Ovintiv Inc. (OVV): Business Model Canvas [Dec-2025 Updated]

As you look at Ovintiv Inc. (OVV) right now, you're seeing a company finalizing a major portfolio shift, wrapping up the NuVista acquisition while planning the Anadarko asset sale. Honestly, after two decades analyzing these energy plays, I can tell you the core engine driving their value is relentless capital discipline across the Permian and Montney basins. We're talking about a tight 2025 CapEx budget between $2.125 billion to $2.175 billion, which is set to generate about $1.65 billion in Free Cash Flow, all while keeping upstream operating expenses low at just $3.71 per BOE. If you want to see exactly how they structure this high-grading strategy-from their key midstream partnerships to how they hedge commodity risk-dive into the Business Model Canvas I've mapped out below.

Ovintiv Inc. (OVV) - Canvas Business Model: Key Partnerships

You're looking at Ovintiv Inc.'s strategic alliances, the backbone that lets them execute complex, large-scale development, especially after the big NuVista Energy Ltd. move in late 2025. These aren't just vendor relationships; they are capital-light structures designed to de-risk and accelerate drilling cycles, particularly in the Montney.

The reliance on midstream partners for transport and processing is a core element of Ovintiv Inc.'s capital efficiency strategy. For instance, the long-standing relationship via the Cutbank Ridge Partnership (CRP) with Veresen Midstream operates on a fee-for-service arrangement. This structure means Ovintiv Inc. pays a usage fee rather than bearing the upfront capital cost and ownership risk of the infrastructure. Veresen Midstream has committed to undertaking up to C$5 billion of new midstream expansion to support development in that dedicated area of mutual interest within the Montney resource play. Ovintiv Inc., through the CRP, continues to operate the related facilities, which is a key operational control point.

The strategic rationale for partnering with drilling and completion service providers centers on achieving 'cube development' execution. This means standardizing drilling pads and processes to drive down cycle times and per-well costs. While specific service provider contracts aren't public, the expected outcome of the NuVista Energy Ltd. acquisition points to this efficiency: per well cost savings are estimated at approximately $1 million across the acquired assets, consistent with Ovintiv Inc.'s current Montney well costs.

The acquisition of NuVista Energy Ltd. was a major partnership consolidation move, announced in November 2025. This transaction values NuVista Energy Ltd. at approximately $2.7 billion (or C$3.8 billion, including the assumption of net debt). The deal consideration was split 50% cash and 50% Ovintiv Inc. common stock, aiming to be leverage neutral at closing. This move immediately added about 140,000 net acres and access to approximately 600 MMcf/d of long-term raw inlet processing capacity in the Montney.

The Cutbank Ridge Partnership (CRP) itself represents a foundational partnership with Mitsubishi Corporation in the Montney. Historically, Mitsubishi Corporation invested approximately C$2.9 billion to acquire a 40% interest in the CRP, which holds about 409,000 net acres of undeveloped Montney-formation lands. Ovintiv Inc. (as the successor to Encana) remains the managing partner with a 60% interest.

Securing financing for major transactions like the NuVista acquisition relies heavily on relationships with financial institutions. To fund the cash portion of the NuVista deal, Ovintiv Inc. entered into a Two-Year Term Credit Agreement on November 25, 2025, to secure a $1.2 billion term loan facility. This demonstrates active management of their capital structure. As of September 30, 2025, Ovintiv Inc. reported total liquidity of approximately $3.3 billion, which included available credit facilities of $3.5 billion. The company maintains a strong balance sheet, reporting Non-GAAP Debt to Adjusted EBITDA of 1.2 times as of that date, well above its long-term target of 1.0 times at mid-cycle prices.

