EX-99

EX-99 3 ovv-ex99_2.htm EX-99.2 EX-99

Exhibit 99.2

Ovintiv Inc.

Selected Financial Information

(unaudited)

For the period ended March 31, 2023

U.S. Dollar / U.S. Protocol

Condensed Consolidated Statement of Earnings (unaudited)


(US$ millions, except per share amounts)		2023				2022
For the Three Months Ended	March 31				March 31

Revenues
Product and service revenues		$	2,592		$	3,407
Gains (losses) on risk management, net			(58	)		(1,458	)
Sublease revenues			17			18
Total Revenues			2,551			1,967

Operating Expenses
Production, mineral and other taxes			84			94
Transportation and processing			455			406
Operating			206			188
Purchased product			701			1,066
Depreciation, depletion and amortization			364			264
Accretion of asset retirement obligation			5			5
Administrative			58			144
Total Operating Expenses			1,873			2,167
Operating Income (Loss)			678			(200	)

Other (Income) Expenses
Interest			71			74
Foreign exchange (gain) loss, net			(3	)		(1	)
Other (gains) losses, net			(3	)		(27	)
Total Other (Income) Expenses			65			46
Net Earnings (Loss) Before Income Tax			613			(246	)
Income tax expense (recovery)			126			(5	)
Net Earnings (Loss)		$	487		$	(241	)

Net Earnings (Loss) per Share of Common Stock
Basic		$	1.99		$	(0.94	)
Diluted			1.97			(0.94	)
Weighted Average Shares of Common Stock Outstanding (millions)
Basic			244.3			257.4
Diluted			247.7			257.4

Condensed Consolidated Statement of Comprehensive Income (unaudited)


(US$ millions)		2023				2022
For the Three Months Ended	March 31				March 31

Net Earnings (Loss)		$	487		$	(241	)
Other Comprehensive Income (Loss), Net of Tax
Foreign currency translation adjustment			2			28
Pension and other post-employment benefit plans			(2	)		(1	)
Other Comprehensive Income (Loss)			-			27
Comprehensive Income (Loss)		$	487		$	(214	)


Ovintiv Inc.	1	Selected Financial Information

Condensed Consolidated Balance Sheet (unaudited)


	As at			As at
	March 31,			December 31,
(US$ millions)	2023			2022

Assets
Current Assets
Cash and cash equivalents	$	26		$	5
Accounts receivable and accrued revenues (net of allowances
of $4 million (2022: $4 million))		1,277			1,594
Risk management		89			53
Income tax receivable		3			43
		1,395			1,695
Property, Plant and Equipment, at cost:
Oil and natural gas properties, based on full cost accounting
Proved properties		58,002			57,054
Unproved properties		1,016			1,172
Other		910			882
Property, plant and equipment		59,928			59,108
Less: Accumulated depreciation, depletion and amortization		(50,017	)		(49,640	)
Property, plant and equipment, net		9,911			9,468
Other Assets		1,009			1,004
Risk Management		3			34
Deferred Income Taxes		221			271
Goodwill		2,584			2,584
	$	15,123		$	15,056

Liabilities and Shareholders’ Equity
Current Liabilities
Accounts payable and accrued liabilities	$	1,872		$	2,221
Current portion of operating lease liabilities		88			76
Income tax payable		47			4
Risk management		45			86
Current portion of long-term debt		580			393
		2,632			2,780
Long-Term Debt		3,176			3,177
Operating Lease Liabilities		809			814
Other Liabilities and Provisions		116			131
Risk Management		22			-
Asset Retirement Obligation		276			281
Deferred Income Taxes		198			184
		7,229			7,367

Shareholders’ Equity
Share capital - authorized 775 million shares of stock
2023 issued and outstanding: 244.5 million shares (2022: 245.7 million shares)		3			3
Paid in surplus		7,555			7,776
Retained earnings (Accumulated deficit)		(655	)		(1,081	)
Accumulated other comprehensive income		991			991
Total Shareholders’ Equity		7,894			7,689
	$	15,123		$	15,056


Ovintiv Inc.	2	Selected Financial Information

Condensed Consolidated Statement of Cash Flows (unaudited)


(US$ millions)		2023				2022
For the Three Months Ended	March 31				March 31

Operating Activities
Net earnings (loss)		$	487		$	(241	)
Depreciation, depletion and amortization			364			264
Accretion of asset retirement obligation			5			5
Deferred income taxes			64			(8	)
Unrealized (gain) loss on risk management			(18	)		1,012
Unrealized foreign exchange (gain) loss			(5	)		(3	)
Foreign exchange (gain) loss on settlements			(1	)		(1	)
Other			(45	)		15
Net change in other assets and liabilities			(5	)		(12	)
Net change in non-cash working capital			222			(346	)
Cash From (Used in) Operating Activities			1,068			685

Investing Activities
Capital expenditures			(610	)		(451	)
Acquisitions			(199	)		(15	)
Proceeds from divestitures			12			1
Net change in investments and other			(66	)		48
Cash From (Used in) Investing Activities			(863	)		(417	)

Financing Activities
Net issuance (repayment) of revolving long-term debt			187			-
Repayment of long-term debt			-			(6	)
Purchase of shares of common stock			(239	)		(71	)
Dividends on shares of common stock			(61	)		(52	)
Finance lease payments and other			(71	)		(64	)
Cash From (Used in) Financing Activities			(184	)		(193	)

Foreign Exchange Gain (Loss) on Cash, Cash Equivalents
and Restricted Cash Held in Foreign Currency			-			1
Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash			21			76
Cash, Cash Equivalents and Restricted Cash, Beginning of Year			5			195
Cash, Cash Equivalents and Restricted Cash, End of Period		$	26		$	271

Cash, End of Period		$	6		$	48
Cash Equivalents, End of Period			20			223
Restricted Cash, End of Period			-			-
Cash, Cash Equivalents and Restricted Cash, End of Period		$	26		$	271


Ovintiv Inc.	3	Selected Financial Information

Ovintiv Inc.

