Ovintiv Posts $634M Free Cash Flow, Acquires 100 MBOE/d NuVista for $2.8B
Ovintiv generated $1.1 billion of operating cash and $634 million of free cash flow after $605 million of capex while reporting a $630 million net loss including $1.2 billion of impairments. It closed the $2.8 billion NuVista acquisition, sold Anadarko assets and cut debt by 40% to under $3.3 billion.
1. Strong Cash Generation and Impairment
Ovintiv reported $1.1 billion of cash from operations, $1.2 billion of non-GAAP cash flow and $634 million of free cash flow after $605 million of capital investment. The quarter included a $630 million net loss, reflecting $1.2 billion of non-cash impairments due to lower trailing oil prices.
2. Production at High-End Guidance
Average first-quarter production reached 679 MBOE/d, consisting of 225 Mbbls/d of oil and condensate, 100 Mbbls/d of other NGLs and 2,124 MMcf/d of natural gas, all at the high end of guidance ranges.
3. Strategic Transactions
The company closed its $2.8 billion acquisition of NuVista Energy, adding approximately 100 MBOE/d of production and 140,000 net acres. It also completed the sale of Anadarko assets, generating significant proceeds to further strengthen liquidity.
4. Balance Sheet Improvement and Shareholder Returns
Net debt fell to below $3.3 billion, down around 40% year-over-year, after redeeming $700 million of senior notes. Ovintiv resumed share buybacks, repurchasing 3.2 million shares year-to-date for $180 million.