Here's a look at some of the key financial and structural data points related to these partnerships and financing:

The execution efficiencies derived from these external relationships are quantifiable:

• Expected annual cost savings from the NuVista integration are approximately $100 million.
• The NuVista deal is expected to allow Ovintiv Inc.'s Montney oil and condensate volumes to grow more than 5% per year for the next three to five years.
• Ovintiv Inc.'s 2026 expected AECO exposure from Montney natural gas volumes is projected to decline from approximately 30% to 25% post-acquisition.
• The CRP land package with Mitsubishi Corporation covers about 409,000 net acres of undeveloped Montney-formation land.

These partnerships are about securing capacity and sharing development costs. It's a smart way to grow without over-leveraging the balance sheet, which is why the leverage metric remains tight at 1.2 times.

Ovintiv Inc. (OVV) - Canvas Business Model: Key Activities

You're looking at the core engine of Ovintiv Inc. as of late 2025, focusing on where the capital is actually being deployed to generate returns. It's all about execution in the premium basins while managing the portfolio actively.

Efficiently developing oil and gas reserves in the Permian and Montney is central. This isn't just about drilling; it's about speed and efficiency gains that translate directly to the bottom line. For instance, in the Permian, Ovintiv planned to invest between $1.20 billion to $1.25 billion in 2025 to bring on 130 to 140 net wells. This efficiency is measurable: drilling speed in the Permian increased by 35% and completion speed by 50% when compared to 2022 levels. The Montney region also saw significant capital allocation, with plans for approximately $575 million to $625 million in 2025 to develop 75 to 85 net wells.

The company's operational performance in Q2 2025 reflected this focus, with oil and condensate production hitting 211 Mbbls/d, exceeding the upper end of guidance. The Montney acquisition integration is showing results, with reported per well cost savings of $1.5 million on the new acreage.

The activity breakdown across the core basins for the full year 2025 capital investment guidance is detailed below:

Executing the 'cube development' strategy for capital efficiency is the methodology driving these results. This approach, which involves the simultaneous co-development of multiple stacked zones in a single window, has been in use since 2015. The success of this efficiency drive allowed Ovintiv Inc. to lower its full-year 2025 capital expenditure guidance to a range of $2.125 billion to $2.175 billion, a reduction of $50 million at the midpoint from previous estimates, while simultaneously raising production guidance.

Managing commodity price risk through a robust hedging program provides a floor for cash flow predictability. For the first quarter of 2026, Ovintiv Inc. had added hedges including 15 Mbbls/d of WTI three-ways with a soft floor above $60/bbl, alongside 50 MMcf/d of natural gas three-ways across 2026. The impact of risk management was visible in Q2 2025, where the company recorded net gains on risk management in revenues of $87 million, before tax.

Portfolio high-grading, including the planned Anadarko asset divestiture, is a key activity to refine the asset base. The Anadarko basin contributed 100 MBOE/d (59% liquids) in Q2 2025, with a planned capital investment of $290 million to $310 million for the full year. News in late 2025 indicated an agreement to acquire NuVista Energy Ltd. alongside the planned divestiture of Anadarko Assets, signaling active portfolio management.

The overarching financial discipline is captured by the maintaining capital discipline with 2025 CapEx at $2.125 billion to $2.175 billion. This discipline supports the capital allocation framework, which is expected to return at least 50% of post base dividend Non-GAAP Free Cash Flow to shareholders.

Key operational and financial metrics supporting these activities include:

• Full Year 2025 Total Production Guidance: 595 to 615 MBOE/d.
• Expected Full Year 2025 Free Cash Flow (assuming $60 WTI/$3.75 NYMEX): Approximately $1.65 billion.
• Debt to EBITDA Ratio (as of Q2 2025): 1.6 times.
• Q2 2025 Non-GAAP Free Cash Flow: $392 million.

The company's strategy is built on conservative price assumptions, such as $55/bbl WTI and $2.75/MMBtu NYMEX, to ensure durable returns.

Ovintiv Inc. (OVV) - Canvas Business Model: Key Resources

You're looking at the core assets that power Ovintiv Inc.'s operations as of late 2025. These aren't just line items on a balance sheet; they are the physical and intellectual foundations that drive cash flow and future development. Honestly, the quality of the acreage is what sets the ceiling for what's possible here.

