Ovintiv Inc. (OVV.TO, OVV) was last seen down 1% in after-hours New York trading Wednesday as it reported a loss for the fourth quarter while also flagging a slow start and then gradual improvement in production over the rest of 2025.
The oil and gas producer lost US$60 million, or US$0.23 per share, including a non-cash ceiling test impairment of US$350 million, after tax. It didn't provide a comparison figure.
Losses on risk management in revenues totaled US$16 million, before tax. Q4 capital investment of US$552 million was in line with the guidance range of approximately US$525 million to US$575 million.
Its adjusted profit, excluding most one-time items, fell to US$351 million from US$647 million.
Among other highlights, Ovintiv generated Q4 cash from operating activities of US$1.0 billion, Non-GAAP Cash Flow of US$1.0 billion and Non-GAAP Free Cash Flow of US$452 million after capital expenditures of US$552 million. It also delivered average quarterly production volumes of 580,000 barrels of oil equivalent per day, including 210, 000 bbls/d of oil and condensate, 90,000 bbls/d of other NGLs and 1,680 million cubic feet per day of natural gas
In its 2025 Outlook, Ovintiv expects a full year 2025 capital program of approximately US$2.15-$2.25 billion, which is expected to deliver total production volumes of 595 to 615 MBOE/d, including oil and condensate volumes of 202 to 208 Mbbls/d.
The company's share buyback program has been temporarily paused to fund $377 million for the Montney acquisition. By the end of the first quarter, Ovintiv expects that approximately $368 million will have been redirected to debt reduction from the buyback pause. The company expects to resume share buybacks in the second quarter of 2025.
Ovintiv expects production in the first quarter to be the low point for the year, reflecting the timing impacts of the transaction close dates for the Montney acquisition and Uinta disposition of approximately 3 Mbbls/d in the quarter. Oil and condensate production is expected to stabilize in the second quarter and remain largely flat through the end of the year for an annual average of 202 to 208 Mbbls/d.
The company's shares were last seen down US$0.42 to $41.48 after hours. They closed down $0.38 to $60.13 on the Toronto Stock Exchange.
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