ 1.56 2025 versus 2024 Production, mineral and other taxes decreased $47 million compared to 2024 primarily due to: • The Uinta assets sold in the first quarter of 2025 ($32 million), lower oil commodity prices ($27 million) and lower property taxes in Permian ($6 million); partially offset by: • Higher property taxes primarily due to the Montney Acquisition in the first quarter of 2025 ($7 million) and higher effective production tax rates ($6 million).
The decrease reflected lower AECO, NYMEX and Dawn benchmark prices which were down 51 percent, 17 percent and 11 percent, respectively, and lower regional pricing relative to benchmark prices in the USA Operations; and • Higher average natural gas production volumes of 56 MMcf/d increased revenues by $60 million.
The increase reflected the higher NYMEX and AECO benchmark prices which were up 51 percent and 29 percent, respectively, and exposure to other downstream benchmark prices relating to the Company’s diversified markets in the Canadian Operations, partially offset by lower regional pricing relative to benchmark prices in the USA Operations; and • Higher average natural gas production volumes of 164 MMcf/d increased revenues by $101 million.
Non-GAAP Cash Flow in 2024 was $4,042 million and was primarily impacted by the items affecting cash from operating activities which are discussed below and in the Results of Operations section of this MD&A. 2024 versus 2023 Net cash from operating activities decreased $446 million compared to 2023 primarily due to: • Lower realized commodity prices ($797 million), changes in non-cash working capital ($577 million), higher operating expense, excluding non-cash long-term incentive costs ($80 million) and higher interest expense ($56 million); partially offset by: • Higher production volumes ($343 million), realized gains on risk management in revenues compared to losses in 2023 ($314 million), a decrease in current income tax expense ($199 million), lower transportation and processing expense ($127 million), and lower administrative expense, excluding non-cash long-term incentive costs ($58 million).
Non-GAAP Cash Flow in 2025 was $3,785 million and was primarily impacted by the items affecting cash from operating activities which are discussed below and in the Results of Operations section of this MD&A. 2025 versus 2024 Net cash from operating activities decreased $69 million compared to 2024 primarily due to: • Lower realized liquids commodity prices ($713 million), lower oil production volumes ($704 million), lower realized gains on risk management in revenues ($105 million), higher realized foreign exchange losses on the settlement of U.S. dollar risk management contracts issued from Canada ($95 million), and higher transportation and processing expense ($85 million); partially offset by: • Higher NGLs and natural gas production volumes ($765 million), higher realized natural gas commodity prices ($446 million), changes in non-cash working capital ($154 million), lower operating expense, excluding non-cash long-term incentive costs ($70 million), lower production, mineral and other taxes ($47 million), lower administrative expense, excluding non-cash long-term incentive costs ($40 million), lower current income tax expense ($40 million) and lower interest expense ($35 million).
For additional information on the segmented results, refer to Note 2 to the Consolidated Financial Statements included in Item 8 of this Annual Report on Form 10‑K. 53 In evaluating its operations and assessing its leverage, Ovintiv reviews performance-based measures such as Non‑GAAP Cash Flow and debt-based metrics such as Debt to Adjusted Capitalization, Debt to EBITDA and Debt to Adjusted EBITDA, which are non-GAAP measures and do not have any standardized meaning under U.S.
In evaluating its operations and assessing its leverage, Ovintiv reviews performance-based measures such as Non‑GAAP Cash Flow and debt-based metrics such as Debt to Adjusted Capitalization, Debt to EBITDA and Debt 51 to Adjusted EBITDA, which are non-GAAP measures and do not have any standardized meaning under U.S. GAAP.
Additional information can be found under Upstream Assets and Reserve Estimates in the Critical Accounting Estimates section of this MD&A. $ millions $/BOE 2024 2023 2024 2023 Upstream USA Operations $ 1,971 $ 1,519 $ 15.64 $ 12.60 Canadian Operations 297 286 $ 3.37 $ 3.33 Upstream DD&A 2,268 1,805 $ 10.60 $ 8.74 Corporate & Other 22 20 Total $ 2,290 $ 1,825 2024 versus 2023 DD&A increased $465 million compared to 2023 primarily due to: • Higher depletion rates and production volumes in the USA Operations ($384 million and $68 million, respectively).
Additional information can be found under Upstream Assets and Reserve Estimates in the Critical Accounting Estimates section of this MD&A. $ millions $/BOE 2025 2024 2025 2024 Upstream USA Operations $ 1,475 $ 1,971 $ 12.81 $ 15.64 Canadian Operations 683 297 $ 6.26 $ 3.37 Upstream DD&A 2,158 2,268 $ 9.62 $ 10.60 Corporate & Other 21 22 Total $ 2,179 $ 2,290 2025 versus 2024 DD&A decreased $111 million compared to 2024 primarily due to: • Lower depletion rates and production volumes in the USA Operations primarily due to the sale of the Uinta assets in the first quarter of 2025 ($327 million and $170 million, respectively); partially offset by: • Higher depletion rates and production volumes in the Canadian Operations primarily due to the Montney Acquisition in the first quarter of 2025 ($322 million and $70 million, respectively).
