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Ovintiv (OVV) 8-KOvintiv Reports Third Quarter 2024 Financial and Operating Results

Filed: 7 Nov 24, 5:03pm

Exhibit 99.2

Ovintiv Inc.

Selected Financial Information

(unaudited)

For the period ended September 30, 2024

U.S. Dollar / U.S. Protocol

Condensed Consolidated Statement of Earnings (unaudited)


	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(US$ millions, except per share amounts)	2024			2023			2024			2023

Revenues
Product and service revenues	$	2,178		$	2,913		$	6,758		$	7,857
Gains (losses) on risk management, net		128			(282	)		151			(193	)
Sublease revenues		18			18			55			53
Total Revenues		2,324			2,649			6,964			7,717

Operating Expenses
Production, mineral and other taxes		86			89			258			249
Transportation and processing		408			433			1,240			1,340
Operating		235			243			715			624
Purchased product		392			846			1,165			2,239
Depreciation, depletion and amortization		599			486			1,745			1,269
Accretion of asset retirement obligation		5			5			14			14
Administrative		72			80			250			306
Total Operating Expenses		1,797			2,182			5,387			6,041
Operating Income (Loss)		527			467			1,577			1,676

Other (Income) Expenses
Interest		103			98			306			249
Foreign exchange (gain) loss, net		17			(22	)		(21	)		-
Other (gains) losses, net		(151	)		(2	)		(160	)		(16	)
Total Other (Income) Expenses		(31	)		74			125			233
Net Earnings (Loss) Before Income Tax		558			393			1,452			1,443
Income tax expense (recovery)		51			(13	)		267			214
Net Earnings (Loss)	$	507		$	406		$	1,185		$	1,229

Net Earnings (Loss) per Share of Common Stock
Basic	$	1.93		$	1.48		$	4.45		$	4.80
Diluted		1.92			1.47			4.41			4.73
Weighted Average Shares of Common Stock Outstanding (millions)
Basic		262.1			273.7			266.0			255.8
Diluted		264.0			276.3			268.7			259.7

Condensed Consolidated Statement of Comprehensive Income (unaudited)


	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(US$ millions)	2024			2023			2024			2023

Net Earnings (Loss)	$	507		$	406		$	1,185		$	1,229
Other Comprehensive Income (Loss), Net of Tax
Foreign currency translation adjustment		44			(59	)		(63	)		(4	)
Pension and other post-employment benefit plans		(1	)		(2	)		(4	)		(5	)
Other Comprehensive Income (Loss)		43			(61	)		(67	)		(9	)
Comprehensive Income (Loss)	$	550		$	345		$	1,118		$	1,220


Ovintiv Inc.	1	Selected Financial Information

Condensed Consolidated Balance Sheet (unaudited)


	As at			As at
	September 30,			December 31,
(US$ millions)	2024			2023

Assets
Current Assets
Cash and cash equivalents	$	9		$	3
Accounts receivable and accrued revenues (net of allowances
of $5 million (2023: $5 million))		1,290			1,442
Risk management		144			214
Income tax receivable		64			17
		1,507			1,676
Property, Plant and Equipment, at cost:
Oil and natural gas properties, based on full cost accounting
Proved properties		66,246			64,084
Unproved properties		921			1,486
Other		913			907
Property, plant and equipment		68,080			66,477
Less: Accumulated depreciation, depletion and amortization		(53,263	)		(51,837	)
Property, plant and equipment, net		14,817			14,640
Other Assets		943			1,015
Risk Management		6			4
Deferred Income Taxes		-			53
Goodwill		2,586			2,599
	$	19,859		$	19,987

Liabilities and Shareholders’ Equity
Current Liabilities
Accounts payable and accrued liabilities	$	1,777		$	2,209
Current portion of operating lease liabilities		86			87
Income tax payable		4			232
Risk management		1			-
Current portion of long-term debt		1,024			284
		2,892			2,812
Long-Term Debt		4,853			5,453
Operating Lease Liabilities		798			832
Other Liabilities and Provisions		156			132
Risk Management		3			2
Asset Retirement Obligation		263			276
Deferred Income Taxes		239			110
		9,204			9,617

Shareholders’ Equity
Share capital - authorized 775 million shares of stock
2024 issued and outstanding: 260.4 million shares (2023: 271.7 million shares)		3			3
Paid in surplus		8,025			8,620
Retained earnings		1,644			697
Accumulated other comprehensive income		983			1,050
Total Shareholders’ Equity		10,655			10,370
	$	19,859		$	19,987


Ovintiv Inc.	2	Selected Financial Information

Condensed Consolidated Statement of Cash Flows (unaudited)


	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(US$ millions)	2024			2023			2024			2023

Operating Activities
Net earnings (loss)	$	507		$	406		$	1,185		$	1,229
Depreciation, depletion and amortization		599			486			1,745			1,269
Accretion of asset retirement obligation		5			5			14			14
Deferred income taxes		21			(78	)		182			33
Unrealized (gain) loss on risk management		(31	)		292			61			132
Unrealized foreign exchange (gain) loss		16			(19	)		(12	)		(14	)
Foreign exchange (gain) loss on settlements		(2	)		2			(9	)		5
Other		(137	)		18			(128	)		(6	)
Net change in other assets and liabilities		19			(14	)		(35	)		(31	)
Net change in non-cash working capital		25			(192	)		(302	)		174
Cash From (Used in) Operating Activities		1,022			906			2,701			2,805

Investing Activities
Capital expenditures		(538	)		(834	)		(1,751	)		(2,084	)
Acquisitions		(7	)		(59	)		(202	)		(273	)
Corporate acquisition, net of cash acquired		-			-			12			(3,225	)
Proceeds from divestitures		3			12			7			741
Net change in investments and other		26			27			16			116
Cash From (Used in) Investing Activities		(516	)		(854	)		(1,918	)		(4,725	)

Financing Activities
Net issuance (repayment) of revolving debt		(210	)		29			140			316
Issuance of long-term debt		-			-			-			2,278
Purchase of shares of common stock		(163	)		(45	)		(597	)		(373	)
Dividends on shares of common stock		(78	)		(82	)		(238	)		(225	)
Finance lease payments and other		(2	)		(3	)		(32	)		(75	)
Cash From (Used in) Financing Activities		(453	)		(101	)		(727	)		1,921

Foreign Exchange Gain (Loss) on Cash, Cash Equivalents
and Restricted Cash Held in Foreign Currency		(2	)		-			-			(3	)

Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash		51			(49	)		56			(2	)
Cash, Cash Equivalents and Restricted Cash, Beginning of Period		8			52			3			5
Cash, Cash Equivalents and Restricted Cash, End of Period	$	59		$	3		$	59		$	3

Cash, End of Period	$	9		$	3		$	9		$	3
Cash Equivalents, End of Period		-			-			-			-
Restricted Cash, End of Period		50			-			50			-
Cash, Cash Equivalents and Restricted Cash, End of Period	$	59		$	3		$	59		$	3


Ovintiv Inc.	3	Selected Financial Information

Ovintiv Inc.