Interim Supplemental Information

(unaudited)

For the period ended March 31, 2023

U.S. Dollar / U.S. Protocol

First quarter report

for the period ended March 31, 2023

Supplemental Financial Information (unaudited)

Financial Results


		2023			2022
(US$ millions, unless otherwise specified)		Q1			Year			Q4			Q3			Q2			Q1

Net Earnings (Loss)			487			3,637			1,335			1,186			1,357			(241	)

	Per share - basic (1)		1.99			14.34			5.39			4.70			5.28			(0.94	)
	Per share - diluted (1)		1.97			14.08			5.30			4.63			5.21			(0.94	)

Non-GAAP Adjusted Earnings (2)			450			1,769			228			353			628			560

	Per share - basic (1)		1.84			6.98			0.92			1.40			2.44			2.18
	Per share - diluted (1)		1.82			6.85			0.91			1.38			2.41			2.18

Non-GAAP Cash Flow (3)			851			4,110			895			948			1,224			1,043

	Per share - basic (1)		3.48			16.21			3.62			3.75			4.76			4.05
	Per share - diluted (1)		3.44			15.91			3.55			3.70			4.70			4.05

Foreign Exchange Rates (C$ per US$1)
	Average		1.353			1.301			1.358			1.306			1.277			1.266
	Period end		1.353			1.354			1.354			1.371			1.289			1.250

Non-GAAP Adjusted Earnings Summary

Net Earnings (Loss) Before Income Tax			613			3,560			1,110			1,274			1,422			(246	)
Before-tax (Addition) Deduction:
	Unrealized gain (loss) on risk management		18			741			530			710			513			(1,012	)
	Non-operating foreign exchange gain (loss)		5			(14	)		10			(20	)		(7	)		3
Adjusted Earnings (Loss) Before Income Tax			590			2,833			570			584			916			763
	Income tax expense (recovery) (4)		140			1,064			342			231			288			203

Non-GAAP Adjusted Earnings (2)			450			1,769			228			353			628			560

Non-GAAP Cash Flow Summary

Cash From (Used in) Operating Activities			1,068			3,866			875			962			1,344			685
(Add back) Deduct:
	Net change in other assets and liabilities		(5	)		(57	)		(15	)		(17	)		(13	)		(12	)
	Net change in non-cash working capital		222			(187	)		(5	)		31			133			(346	)

Non-GAAP Cash Flow (3)			851			4,110			895			948			1,224			1,043

(1) Net Earnings (Loss), Non-GAAP Adjusted Earnings and Non-GAAP Cash Flow per share are calculated using the weighted average number of shares of common stock outstanding as follows:


		2023		2022
(millions)		Q1		Year		Q4		Q3		Q2		Q1

Weighted Average Shares of Common Stock Outstanding

	Basic		244.3		253.6		247.5		252.5		257.2		257.4

	Diluted		247.7		258.4		251.8		256.2		260.6		257.4

(2) Non-GAAP Adjusted Earnings is a non-GAAP measure defined as net earnings (loss) excluding non-cash items that Management believes reduces the comparability of the Company's financial performance between periods. These items may include, but are not limited to, unrealized gains/losses on risk management, impairments, non‑operating foreign exchange gains/losses, and gains/losses on divestitures. Income taxes includes adjustments to normalize the effect of income taxes calculated using the estimated annual effective income tax rate. In addition, any valuation allowances are excluded in the calculation of income taxes.

(3) Non-GAAP Cash Flow is a non-GAAP measure defined as cash from (used in) operating activities excluding net change in other assets and liabilities, and net change in non-cash working capital.

(4) Calculated using the applicable U.S. federal and state statutory income tax rate of 23.0 percent and the applicable Canadian federal and provincial statutory income tax rate of 23.9 percent (2022 - 23.0 percent and 23.9 percent, respectively).

Financial Metrics

2023

2022

Q1

Year

Debt to Capitalization

32%

32%

Debt to Adjusted Capitalization (1)

19%

19%

Debt to EBITDA (1)

0.6x

0.7x

Debt to Adjusted EBITDA (1)

0.9x

0.8x

(1) Debt to Adjusted Capitalization, Debt to EBITDA and Debt to Adjusted EBITDA are non-GAAP measures monitored by Management as indicators of the Company's overall financial strength. Non-GAAP measures are defined and calculated in the Non-GAAP Definitions and Reconciliations document following this Supplemental Information report.

Ovintiv Inc. 1 Supplemental Information (prepared in US$)

First quarter report

for the period ended March 31, 2023

Supplemental Operating Information (unaudited)

Production Volumes by Product


				2023		2022
(average)		% of Oil & NGLs		Q1		Year		Q4		Q3		Q2		Q1

	Oil (Mbbls/d)		51		127.3		131.6		132.0		133.4		132.8		128.3
	NGLs - Plant Condensate (Mbbls/d)		15		38.7		44.0		42.7		46.0		42.6		44.6
Oil & Plant Condensate (Mbbls/d)			66		166.0		175.6		174.7		179.4		175.4		172.9
	Butane (Mbbls/d)		8		19.1		19.3		19.0		19.8		19.8		18.7
	Propane (Mbbls/d)		12		31.3		31.5		32.2		31.0		31.3		31.3
	Ethane (Mbbls/d)		14		35.8		34.7		37.5		36.1		35.9		29.2
NGLs - Other (Mbbls/d)			34		86.2		85.5		88.7		86.9		87.0		79.2
Oil & NGLs (Mbbls/d)			100		252.2		261.1		263.4		266.3		262.4		252.1

Natural Gas (MMcf/d)					1,555		1,494		1,561		1,500		1,426		1,487

Total (MBOE/d)					511.4		510.0		523.6		516.3		500.0		499.9

Production Volumes by Segment


		2023		2022
(average)		Q1		Year		Q4		Q3		Q2		Q1

Oil (Mbbls/d)
	USA Operations		127.2		131.5		131.9		133.3		132.7		128.2
	Canadian Operations		0.1		0.1		0.1		0.1		0.1		0.1
			127.3		131.6		132.0		133.4		132.8		128.3

