USING FLEXIBILITY TO MANAGE TODAYS VOLATILITY Current Priorities & Recent Actions Cut Costs, Drive Preserve Liquidity & Active Production Protect Health, Safety Capital Efficiencies Balance Sheet Strength Management of Our People…
1Q HIGHLIGHTS Strong 1Q Results Exceed Expectations Net Earnings 421 MM Cash Flow Liquidity 1.62 / share 535 MM 3.4B1 Operating Earnings Investment Grade 2.06 / share 27 MM 0.10 / share Capex ( MM) Production (MBOE/d) Total…
MANAGING THE BUSINESS QUARTER-TO-QUARTER Rapid 2Q Response Rapid Response to Current Conditions 2Q capital reduced by 60% (500 MM) 1.1B Mark-to-market value of OVV Restructured hedges provide increased 2020 protection hedge book…
MULTI-YEAR RESILIENCY 200 MM of Sustainable Cash Cost Savings 200 MM of cash cost savings in 2020 Cash Cost Savings ( MM) Reduced operating and midstream costs 300 Lower G&A, interest and other costs Midstream optimization Cost…
DRIVING CAPITAL EFFICIENCY Track Record of Efficiency Improvements Core 3 Assets demonstrating capital efficiency gains New Well Cost ( MM) 1Q well costs across all assets 9% lower vs 2019 cost reductions Play D&C DC&E achieved…
WORLD CLASS OPERATOR Capital Efficiency More Important Than Ever Permian Drilling Total Well (ft) / day 17% increase in lateral lengths vs FY19 leads to 15% reduction 2,000 in drilling cost per foot Drilling innovations and Simul-Frac…
FLEXIBILITY TO RESPOND TO OIL PRICE DROP Dynamic Shut-in Strategy Preserves Value Dynamic analysis factors Variable expense/margin analysis & contango valuation Continuously updated based on market environment Shut-in net production…
UNDERSTANDING OUR CREDIT FACILITIES Our Liquidity is a Valuable Asset Our credit facilities are: OVV Debt / Adjusted Capitalization Unsecured Fully committed/available to July 2024 80% Based on adjusted book capitalization 70%…
2020-21 SCENARIOS Positioned to Thrive in 2021 and Beyond FCF breakeven lowered and scale maintained through capital efficiency and cost reductions 21 FCF Positive 200 Mbbls/d 1.4 1.6B Post dividend at 35 / 2.75 Avg 2021 Oil & C5+…
THE ROAD AHEAD Positioned to Thrive Maintaining operational scale Driving down cash costs increases future cash flows Full flexibility to manage the business Preserving liquidity and balance sheet strength Proven…
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Appendix
OVV Proven Ability to Generate FCF 2018 + 2019 Free Cash Flow 1 (CFO - Capex Dividend) Few actually delivered FCF to shareholders OVV did Peer 1 Peer 2 Peer 3 OVV Proven free cash flow generation of 460 MM for 18 + 19 Peer 4 Peer…
Potential Index Exposure Creates Demand In 2020, OVV moved its domicile to the U.S. from Canada for exposure to passive index funds - potential below equates to upside demand for 70 MM net shares S&P announced intent to rebalance in…
Pricing and Hedge Summary Quarterly Hedge Positions Strong Hedge Position Oil and Condensate 1 2Q20 3Q20 4Q20 Bal 20 2020 cash flow protected through strong hedges 1 WTI Swaps Volume Mbbls/d 188 160 89 145 Price /bbl 41.47 44.60…
Hedge Sensitivity Update Hedge Sensitivities Gain / (Loss) ( MM) WTI Price /bbl 2Q20 3Q20 4Q20 Bal 20 Proven free cash flow generation of 10 599 565 490 1,654 460 MM for 18 + 19 20 415 404 390 1,209 30 231 243 291 765 1Q20 Oil and…
DURABLE SAVINGS 2020 Cash Cost Savings - 200 MM Cost savings over and above shut-in related costs MM Operating Costs & T&P 95 (workovers, maintenance, electricity, fuel, trucking, chemicals, reduced contractors, etc.) Corporate Items,…
OVINTIV EDGE We Are Defined by Our Culture Culture is the way you feel about the work you do, the values you believe in, where you see the Company going and what we are collectively doing to achieve our shared vision. The values,…
OVINTIV EDGE We Are Defined by Our Culture 1 Ovintiv First Behavior 6 Adaptable 12 Discipline 2 Transparent 7 Informal 13 Excellence 8 Accountable 14 Results 3 Healthy Conflict and Debate Focused/Winning 9 Bias for Action 4…
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