These expenses primarily include salaries and benefits, operating leases, office, information technology, transaction, restructuring and long-term incentive costs. $ millions $/BOE 2024 2023 2024 2023 Administrative, excluding Long-Term Incentive Costs, Restructuring Costs, Transaction and Legal Costs (1) $ 283 $ 278 $ 1.32 $ 1.35 Long-term incentive costs 40 22 0.19 0.11 Restructuring costs 27 - 0.13 - Transaction and legal costs 15 93 0.07 0.45 Total Administrative $ 365 $ 393 $ 1.71 $ 1.91 (1) Includes costs related to The Bow office lease of $116 million (2023 - $114 million), half of which is recovered from sublease revenues. 2024 versus 2023 Administrative expense decreased $28 million compared to 2023 primarily due to: • Transaction costs incurred mainly related to the Permian assets acquired in the second quarter of 2023 ($83 million); partially offset by: • Restructuring costs incurred in 2024 ($27 million), higher long-term incentive costs resulting from changes in the Company’s share price in 2023 ($18 million), and increases in travel and legal costs ($9 million).
These expenses primarily include salaries and benefits, operating leases, office, information technology, restructuring and long-term incentive costs. $ millions $/BOE 2025 2024 2025 2024 Administrative, excluding Long-Term Incentive Costs, Restructuring Costs, and Transaction and Legal Costs (1) $ 282 $ 283 $ 1.26 $ 1.32 Long-term incentive costs 36 40 0.16 0.19 Restructuring costs 12 27 0.05 0.13 Transaction and legal costs 1 15 0.01 0.07 Total Administrative $ 331 $ 365 $ 1.48 $ 1.71 (1) Includes costs related to The Bow office lease of $111 million (2024 - $116 million), half of which is recovered from sublease revenues. 2025 versus 2024 Administrative expense decreased $34 million compared to 2024 primarily due to: • Lower restructuring costs incurred in 2025 ($15 million) and lower legal costs ($15 million).
($ millions, except as indicated) 2024 2023 Dividend Payments $ 316 $ 307 Dividend Payments ($/share) $ 1.20 $ 1.15 On February 26, 2025, the Board of Directors declared a dividend of $0.30 per share of common stock payable on March 31, 2025 to common shareholders of record as of March 14, 2025. 70 Dividends increased $9 million compared to 2023 as a result of Ovintiv increasing its annualized dividend to $1.20 per share of common stock in the second quarter of 2023.
($ millions, except as indicated) 2025 2024 Dividend Payments $ 308 $ 316 Dividend Payments ($/share) $ 1.20 $ 1.20 On February 23, 2026, the Board of Directors declared a dividend of $0.30 per share of common stock payable on March 31, 2026, to common shareholders of record as of March 13, 2026.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeThe table below summarizes selected foreign exchange impacts on Ovintiv’s financial results when compared to the same periods in the prior years. 2024 2023 $ millions $/BOE $ millions $/BOE Increase (Decrease) in: Capital Investment $ (8 ) $ (13 ) Transportation and Processing Expense (1) (16 ) $ (0.07 ) (34 ) $ (0.17 ) Operating Expense (1) (1 ) (0.01 ) (5 ) (0.02 ) Administrative Expense (1 ) (0.01 ) (9 ) (0.04 ) Depreciation, Depletion and Amortization (1) (4 ) (0.02 ) (8 ) (0.04 ) (1) Reflects upstream operations. 78 Foreign exchange gains and losses also arise when monetary assets and monetary liabilities denominated in foreign currencies are translated and settled, and primarily include: • U.S. dollar denominated financing debt issued from Canada • U.S. dollar denominated risk management assets and liabilities held in Canada • U.S. dollar denominated cash and short-term investments held in Canada • Foreign denominated intercompany loans To partially mitigate the effect of foreign exchange fluctuations on future commodity revenues and expenses, the Company may enter into foreign currency derivative contracts.
Biggest changeThe table below summarizes selected foreign exchange impacts on Ovintiv’s financial results when compared to the same periods in the prior years. 2025 2024 $ millions $/BOE $ millions $/BOE Increase (Decrease) in: Capital Investment (1) $ (10 ) $ (8 ) Transportation and Processing Expense (1) (20 ) $ (0.09 ) (16 ) $ (0.07 ) Operating Expense (1) (2 ) (0.01 ) (1 ) (0.01 ) Administrative Expense (4 ) (0.02 ) (1 ) (0.01 ) Depreciation, Depletion and Amortization (1) (6 ) (0.03 ) (4 ) (0.02 ) (1) Reflects upstream operations. 78 Foreign exchange gains and losses also arise when monetary assets and monetary liabilities denominated in foreign currencies are translated and settled, and primarily include: • U.S. dollar denominated financing debt issued from Canada • U.S. dollar denominated risk management assets and liabilities held in Canada • U.S. dollar denominated cash and short-term investments held in Canada • Foreign denominated intercompany loans To partially mitigate the effect of foreign exchange fluctuations on future commodity revenues and expenses, the Company may enter into foreign currency derivative contracts from time to time.