Interim Supplemental Information

(unaudited)

For the period ended September 30, 2024

U.S. Dollar / U.S. Protocol

Third quarter report

for the period ended September 30, 2024

Supplemental Financial Information (unaudited)

Financial Results


		2024												2023
(US$ millions, unless otherwise specified)		Year-to- Date			Q3			Q2			Q1			Year			Q4			Q3 Year- to-Date			Q3			Q2			Q1

Net Earnings (Loss)			1,185			507			340			338			2,085			856			1,229			406			336			487

	Per share - basic (1)		4.45			1.93			1.28			1.25			8.02			3.14			4.80			1.48			1.35			1.99
	Per share - diluted (1)		4.41			1.92			1.27			1.24			7.90			3.11			4.73			1.47			1.34			1.97

Non-GAAP Adjusted Earnings (2)			1,209			489			331			389			1,810			647			1,163			481			232			450

	Per share - basic (1)		4.55			1.87			1.24			1.44			6.96			2.38			4.55			1.76			0.93			1.84
	Per share - diluted (1)		4.50			1.85			1.23			1.43			6.86			2.35			4.48			1.74			0.93			1.82

Non-GAAP Cash Flow (3)			3,038			978			1,025			1,035			3,899			1,237			2,662			1,112			699			851

	Per share - basic (1)		11.42			3.73			3.85			3.84			15.00			4.54			10.41			4.06			2.80			3.48
	Per share - diluted (1)		11.31			3.70			3.82			3.80			14.77			4.49			10.25			4.02			2.79			3.44

Foreign Exchange Rates (C$ per US$1)
	Average		1.360			1.364			1.368			1.349			1.350			1.362			1.346			1.341			1.343			1.353
	Period end		1.350			1.350			1.369			1.355			1.323			1.323			1.352			1.352			1.324			1.353

Non-GAAP Adjusted Earnings Summary

Net Earnings (Loss) Before Income Tax			1,452			558			466			428			2,510			1,067			1,443			393			437			613
Before-tax (Addition) Deduction:
	Unrealized gain (loss) on risk management		(61	)		31			8			(100	)		194			326			(132	)		(292	)		142			18
	Non-operating foreign exchange gain (loss)		20			(16	)		11			25			(2	)		(9	)		7			17			(15	)		5
Adjusted Earnings (Loss) Before Income Tax			1,493			543			447			503			2,318			750			1,568			668			310			590
	Income tax expense (recovery) (4)		284			54			116			114			508			103			405			187			78			140

Non-GAAP Adjusted Earnings (2)			1,209			489			331			389			1,810			647			1,163			481			232			450

Non-GAAP Cash Flow Summary

Cash From (Used in) Operating Activities			2,701			1,022			1,020			659			4,167			1,362			2,805			906			831			1,068
(Add back) Deduct:
	Net change in other assets and liabilities		(35	)		19			(42	)		(12	)		(62	)		(31	)		(31	)		(14	)		(12	)		(5	)
	Net change in non-cash working capital		(302	)		25			37			(364	)		330			156			174			(192	)		144			222

Non-GAAP Cash Flow (3)			3,038			978			1,025			1,035			3,899			1,237			2,662			1,112			699			851

(1) Net Earnings (Loss), Non-GAAP Adjusted Earnings and Non-GAAP Cash Flow per share are calculated using the weighted average number of shares of common stock outstanding as follows:


		2024								2023
(millions)		Year-to- Date		Q3		Q2		Q1		Year		Q4		Q3 Year- to-Date		Q3		Q2		Q1

Weighted Average Shares of Common Stock Outstanding

	Basic		266.0		262.1		266.2		269.7		259.9		272.3		255.8		273.7		249.4		244.3

	Diluted		268.7		264.0		268.1		272.3		263.9		275.4		259.7		276.3		250.8		247.7

(2) Non-GAAP Adjusted Earnings is a non-GAAP measure defined as net earnings (loss) excluding non-cash items that Management believes reduces the comparability of the Company’s financial performance between periods. These items may include, but are not limited to, unrealized gains/losses on risk management, impairments, non‑operating foreign exchange gains/losses, and gains/losses on divestitures. Income taxes includes adjustments to normalize the effect of income taxes calculated using the estimated annual effective income tax rate. In addition, any valuation allowances are excluded in the calculation of income taxes.

(3) Non-GAAP Cash Flow is a non-GAAP measure defined as cash from (used in) operating activities excluding net change in other assets and liabilities, and net change in non-cash working capital.

(4) Calculated using the applicable U.S. federal and state statutory income tax rate of 21.75 percent and the applicable Canadian federal and provincial statutory income tax rate of 23.7 percent (2023 - 23.0 percent and 23.7 percent, respectively).

Financial Metrics

2024

2023

Year-to-
Date

Year

Debt to Capitalization

36%

Debt to Adjusted Capitalization (1)

24%

Debt to EBITDA (1)

1.1x

1.2x

Debt to Adjusted EBITDA (1)

1.2x

1.3x

(1) Debt to Adjusted Capitalization, Debt to EBITDA and Debt to Adjusted EBITDA are non-GAAP measures monitored by Management as indicators of the Company’s overall financial strength. Non-GAAP measures are defined and calculated in the Non-GAAP Definitions and Reconciliations document following this Supplemental Information report.


Ovintiv Inc.	1	Supplemental Information (prepared in US$)

Third quarter report

for the period ended September 30, 2024

Supplemental Operating Information (unaudited)

Production Volumes by Product


				2024								2023
(average)		% of Oil & NGLs		Year-to- Date		Q3		Q2		Q1		Year		Q4		Q3 Year- to-Date		Q3		Q2		Q1

	Oil (Mbbls/d)		56		168.7		168.4		167.3		170.4		158.9		194.1		147.1		170.9		142.4		127.3
	NGLs - Plant Condensate (Mbbls/d)		14		43.0		44.0		44.6		40.5		42.9		46.1		41.9		43.3		43.5		38.7
Oil & Plant Condensate (Mbbls/d)			70		211.7		212.4		211.9		210.9		201.8		240.2		189.0		214.2		185.9		166.0
	Butane (Mbbls/d)		7		21.1		21.6		21.3		20.6		21.1		21.7		20.9		20.4		23.2		19.1
	Propane (Mbbls/d)		11		34.8		35.0		35.3		34.0		33.7		35.2		33.1		33.2		34.9		31.3
	Ethane (Mbbls/d)		12		35.1		36.0		35.4		33.8		35.4		34.0		35.9		33.1		38.7		35.8
NGLs - Other (Mbbls/d)			30		91.0		92.6		92.0		88.4		90.2		90.9		89.9		86.7		96.8		86.2
Oil & NGLs (Mbbls/d)			100		302.7		305.0		303.9		299.3		292.0		331.1		278.9		300.9		282.7		252.2

Natural Gas (MMcf/d)					1,704		1,725		1,740		1,648		1,642		1,645		1,641		1,625		1,743		1,555

Total (MBOE/d)					586.7		592.6		593.8		573.8		565.6		605.2		552.3		571.8		573.0		511.4

Production Volumes by Segment


		2024								2023
(average)		Year-to- Date		Q3		Q2		Q1		Year		Q4		Q3 Year- to-Date		Q3		Q2		Q1

Oil (Mbbls/d)
	USA Operations		168.3		168.0		166.8		170.2		158.8		194.0		147.0		170.8		142.4		127.2
	Canadian Operations		0.4		0.4		0.5		0.2		0.1		0.1		0.1		0.1		-		0.1
			168.7		168.4		167.3		170.4		158.9		194.1		147.1		170.9		142.4		127.3

NGLs - Plant Condensate (Mbbls/d)
	USA Operations		11.1		11.7		10.9		10.6		10.9		11.3		10.8		11.2		10.5		10.6
	Canadian Operations		31.9		32.3		33.7		29.9		32.0		34.8		31.1		32.1		33.0		28.1
			43.0		44.0		44.6		40.5		42.9		46.1		41.9		43.3		43.5		38.7

Oil & Plant Condensate (Mbbls/d)
	USA Operations		179.4		179.7		177.7		180.8		169.7		205.3		157.8		182.0		152.9		137.8
	Canadian Operations		32.3		32.7		34.2		30.1		32.1		34.9		31.2		32.2		33.0		28.2
			211.7		212.4		211.9		210.9		201.8		240.2		189.0		214.2		185.9		166.0

