Ovintiv Inc. OVV reported first-quarter 2025 adjusted earnings per share of $1.42, which beat the Zacks Consensus Estimate of $1.20. The beat was due to improved natural gas pricing. However, the bottom line slightly decreased from the year-ago level of $1.44 due to lower realized oil prices and a rise in total expenses during the quarter. (See the Zacks Earnings Calendar to stay ahead of market-making news.)
The Denver, CO-based oil and gas exploration and production company’s total revenues of $2.4 billion increased 1.1% from the year-ago quarter’s figure and beat the Zacks Consensus Estimate by 3.3%. The increase in revenues was driven by higher contributions from product and service sales.
Ovintiv Inc. Price, Consensus and EPS Surprise
Ovintiv Inc. Price, Consensus and EPS Surprise
Ovintiv Inc. price-consensus-eps-surprise-chart | Ovintiv Inc. Quote
On May 6, 2025, Ovintiv's board of directors declared a quarterly dividend of 30 cents per share, which will be paid on June 30 to its shareholders of record as of June 31.
During this quarter, the company completed the previously announced divestiture of its Uinta assets for approximately $1.9 billion, following preliminary closing adjustments.
The company's share buyback program was temporarily paused in the fourth quarter of 2024 to allocate the $377 million transaction proceeds differential between the Montney acquisition and the Uinta divestiture.
By the end of the first quarter, approximately $368 million was redirected toward debt reduction due to the buyback pause. The company expects to resume share buybacks in the second quarter and plans to repurchase around $146 million following the recovery of the remaining $9 million transaction proceeds differential.
In April, Ovintiv repurchased approximately 1.2 million shares of common stock for $40 million, at an average price of $32.40 per share.
OVV’s Production & Prices
Total first-quarter production was 588,300 barrels of oil equivalent per day (BOE/d) compared with 573,800 BOE/d in the prior-year period. The figure missed our prediction of 591,500 BOE/d.
Natural gas production increased 1,764 million cubic feet per day (MMcf/d) in the first quarter of 2025 compared with 1,648 MMcf/d in the prior-year quarter. However, the figure missed our estimate of 1,798.1 MMcf/d.
Total liquids production decreased to 294.4 thousand barrels per day (Mbbls/d) in the first quarter of 2025 from 299.3 Mbbls/d in the first quarter of 2024. However, the figure beat our prediction of 291.8 Mbbls/d.
Ovintiv's realized natural gas price was $3.16 per thousand cubic feet compared with the year-ago level of $2.56. Realized oil price decreased to $71.79 per barrel from $75.66 in the first quarter of 2024.
OVV’s Costs, Capex & Balance Sheet
Total expenses in the reported quarter increased to $2.5 billion from the year-ago quarter’s figure of $1.9 billion. The figure also beat our estimate of $1.9 billion.
Ovintiv’s cash from operating activities in the quarter under review was $873 million, which increased from the year-ago figure of $659 million.
OVV's capital investments were $617 million compared with $591 million in the year-ago period. The company generated a non-GAAP free cash flow of $1 billion in the reported quarter.
As of March 31, the company had cash and cash equivalents worth $8 million and long-term debt of $4.4 billion. Its debt-to-capitalization was 30.8%.
OVV’s Asset Performance and Outlook for 2025
Permian Basin: In the first quarter, Ovintiv's Permian production averaged 217 MBOE/d, with 81% of the output coming from liquids and it brought 53 net wells online. For 2025, Ovintiv expects to invest between $1.2 billion and $1.3 billion in the Permian to drill 130-140 net wells.
Montney: Ovintiv's Montney production in the first quarter averaged 272 MBOE/d, with 23% liquids and it turned in line 18 net wells. Looking ahead, the company plans to allocate approximately $575 million to $625 million for Montney in 2025 to bring on 75-85 net wells.
Anadarko Basin: In the first quarter, Ovintiv's Anadarko production averaged 91 MBOE/d, with 55% liquids and it had 10 net wells turned in line. The company expects to invest between $300 million and $325 million in Anadarko in 2025 to bring on 25-35 net wells.
OVV’s Q2 and 2025 Guidance
This Zacks Rank #3 (Hold) company expects its total production for the second quarter of 2025 to be between 585 MBOE/d and 605 MBOE/d. This includes oil and condensate production between 202 Mbbls/d and 208 Mbbls/d, natural gas liquids production of 87-92 Mbbls/d and natural gas production between 1,775 MMcf/d and 1,825 MMcf/d. Capital investment for the second quarter is projected to be between $550 million and $600 million.
For the full year of 2025, the company anticipates total production to average between 595 MBOE/d and 615 MBOE/d. Full-year oil and condensate production is also expected to range from 202 Mbbls/d to 208 Mbbls/d, while NGLs production is projected between 87 Mbbls/d and 92 Mbbls/d. Natural gas production for the year is forecasted to be between 1,825 MMcf/d and 1,875 MMcf/d. The company expects its capital investment for the full year to be between $2.15 billion and $2.25 billion.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Important Earnings at a Glance
While we have discussed OVV’s first-quarter results in detail, let us take a look at three other key reports in this space.
Oil and gas equipment and services provider, Liberty Energy LBRT, reported a first-quarter 2025 adjusted net income of 4 cents per share, which marginally beat the Zacks Consensus Estimate of 3 cents. Liberty's outperformance indicated operational efficiencies as well as increased utilization of frac and wireline fleets. However, the bottom line underperformed the year-ago quarter’s reported figure of 48 cents due to a decline in service activity.
As of March 31, Liberty had approximately $24.1 million in cash and cash equivalents. The pressure pumper’s long-term debt of $210 million represented a debt-to-capitalization of 9.6%.
Another oil and gas equipment and services provider, Halliburton Company HAL, posted first-quarter 2025 adjusted net income per share of 60 cents. The figure met with the Zacks Consensus Estimate but was down from the year-ago quarter’s profit of 76 cents (adjusted). The numbers reflect softer activity in the region of North America, partly offset by international growth. Meanwhile, Halliburton’s revenues of $5.4 billion decreased 6.7% year over year but beat the Zacks Consensus Estimate of $5.3 billion.
As of March 31, 2025, Halliburton had approximately $1.8 billion in cash/cash equivalents and $7.2 billion in long-term debt, representing a debt-to-capitalization ratio of 40.8.
Houston, TX-based oil and gas equipment and services provider, Baker Hughes BKR, reported first-quarter 2025 adjusted earnings of 51 cents per share, which beat the Zacks Consensus Estimate of 47 cents. The bottom line also improved from the year-ago level of 43 cents.
As of March 31, 2025, Baker had cash and cash equivalents of $3,277 million. Baker had a long-term debt of $5,969 million at the end of the reported quarter, with a debt-to-capitalization of 25.9%.
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