For additional information relating to the Company’s derivative and financial instruments, see Note 25 under Item 8 of this Annual Report on Form 10-K. The table below summarizes the sensitivity of the fair value of the Company’s risk management positions to fluctuations in commodity prices, with all other variables held constant.
For additional information relating to the Company’s derivative and financial instruments, see Note 25 in Item 8 of this Annual Report on Form 10-K. The table below summarizes the sensitivity of the fair value of the Company’s risk management positions to fluctuations in commodity prices, with all other variables held constant.
The following table presents the foreign exchange rates for the respective years ended December 31. 2024 2023 Foreign Exchange Rates (C$ per US$1) Average 1.370 1.350 Period End 1.439 1.323 As Ovintiv operates primarily in the United States and Canada, fluctuations in the exchange rate between the U.S. and Canadian dollars can have a significant effect on the Company’s reported results.
The following table presents the foreign exchange rates for the respective years ended December 31. 2025 2024 Foreign Exchange Rates (C$ per US$1) Average 1.398 1.370 Period End 1.371 1.439 As Ovintiv operates primarily in the United States and Canada, fluctuations in the exchange rate between the U.S. and Canadian dollars can have a significant effect on the Company’s reported results.
Fluctuations in foreign currency exchange rates could have resulted in unrealized gains (losses) impacting pre-tax net earnings as follows: December 31, 2024 (US$ millions) 10% Rate Increase 10% Rate Decrease Foreign currency exchange $ 131 $ (160 ) INTEREST RATE RISK Interest rate risk arises from changes in market interest rates that may affect the fair value or future cash flows from the Company’s financial assets or liabilities.
Fluctuations in foreign currency exchange rates could have resulted in unrealized gains (losses) impacting pre-tax net earnings as follows: December 31, 2025 (US$ millions) 10% Rate Increase 10% Rate Decrease Foreign currency exchange $ 29 $ (35 ) INTEREST RATE RISK Interest rate risk arises from changes in market interest rates that may affect the fair value or future cash flows from the Company’s financial assets or liabilities.
Accordingly, on a before-tax basis, the sensitivity for each one percent change in interest rates on floating rate revolving credit and term loan borrowings was nil (2023 - $3 million). 79
Accordingly, on a before-tax basis, the sensitivity for each one percent change in interest rates on floating rate revolving credit and term loan borrowings was $4 million (2024 - nil). 79
As at December 31, 2024, Ovintiv did not have any U.S. dollar denominated financing debt issued from Canada that was subject to foreign exchange exposure. The table below summarizes the sensitivity to foreign exchange rate fluctuations, with all other variables held constant.
As at December 31, 2025, the Company does not have any notional U.S. dollar denominated currency swaps As at December 31, 2025, Ovintiv did not have any U.S. dollar denominated financing debt issued from Canada that was subject to foreign exchange exposure. The table below summarizes the sensitivity to foreign exchange rate fluctuations, with all other variables held constant.
Fluctuations in commodity prices could have resulted in unrealized gains (losses) impacting pre-tax net earnings as follows: December 31, 2024 10% Price 10% Price (US$ millions) Increase Decrease Oil price $ (161 ) $ 164 Natural gas price (18 ) 16 FOREIGN EXCHANGE RISK Foreign exchange risk arises from changes in foreign exchange rates that may affect the fair value or future cash flows of the Company’s financial assets or liabilities.
Fluctuations in commodity prices could have resulted in unrealized gains (losses) impacting pre-tax net earnings as follows: December 31, 2025 10% Price 10% Price (US$ millions) Increase Decrease Oil price $ (41 ) $ 36 NGL price - - Natural gas price 8 (7 ) FOREIGN EXCHANGE RISK Foreign exchange risk arises from changes in foreign exchange rates that may affect the fair value or future cash flows from the Company’s financial assets or liabilities.
The Company may partially mitigate its exposure to interest rate changes by holding a mix of both fixed and floating rate debt and may also enter into interest rate derivatives to partially mitigate effects of fluctuations in market interest rates. As at December 31, 2024, Ovintiv did not have any floating rate revolving credit and term loan borrowings outstanding.
The Company may partially mitigate its exposure to interest rate changes by holding a mix of both fixed and floating rate debt and may also enter into interest rate derivatives to partially mitigate effects of fluctuations in market interest rates. As at December 31, 2025, Ovintiv had floating rate revolving credit and term loan borrowings of $351 million.
Removed
As at December 31, 2024, Ovintiv has entered into $100 million notional U.S. dollar denominated currency swaps at an average exchange rate of C$1.3875 to US$1, which mature monthly throughout the first half of 2025.
Removed
To manage the foreign exchange risk associated with purchasing an asset denominated in Canadian dollars, the Company entered into $2.4 billion notional U.S. dollar denominated currency swaps at an average exchange rate of C$1.3825 to US$1. These swaps were settled ahead of the transaction close on January 31, 2025.

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