NGLs - Plant Condensate (Mbbls/d)
	USA Operations		10.6		10.4		11.0		11.1		10.1		9.2
	Canadian Operations		28.1		33.6		31.7		34.9		32.5		35.4
			38.7		44.0		42.7		46.0		42.6		44.6

Oil & Plant Condensate (Mbbls/d)
	USA Operations		137.8		141.9		142.9		144.4		142.8		137.4
	Canadian Operations		28.2		33.7		31.8		35.0		32.6		35.5
			166.0		175.6		174.7		179.4		175.4		172.9

NGLs - Other (Mbbls/d)
	USA Operations		73.7		71.7		75.1		74.1		72.6		64.8
	Canadian Operations		12.5		13.8		13.6		12.8		14.4		14.4
			86.2		85.5		88.7		86.9		87.0		79.2

NGLs - Total (Mbbls/d)
	USA Operations		84.3		82.1		86.1		85.2		82.7		74.0
	Canadian Operations		40.6		47.4		45.3		47.7		46.9		49.8
			124.9		129.5		131.4		132.9		129.6		123.8

Oil & NGLs (Mbbls/d)
	USA Operations		211.5		213.6		218.0		218.5		215.4		202.2
	Canadian Operations		40.7		47.5		45.4		47.8		47.0		49.9
			252.2		261.1		263.4		266.3		262.4		252.1

Natural Gas (MMcf/d)
	USA Operations		507		492		506		502		485		475
	Canadian Operations		1,048		1,002		1,055		998		941		1,012
			1,555		1,494		1,561		1,500		1,426		1,487

Total (MBOE/d)
	USA Operations		296.1		295.5		302.3		302.1		296.1		281.3
	Canadian Operations		215.3		214.5		221.3		214.2		203.9		218.6
			511.4		510.0		523.6		516.3		500.0		499.9

Ovintiv Inc. 2 Supplemental Information (prepared in US$)

First quarter report

for the period ended March 31, 2023

Supplemental Financial & Operating Information (unaudited)

Results of Operations

Revenues and Realized Gains (Losses) on Risk Management


		2023			2022
(US$ millions)		Q1			Year			Q4			Q3			Q2			Q1

USA Operations

Revenues, excluding Realized Gains (Losses) on Risk Management (1)
	Oil		848			4,524			995			1,143			1,311			1,075
	NGLs (2)		183			1,045			198			270			311			266
	Natural Gas		155			1,108			251			349			302			206
			1,186			6,677			1,444			1,762			1,924			1,547
Realized Gains (Losses) on Risk Management
	Oil		-			(594	)		(75	)		(141	)		(235	)		(143	)
	NGLs (2)		-			-			-			-			-			-
	Natural Gas		2			(529	)		(122	)		(183	)		(148	)		(76	)
			2			(1,123	)		(197	)		(324	)		(383	)		(219	)

Canadian Operations

Revenues, excluding Realized Gains (Losses) on Risk Management (1)
	Oil		-			3			1			1			1			-
	NGLs (2)		236			1,358			290			326			382			360
	Natural Gas		453			2,104			550			562			577			415
			689			3,465			841			889			960			775
Realized Gains (Losses) on Risk Management (3)
	Oil		-			-			-			-			-			-
	NGLs (2)		-			(125	)		(16	)		(26	)		(51	)		(32	)
	Natural Gas		(78	)		(1,366	)		(324	)		(471	)		(374	)		(197	)
			(78	)		(1,491	)		(340	)		(497	)		(425	)		(229	)

(1) Excludes other revenues with no associated production volumes, but includes intercompany marketing fees transacted between the Company's operating segments.

(2) Includes plant condensate.

(3) Excludes realized gains or losses from other derivative contracts with no associated production volumes and foreign exchange risk management positions.

Ovintiv Inc. 3 Supplemental Information (prepared in US$)

First quarter report

for the period ended March 31, 2023

Supplemental Financial & Operating Information (unaudited)

Results of Operations (continued)

Per-Unit Results, Excluding the Impact of Realized Gains (Losses) on Risk Management (1)


		2023			2022
(US$/BOE)			Q1		Year		Q4		Q3		Q2		Q1

Total USA Operations Netback
	Price			44.52		61.91		51.96		63.44		71.39		61.08
	Production, mineral and other taxes			3.01		3.72		3.23		3.83		4.25		3.56
	Transportation and processing			5.51		5.80		5.81		6.14		5.91		5.31
	Operating			6.39		5.99		6.05		6.73		5.53		5.58
	Netback			29.61		46.40		36.87		46.74		55.70		46.63

Total Canadian Operations Netback
	Price			35.50		44.26		41.30		45.11		51.70		39.44
	Production, mineral and other taxes			0.19		0.18		0.19		0.12		0.15		0.19
	Transportation and processing			13.80		12.80		12.85		13.01		13.67		11.72
	Operating			1.50		1.62		1.52		1.69		1.35		1.90
	Netback			20.01		29.66		26.74		30.29		36.53		25.63

Total Operations Netback
	Price			40.72		54.49		47.45		55.83		63.36		51.62
	Production, mineral and other taxes			1.83		2.23		1.95		2.29		2.58		2.08
	Transportation and processing			9.00		8.75		8.78		8.99		9.08		8.12
	Operating			4.33		4.15		4.13		4.64		3.83		3.98
	Netback			25.56		39.36		32.59		39.91		47.87		37.44

(1) Netback is a common metric used in the oil and gas industry to measure operating performance on a per-unit basis and is considered a non-GAAP measure. The netbacks disclosed above have been calculated on a BOE basis using upstream product revenues, excluding the impact of realized gains and losses on risk management, less costs associated with delivering the product to market, including production, mineral and other taxes, transportation and processing expense and operating expense. For additional information regarding non-GAAP measures, including Netback reconciliations, see the Non-GAAP Definitions and Reconciliations document following this Supplemental Information report.