The company's financial foundation remains strong, which is a key resource in itself. As of September 30, 2025, Ovintiv Inc. reported total liquidity of approximately $3.3 billion. This liquidity position, supported by leverage metrics like a Debt to EBITDA of 1.8 times and Non-GAAP Debt to Adjusted EBITDA of 1.2 times as of the third quarter end, provides the necessary buffer for sustained capital deployment in its core plays.

Premier, High-Quality Acreage and Inventory

Ovintiv Inc. anchors its strategy on large, multi-basin positions, but the Permian Basin and the Montney Formation are definitely the heavy hitters right now. The focus is squarely on maximizing returns from these oil-rich areas.

In the Permian Basin, which is one of the largest known oil deposits in the U.S., Ovintiv's acreage is concentrated in the prolific Midland Basin, targeting the Spraberry and Wolfcamp formations. The operational tempo here is high; for the third quarter of 2025, Permian production averaged 210 MBOE/d, with a strong liquids weighting of 79%. The company had 30 net wells turned in line (TIL) during that quarter alone. Full year capital investment in this play is guided to be approximately $1.20 billion to $1.25 billion to bring on 130 to 140 net wells.

The Montney Formation in western Canada is equally critical, representing one of North America's largest unconventional oil and gas deposits, spanning approximately 50,000 square miles. This asset is a major contributor to total volumes, posting average production of 318 MBOE/d in the third quarter of 2025, though with a lower liquids concentration at 26%. The company brought 19 net wells TIL in the Montney during Q3 2025.

Here's a snapshot of the core asset performance and capital allocation for the nine months ended September 30, 2025, compared to the prior year:

Proprietary Drilling Technology and Operational Expertise

The intellectual capital around how Ovintiv Inc. develops its acreage is a non-negotiable resource. Specifically, their proprietary cube development strategy is a differentiator, especially in the Permian. This involves drilling and completing multiple stacked zones simultaneously on a single large pad, which they have been using since entering the Permian in 2015. This approach has demonstrably worked; in the second quarter of 2025, cube development helped the company improve oil productivity per foot in its Permian wells by over 10%.

The company's operational efficiency translates directly into better inventory quality. Ovintiv Inc. is focused on developing its premium inventory, which they define as locations with expected after-tax returns greater than 35 percent at WTI oil prices of $50/bbl and NYMEX gas prices of $3/MMBtu.

The resource base is best summarized by the expected full-year production volumes for 2025, which Ovintiv Inc. raised to a range of 610 MBOE/d to 620 MBOE/d, with expected capital investment maintained between $2.125 billion to $2.175 billion. This efficiency allows them to generate significant cash flow from their core assets.

Key Q3 2025 Production Metrics:

• Total Average Production: Approximately 630 MBOE/d.
• Oil & Condensate: 212 Mbbls/d.
• NGLs (C2 - C4): 98 Mbbls/d.
• Natural Gas: 1,925 MMcf/d.

The company is also actively managing its portfolio, having announced the sale of its Uinta Basin assets for $2 billion, with the proceeds supporting the acquisition of Montney assets. This active management of the asset base ensures the remaining resources are the highest quality.

Finance: review the impact of the $3.3 billion liquidity position on the 2026 capital plan by end of month.

Ovintiv Inc. (OVV) - Canvas Business Model: Value Propositions

You're looking at the core value Ovintiv Inc. (OVV) is delivering to its customers and investors as of late 2025. It's all about reliable supply, capital discipline, and direct shareholder reward, defintely.

The company is delivering a reliable supply of its key products, which underpins its entire operation. Full-year 2025 guidance for oil and condensate production is set in the range of 208 Mbbls/d to 210 Mbbls/d. This production base is supported by low-cost operations, a critical component of their value proposition.

