Ovintiv takes loss in Q1 on risk management
Denver-based Ovintiv said May 9 it had a net loss in Q1 2022 of $241mn, largely on risk management losses of $1.46bn.
But cash flows in the period were robust, it said. Non-GAAP cash flow increased to $1.04bn from $890mn in Q1 2021, while free cash flow rose to $592mn from $540mn.
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“Our culture of innovation and focus on capital discipline delivered substantial free cash flow generation in the first quarter,” CEO Brendan McCracken said, adding that Ovintiv will not invest in growth in 2022 but will instead target the return of $1bn in cash to its shareholders this year and ongoing debt reduction.
First quarter production slipped to 499,900 barrels of oil equivalent (boe)/day from 538,300 boe/day in Q1 2021, with natural gas production falling to 1.49bn ft3/day from 1.58bn ft3/day.
Most of Ovintiv’s capital expenditures will be focused on its US operations this year, with the Permian to see spending of $650-$700mn and the Anadarko to see expenditures of $350-$400mn. Spending in Canada’s Montney basin is projected at $300-$350mn for the year.