NGLs - Other (Mbbls/d)
	USA Operations		76.0		77.7		75.7		74.6		74.6		74.6		74.5		71.8		78.1		73.7
	Canadian Operations		15.0		14.9		16.3		13.8		15.6		16.3		15.4		14.9		18.7		12.5
			91.0		92.6		92.0		88.4		90.2		90.9		89.9		86.7		96.8		86.2

NGLs - Total (Mbbls/d)
	USA Operations		87.1		89.4		86.6		85.2		85.5		85.9		85.3		83.0		88.6		84.3
	Canadian Operations		46.9		47.2		50.0		43.7		47.6		51.1		46.5		47.0		51.7		40.6
			134.0		136.6		136.6		128.9		133.1		137.0		131.8		130.0		140.3		124.9

Oil & NGLs (Mbbls/d)
	USA Operations		255.4		257.4		253.4		255.4		244.3		279.9		232.3		253.8		231.0		211.5
	Canadian Operations		47.3		47.6		50.5		43.9		47.7		51.2		46.6		47.1		51.7		40.7
			302.7		305.0		303.9		299.3		292.0		331.1		278.9		300.9		282.7		252.2

Natural Gas (MMcf/d)
	USA Operations		533		543		531		526		517		524		515		508		530		507
	Canadian Operations		1,171		1,182		1,209		1,122		1,125		1,121		1,126		1,117		1,213		1,048
			1,704		1,725		1,740		1,648		1,642		1,645		1,641		1,625		1,743		1,555

Total (MBOE/d)
	USA Operations		344.3		348.0		341.9		343.0		330.4		367.1		318.1		338.5		319.2		296.1
	Canadian Operations		242.4		244.6		251.9		230.8		235.2		238.1		234.2		233.3		253.8		215.3
			586.7		592.6		593.8		573.8		565.6		605.2		552.3		571.8		573.0		511.4


Ovintiv Inc.	2	Supplemental Information (prepared in US$)

Third quarter report

for the period ended September 30, 2024

Supplemental Financial & Operating Information (unaudited)

Results of Operations

Revenues and Realized Gains (Losses) on Risk Management


		2024											2023
(US$ millions)		Year-to- Date			Q3		Q2			Q1			Year			Q4			Q3 Year- to-Date			Q3			Q2		Q1

USA Operations

Revenues, excluding Realized Gains (Losses) on Risk Management (1)
	Oil		3,499			1,133		1,189			1,177			4,431			1,372			3,059			1,267			944		848
	NGLs (2)		543			180		176			187			676			170			506			174			149		183
	Natural Gas		215			63		55			97			458			114			344			103			86		155
			4,257			1,376		1,420			1,461			5,565			1,656			3,909			1,544			1,179		1,186
Realized Gains (Losses) on Risk Management (3)
	Oil		(33	)		-		(25	)		(8	)		(24	)		(5	)		(19	)		(19	)		-		-
	NGLs (2)		4			2		1			1			-			-			-			-			-		-
	Natural Gas		124			42		51			31			33			11			22			15			5		2
			95			44		27			24			9			6			3			(4	)		5		2

Canadian Operations

Revenues, excluding Realized Gains (Losses) on Risk Management (1)
	Oil		8			3		4			1			3			1			2			2			-		-
	NGLs (2)		749			247		269			233			1,023			284			739			258			245		236
	Natural Gas		524			141		149			234			1,186			267			919			244			222		453
			1,281			391		422			468			2,212			552			1,660			504			467		689
Realized Gains (Losses) on Risk Management (3)
	Oil		-			-		-			-			-			-			-			-			-		-
	NGLs (2)		-			-		-			-			1			1			-			-			-		-
	Natural Gas		113			53		38			22			(54	)		11			(65	)		13			-		(78	)
			113			53		38			22			(53	)		12			(65	)		13			-		(78	)

(1) Excludes other revenues with no associated production volumes, but includes intercompany marketing fees transacted between the Company’s operating segments.

(2) Includes plant condensate.

(3) Excludes realized gains or losses from other derivative contracts with no associated production volumes and foreign exchange risk management positions.


Ovintiv Inc.	3	Supplemental Information (prepared in US$)

Third quarter report

for the period ended September 30, 2024

Supplemental Financial & Operating Information (unaudited)

Results of Operations (continued)

Per-Unit Results, Excluding the Impact of Realized Gains (Losses) on Risk Management (1)


		2024								2023
(US$/BOE)		Year-to- Date		Q3		Q2		Q1		Year		Q4		Q3 Year- to-Date		Q3		Q2		Q1

Total USA Operations Netback
	Price		45.12		42.97		45.61		46.85		46.15		49.03		45.02		49.62		40.56		44.52
	Production, mineral and other taxes		2.62		2.55		2.74		2.56		2.71		2.65		2.73		2.71		2.49		3.01
	Transportation and processing		4.04		4.02		4.05		4.07		4.54		3.80		4.82		3.98		5.10		5.51
	Operating		6.45		6.02		6.58		6.77		6.15		5.85		6.27		6.66		5.73		6.39
	Netback		32.01		30.38		32.24		33.45		32.75		36.73		31.20		36.27		27.24		29.61

Total Canadian Operations Netback
	Price		19.29		17.39		18.40		22.30		25.76		25.21		25.95		23.46		20.26		35.50
	Production, mineral and other taxes		0.17		0.15		0.17		0.17		0.18		0.16		0.19		0.24		0.14		0.19
	Transportation and processing		11.77		12.00		11.37		11.96		12.29		11.65		12.51		12.36		11.57		13.80
	Operating		1.31		1.55		1.18		1.19		1.04		1.38		0.92		1.30		0.10		1.50
	Netback		6.04		3.69		5.68		8.98		12.25		12.02		12.33		9.56		8.45		20.01

Total Operations Netback
	Price		34.45		32.41		34.08		36.97		37.67		39.66		36.94		38.95		31.56		40.72
	Production, mineral and other taxes		1.60		1.56		1.65		1.60		1.66		1.67		1.65		1.70		1.43		1.83
	Transportation and processing		7.24		7.31		7.15		7.25		7.76		6.89		8.09		7.40		7.97		9.00
	Operating		4.33		4.17		4.29		4.52		4.03		4.09		4.00		4.48		3.23		4.33
	Netback		21.28		19.37		20.99		23.60		24.22		27.01		23.20		25.37		18.93		25.56

(1) Netback is a common metric used in the oil and gas industry to measure operating performance on a per-unit basis and is considered a non-GAAP measure. The netbacks disclosed above have been calculated on a BOE basis using upstream product revenues, excluding the impact of realized gains and losses on risk management, less costs associated with delivering the product to market, including production, mineral and other taxes, transportation and processing expense and operating expense. For additional information regarding non-GAAP measures, including Netback reconciliations, see the Non-GAAP Definitions and Reconciliations document following this Supplemental Information report.

Other Per-unit Results


		2024								2023
(US$/BOE)		Year-to- Date		Q3		Q2		Q1		Year		Q4		Q3 Year- to-Date		Q3		Q2		Q1

Administrative Expense			1.55		1.33		1.41		1.95		1.91		1.57		2.03		1.53		3.23		1.25
Administrative Expense, Excluding Long-Term Incentive,
	Transaction and Legal Costs (1)		1.31		1.24		1.28		1.43		1.35		1.36		1.34		1.27		1.28		1.52

(1) Transaction costs refer to costs primarily incurred to facilitate the Permian Acquisition as defined in Note 9 of the Interim Condensed Consolidated Financial Statements included in Part I, Item 1 of Ovintiv’s Quarterly Report on Form 10-Q.


