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• Free Cash Flow (2024): $1.7 billion, up 50% year-over-year.

• Free Cash Flow (2025 Guidance): Expected to be $2.1 billion.

• Net Debt (End of 2024): $5.4 billion, a decrease of more than $320 million.

• Cash Flow (2024): $4 billion total cash flow.

• Capital Investment (Q4 2024): Approximately $552 million.

• Cash Flow Per Share (Q4 2024): $3.86, beating consensus estimates by about 7%.

• Free Cash Flow (Q4 2024): More than $450 million.

• Oil and Condensate Production (Q4 2024): Averaged approximately 210,000 barrels per day.

• Total Production (2025 Guidance): 595,000 to 615,000 BOE per day.

• Capital Investment (2025 Guidance): About $2.2 billion.

• Debt Reduction Target (2025): Total debt expected to be well below $5 billion by year-end.

• Permian D&C Cost (2025): Expected to average $600 to $650 per foot.

• Montney D&C Cost (2025): Expected to average $525 per foot.

• Anadarko D&C Cost (2025): Expected to average $550 per foot.

• Warning! GuruFocus has detected 3 Warning Sign with OVV.

Release Date: February 27, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Ovintiv Inc (NYSE:OVV) reported strong 2024 results with a significant increase in free cash flow, generating approximately $1.7 billion, up 50% year-over-year.

• The company has a robust inventory with close to 15 years of premium inventory in the Permian, 20 years in the Montney, and over a decade in the Anadarko, ensuring long-term sustainability.

• Efficiency gains have led to improved capital and cash costs, with oil type curves on a barrel per foot basis as good or better year-over-year.

• Ovintiv Inc (NYSE:OVV) successfully completed strategic acquisitions and divestitures, enhancing capital efficiency and free cash generation, allowing for faster debt reduction.

• The company plans to generate about $2.1 billion of free cash flow in 2025, with a competitive free cash flow yield of approximately 18% and a cash return yield of 10%.

Negative Points

• Ovintiv Inc (NYSE:OVV) faced challenges with natural gas and NGLs production, coming in slightly below the low end of guidance due to a value-based decision to reject ethane and temporary winter weather impacts.

• Higher Canadian royalties are expected to modestly affect volumes due to higher gas prices.

• The company is exposed to potential impacts from tariffs on Canadian imports into the US, although they anticipate a modest impact on cash flow.

• Ovintiv Inc (NYSE:OVV) has a higher GP&T expense in the Montney compared to peers, attributed to third-party ownership of midstream assets.

• The company is still working on integrating newly acquired assets into their operations, which may present short-term challenges.