Other Per-unit Results


		2023			2022
(US$/BOE)			Q1		Year		Q4		Q3		Q2		Q1

Administrative Expense				1.25		2.27		2.17		2.16		1.56		3.20
Administrative Expense, Excluding Long-Term Incentive,
	Restructuring and Legal Costs, and Current Expected Credit Losses			1.52		1.39		1.35		1.39		1.36		1.48

Ovintiv Inc. 4 Supplemental Information (prepared in US$)

First quarter report

for the period ended March 31, 2023

Supplemental Oil and Gas Operating Statistics (unaudited)

Operating Statistics

Per-Unit Prices, Excluding the Impact of Realized Gains (Losses) on Risk Management


		2023		2022
(US$)		Q1		Year		Q4		Q3		Q2		Q1

Oil Price ($/bbl)
	USA Operations		74.06		94.25		82.08		93.22		108.58		93.16
	Canadian Operations		71.44		87.28		81.48		82.86		100.11		82.80
	Total Operations		74.06		94.25		82.08		93.21		108.57		93.15

NGLs - Plant Condensate Price ($/bbl)
	USA Operations		61.84		73.22		57.95		66.62		86.56		85.09
	Canadian Operations		77.22		93.22		82.41		86.65		107.78		96.22
	Total Operations		73.01		88.52		76.14		81.82		102.74		93.93

Oil & Plant Condensate Price ($/bbl)
	USA Operations		73.12		92.72		80.24		91.18		107.02		92.62
	Canadian Operations		77.21		93.20		82.41		86.64		107.76		96.19
	Total Operations		73.81		92.81		80.63		90.29		107.16		93.35

NGLs - Other Price ($/bbl)
	USA Operations		18.73		29.35		20.03		29.82		34.88		33.55
	Canadian Operations		35.17		42.39		39.07		41.12		47.84		41.23
	Total Operations		21.11		31.45		22.95		31.49		37.03		34.94

NGLs - Total Price ($/bbl)
	USA Operations		24.14		34.88		24.85		34.61		41.21		39.95
	Canadian Operations		64.31		78.44		69.42		74.41		89.37		80.36
	Total Operations		37.19		50.84		40.22		48.91		58.64		56.21

Oil & NGLs Price ($/bbl)
	USA Operations		54.16		71.44		59.49		70.37		82.70		73.68
	Canadian Operations		64.32		78.46		69.44		74.43		89.39		80.37
	Total Operations		55.80		72.72		61.20		71.10		83.90		75.00

Natural Gas Price ($/Mcf)
	USA Operations		3.40		6.18		5.42		7.55		6.87		4.82
	Canadian Operations		4.80		5.75		5.67		6.11		6.73		4.56
	Total Operations		4.34		5.89		5.59		6.60		6.78		4.64

Total Price ($/BOE)
	USA Operations		44.52		61.91		51.96		63.44		71.39		61.08
	Canadian Operations		35.50		44.26		41.30		45.11		51.70		39.44
	Total Operations		40.72		54.49		47.45		55.83		63.36		51.62

Ovintiv Inc. 5 Supplemental Information (prepared in US$)

First quarter report

for the period ended March 31, 2023

Supplemental Oil and Gas Operating Statistics (unaudited)

Operating Statistics (continued)

Per-unit Impact of Realized Gains (Losses) on Risk Management


		2023			2022
(US$)		Q1			Year			Q4			Q3			Q2			Q1

Oil ($/bbl)
	USA Operations		-			(12.38	)		(6.24	)		(11.48	)		(19.42	)		(12.43	)
	Canadian Operations		-			-			-			-			-			-
	Total Operations		-			(12.37	)		(6.23	)		(11.47	)		(19.41	)		(12.41	)

NGLs - Plant Condensate ($/bbl)
	USA Operations		-			-			-			-			-			-
	Canadian Operations		-			(10.15	)		(5.57	)		(8.02	)		(17.14	)		(10.06	)
	Total Operations		-			(7.78	)		(4.13	)		(6.09	)		(13.07	)		(7.99	)

Oil & Plant Condensate ($/bbl)
	USA Operations		-			(11.48	)		(5.76	)		(10.60	)		(18.05	)		(11.59	)
	Canadian Operations		-			(10.13	)		(5.56	)		(8.00	)		(17.10	)		(10.03	)
	Total Operations		-			(11.22	)		(5.72	)		(10.09	)		(17.87	)		(11.27	)

NGLs - Other ($/bbl)
	USA Operations		-			-			-			-			-			-
	Canadian Operations		-			-			-			-			-			-
	Total Operations		-			-			-			-			-			-

NGLs - Total ($/bbl)
	USA Operations		-			-			-			-			-			-
	Canadian Operations		-			(7.20	)		(3.89	)		(5.86	)		(11.87	)		(7.16	)
	Total Operations		-			(2.64	)		(1.34	)		(2.10	)		(4.30	)		(2.88	)

Oil & NGLs ($/bbl)
	USA Operations		-			(7.62	)		(3.78	)		(7.00	)		(11.96	)		(7.88	)
	Canadian Operations		-			(7.19	)		(3.89	)		(5.85	)		(11.85	)		(7.14	)
	Total Operations		-			(7.55	)		(3.79	)		(6.80	)		(11.94	)		(7.74	)

Natural Gas ($/Mcf)
	USA Operations		0.03			(2.94	)		(2.57	)		(3.97	)		(3.39	)		(1.78	)
	Canadian Operations		(0.82	)		(3.74	)		(3.35	)		(5.12	)		(4.35	)		(2.16	)
	Total Operations		(0.54	)		(3.47	)		(3.10	)		(4.75	)		(4.00	)		(2.04	)

Total ($/BOE)
	USA Operations		0.05			(10.50	)		(7.00	)		(11.68	)		(14.24	)		(8.66	)
	Canadian Operations		(3.97	)		(18.91	)		(16.80	)		(25.19	)		(22.62	)		(11.65	)
	Total Operations		(1.64	)		(14.04	)		(11.14	)		(17.28	)		(17.66	)		(9.97	)

Ovintiv Inc. 6 Supplemental Information (prepared in US$)

First quarter report

for the period ended March 31, 2023

Supplemental Oil and Gas Operating Statistics (unaudited)

