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3Q 2022 Earnings Presentation – Ovintiv Inc

Ovintiv Inc · Nov 11, 2022 · 24 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. 3Q 2022 Earnings Presentation – Ovintiv Inc – slide 1
    3Q22 Results Conference Call 1
  2. 3Q 2022 Earnings Presentation – Ovintiv Inc – slide 2
    Strong Business Performance Generating Substantial Free Cash 5B of annualized 3Q22 unhedged FCF Returning Cash to Shareholders 1B FY22 (Base Dividends & Buybacks) Business Resiliency Reinforcing 1B YTD22 Net Debt reduction…
  3. 3Q 2022 Earnings Presentation – Ovintiv Inc – slide 3
    3Q22 Execution Driving Value Creation Shareholder Returns Free Cash Flow Generation 387 MM 437 MM 62 MM base dividend + 325 MM buybacks 1,742 MM FCF YTD22 1st quarter of 50% post-dividend FCF returned 958 MM Adjusted EBITDA, 948 MM…
  4. 3Q 2022 Earnings Presentation – Ovintiv Inc – slide 4
    Positioned For Durable Shareholder Returns Premium Portfolio Each asset generates substantial Free Cash Flow Deep Premium 10Years 20Years Oil & Condensate Natural Gas Provides risk mitigation against single basin headwinds Inventory2…
  5. 3Q 2022 Earnings Presentation – Ovintiv Inc – slide 5
    Leading Free Cash Flow Yield Illustrative FCF Yield 37% FCF Yield 13% 16%FCF Yield FCF Yield 5% FCF Yield 1 S&P 500 Peer Avg. OVV OVV Unhedged Potential ('22) ('22) ('22) Non-GAAP measures defined in advisories.…
  6. 3Q 2022 Earnings Presentation – Ovintiv Inc – slide 6
    Outsized Cash Return Profile Market Leading Cash Return Yield Buybacks Returning 50% of After Base Dividend 19% Base Dividends FCF Through Buybacks Cash Return Yield Dividend +167% since 2Q21 Room for continued growth…
  7. 3Q 2022 Earnings Presentation – Ovintiv Inc – slide 7
    Strengthening the Balance Sheet Net Debt (B) Proactive debt management 4.6 Engaging in highly attractive open market repurchases 294 MM Strengthening leverage profile Reduction in 3Q22 0.9x Net Debt to Adjusted EBITDA 4.1 B…
  8. 3Q 2022 Earnings Presentation – Ovintiv Inc – slide 8
    Proactive AECO & Waha Risk Management Successfully Managing 100% transport to market secured Gas Flow & Price Risk Minimal exposure to local market prices 2023-2025 Montney Price Exposures1 2023 Permian Price Exposures1 65% 75%…
  9. 3Q 2022 Earnings Presentation – Ovintiv Inc – slide 9
    Higher Returns Through Capital Efficiency 22 Capex (MM) / Total Production (MBOE/d)1 12 Efficiency edge regardless of 10 8 calculation method: Oil & Condensate / 20:1 ratio / 6:1 ratio1 6 350 MM/yr more FCF than our peers…
  10. 3Q 2022 Earnings Presentation – Ovintiv Inc – slide 10
    Strong Permian Well Performance Proven cube development approach 2022 Permian Program1 Maximizing resource capture by developing multiple zones at once 20 Customized spacing and stacking for each development 21 Program Average…
  11. 3Q 2022 Earnings Presentation – Ovintiv Inc – slide 11
    Montney Webcast Recap September 2022 Strong Economics2 Substantial Free Cash Generation 2B Upstream Op FCF1 Free cash flow driven by strong well results and advantaged midstream & marketing 200% Oil & Condensate and Gas Well Strip…
  12. 3Q 2022 Earnings Presentation – Ovintiv Inc – slide 12