Ovintiv Inc.	4	Supplemental Information (prepared in US$)

Third quarter report

for the period ended September 30, 2024

Supplemental Oil and Gas Operating Statistics (unaudited)

Operating Statistics

Per-Unit Prices, Excluding the Impact of Realized Gains (Losses) on Risk Management


		2024								2023
(US$)		Year-to- Date		Q3		Q2		Q1		Year		Q4		Q3 Year- to-Date		Q3		Q2		Q1

Oil Price ($/bbl)
	USA Operations		75.86		73.23		78.20		76.17		76.46		76.91		76.26		80.69		72.83		74.06
	Canadian Operations		72.90		71.07		74.86		72.34		81.59		75.10		85.74		100.64		-		71.44
	Total Operations		75.85		73.23		78.19		76.17		76.46		76.91		76.26		80.70		72.83		74.06

NGLs - Plant Condensate Price ($/bbl)
	USA Operations		58.01		56.73		59.43		57.97		58.53		57.24		58.98		59.96		55.09		61.84
	Canadian Operations		72.88		71.13		75.61		71.70		74.52		74.65		74.48		75.67		70.99		77.22
	Total Operations		69.05		67.30		71.66		68.10		70.46		70.38		70.49		71.61		67.14		73.01

Oil & Plant Condensate Price ($/bbl)
	USA Operations		74.75		72.16		77.05		75.10		75.31		75.83		75.08		79.42		71.61		73.12
	Canadian Operations		72.88		71.13		75.60		71.71		74.54		74.65		74.50		75.75		70.99		77.21
	Total Operations		74.47		72.00		76.82		74.62		75.19		75.66		74.98		78.86		71.50		73.81

NGLs - Other Price ($/bbl)
	USA Operations		17.52		16.44		16.84		19.35		16.27		16.21		16.29		16.91		13.43		18.73
	Canadian Operations		27.35		26.97		25.36		30.13		26.78		30.94		25.30		25.50		18.62		35.17
	Total Operations		19.14		18.13		18.35		21.03		18.09		18.85		17.83		18.39		14.43		21.11

NGLs - Total Price ($/bbl)
	USA Operations		22.67		21.73		22.20		24.16		21.66		21.61		21.68		22.72		18.39		24.14
	Canadian Operations		58.35		57.22		59.21		58.59		58.89		60.71		58.21		59.76		52.05		64.31
	Total Operations		35.17		33.99		35.74		35.82		34.98		36.20		34.55		36.11		30.78		37.19

Oil & NGLs Price ($/bbl)
	USA Operations		57.72		55.35		59.09		58.79		57.29		59.94		56.21		61.73		51.94		54.16
	Canadian Operations		58.46		57.34		59.35		58.65		58.93		60.75		58.25		59.84		52.06		64.32
	Total Operations		57.84		55.66		59.13		58.77		57.55		60.06		56.55		61.43		51.96		55.80

Natural Gas Price ($/Mcf)
	USA Operations		1.49		1.29		1.16		2.02		2.43		2.34		2.46		2.22		1.79		3.40
	Canadian Operations		1.63		1.29		1.36		2.30		2.89		2.58		2.99		2.38		2.02		4.80
	Total Operations		1.59		1.29		1.30		2.21		2.74		2.50		2.82		2.33		1.95		4.34

Total Price ($/BOE)
	USA Operations		45.12		42.97		45.61		46.85		46.15		49.03		45.02		49.62		40.56		44.52
	Canadian Operations		19.29		17.39		18.40		22.30		25.76		25.21		25.95		23.46		20.26		35.50
	Total Operations		34.45		32.41		34.08		36.97		37.67		39.66		36.94		38.95		31.56		40.72


Ovintiv Inc.	5	Supplemental Information (prepared in US$)

Third quarter report

for the period ended September 30, 2024

Supplemental Oil and Gas Operating Statistics (unaudited)

Operating Statistics (continued)

Per-unit Impact of Realized Gains (Losses) on Risk Management


		2024											2023
(US$)		Year-to- Date			Q3		Q2			Q1			Year			Q4			Q3 Year- to-Date			Q3			Q2		Q1

Oil ($/bbl)
	USA Operations		(0.71	)		-		(1.62	)		(0.51	)		(0.40	)		(0.27	)		(0.46	)		(1.18	)		-		-
	Canadian Operations		-			-		-			-			-			-			-			-			-		-
	Total Operations		(0.70	)		-		(1.61	)		(0.51	)		(0.40	)		(0.27	)		(0.46	)		(1.18	)		-		-

NGLs - Plant Condensate ($/bbl)
	USA Operations		-			-		-			-			-			-			-			-			-		-
	Canadian Operations		-			-		-			-			0.09			0.10			-			-			-		-
	Total Operations		-			-		-			-			0.05			0.08			-			-			-		-

Oil & Plant Condensate ($/bbl)
	USA Operations		(0.66	)		-		(1.52	)		(0.48	)		(0.38	)		(0.25	)		(0.43	)		(1.12	)		-		-
	Canadian Operations		-			-		-			-			-			-			-			-			-		-
	Total Operations		(0.56	)		-		(1.27	)		(0.42	)		(0.31	)		(0.20	)		(0.35	)		(0.92	)		-		-

NGLs - Other ($/bbl)
	USA Operations		0.18			0.24		0.15			0.15			-			-			-			-			-		-
	Canadian Operations		-			-		-			-			-			-			-			-			-		-
	Total Operations		0.15			0.20		0.12			0.13			-			-			-			-			-		-

NGLs - Total ($/bbl)
	USA Operations		0.16			0.21		0.13			0.13			-			-			-			-			-		-
	Canadian Operations		-			-		-			-			-			-			-			-			-		-
	Total Operations		0.10			0.13		0.08			0.09			-			-			-			-			-		-

Oil & NGLs ($/bbl)
	USA Operations		(0.41	)		0.07		(1.02	)		(0.30	)		(0.27	)		(0.19	)		(0.30	)		(0.80	)		-		-
	Canadian Operations		-			-		-			-			-			-			-			-			-		-
	Total Operations		(0.35	)		0.06		(0.85	)		(0.26	)		(0.21	)		(0.14	)		(0.24	)		(0.66	)		-		-

Natural Gas ($/Mcf)
	USA Operations		0.84			0.83		1.05			0.65			0.17			0.23			0.15			0.32			0.10		0.03
	Canadian Operations		0.35			0.48		0.35			0.22			(0.13	)		0.11			(0.21	)		0.12			-		(0.82	)
	Total Operations		0.50			0.59		0.56			0.35			(0.03	)		0.15			(0.09	)		0.18			0.03		(0.54	)

Total ($/BOE)
	USA Operations		1.00			1.35		0.87			0.77			0.07			0.18			0.03			(0.12	)		0.17		0.05
	Canadian Operations		1.70			2.32		1.69			1.03			(0.60	)		0.56			(1.00	)		0.60			-		(3.97	)
	Total Operations		1.29			1.76		1.21			0.87			(0.21	)		0.33			(0.41	)		0.17			0.10		(1.64	)


Ovintiv Inc.	6	Supplemental Information (prepared in US$)

Third quarter report

for the period ended September 30, 2024

Supplemental Oil and Gas Operating Statistics (unaudited)

Operating Statistics (continued)

Per-Unit Results, Including the Impact of Realized Gains (Losses) on Risk Management


		2024								2023
(US$)		Year-to- Date		Q3		Q2		Q1		Year		Q4		Q3 Year- to-Date		Q3		Q2		Q1

Oil Price ($/bbl)
	USA Operations		75.15		73.23		76.58		75.66		76.06		76.64		75.80		79.51		72.83		74.06
	Canadian Operations		72.90		71.07		74.86		72.34		81.59		75.10		85.74		100.64		-		71.44
	Total Operations		75.15		73.23		76.58		75.66		76.06		76.64		75.80		79.52		72.83		74.06