Operating Statistics (continued)

Per-Unit Results, Including the Impact of Realized Gains (Losses) on Risk Management


		2023		2022
(US$)		Q1		Year		Q4		Q3		Q2		Q1

Oil Price ($/bbl)
	USA Operations		74.06		81.87		75.84		81.74		89.16		80.73
	Canadian Operations		71.44		87.28		81.48		82.86		100.11		82.80
	Total Operations		74.06		81.88		75.85		81.74		89.16		80.74

NGLs - Plant Condensate Price ($/bbl)
	USA Operations		61.84		73.22		57.95		66.62		86.56		85.09
	Canadian Operations		77.22		83.07		76.84		78.63		90.64		86.16
	Total Operations		73.01		80.74		72.01		75.73		89.67		85.94

Oil & Plant Condensate Price ($/bbl)
	USA Operations		73.12		81.24		74.48		80.58		88.97		81.03
	Canadian Operations		77.21		83.07		76.85		78.64		90.66		86.16
	Total Operations		73.81		81.59		74.91		80.20		89.29		82.08

NGLs - Other Price ($/bbl)
	USA Operations		18.73		29.35		20.03		29.82		34.88		33.55
	Canadian Operations		35.17		42.39		39.07		41.12		47.84		41.23
	Total Operations		21.11		31.45		22.95		31.49		37.03		34.94

NGLs - Total Price ($/bbl)
	USA Operations		24.14		34.88		24.85		34.61		41.21		39.95
	Canadian Operations		64.31		71.24		65.53		68.55		77.50		73.20
	Total Operations		37.19		48.20		38.88		46.81		54.34		53.33

Oil & NGLs Price ($/bbl)
	USA Operations		54.16		63.82		55.71		63.37		70.74		65.80
	Canadian Operations		64.32		71.27		65.55		68.58		77.54		73.23
	Total Operations		55.80		65.17		57.41		64.30		71.96		67.26

Natural Gas Price ($/Mcf)
	USA Operations		3.43		3.24		2.85		3.58		3.48		3.04
	Canadian Operations		3.98		2.01		2.32		0.99		2.38		2.40
	Total Operations		3.80		2.42		2.49		1.85		2.78		2.60

Total Price ($/BOE)
	USA Operations		44.57		51.41		44.96		51.76		57.15		52.42
	Canadian Operations		31.53		25.35		24.50		19.92		29.08		27.79
	Total Operations		39.08		40.45		36.31		38.55		45.70		41.65

Total Netback ($/BOE)
	USA Operations		29.66		35.90		29.87		35.06		41.46		37.97
	Canadian Operations		16.04		10.75		9.94		5.10		13.91		13.98
	Total Operations		23.92		25.32		21.45		22.63		30.21		27.47

Ovintiv Inc. 7 Supplemental Information (prepared in US$)

First quarter report

for the period ended March 31, 2023

Supplemental Oil and Gas Operating Statistics (unaudited)

Results by Play


		2023		2022
(average)		Q1		Year		Q4		Q3		Q2		Q1

Oil Production (Mbbls/d)

USA Operations
	Permian		59.6		62.7		65.4		60.8		62.6		61.8
	Anadarko		33.1		35.5		34.4		35.9		36.5		35.4
	Bakken		21.5		15.3		16.5		16.5		14.0		14.3
	Uinta		12.8		17.9		15.4		19.9		19.6		16.6
	Other (1)		0.2		0.1		0.2		0.2		-		0.1
Total USA Operations			127.2		131.5		131.9		133.3		132.7		128.2

Canadian Operations
	Montney		0.1		0.1		0.1		0.1		0.1		0.1
	Other (1)		-		-		-		-		-		-
Total Canadian Operations			0.1		0.1		0.1		0.1		0.1		0.1


Total			127.3		131.6		132.0		133.4		132.8		128.3


NGLs - Plant Condensate Production (Mbbls/d)

USA Operations
	Permian		3.0		3.1		3.2		3.4		3.1		2.7
	Anadarko		5.8		5.9		6.2		6.3		5.7		5.4
	Bakken		1.5		1.1		1.1		1.2		1.1		0.9
	Uinta		0.2		0.2		0.4		0.2		0.2		0.2
	Other (1)		0.1		0.1		0.1		-		-		-
Total USA Operations			10.6		10.4		11.0		11.1		10.1		9.2

Canadian Operations
	Montney		28.1		33.6		31.7		34.9		32.5		35.3
	Other (1)		-		-		-		-		-		0.1
Total Canadian Operations			28.1		33.6		31.7		34.9		32.5		35.4


Total			38.7		44.0		42.7		46.0		42.6		44.6


Oil & Plant Condensate Production (Mbbls/d)

USA Operations
	Permian		62.6		65.8		68.6		64.2		65.7		64.5
	Anadarko		38.9		41.4		40.6		42.2		42.2		40.8
	Bakken		23.0		16.4		17.6		17.7		15.1		15.2
	Uinta		13.0		18.1		15.8		20.1		19.8		16.8
	Other (1)		0.3		0.2		0.3		0.2		-		0.1
Total USA Operations			137.8		141.9		142.9		144.4		142.8		137.4

Canadian Operations
	Montney		28.2		33.7		31.8		35.0		32.6		35.4
	Other (1)		-		-		-		-		-		0.1
Total Canadian Operations			28.2		33.7		31.8		35.0		32.6		35.5


Total			166.0		175.6		174.7		179.4		175.4		172.9

(1) Other Operations includes production volumes from plays that are not part of the Company's current focus.