For the third quarter of 2025, Ovintiv reported an upstream operating expense of just $3.71 per barrel of oil equivalent (BOE). This level of cost control is what allows for the resilient cash flow generation they promise.

That resilience is quantified in their expected financial performance. The projection for full-year 2025 Free Cash Flow is approximately $1.65 billion. This strong cash generation directly feeds the commitment to shareholders.

Here's a quick look at the key operational and financial metrics supporting these propositions:

The commitment to shareholders is formalized through concrete actions. The capital allocation framework dictates returning at least 50% of post base dividend Non-GAAP Free Cash Flow via buybacks and/or variable dividends. For instance, in Q2 2025, the base dividend was $0.30 per share, and in Q3 2025, $235 million was returned through base dividends and buybacks combined. Furthermore, they renewed their Normal Course Issuer Bid (NCIB) to purchase up to 22,287,709 common shares starting October 3, 2025.

A key differentiator is the active management of commodity price risk, particularly for natural gas. Ovintiv Inc. (OVV) is successfully diversifying its exposure away from the volatile AECO benchmark. Through new agreements, the company has structured its portfolio such that:

• Exposure to market AECO prices is now less than 20% for the remainder of 2025.
• They have secured new exposure to the JKM (Japan Korea Marker) pricing benchmark.
• They have increased their exposure to the Chicago market.
• Total JKM exposure is set to reach 100 MMcf/d across 2026-2027.

This diversification strategy helps secure realized prices closer to the NYMEX benchmark, which is a clear benefit to the revenue stream.

Ovintiv Inc. (OVV) - Canvas Business Model: Customer Relationships

You're looking at how Ovintiv Inc. manages its relationships across its value chain, from the buyers of its product to the capital markets that fund its operations. It's a mix of hard contracts and financial signaling.

Contractual and transactional relationships with wholesale purchasers are underpinned by the sheer volume of product moved daily. For instance, third quarter 2025 average total production volumes hit 630 thousand barrels of oil equivalent per day ('MBOE/d'). This volume breaks down into significant daily flows like 212 thousand barrels per day ('Mbbls/d') of oil and condensate, and 1,925 million cubic feet per day ('MMcf/d') of natural gas. These volumes imply a high frequency of transactional relationships with refiners, marketers, and industrial consumers.

While dedicated account management details aren't public, the scale of production suggests robust, ongoing commercial engagement to manage sales and logistics for these large volumes. The company's focus on operational efficiency, with Q1 2025 upstream operating expense at $3.89 per barrel of oil equivalent ('BOE'), helps maintain competitive pricing for these wholesale transactions.

The relationship with the investment community is governed by a clear Investor relations focus on transparency and capital allocation framework. Ovintiv Inc. remains committed to a framework designed to return at least 50% of post base dividend Non-GAAP Free Cash Flow to shareholders via buybacks and/or variable dividends. This commitment was evident in the third quarter of 2025, where the company returned $235 million to shareholders.

Here's a look at the recent shareholder return execution:

• Q3 2025 Base Dividend Declared: $0.30 per share.
• Q3 2025 Total Base Dividend Paid: $77 million.
• Q3 2025 Share Repurchases: Approximately $158 million.
• Q2 2025 Total Shareholder Return: $223 million.
• Q2 2025 Share Repurchases: $146 million.

Regarding Fee-for-service agreements with midstream partners, Ovintiv Inc. has historically structured these to reduce exposure to traditional take-or-pay commitments, favoring a fee-for-service model to align incentives and maintain financial flexibility. While specific 2025 financial terms aren't detailed, the company's focus on managing transportation and processing costs, which were $7.30 per BOE in Q3 2025, shows this relationship is actively managed.

Assuring financial stability is key to maintaining market access and favorable financing terms, which is why Maintaining an investment-grade credit rating to assure financial stability is a core focus. Ovintiv Inc. is currently rated investment grade by four credit rating agencies.