NGLs - Plant Condensate Price ($/bbl)
	USA Operations		58.01		56.73		59.43		57.97		58.53		57.24		58.98		59.96		55.09		61.84
	Canadian Operations		72.88		71.13		75.61		71.70		74.61		74.75		74.48		75.67		70.99		77.22
	Total Operations		69.05		67.30		71.66		68.10		70.51		70.46		70.49		71.61		67.14		73.01

Oil & Plant Condensate Price ($/bbl)
	USA Operations		74.09		72.16		75.53		74.62		74.93		75.58		74.65		78.30		71.61		73.12
	Canadian Operations		72.88		71.13		75.60		71.71		74.54		74.65		74.50		75.75		70.99		77.21
	Total Operations		73.91		72.00		75.55		74.20		74.88		75.46		74.63		77.94		71.50		73.81

NGLs - Other Price ($/bbl)
	USA Operations		17.70		16.68		16.99		19.50		16.27		16.21		16.29		16.91		13.43		18.73
	Canadian Operations		27.35		26.97		25.36		30.13		26.78		30.94		25.30		25.50		18.62		35.17
	Total Operations		19.29		18.33		18.47		21.16		18.09		18.85		17.83		18.39		14.43		21.11

NGLs - Total Price ($/bbl)
	USA Operations		22.83		21.94		22.33		24.29		21.66		21.61		21.68		22.72		18.39		24.14
	Canadian Operations		58.35		57.22		59.21		58.59		58.89		60.71		58.21		59.76		52.05		64.31
	Total Operations		35.27		34.12		35.82		35.91		34.98		36.20		34.55		36.11		30.78		37.19

Oil & NGLs Price ($/bbl)
	USA Operations		57.31		55.42		58.07		58.49		57.02		59.75		55.91		60.93		51.94		54.16
	Canadian Operations		58.46		57.34		59.35		58.65		58.93		60.75		58.25		59.84		52.06		64.32
	Total Operations		57.49		55.72		58.28		58.51		57.34		59.92		56.31		60.77		51.96		55.80

Natural Gas Price ($/Mcf)
	USA Operations		2.33		2.12		2.21		2.67		2.60		2.57		2.61		2.54		1.89		3.43
	Canadian Operations		1.98		1.77		1.71		2.52		2.76		2.69		2.78		2.50		2.02		3.98
	Total Operations		2.09		1.88		1.86		2.56		2.71		2.65		2.73		2.51		1.98		3.80

Total Price ($/BOE)
	USA Operations		46.12		44.32		46.48		47.62		46.22		49.21		45.05		49.50		40.73		44.57
	Canadian Operations		20.99		19.71		20.09		23.33		25.16		25.77		24.95		24.06		20.26		31.53
	Total Operations		35.74		34.17		35.29		37.84		37.46		39.99		36.53		39.12		31.66		39.08

Total Netback ($/BOE)
	USA Operations		33.01		31.73		33.11		34.22		32.82		36.91		31.23		36.15		27.41		29.66
	Canadian Operations		7.74		6.01		7.37		10.01		11.65		12.58		11.33		10.16		8.45		16.04
	Total Operations		22.57		21.13		22.20		24.47		24.01		27.34		22.79		25.54		19.03		23.92


Ovintiv Inc.	7	Supplemental Information (prepared in US$)

Third quarter report

for the period ended September 30, 2024

Supplemental Oil and Gas Operating Statistics (unaudited)

Results by Play


		2024								2023
(average)		Year-to- Date		Q3		Q2		Q1		Year		Q4		Q3 Year- to-Date		Q3		Q2		Q1

Oil Production (Mbbls/d)

USA Operations
	Permian		120.1		117.9		117.5		124.9		99.5		140.2		85.8		121.4		75.6		59.6
	Anadarko		22.2		21.0		21.2		24.4		30.6		26.8		31.9		30.2		32.4		33.1
	Uinta		25.8		28.9		27.7		20.8		19.1		26.8		16.5		18.9		17.8		12.8
	Other (1)		0.2		0.2		0.4		0.1		9.6		0.2		12.8		0.3		16.6		21.7
Total USA Operations			168.3		168.0		166.8		170.2		158.8		194.0		147.0		170.8		142.4		127.2

Canadian Operations
	Montney		0.4		0.4		0.5		0.2		0.1		0.1		0.1		0.1		-		0.1
	Other (1)		-		-		-		-		-		-		-		-		-		-
Total Canadian Operations			0.4		0.4		0.5		0.2		0.1		0.1		0.1		0.1		-		0.1


Total			168.7		168.4		167.3		170.4		158.9		194.1		147.1		170.9		142.4		127.3


NGLs - Plant Condensate Production (Mbbls/d)

USA Operations
	Permian		5.2		5.6		5.2		4.7		4.1		4.9		3.8		4.6		3.7		3.0
	Anadarko		5.6		5.6		5.5		5.6		5.9		6.0		5.9		6.1		5.6		5.8
	Uinta		0.3		0.5		0.2		0.3		0.3		0.4		0.2		0.4		0.2		0.2
	Other (1)		-		-		-		-		0.6		-		0.9		0.1		1.0		1.6
Total USA Operations			11.1		11.7		10.9		10.6		10.9		11.3		10.8		11.2		10.5		10.6

Canadian Operations
	Montney		31.8		32.2		33.6		29.8		32.0		34.8		31.1		32.1		33.0		28.1
	Other (1)		0.1		0.1		0.1		0.1		-		-		-		-		-		-
Total Canadian Operations			31.9		32.3		33.7		29.9		32.0		34.8		31.1		32.1		33.0		28.1


Total			43.0		44.0		44.6		40.5		42.9		46.1		41.9		43.3		43.5		38.7


Oil & Plant Condensate Production (Mbbls/d)

USA Operations
	Permian		125.3		123.5		122.7		129.6		103.6		145.1		89.6		126.0		79.3		62.6
	Anadarko		27.8		26.6		26.7		30.0		36.5		32.8		37.8		36.3		38.0		38.9
	Uinta		26.1		29.4		27.9		21.1		19.4		27.2		16.7		19.3		18.0		13.0
	Other (1)		0.2		0.2		0.4		0.1		10.2		0.2		13.7		0.4		17.6		23.3
Total USA Operations			179.4		179.7		177.7		180.8		169.7		205.3		157.8		182.0		152.9		137.8

Canadian Operations
	Montney		32.2		32.6		34.1		30.0		32.1		34.9		31.2		32.2		33.0		28.2
	Other (1)		0.1		0.1		0.1		0.1		-		-		-		-		-		-
Total Canadian Operations			32.3		32.7		34.2		30.1		32.1		34.9		31.2		32.2		33.0		28.2


Total			211.7		212.4		211.9		210.9		201.8		240.2		189.0		214.2		185.9		166.0

(1) Other Operations includes production volumes from plays that are not part of the Company’s current focus. Production volumes associated with Bakken were included in USA Other Operations until the asset was divested on June 12, 2023.