Ovintiv Inc. 8 Supplemental Information (prepared in US$)

First quarter report

for the period ended March 31, 2023

Supplemental Oil and Gas Operating Statistics (unaudited)

Results by Play (continued)


		2023		2022
(average)		Q1		Year		Q4		Q3		Q2		Q1

NGLs - Other Production (Mbbls/d)

USA Operations
	Permian		26.8		26.3		27.0		26.8		26.2		25.4
	Anadarko		38.5		37.3		39.3		38.6		38.2		32.7
	Bakken		7.7		7.1		7.9		7.6		7.3		5.9
	Uinta		0.7		0.9		0.9		1.0		0.8		0.7
	Other (1)		-		0.1		-		0.1		0.1		0.1
Total USA Operations			73.7		71.7		75.1		74.1		72.6		64.8

Canadian Operations
	Montney		12.5		13.8		13.6		12.8		14.4		14.4
	Other (1)		-		-		-		-		-		-
Total Canadian Operations			12.5		13.8		13.6		12.8		14.4		14.4


Total			86.2		85.5		88.7		86.9		87.0		79.2


NGLs - Total Production (Mbbls/d)

USA Operations
	Permian		29.8		29.4		30.2		30.2		29.3		28.1
	Anadarko		44.3		43.2		45.5		44.9		43.9		38.1
	Bakken		9.2		8.2		9.0		8.8		8.4		6.8
	Uinta		0.9		1.1		1.3		1.2		1.0		0.9
	Other (1)		0.1		0.2		0.1		0.1		0.1		0.1
Total USA Operations			84.3		82.1		86.1		85.2		82.7		74.0

Canadian Operations
	Montney		40.6		47.4		45.3		47.7		46.9		49.7
	Other (1)		-		-		-		-		-		0.1
Total Canadian Operations			40.6		47.4		45.3		47.7		46.9		49.8


Total			124.9		129.5		131.4		132.9		129.6		123.8


Oil & NGLs Production (Mbbls/d)

USA Operations
	Permian		89.4		92.1		95.6		91.0		91.9		89.9
	Anadarko		77.4		78.7		79.9		80.8		80.4		73.5
	Bakken		30.7		23.5		25.5		25.3		22.4		21.1
	Uinta		13.7		19.0		16.7		21.1		20.6		17.5
	Other (1)		0.3		0.3		0.3		0.3		0.1		0.2
Total USA Operations			211.5		213.6		218.0		218.5		215.4		202.2

Canadian Operations
	Montney		40.7		47.5		45.4		47.8		47.0		49.8
	Other (1)		-		-		-		-		-		0.1
Total Canadian Operations			40.7		47.5		45.4		47.8		47.0		49.9


Total			252.2		261.1		263.4		266.3		262.4		252.1

(1) Other Operations includes production volumes from plays that are not part of the Company's current focus.

Ovintiv Inc. 9 Supplemental Information (prepared in US$)

First quarter report

for the period ended March 31, 2023

Supplemental Oil and Gas Operating Statistics (unaudited)

Results by Play (continued)


		2023		2022
(average)		Q1		Year		Q4		Q3		Q2		Q1

Natural Gas Production (MMcf/d)

USA Operations
	Permian		158		149		156		149		146		145
	Anadarko		281		286		286		290		287		279
	Bakken		49		36		39		41		32		32
	Uinta		15		16		19		16		15		13
	Other (1)		4		5		6		6		5		6
Total USA Operations			507		492		506		502		485		475

Canadian Operations
	Montney		1,017		970		1,023		970		907		978
	Other (1)		31		32		32		28		34		34
Total Canadian Operations			1,048		1,002		1,055		998		941		1,012


Total			1,555		1,494		1,561		1,500		1,426		1,487


Total Production (MBOE/d)

USA Operations
	Permian		115.8		117.0		121.7		115.9		116.2		114.0
	Anadarko		124.2		126.3		127.6		129.1		128.2		120.1
	Bakken		38.8		29.6		32.0		32.1		27.7		26.4
	Uinta		16.3		21.6		19.8		23.6		23.0		19.7
	Other (1)		1.0		1.0		1.2		1.4		1.0		1.1
Total USA Operations			296.1		295.5		302.3		302.1		296.1		281.3

Canadian Operations
	Montney		210.1		209.1		215.8		209.5		198.2		212.9
	Other (1)		5.2		5.4		5.5		4.7		5.7		5.7
Total Canadian Operations			215.3		214.5		221.3		214.2		203.9		218.6


Total			511.4		510.0		523.6		516.3		500.0		499.9

(1) Other Operations includes total production volumes from plays that are not part of the Company's current focus. Canadian Other Operations primarily includes natural gas volumes in Horn River.

Ovintiv Inc. 10 Supplemental Information (prepared in US$)

First quarter report

for the period ended March 31, 2023

Supplemental Oil and Gas Operating Statistics (unaudited)

Results by Play (continued)


		2023			2022
(US$ millions)		Q1			Year		Q4		Q3			Q2			Q1

Capital Expenditures, Excluding Capitalized Internal Costs

USA Operations
	Permian		206			632		130		181			165			156
	Anadarko		98			375		55		99			118			103
	Bakken		65			243		73		81			42			47
	Uinta		61			117		3		27			58			29
	Other (1)		1			7		3		-			2			2
Total USA Operations			431			1,374		264		388			385			337

Canadian Operations
	Montney		135			295		50		81			97			67
	Other (1)		(2	)		5		-		7			(2	)		-
Total Canadian Operations			133			300		50		88			95			67

Total Capital Expenditures, Excluding Capitalized Internal Costs			564			1,674		314		476			480			404

Capitalized Directly Attributable Internal Costs

USA Operations
	Permian		19			60		15		15			13			17
	Anadarko		7			31		9		7			7			8
	Bakken		3			18		4		5			4			5
	Uinta		7			9		3		1			2			3
	Other (1)		-			1		-		-			(1	)		2
Total USA Operations			36			119		31		28			25			35

Canadian Operations
	Montney		9			33		10		7			5			11
	Other (1)		-			1		-		-			1			-
Total Canadian Operations			9			34		10		7			6			11

Total Capitalized Directly Attributable Internal Costs			45			153		41		35			31			46

Total Capital Expenditures

USA Operations
	Permian		225			692		145		196			178			173
	Anadarko		105			406		64		106			125			111
	Bakken		68			261		77		86			46			52
	Uinta		68			126		6		28			60			32
	Other (1)		1			8		3		-			1			4
Total USA Operations			467			1,493		295		416			410			372

Canadian Operations
	Montney		144			328		60		88			102			78
	Other (1)		(2	)		6		-		7			(1	)		-
Total Canadian Operations			142			334		60		95			101			78

Corporate & Other			1			4		3		-			-			1
Total Capital Expenditures			610			1,831		358		511			511			451
Net Acquisitions & (Divestitures)			187			58		254		(213	)		3			14
Net Capital Investment			797			1,889		612		298			514			465

(1) Other Operations includes capital expenditures in plays that are not part of the Company's current focus.