The current credit profile looks like this:

Financial metrics support this rating goal. As of September 30, 2025, total liquidity stood at approximately $3.3 billion. The company reported a Debt to EBITDA of 1.8 times and a Non-GAAP Debt to Adjusted EBITDA of 1.2 times for the third quarter of 2025. Ovintiv Inc. maintains a long-term leverage target of 1.0 times Non-GAAP Debt to Adjusted EBITDA at mid-cycle prices, with an associated long-term total debt target of $4.0 billion.

Finance: draft the Q4 2025 liquidity forecast update by next Tuesday.

Ovintiv Inc. (OVV) - Canvas Business Model: Channels

You're looking at how Ovintiv Inc. moves its hydrocarbons from the wellhead to the buyer, which is all about securing capacity and getting the best price realization for its production base. This is a critical part of their strategy, especially given the regional price disparities in North America.

Long-term firm transportation contracts on major pipelines

Ovintiv Inc. actively uses firm transportation contracts to reduce reliance on single regional pricing points. For instance, following new marketing agreements, the company stated it was less than 20% exposed to market AECO prices for the remainder of 2025. This diversification complements their existing firm transportation portfolio. For context, through the first half of 2025, their Canadian gas realized price was about 72% of NYMEX, significantly better than AECO, which was around 40% of NYMEX during the same period.

Direct sales to refiners and marketers in the US and Canada

The physical movement of product is tied directly to production output. For the third quarter of 2025, Ovintiv Inc. averaged total production volumes of 630 MBOE/d. The company's full-year 2025 guidance was raised to average between 610 MBOE/d and 620 MBOE/d. Sales into U.S. markets are significant; for example, in the first quarter of 2025, USA Operations generated $1,312 million in product and service revenues.

Midstream processing and gathering systems in the Permian and Montney

Access to infrastructure is secured through strategic asset positioning. Ovintiv Inc. closed the acquisition of Paramount Resources Ltd.'s Montney assets on January 31, 2025, which added production and acreage with ample access to midstream infrastructure capacity. This acquisition added approximately 70 MBOE/d of production. Furthermore, the announced agreement to acquire NuVista Energy Ltd. in late 2025 is expected to add access to additional strategic processing infrastructure and downstream capacity. Capital investment for 2025 was guided between $2.125 billion and $2.175 billion, with approximately 85% to 90% of the 2025 capital expected to be allocated to the Permian and the Montney prior to the NuVista close.

Marketing agreements providing access to diverse price hubs (e.g., JKM-linked gas)

Ovintiv Inc. is actively diversifying its realized prices away from the AECO benchmark through specific marketing deals. In the second quarter of 2025, the company secured its first natural gas supply contract linked to Asia's Japan Korea Marker (JKM) pricing. This JKM deal is for 50 MMcf/d, beginning in 2026 and running through 2027. They also added a new Chicago deal for 100 MMcf/d on a 10-year term starting in 2027, and enhanced AECO deals covering 70 MMcf/d through 2027.

Sales of crude oil, natural gas, and NGLs at various market hubs

The realized price achieved reflects the success of these channel strategies. For the third quarter of 2025, including hedges, the average realized price for natural gas was $2.01 per Mcf, which represented 65% of NYMEX. Oil and condensate realized $64.49 per barrel, or 99% of WTI. The total average realized price across all products was $30.48 per BOE. Upstream transportation and processing costs for the quarter were $7.59 per BOE.

Here's a quick look at the production and price realization for the third quarter of 2025:

The product mix being moved through these channels in Q3 2025 was:

• Oil and condensate: 212 Mbbls/d
• Other NGLs (C2 to C4): 98 Mbbls/d
• Natural gas: 1,925 MMcf/d

The company's realized natural gas price for the second quarter of 2025, excluding hedges, was $2.38 per Mcf.

Finance: draft 13-week cash view by Friday.