Ovintiv Inc.	8	Supplemental Information (prepared in US$)

Third quarter report

for the period ended September 30, 2024

Supplemental Oil and Gas Operating Statistics (unaudited)

Results by Play (continued)


		2024								2023
(average)		Year-to- Date		Q3		Q2		Q1		Year		Q4		Q3 Year- to-Date		Q3		Q2		Q1

NGLs - Other Production (Mbbls/d)

USA Operations
	Permian		41.7		43.1		41.6		40.3		33.0		39.0		31.0		35.1		31.0		26.8
	Anadarko		32.7		32.5		32.8		32.9		36.3		33.7		37.1		35.2		37.8		38.5
	Uinta		1.5		2.0		1.2		1.3		1.2		1.8		1.0		1.2		1.1		0.7
	Other (1)		0.1		0.1		0.1		0.1		4.1		0.1		5.4		0.3		8.2		7.7
Total USA Operations			76.0		77.7		75.7		74.6		74.6		74.6		74.5		71.8		78.1		73.7

Canadian Operations
	Montney		15.0		14.9		16.3		13.8		15.6		16.3		15.4		14.9		18.7		12.5
	Other (1)		-		-		-		-		-		-		-		-		-		-
Total Canadian Operations			15.0		14.9		16.3		13.8		15.6		16.3		15.4		14.9		18.7		12.5


Total			91.0		92.6		92.0		88.4		90.2		90.9		89.9		86.7		96.8		86.2


NGLs - Total Production (Mbbls/d)

USA Operations
	Permian		46.9		48.7		46.8		45.0		37.1		43.9		34.8		39.7		34.7		29.8
	Anadarko		38.3		38.1		38.3		38.5		42.2		39.7		43.0		41.3		43.4		44.3
	Uinta		1.8		2.5		1.4		1.6		1.5		2.2		1.2		1.6		1.3		0.9
	Other (1)		0.1		0.1		0.1		0.1		4.7		0.1		6.3		0.4		9.2		9.3
Total USA Operations			87.1		89.4		86.6		85.2		85.5		85.9		85.3		83.0		88.6		84.3

Canadian Operations
	Montney		46.8		47.1		49.9		43.6		47.6		51.1		46.5		47.0		51.7		40.6
	Other (1)		0.1		0.1		0.1		0.1		-		-		-		-		-		-
Total Canadian Operations			46.9		47.2		50.0		43.7		47.6		51.1		46.5		47.0		51.7		40.6


Total			134.0		136.6		136.6		128.9		133.1		137.0		131.8		130.0		140.3		124.9


Oil & NGLs Production (Mbbls/d)

USA Operations
	Permian		167.0		166.6		164.3		169.9		136.6		184.1		120.6		161.1		110.3		89.4
	Anadarko		60.5		59.1		59.5		62.9		72.8		66.5		74.9		71.5		75.8		77.4
	Uinta		27.6		31.4		29.1		22.4		20.6		29.0		17.7		20.5		19.1		13.7
	Other (1)		0.3		0.3		0.5		0.2		14.3		0.3		19.1		0.7		25.8		31.0
Total USA Operations			255.4		257.4		253.4		255.4		244.3		279.9		232.3		253.8		231.0		211.5

Canadian Operations
	Montney		47.2		47.5		50.4		43.8		47.7		51.2		46.6		47.1		51.7		40.7
	Other (1)		0.1		0.1		0.1		0.1		-		-		-		-		-		-
Total Canadian Operations			47.3		47.6		50.5		43.9		47.7		51.2		46.6		47.1		51.7		40.7


Total			302.7		305.0		303.9		299.3		292.0		331.1		278.9		300.9		282.7		252.2


Ovintiv Inc.	9	Supplemental Information (prepared in US$)

Third quarter report

for the period ended September 30, 2024

Supplemental Oil and Gas Operating Statistics (unaudited)

Results by Play (continued)


		2024								2023
(average)		Year-to- Date		Q3		Q2		Q1		Year		Q4		Q3 Year- to-Date		Q3		Q2		Q1

Natural Gas Production (MMcf/d)

USA Operations
	Permian		231		243		232		220		185		213		175		195		171		158
	Anadarko		267		264		269		267		283		277		285		285		289		281
	Uinta		32		33		26		36		22		30		20		24		20		15
	Other (1)		3		3		4		3		27		4		35		4		50		53
Total USA Operations			533		543		531		526		517		524		515		508		530		507

Canadian Operations
	Montney		1,159		1,182		1,203		1,093		1,095		1,094		1,096		1,092		1,177		1,017
	Other (1)		12		-		6		29		30		27		30		25		36		31
Total Canadian Operations			1,171		1,182		1,209		1,122		1,125		1,121		1,126		1,117		1,213		1,048


Total			1,704		1,725		1,740		1,648		1,642		1,645		1,641		1,625		1,743		1,555


Total Production (MBOE/d)

USA Operations
	Permian		205.5		207.3		203.0		206.3		167.3		219.5		149.8		193.9		138.9		115.8
	Anadarko		105.0		103.1		104.4		107.5		119.9		112.8		122.4		119.0		124.0		124.2
	Uinta		32.9		36.8		33.4		28.4		24.3		33.9		21.1		24.4		22.4		16.3
	Other (1)		0.9		0.8		1.1		0.8		18.9		0.9		24.8		1.2		33.9		39.8
Total USA Operations			344.3		348.0		341.9		343.0		330.4		367.1		318.1		338.5		319.2		296.1

Canadian Operations
	Montney		240.3		244.5		250.8		225.8		230.2		233.6		229.1		229.1		247.8		210.1
	Other (1)		2.1		0.1		1.1		5.0		5.0		4.5		5.1		4.2		6.0		5.2
Total Canadian Operations			242.4		244.6		251.9		230.8		235.2		238.1		234.2		233.3		253.8		215.3


Total			586.7		592.6		593.8		573.8		565.6		605.2		552.3		571.8		573.0		511.4


Ovintiv Inc.	10	Supplemental Information (prepared in US$)

Third quarter report

for the period ended September 30, 2024

Supplemental Oil and Gas Operating Statistics (unaudited)

Results by Play (continued)


		2024								2023
(US$ millions)		Year-to- Date		Q3		Q2		Q1		Year			Q4			Q3 Year- to-Date			Q3		Q2			Q1

Capital Expenditures, Excluding Capitalized Internal Costs

USA Operations
	Permian		989		350		361		278		1,360			335			1,025			524		295			206
	Anadarko		80		51		23		6		180			24			156			3		55			98
	Uinta		243		19		88		136		396			123			273			136		76			61
	Other (1)		3		3		-		-		112			-			112			3		43			66
Total USA Operations			1,315		423		472		420		2,048			482			1,566			666		469			431

Canadian Operations
	Montney		313		79		108		126		544			127			417			130		152			135
	Other (1)		-		-		-		-		(2	)		-			(2	)		-		-			(2	)
Total Canadian Operations			313		79		108		126		542			127			415			130		152			133

Total Capital Expenditures, Excluding Capitalized Internal Costs			1,628		502		580		546		2,590			609			1,981			796		621			564

Capitalized Directly Attributable Internal Costs

USA Operations
	Permian		73		24		23		26		83			29			54			16		19			19
	Anadarko		9		3		3		3		21			5			16			5		4			7
	Uinta		21		7		6		8		31			9			22			8		7			7
	Other (1)		-		-		-		-		6			-			6			-		3			3
Total USA Operations			103		34		32		37		141			43			98			29		33			36

Canadian Operations
	Montney		17		1		9		7		6			6			-			6		(15	)		9
	Other (1)		-		-		-		-		1			1			-			-		-			-
Total Canadian Operations			17		1		9		7		7			7			-			6		(15	)		9

Total Capitalized Directly Attributable Internal Costs			120		35		41		44		148			50			98			35		18			45

Total Capital Expenditures

USA Operations
	Permian		1,062		374		384		304		1,443			364			1,079			540		314			225
	Anadarko		89		54		26		9		201			29			172			8		59			105
	Uinta		264		26		94		144		427			132			295			144		83			68
	Other (1)		3		3		-		-		118			-			118			3		46			69
Total USA Operations			1,418		457		504		457		2,189			525			1,664			695		502			467

Canadian Operations
	Montney		330		80		117		133		550			133			417			136		137			144
	Other (1)		-		-		-		-		(1	)		1			(2	)		-		-			(2	)
Total Canadian Operations			330		80		117		133		549			134			415			136		137			142

Corporate & Other			3		1		1		1		6			1			5			3		1			1
Total Capital Expenditures			1,751		538		622		591		2,744			660			2,084			834		640			610
Net Acquisitions & (Divestitures)			195		4		3		188		(495	)		(27	)		(468	)		47		(702	)		187
Net Capital Investment			1,946		542		625		779		2,249			633			1,616			881		(62	)		797

(1) Other Operations includes capital expenditures in plays that are not part of the Company’s current focus. Capital expenditures associated with Bakken were included in USA Other Operations until the asset was divested on June 12, 2023.


