Permian & Montney Oil Powerhouse November 14, 2024 1
A Permian & Montney Oil Powerhouse High-Grading The Portfolio Acquiring Core Montney oil 80% undeveloped acreage in high-return oil window For 2.377 B1 Divesting Uinta Montney For 2.00 B High-return oil & deep multi- product inventory…
Focused in the Top North American Oil Basins 80% of remaining sub-50/bbl breakeven oil locations in North America are in the Permian & Montney (Enverus, PV10 breakeven at 20:1 conversion) Remaining Undrilled Resource (Ovintiv…
Advancing Our Durable Returns Strategy Transactions are immediately & long-term accretive on all key financial metrics 20% increase in Free Cash Flow per Share, low-single digit increase in Cash Flow per Share & 125 MM in expected…
Acquired Montney Asset Overview Asset Profile 70 MBOE/d expected at close1 25 Mbbls/d oil & condensate1, 230 MMcf/d natural gas1 Anticipate load-leveled pro forma activity of 3 rigs & 1 frac crew Inventory & Operational Details 109k…
Conservative Transaction Funding Expect agencies to reaffirm investment grade Transaction Sources and Uses Sources (MM) ratings & stable outlooks Uinta Sale Proceeds 3 2,000 Committed to maintaining IG rating Cash and Short-Term…
Immediately & Long-Term Accretive Accretive on all key financial metrics including Cash Flow & 20% More FY25E Free Free Cash Flow Cash Flow per 300 MM higher Free Cash Flow in FY25E1 Share1 200 MM more Cash Flow, 100 MM less…
Acquiring the Best Rock in the Montney Alberta Montney Avg. Oil Productivity1 Core-of-the Core Montney Oil 40% 12-Month Cume. bbls/ft Highest oil productivity in the Alberta Montney 16 12 More Productive than the Peer Avg. Enhances…
Enhancing Our Montney Oil Position Todays Transactions2 15 years of Premium1 Montney oil inventory 600 Premium Locations1 Legacy Montney & acquired Premium locations1 12-16 WPS, two benches across position + 3rd Transaction expands…
Ovintiv is the Best-in-Class Montney Operator Industry-Leading Montney Operator Decades of experience in the Montney OVV Spud-Rig Release vs. Peers2 Days OVV Execution leadership drives top tier capital efficiency Peer Average…
Speed Driving Montney Efficiencies Drilled Ft/Day 3Q24 OVV Drilling 1,820 1,800 6% faster drilling in 3Q24 vs. FY23 1,700 1,725 1,700 6% Faster Longest industry lateral in Montney history at 18,110 ft 1 3Q24 vs. FY23…
Advancing Our Durable Returns Strategy Builds on strong year-to-date company wide performance Immediately & long-term accretive Drives capital efficiency gain & ROCE boost High-grades portfolio & enhances Montney oil position…
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Appendix
Oil Inventory Powerhouse Focused & Efficient Portfolio Pairing the top two oil basins with stable, low-decline Free Cash Flow Montney Substantial basin scale in each asset High-return oil & deep multi- Innovations transferred across…
Details on Uinta Basin Exit All Cash Proceeds 2.00 B Funds Significant Portion of Montney Acquisition Production Profile 29 Mbbls/d 3Q24 Oil & Condensate Production October 1, 2024 Key Effective Date Dates 1Q25…
Proven Montney Oil Well Performance Acquired acreage among the highest oil productivity in the Montney Over- Normally Pressured* Pressured* 106 Pipestone k Acquired Net Core Acres Wapiti Acquisition 46 Wells 14.5 bo/ft…
Midstream & Marketing Overview Midstream Infrastructure Sufficient Access to Processing & Transportation Capacity Scaled with near-term development plans Option for mid-single-digit oil growth Leverages & Builds on Existing…
Condy Fundamentals Support Parity to WTI Captive Demand Growth (Mbbls/d)1 Montney Condensate Competes with WTI (/bbl)2 Required Condensate Imports to Meet Demand WTI Domestic Condensate Production Montney Condensate 1,200 140…
WCSB Gas Market Balances on Exports WCSB Supply & Demand Balance (Bcf/d) In-Basin WCSB Demand Exports Out of the WCSB WCSB Natural Gas Balance by the WCSB Production 20 Numbers1 18 18 16 Bcf/d 14 Natural Gas Production 8…
Diversified & ex AECO Pricing Ovintivs Montney Long-term Firm Transport to premium US & Canadian Markets Gas Gets Near Renewal rights on all long-term Firm Transport agreements NYMEX Pricing Physical price protection supplemented…
Well-Positioned for West Coast LNG 6 Bcf/d of potential LNG exports before 2030 West Coast LNG Projects Ovintiv Optionality LNG Canada Phases 1 (2.0 Bcf/d) & 2 (2.0 Bcf/d) WCSB LNG Infrastructure Phase 1: ISD: 2025 (has taken FID)…
Canadian Royalty Sensitivity Royalty Sensitivity1 US Basin Average (20 25%) 24 26% Royalty Rates Vary Based on Commodity Prices OVV Reports NRI volumes after royalties across its US and Canadian assets Changes in royalty rates seen in…
Durable Cash Return Framework Buybacks temporarily paused to fund transaction net cash requirement 4Q24 Free Cash Flow Allocation ( MM) Shareholder Return Framework 3Q24 Results Shareholder Returns 978 Non-GAAP Cash Flow At least…
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