Ovintiv Inc. 11 Supplemental Information (prepared in US$)

First quarter report

for the period ended March 31, 2023

Supplemental Oil and Gas Operating Statistics (unaudited)

Results by Play (continued)


		2023		2022
		Q1		Year		Q4		Q3		Q2		Q1

Drilling Activity (net wells drilled)

USA Operations
	Permian		17		62		15		18		16		13
	Anadarko		7		54		10		13		18		13
	Bakken		5		25		7		8		8		2
	Uinta		3		12		-		2		5		5
Total USA Operations			32		153		32		41		47		33

Canadian Operations
	Montney		26		52		8		12		16		16
	Other (1)		-		3		-		3		-		-
Total Canadian Operations			26		55		8		15		16		16


Total			58		208		40		56		63		49

Completions Activity (net wells on production)

USA Operations
	Permian		14		66		16		21		11		18
	Anadarko		13		57		8		16		15		18
	Bakken		8		19		6		9		-		4
	Uinta		-		11		3		2		6		-
Total USA Operations			35		153		33		48		32		40

Canadian Operations
	Montney		11		63		11		21		12		19
Total Canadian Operations			11		63		11		21		12		19


Total			46		216		44		69		44		59

(1) Other Operations includes net wells drilled in plays that are not part of the Company's current focus.

Ovintiv Inc. 12 Supplemental Information (prepared in US$)

Ovintiv Inc.

Non-GAAP Definitions and Reconciliations

(unaudited)

For the period ended March 31, 2023

U.S. Dollar / U.S. Protocol

For the period ended March 31, 2023

(US$ millions, except per share amounts or as indicated)

Non-GAAP Cash Flow, Non-GAAP Cash Flow Per Share (CFPS) and Non-GAAP Free Cash Flow - Non-GAAP Cash Flow is defined as cash from (used in) operating activities excluding net change in other assets and liabilities, and net change in non-cash working capital. Non-GAAP CFPS is Non-GAAP Cash Flow divided by the weighted average number of shares of common stock outstanding. Non-GAAP Free Cash Flow is defined as Non-GAAP Cash Flow in excess of capital expenditures, excluding net acquisitions and divestitures. Management believes these measures are useful to the Company and its investors as a measure of operating and financial performance across periods and against other companies in the industry, and are an indication of the Company’s ability to generate cash to finance capital programs, to service debt and to meet other financial obligations. These measures are used, along with other measures, in the calculation of certain performance targets for the Company’s management and employees.


Non-GAAP Cash Flow			YTD 2023

Cash from (used in) Operating Activities		$		1,068
Deduct (add back):
	Net change in other assets and liabilities			(5	)
	Net change in non-cash working capital			222
Non-GAAP Cash Flow		$		851

Per Share - Basic		$		3.48
Per Share - Diluted				3.44

Non-GAAP Free Cash Flow

Non-GAAP Cash Flow		$		851
Deduct:
	Capital expenditures			610
Non-GAAP Free Cash Flow		$		241

Non-GAAP Adjusted Earnings - is defined as Net Earnings (Loss) excluding non-cash items that management believes reduces the comparability of the Company’s financial performance between periods. These items may include, but are not limited to, unrealized gains/losses on risk management, impairments, non-operating foreign exchange gains/losses, and gains/losses on divestitures. Income taxes includes adjustments to normalize the effect of income taxes calculated using the estimated annual effective income tax rate. In addition, any valuation allowances are excluded in the calculation of income taxes.


Non-GAAP Adjusted Earnings			YTD 2023

Net Earnings (Loss) Before Income Tax		$		613
Before-tax (Addition) Deduction:
	Unrealized gain (loss) on risk management			18
	Non-operating foreign exchange gain (loss)			5
Adjusted Earnings (Loss) Before Income Tax				590
	Income tax expense (recovery)			140
Non-GAAP Adjusted Earnings		$		450

Per Share - Basic		$		1.84
Per Share - Diluted				1.82

Debt to Capitalization - Capitalization includes debt and total shareholders' equity. Debt to Capitalization is monitored by management as an indicator of the Company's overall financial strength.


Debt to Capitalization		YTD 2023

Long-Term Debt, Including Current Portion	$		3,756
Total Shareholders' Equity			7,894
Capitalization	$		11,650

Debt to Capitalization		32%


Ovintiv Inc.	1	Non-GAAP Definitions and Reconciliations

Debt to Adjusted Capitalization - Debt to Adjusted Capitalization is a non-GAAP measure and is a proxy for Ovintiv’s financial covenant under the Company’s credit facilities which require debt to adjusted capitalization to be less than 60 percent. Adjusted Capitalization includes debt, total shareholders’ equity and an equity adjustment for cumulative historical ceiling test impairments recorded as at December 31, 2011 in conjunction with the Company’s January 1, 2012 adoption of U.S. GAAP.


Debt to Adjusted Capitalization		YTD 2023

Long-Term Debt, Including Current Portion	$		3,756
Total Shareholders' Equity			7,894
Equity Adjustment for Impairments at December 31, 2011			7,746
Adjusted Capitalization	$		19,396

Debt to Adjusted Capitalization		19%

EBITDA, Debt to EBITDA, Adjusted EBITDA and Debt to Adjusted EBITDA - EBITDA is defined as trailing 12-month net earnings (loss) before income taxes, DD&A, and interest. Adjusted EBITDA is defined as EBITDA adjusted for impairments, accretion of asset retirement obligation, unrealized gains/losses on risk management, foreign exchange gains/losses, gains/losses on divestitures and other gains/losses. Debt to EBITDA and Debt to Adjusted EBITDA are non-GAAP measures monitored by management as an indicator of the Company’s overall financial strength.