Ovintiv Inc.	11	Supplemental Information (prepared in US$)

Third quarter report

for the period ended September 30, 2024

Supplemental Oil and Gas Operating Statistics (unaudited)

Results by Play (continued)


		2024								2023
		Year-to- Date		Q3		Q2		Q1		Year		Q4		Q3 Year- to-Date		Q3		Q2		Q1

Drilling Activity (net wells drilled)

USA Operations
	Permian		127		50		45		32		113		25		88		45		26		17
	Anadarko		13		7		6		-		11		-		11		2		2		7
	Uinta		16		-		1		15		33		12		21		10		8		3
	Other (1)		-		-		-		-		11		-		11		-		6		5
Total USA Operations			156		57		52		47		168		37		131		57		42		32

Canadian Operations
	Montney		46		12		13		21		96		28		68		19		23		26
Total Canadian Operations			46		12		13		21		96		28		68		19		23		26


Total			202		69		65		68		264		65		199		76		65		58

Completions Activity (net wells on production)

USA Operations
	Permian		93		32		40		21		184		60		124		83		27		14
	Anadarko		9		9		-		-		25		4		21		1		7		13
	Uinta		27		11		7		9		21		8		13		10		3		-
	Other (1)		-		-		-		-		16		-		16		-		8		8
Total USA Operations			129		52		47		30		246		72		174		94		45		35

Canadian Operations
	Montney		55		11		33		11		77		15		62		22		29		11
Total Canadian Operations			55		11		33		11		77		15		62		22		29		11


Total			184		63		80		41		323		87		236		116		74		46

(1) Other Operations includes net wells drilled and net wells on production in plays that are not part of the Company’s current focus. Net wells drilled and net wells on production associated with Bakken were included in USA Other Operations until the asset was divested on June 12, 2023.


Ovintiv Inc.	12	Supplemental Information (prepared in US$)

Ovintiv Inc.

Non-GAAP Definitions and Reconciliations

(unaudited)

For the period ended September 30, 2024

U.S. Dollar / U.S. Protocol

For the period ended September 30, 2024

(US$ millions, except per share amounts or as indicated)

Non-GAAP Cash Flow, Non-GAAP Cash Flow Per Share (CFPS), Non-GAAP Free Cash Flow and Non-GAAP Free Cash Flow Per Share (FCFPS) - Non-GAAP Cash Flow is defined as cash from (used in) operating activities excluding net change in other assets and liabilities, and net change in non-cash working capital. Non-GAAP CFPS is Non-GAAP Cash Flow divided by the weighted average number of shares of common stock outstanding. Non-GAAP Free Cash Flow is defined as Non-GAAP Cash Flow in excess of capital expenditures, excluding net acquisitions and divestitures. Non-GAAP FCFPS is Non-GAAP Free Cash Flow divided by the weighted average number of shares of common stock outstanding. Management believes these measures are useful to the Company and its investors as a measure of operating and financial performance across periods and against other companies in the industry, and are an indication of the Company’s ability to generate cash to finance capital programs, to service debt and to meet other financial obligations. These measures are used, along with other measures, in the calculation of certain performance targets for the Company’s management and employees.


Non-GAAP Cash Flow			Q3 2024			YTD 2024

Cash from (used in) Operating Activities		$		1,022	$		2,701
Deduct (add back):
	Net change in other assets and liabilities			19			(35	)
	Net change in non-cash working capital			25			(302	)
Non-GAAP Cash Flow		$		978	$		3,038

Per Share - Basic		$		3.73	$		11.42
Per Share - Diluted				3.70			11.31

Non-GAAP Free Cash Flow

Non-GAAP Cash Flow		$		978	$		3,038
Deduct:
	Capital expenditures			538			1,751
Non-GAAP Free Cash Flow		$		440	$		1,287

Non-GAAP Adjusted Earnings - is defined as Net Earnings (Loss) excluding non-cash items that management believes reduces the comparability of the Company’s financial performance between periods. These items may include, but are not limited to, unrealized gains/losses on risk management, impairments, non-operating foreign exchange gains/losses, and gains/losses on divestitures. Income taxes includes adjustments to normalize the effect of income taxes calculated using the estimated annual effective income tax rate. In addition, any valuation allowances are excluded in the calculation of income taxes.


Non-GAAP Adjusted Earnings			Q3 2024				YTD 2024

Net Earnings (Loss) Before Income Tax		$		558		$		1,452
Before-tax (Addition) Deduction:
	Unrealized gain (loss) on risk management			31				(61	)
	Non-operating foreign exchange gain (loss)			(16	)			20
Adjusted Earnings (Loss) Before Income Tax				543				1,493
	Income tax expense (recovery)			54				284
Non-GAAP Adjusted Earnings		$		489		$		1,209

Per Share - Basic		$		1.87		$		4.55
Per Share - Diluted				1.85				4.50


Ovintiv Inc.	1	Non-GAAP Definitions and Reconciliations

Debt to Capitalization - Capitalization includes debt and total shareholders’ equity. Debt to Capitalization is monitored by management as an indicator of the Company’s overall financial strength.


Debt to Capitalization		YTD 2024

Long-Term Debt, Including Current Portion	$		5,877
Total Shareholders’ Equity			10,655
Capitalization	$		16,532

Debt to Capitalization		36%

Debt to Adjusted Capitalization - Debt to Adjusted Capitalization is a non-GAAP measure and is a proxy for Ovintiv’s financial covenant under the Company’s credit facilities which require Debt to Adjusted Capitalization to be less than 60 percent. Adjusted Capitalization includes debt, total shareholders’ equity and an equity adjustment for cumulative historical ceiling test impairments recorded as at December 31, 2011 in conjunction with the Company’s January 1, 2012 adoption of U.S. GAAP.


Debt to Adjusted Capitalization		YTD 2024

Long-Term Debt, Including Current Portion	$		5,877
Total Shareholders’ Equity			10,655
Equity Adjustment for Impairments at December 31, 2011			7,746
Adjusted Capitalization	$		24,278

Debt to Adjusted Capitalization		24%

EBITDA, Debt to EBITDA, Adjusted EBITDA and Debt to Adjusted EBITDA (Leverage Ratio/Target) - EBITDA is defined as trailing 12-month net earnings (loss) before income taxes, DD&A, and interest. Adjusted EBITDA is defined as EBITDA adjusted for impairments, accretion of asset retirement obligation, unrealized gains/losses on risk management, foreign exchange gains/losses, gains/losses on divestitures and other gains/losses. Debt to EBITDA and Debt to Adjusted EBITDA are non-GAAP measures monitored by management as an indicator of the Company’s overall financial strength.


