Ovintiv increases full-year production guidance following second-quarter results

Ovintiv Inc., Denver, Colo., has raised its production guidance for the second time this year after second-quarter production came in at the high-end or above guidance on every product.

For the quarter, Ovintiv produced 594,000 boe/d, including 212,000 b/d of oil and condensate, 92,000 b/d of other NGLs, and 1,740 MMcfd of natural gas, the company said in a release July 30. It expects to produce 565,000-580,000 boe/d in this year’s third quarter.

Full year production guidance has been raised to 570,000-580,000 boe/d, including oil and condensate of 207,000-209,000 b/d, and natural gas of 1,660-1,690 MMcfd. The numbers are up from the original 2024 guidance of 545,000-575,000 boe/d.

Full-year capital investment of $2.25-2.35 billion is expected.

In second-quarter 2024, Ovintiv had net earnings of $340 million. Included in net earnings were net gains on risk management in revenues of $77 million, before tax. Cash from operating activities was $1.02 billion, non-GAAP cash flow was $1.025 billion, and capital investment totaled about $622 million, resulting in $403 million of non-GAAP free cash flow.

Production

Permian basin production averaged 203,000 boe/d (81% liquids) in the second quarter. The company had 40 net wells turned in line (TIL). Ovintiv plans to invest about $1.35-1.45 billion in the play in 2024 to bring on 120-130 net wells.

Montney production averaged 251,000 boe/d (20% liquids) in the second quarter. The company had 33 net wells TIL. Ovintiv plans to invest $425-475 million in the play in 2024 to bring on 60-70 net wells.

Uinta production averaged 33,000 boe/d (87% liquids) in this year’s second quarter. Seven net wells were TIL. In 2024, Ovintiv plans to invest $300-350 million to bring on 25-30 net wells in the play.

Anadarko production averaged 104,000 boe/d (57% liquids) in the quarter. No wells were TIL during the quarter. Ovintiv plans to invest $100-125 million this year to bring on 7-10 net wells.