			Q2 2022			Q3 2022			Q4 2022				Q1 2023			Trailing 12- Months

Long-Term Debt, Including Current Portion															$		3,756

Net Earnings (Loss)		$		1,357	$		1,186	$		1,335		$		487	$		4,365
Add back (deduct):
	Depreciation, depletion and amortization			278			291			280				364			1,213
	Interest			91			83			63				71			308
	Income tax expense (recovery)			65			88			(225	)			126			54
EBITDA		$		1,791	$		1,648	$		1,453		$		1,048	$		5,940

Debt to EBITDA (times)																	0.6


			Q2 2022				Q3 2022				Q4 2022				Q1 2023				Trailing 12- Months

Long-Term Debt, Including Current Portion																		$		3,756

Net Earnings (Loss)		$		1,357		$		1,186		$		1,335		$		487		$		4,365
Add back (deduct):
	Depreciation, depletion and amortization			278				291				280				364				1,213
	Accretion of asset retirement obligation			5				4				4				5				18
	Interest			91				83				63				71				308
	Unrealized (gains) losses on risk management			(513	)			(710	)			(530	)			(18	)			(1,771	)
	Foreign exchange (gain) loss, net			3				19				(6	)			(3	)			13
	Other (gains) losses, net			-				(3	)			(3	)			(3	)			(9	)
	Income tax expense (recovery)			65				88				(225	)			126				54
Adjusted EBITDA		$		1,286		$		958		$		918		$		1,029		$		4,191

Debt to Adjusted EBITDA (times)																				0.9

Operating Margin/Operating Netback - Product revenues less costs associated with delivering the product to market, including production, mineral and other taxes, transportation and processing and operating expenses. When presented on a per BOE basis, Operating Netback is defined as indicated divided by average barrels of oil equivalent sales volumes. Operating Margin/Operating Netback is used by management as an internal measure of the profitability of a play.


Ovintiv Inc.	2	Non-GAAP Definitions and Reconciliations

Netback Calculation

Netback is a common metric used in the oil and gas industry to measure operating performance on a per-unit basis and is considered a non-GAAP measure. The netbacks disclosed below have been calculated on a BOE basis using upstream product revenues, excluding the impact of realized gains and losses on risk management, less costs associated with delivering the product to market, including production, mineral and other taxes, transportation and processing expense and operating expense.


Selected Financial Data (1)

			2023		2022
(US$ millions)			Q1		Year		Q4		Q3		Q2		Q1
USA Operations
	Upstream Product Revenue (2,3)			1,186		6,677		1,444		1,762		1,924		1,547
	Production, mineral and other taxes			80		401		90		106		115		90
	Transportation and processing			147		626		162		170		159		135
	Operating (4)			170		646		168		187		149		142
				789		5,004		1,024		1,299		1,501		1,180
Canadian Operations
	Upstream Product Revenue (2,3)			689		3,465		841		889		960		775
	Production, mineral and other taxes			4		14		4		3		3		4
	Transportation and processing			267		1,002		261		257		253		231
	Operating (4)			29		127		31		34		25		37
				389		2,322		545		595		679		503
Total Operations
	Upstream Product Revenue (2,3)			1,875		10,142		2,285		2,651		2,884		2,322
	Production, mineral and other taxes			84		415		94		109		118		94
	Transportation and processing			414		1,628		423		427		412		366
	Operating (4)			199		773		199		221		174		179
				1,178		7,326		1,569		1,894		2,180		1,683

(1)		Segmented financial information per the notes to Ovintiv's financial statements.
(2)		Excludes the impact of realized gains and losses on risk management.
(3)		Excludes service revenues, certain other revenues and royalty adjustments with no associated production volumes.
(4)		Excludes other operating expenses with no associated production volumes.

Sales Volumes (1)

			2023		2022
(BOE)			Q1		Year		Q4		Q3		Q2		Q1
USA Operations				26,652,510		107,860,420		27,807,460		27,788,876		26,946,920		25,317,450
Canadian Operations				19,378,260		78,306,370		20,363,280		19,710,448		18,555,628		19,677,060
Total				46,030,770		186,166,790		48,170,740		47,499,324		45,502,548		44,994,510

(1)		Numbers may not add due to the calculation of volumes, which is based on sales volumes per day on a BOE basis times the number of days in the period.

Calculated Operating Netback, excluding the Impact of Realized Gains (Losses) on Risk Management (1)

			2023		2022
(US$/BOE)			Q1		Year		Q4		Q3		Q2		Q1
Total USA Operations
	Price			44.50		61.90		51.93		63.41		71.40		61.10
	Production, mineral and other taxes			3.00		3.72		3.24		3.81		4.27		3.55
	Transportation and processing			5.52		5.80		5.83		6.12		5.90		5.33
	Operating			6.38		5.99		6.04		6.73		5.53		5.61
	Netback			29.60		46.39		36.82		46.75		55.70		46.61
Total Canadian Operations
	Price			35.56		44.25		41.30		45.10		51.74		39.39
	Production, mineral and other taxes			0.21		0.18		0.20		0.15		0.16		0.20
	Transportation and processing			13.78		12.80		12.82		13.04		13.63		11.74
	Operating			1.50		1.62		1.52		1.72		1.35		1.88
	Netback			20.07		29.65		26.76		30.19		36.59		25.56
Total Operations
	Price			40.73		54.48		47.44		55.81		63.38		51.61
	Production, mineral and other taxes			1.82		2.23		1.95		2.29		2.59		2.09
	Transportation and processing			8.99		8.74		8.78		8.99		9.05		8.13
	Operating			4.32		4.15		4.13		4.65		3.82		3.98
Netback				25.59		39.35		32.57		39.87		47.91		37.40

(1)		May not add due to rounding. Ovintiv calculates reported netbacks using whole dollars and sales volumes. Accordingly, the calculations above may differ from the reported netbacks due to the effects of rounding both dollars and volumes.


Ovintiv Inc.	3	Non-GAAP Definitions and Reconciliations