Ovintiv Inc. (OVV) Tops Q1 EPS by 38c

Ovintiv Inc. (NYSE: OVV) reported Q1 EPS of $1.16, $0.38 better than the analyst estimate of $0.78.

Highlights:

• First quarter 2021 net earnings of $309 million ($1.16 per share diluted), cash from operating activities of $827 million and non-GAAP cash flow of $890 million
• Generated $540 million of non-GAAP free cash flow in the quarter and reduced total debt by $467 million to $6.4 billion
• Exceeded divestiture target with more than $1.1 billion in announced asset sales; well ahead of year-end 2022 target; previously announced Duvernay asset sale closed today
• Leveraged dynamic operational execution, multi-basin optionality and strong realized prices for products across the portfolio to offset the production and cash flow impacts of winter storm Uri
• Continued to deliver leading well cost efficiencies through the application of innovation and technology
• Accelerated expected achievement of $4.5 billion total debt target to the first half of 2022 and updated year-end 2021 total debt target to be less than $5 billion at $50 WTI oil and $2.75 NYMEX natural gas prices
• Reiterated $1.5 billion full-year 2021 capital guidance and updated full-year crude and condensate(1) guidance to 190 Mbbls/d to reflect asset sales

"This quarter we continued our track record of delivery," said Ovintiv CEO, Doug Suttles. "Our strong start to 2021 demonstrates our industry-leading operational capability, our focus on maximizing free cash generation, and our ability to manage risk. During winter storm Uri, our operating team kept production online longer and brought it back sooner than many of our peers. In addition, our multi-basin portfolio minimized impacts. Our marketing team also delivered another quarter of strong realized prices. Our continued application of innovation and technology to maximize efficiency led to another quarter of industry leading well cost performance. We delivered significant free cash flow, which along with the proceeds from recent divestitures has allowed us to materially accelerate our debt reduction target."

For earnings history and earnings-related data on Ovintiv Inc. (OVV) click here.

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