Ovintiv sees slight gains in Q2 earnings

Denver-based producer Ovintiv said July 30 its net earnings before income tax in Q2 2024 increased to $466mn from $437mn in the same period a year ago.

Cash from operating activities rose to $1.02bn from $831mn, while non-GAAP free cash flow jumped to $403mn from $59mn.

Total production in the quarter averaged 593,800 barrels of oil equivalent (boe)/day, up from 573,000 boe/day in Q2 2023. Liquids accounted for about 51% of total production, up from 49% a year ago.

Ovintiv began life in Canada more than two decades ago as gas-focused Encana before re-domiciling to Denver and pivoting to a liquids focus in 2020. In Q2 this year, its natural gas production averaged 1.74bn ft³/day, unchanged from the second quarter last year, while its realised natural gas price declined to $1.86/’000 ft³ from $1.98/000 ft³.

Its main natural gas asset is in the Montney, where production averaged 251,000 boe/day (80% natural gas) in Q2. Investments this year are expected in the $425mn-$475mn range.

Operations in the Permian Basin contributed 203,000 boe/day of production (19% natural gas) in the second quarter. Ovintiv plans Permian investments in the $1.35bn-$1.45bn this year.

Anadarko production averaged 104,000 boe/day (43% natural gas) in Q2 2024, while production in the Uinta Basin of Colorado and Wyoming contributed 33,000 boe/day (13% natural gas) of second quarter production.