Ovintiv Inc. (OVV) - Canvas Business Model: Customer Segments

Ovintiv Inc. sells its primary products-crude oil, natural gas, and Natural Gas Liquids (NGLs)-into various North American markets, which define the core customer segments for its production volumes.

The scale of production being sold is evident in the third quarter of 2025 figures, where average total production volumes reached approximately 630 MBOE/d. This volume is broken down by commodity type, which directly correlates to the primary buyers for each stream.

Crude Oil Refiners and Marketers in the US and Canada.

This segment purchases the oil and condensate volumes, which were 212 Mbbls/d in the third quarter of 2025, realizing an average price of $64.49 per barrel, tracking at 99% of WTI. The USA Operations generated product and service revenues of $1,312 million in the first quarter of 2025, while Canadian Operations contributed $653 million in the same period, indicating the geographic split of sales activity.

Natural Gas Local Distribution Companies (LDCs) and Utilities.

LDCs and utilities purchase the bulk of Ovintiv Inc.'s natural gas production, which averaged 1,925 MMcf/d in Q3 2025, achieving a realized price of $2.01 per Mcf. For context on the overall gas exposure, Ovintiv expected that 66.12% of its production would be natural gas and NGL in 2025.

Industrial end-users and Petrochemical plants (for NGLs).

The 98 Mbbls/d of other NGLs (C2 to C4) produced in Q3 2025 are sold to industrial users or petrochemical facilities. The realized price for these NGLs in that quarter was $17.22 per barrel.

Energy Marketing Companies and other Producers.

Marketing companies often act as intermediaries, purchasing volumes from Ovintiv Inc. for resale or managing basis risk. The company also engages in sales of purchased products, reporting $368 million in the USA and $42 million in Canada for Q1 2025.

Shareholders seeking capital returns and long-term value.

This segment is crucial, as Ovintiv Inc. commits to a specific capital allocation framework. The commitment is to return at least 50% of post base dividend Non-GAAP Free Cash Flow to shareholders via buybacks and/or variable dividends. The company returned $235 million to shareholders in Q3 2025 through dividends and share buybacks. The quarterly dividend declared was $0.30 per share, representing an annualized dividend of $1.20. The Board renewed the Normal Course Issuer Bid (NCIB) to purchase up to 22,287,709 common shares between October 3, 2025, and October 2, 2026. As of June 30, 2025, the company reported Debt to EBITDA of 1.6 times, with a long-term total debt target of $4.0 billion. The trailing twelve-month revenue as of September 30, 2025, was $8.95B.

• In Q2 2025, Ovintiv Inc. purchased approximately 4.1 million shares for about $146 million.
• The company's long-term leverage target is 1.0 times Non-GAAP Debt to Adjusted EBITDA at mid-cycle prices.
• Net Debt stood at approximately $5.187 billion after a reduction of $126 million in the third quarter of 2025.

Ovintiv Inc. (OVV) - Canvas Business Model: Cost Structure

You're looking at the hard costs that drive Ovintiv Inc.'s operations as of late 2025. This isn't about revenue; it's about the cash burn required to keep the lights on and the drills turning, based on their latest reported figures.

The single largest planned outlay is for capital investment, which is essential for maintaining and growing production from their high-quality Permian and Montney assets. For the full year 2025, Ovintiv Inc. maintained its capital guidance range at $2.125 billion to $2.175 billion. This investment level is notable because, as of their Q3 2025 update, they were projecting an increase in annual output by 10,000 BOE per day while spending approximately $50 million less capital than their original 2025 plan.

Financing the business involves servicing a significant debt load. As of the end of Q3 2025, Ovintiv Inc. reported net debt of approximately $5.187 billion. The cost associated with this leverage, specifically the quarterly interest expense for the three months ended September 30, 2025, was reported at $389 million. This cost is a fixed drain against cash flow, regardless of production levels.