			Q4 2023			Q1 2024			Q2 2024			Q3 2024			Trailing 12- Months

Long-Term Debt, Including Current Portion														$		5,877

Net Earnings (Loss)		$		856	$		338	$		340	$		507	$		2,041
Add back (deduct):
	Depreciation, depletion and amortization			556			566			580			599			2,301
	Interest			106			98			105			103			412
	Income tax expense (recovery)			211			90			126			51			478
EBITDA		$		1,729	$		1,092	$		1,151	$		1,260	$		5,232

Debt to EBITDA (times)																1.1


			Q4 2023				Q1 2024				Q2 2024				Q3 2024				Trailing 12- Months

Long-Term Debt, Including Current Portion																		$		5,877

Net Earnings (Loss)		$		856		$		338		$		340		$		507		$		2,041
Add back (deduct):
	Depreciation, depletion and amortization			556				566				580				599				2,301
	Accretion of asset retirement obligation			5				5				4				5				19
	Interest			106				98				105				103				412
	Unrealized (gains) losses on risk management			(326	)			100				(8	)			(31	)			(265	)
	Foreign exchange (gain) loss, net			19				(28	)			(10	)			17				(2	)
	Other (gains) losses, net			(4	)			(4	)			(5	)			(151	)			(164	)
	Income tax expense (recovery)			211				90				126				51				478
Adjusted EBITDA		$		1,423		$		1,165		$		1,132		$		1,100		$		4,820

Debt to Adjusted EBITDA (times)																				1.2


Ovintiv Inc.	2	Non-GAAP Definitions and Reconciliations

Net Debt - Net Debt is defined as long-term debt, including the current portion, less cash and cash equivalents.


Net Debt			YTD 2024

Long-Term Debt, Including Current Portion		$		5,877
Less:
	Cash and cash equivalents			9
Net Debt		$		5,868

Operating Margin/Operating Netback - Product revenues less costs associated with delivering the product to market, including production, mineral and other taxes, transportation and processing and operating expenses. When presented on a per BOE basis, Operating Netback is defined as indicated divided by average barrels of oil equivalent sales volumes. Operating Margin/Operating Netback is used by management as an internal measure of the profitability of a play.

Return on Capital Employed (ROCE) - ROCE is defined as trailing 12-month Non-GAAP Adjusted Earnings plus after-tax interest expense divided by Capital Employed. Capital Employed is defined as average debt plus average shareholders’ equity.

Upstream Operating Cash Flow, excluding Risk Management and Upstream Operating Free Cash Flow - Upstream Operating Cash Flow, excluding Risk Management is a measure that adjusts the USA and Canadian Operations revenues for production, mineral and other taxes, transportation and processing expense, operating expense and the impacts of realized risk management activities. It is calculated as total upstream operating income excluding upstream depreciation, depletion and amortization, and the impact of risk management activities. Upstream Operating Free Cash Flow is defined as Upstream Operating Cash Flow, excluding Risk Management, in excess of upstream capital investment, excluding net acquisitions and divestitures. Management monitors these measures as it reflects operating performance and measures the amount of cash generated from the Company’s upstream operations.

Free Cash Flow Yield - Annualized Non-GAAP Free Cash Flow divided by the Company’s market capitalization.

Cash Return Yield - The sum of Ovintiv’s base dividend and expected cash returned to shareholders under the Company’s capital allocation framework, divided by the Company’s market capitalization, on an annualized basis.


Ovintiv Inc.	3	Non-GAAP Definitions and Reconciliations

Netback Calculation

Netback is a common metric used in the oil and gas industry to measure operating performance on a per-unit basis and is considered a non-GAAP measure. The netbacks disclosed below have been calculated on a BOE basis using upstream product revenues, excluding the impact of realized gains and losses on risk management, less costs associated with delivering the product to market, including production, mineral and other taxes, transportation and processing expense and operating expense.


Selected Financial Data (1)

			2024								2023
(US$ millions)			Year-to- Date		Q3		Q2		Q1		Year		Q4		Q3		Q2		Q1
USA Operations
	Upstream Product Revenue (2,3)			4,257		1,376		1,420		1,461		5,565		1,656		1,544		1,179		1,186
	Production, mineral and other taxes			247		82		85		80		327		90		84		73		80
	Transportation and processing			382		129		126		127		547		128		124		148		147
	Operating (4)			609		193		205		211		743		198		208		167		170
				3,019		972		1,004		1,043		3,948		1,240		1,128		791		789
Canadian Operations
	Upstream Product Revenue (2,3)			1,281		391		422		468		2,212		552		504		467		689
	Production, mineral and other taxes			11		4		4		3		15		3		5		3		4
	Transportation and processing			781		270		260		251		1,056		256		265		268		267
	Operating (4)			87		36		26		25		88		29		28		2		29
				402		81		132		189		1,053		264		206		194		389
Total Operations
	Upstream Product Revenue (2,3)			5,538		1,767		1,842		1,929		7,777		2,208		2,048		1,646		1,875
	Production, mineral and other taxes			258		86		89		83		342		93		89		76		84
	Transportation and processing			1,163		399		386		378		1,603		384		389		416		414
	Operating (4)			696		229		231		236		831		227		236		169		199
				3,421		1,053		1,136		1,232		5,001		1,504		1,334		985		1,178

(1)		Segmented financial information per the notes to Ovintiv's financial statements.
(2)		Excludes the impact of realized gains and losses on risk management.
(3)		Excludes service revenues, certain other revenues and royalty adjustments with no associated production volumes.
(4)		Excludes other operating expenses with no associated production volumes.

Sales Volumes (1)

			2024								2023
(BOE)			Year-to- Date		Q3		Q2		Q1		Year		Q4		Q3		Q2		Q1
USA Operations				94,334,364		32,027,500		31,141,019		31,165,771		120,609,505		33,771,820		31,141,172		29,044,015		26,652,510
Canadian Operations				66,421,436		22,502,832		22,919,260		20,999,433		85,848,365		21,907,316		21,465,900		23,096,801		19,378,260
Total				160,755,800		54,530,332		54,060,279		52,165,204		206,457,870		55,679,136		52,607,072		52,140,816		46,030,770

(1)		Numbers may not add due to the calculation of volumes, which is based on sales volumes per day on a BOE basis times the number of days in the period.

Calculated Operating Netback, excluding the Impact of Realized Gains (Losses) on Risk Management (1)

			2024								2023
(US$/BOE)			Year-to- Date		Q3		Q2		Q1		Year		Q4		Q3		Q2		Q1
Total USA Operations
	Price			45.13		42.96		45.60		46.88		46.14		49.03		49.58		40.59		44.50
	Production, mineral and other taxes			2.62		2.56		2.73		2.57		2.71		2.66		2.70		2.51		3.00
	Transportation and processing			4.05		4.03		4.05		4.07		4.54		3.79		3.98		5.10		5.52
	Operating			6.46		6.03		6.58		6.77		6.16		5.86		6.68		5.75		6.38
	Netback			32.00		30.35		32.24		33.47		32.73		36.72		36.22		27.23		29.60
Total Canadian Operations
	Price			19.29		17.38		18.41		22.29		25.77		25.20		23.48		20.22		35.56
	Production, mineral and other taxes			0.17		0.18		0.17		0.14		0.17		0.14		0.23		0.13		0.21
	Transportation and processing			11.76		12.00		11.34		11.95		12.30		11.69		12.35		11.60		13.78
	Operating			1.31		1.60		1.13		1.19		1.03		1.32		1.30		0.09		1.50
	Netback			6.05		3.60		5.76		9.00		12.27		12.05		9.60		8.40		20.07
Total Operations
	Price			34.45		32.40		34.07		36.98		37.67		39.66		38.93		31.57		40.73
	Production, mineral and other taxes			1.60		1.58		1.65		1.59		1.66		1.67		1.69		1.46		1.82
	Transportation and processing			7.23		7.32		7.14		7.25		7.76		6.90		7.39		7.98		8.99
	Operating			4.33		4.20		4.27		4.52		4.03		4.08		4.49		3.24		4.32
Netback				21.28		19.31		21.01		23.62		24.22		27.01		25.36		18.89		25.59

(1)		May not add due to rounding. Ovintiv calculates reported netbacks using whole dollars and sales volumes. Accordingly, the calculations above may differ from the reported netbacks due to the effects of rounding both dollars and volumes.


Ovintiv Inc.	4	Non-GAAP Definitions and Reconciliations

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