    Proven Stacked Innovation in the Montney CASE STUDY OVV Pipestone 14-13 Pad (15 well pad, on-line 3Q22) Drilling Completions Production Innovation Initiatives: Innovation Initiatives: Innovation Initiatives: 1 Redesigned Drill Bits…
  13. 3Q 2022 Earnings Presentation – Ovintiv Inc – slide 13
    Culture of Innovation Driving Efficiencies Spud to First Sales (Days) Permian Realizing production and cash flow sooner Spud to First Sales: 99 Days (14k ft LL & multi-well pads) 20% Faster 3Q22 Performance 123 99 Multi-pronged…
  14. 3Q 2022 Earnings Presentation – Ovintiv Inc – slide 14
    2022 Guidance 2022 Production, Capital & Total Costs 4Q22 FY22 FY22 (Previous) Total Production 515 525 505 515 500 - 510 (MBOE/d) Oil & Condensate 172 - 175 174 - 176 177 180 (Mbbls/d) NGLs C2 C4 87 - 89 84 - 86 82 84…
  15. 3Q 2022 Earnings Presentation – Ovintiv Inc – slide 15
    Delivering on our Strategy Industry-Leading Value Proposition Superior ROIC and return of cash to our shareholders Returns Based Strategy Superior Cash Returns 1B of shareholder returns expected in FY221 Delivering Value to our…
  16. 3Q 2022 Earnings Presentation – Ovintiv Inc – slide 16
    18
  17. 3Q 2022 Earnings Presentation – Ovintiv Inc – slide 17
    Appendix
  18. 3Q 2022 Earnings Presentation – Ovintiv Inc – slide 18
    Additional 2022 Guidance Total Costs ( / BOE)1 2022 Capital Program Rigs Capital (MM) Net TILs 17.16 16.00-16.50 16.35-16.60 Permian 3 650 700 60 65 Anadarko 2 350 400 55 60 Montney 23 300 350 60 65 Upstream T&P Bakken 2 200 250…
  19. 3Q 2022 Earnings Presentation – Ovintiv Inc – slide 19
    Hedge Positions Hedge Positions September 30, 20221 Illustrative 3-Way Options Market vs. Realized Price2 Oil and Condensate 4Q22 1Q23 2Q23 3Q23 4Q23 Post-Hedge Realized Price (/bbl) Volume Mbbls/d 75 40 40 29 0 120 WTI 3-Way Call…
  20. 3Q 2022 Earnings Presentation – Ovintiv Inc – slide 20
    Track Record of Environmental Leadership 50% Scope 1&2 Achieved 24% Reduction Through 21; Gross Annual Reduction of 2 MM Metric Tons of CO e GHG Intensity 2 Reduction Target Intensity Reduction1 (from 19 30) Tied to…
  21. 3Q 2022 Earnings Presentation – Ovintiv Inc – slide 21
    Transparent Cash Return Framework 4Q22 Cash Returns ( MM) Cumulative Shareholder Returns ( MM)2 3Q22 Results 1,200 Since 3Q21 FY22 948 Cash Flow (511) Capex 830 719 Buybacks 437 Free Cash Flow 1,000 312 240 Base Dividends (62) 3Q22…
  22. 3Q 2022 Earnings Presentation – Ovintiv Inc – slide 22
    Debt Maturity Ladder Long-Term Debt (MM) Long-Term Maturities as of September 30, 2022 Repurchases in 3Q22 10yrs Wtd Avg Maturity 138 229 No Maturities 43 until 26 850 72 599 459 430 390 22 300 148 2040…
  23. 3Q 2022 Earnings Presentation – Ovintiv Inc – slide 23
    3Q22 Net Debt Bridge Million 4,000 3,894 3,900 3,800 3,700 387 3,600 3,600 3,500 3,400 (437) (31) 3,300 3,200 (213) 3,100 3,000 2Q22 FCF Working Capital A&D Shareholder 3Q22 Net Debt Change Returns Net Debt 25…
  24. 3Q 2022 Earnings Presentation – Ovintiv Inc – slide 24
    Cost Savings Momentum Continues Declining Legacy Costs boost cash flow Legacy Cost Profile Accelerates Debt Reduction No execution risk, only subject to time Declining Legacy Costs ( MM) Panuke Lease 600 MM of expected cumulative…

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