The day-to-day running of the wells-the upstream operating expenses-is tracked on a per-unit basis, which helps you see efficiency improvements clearly. Here's how those key per-unit costs looked for the third quarter of 2025:

The combined upstream operating, transportation, and processing costs for the third quarter of 2025 totaled $12.54 per BOE ($3.71 + $7.59 + $1.24). These costs were reported as being below the midpoint of guidance on a combined basis for that quarter.

General and administrative (G&A) overhead, which covers corporate functions, is also a material cost. For the twelve months ending September 30, 2025, Ovintiv Inc.'s SG&A Expenses were reported at $362 million. This figure excludes long-term incentive, restructuring, and legal costs, which are reported separately.

Finally, the company's expected tax burden for the full year 2025 reflects a significant reduction due to internal restructuring and evolving U.S. tax guidelines. The reduced full-year current tax expense guidance is set between $70 million to $85 million.

You can see the major fixed and variable cost drivers for Ovintiv Inc. here:

• High capital expenditures for drilling and completions guidance: $2.125B to $2.175B for the full year 2025.
• Interest expense on net debt: Quarterly cost of $389 million as of 3Q 2025.
• Net Debt balance: Approximately $5.187 billion as of Q3 2025.
• General and administrative (G&A) overhead: Annualized cost of $362 million (SG&A) for the twelve months ending September 30, 2025.
• Full-year current tax expense guidance: Expected to be between $70 million and $85 million.

Finance: draft 13-week cash view by Friday.

Ovintiv Inc. (OVV) - Canvas Business Model: Revenue Streams

The primary revenue streams for Ovintiv Inc. are directly tied to the sale of its produced hydrocarbons, which are heavily weighted toward liquids. The company's operational focus, especially following the NuVista acquisition, is on maximizing returns from its core Permian and Montney assets.

Sales of Crude Oil and Condensate represent the largest component of revenue generation for Ovintiv. This is supported by the raised full-year 2025 production guidance for oil and condensate, which now sits in the range of 205 Mbbls/d to 209 Mbbls/d. For context, the second quarter of 2025 saw oil and condensate production reach 211 Mbbls/d.

Revenue also comes from the Sales of Natural Gas Liquids (NGLs). The company reported that other NGLs (C2 to C4) production volumes averaged 96 Mbbls/d during the second quarter of 2025. This stream benefits from the company's focus on ethane recovery, particularly in the Anadarko basin.

The third major commodity stream is the Sales of Natural Gas. Ovintiv has updated its total production guidance for the full year 2025 to average between 610-620 MBOE/d. The specific natural gas component of this guidance is now expected to average 1,825 MMcf/d to 1,875 MMcf/d for the full year.

Here's a quick look at the updated full-year 2025 production guidance metrics:

A significant financial metric reflecting the success of the business model is Non-GAAP Free Cash Flow generation. Ovintiv Inc. has updated its expectation for 2025 to be approximately $1.65 billion, which was an increase from a previous expectation of $1.5 billion, based on assumed commodity prices of $60 WTI and $3.75 NYMEX for the second half of the year.

The company also generates cash flow through strategic asset transactions, which are used to optimize the portfolio and accelerate financial targets. This includes Proceeds from asset divestitures. Ovintiv announced plans to initiate a divestiture process for its Anadarko assets beginning in the first quarter of 2026, with proceeds expected to be used for accelerated debt reduction. This follows the earlier announced agreement in late 2024 to divest Uinta Basin assets for total cash proceeds of approximately $2.0 billion.

You can see the key cash flow and debt targets related to these revenue and divestiture activities below:

• Full Year 2025 Expected Non-GAAP Free Cash Flow: $1.65 billion.
• Q2 2025 Free Cash Flow Generated: $392 million.
• Net Debt as of June 30, 2025: Approximately $5,313 million.
• Targeted Non-GAAP Net Debt by Year-End 2026 (post-Anadarko sale): Below $4.0 billion.
• Expected Annual Synergies from NuVista acquisition: Approximately $100 million.

Finance: draft 13-week cash view by Friday.