EX-99.2

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

Exhibit 99.2

Ovintiv Inc.

Selected Financial Information

(unaudited)

For the year ended December 31, 2023

U.S. Dollar / U.S. Protocol

Condensed Consolidated Statement of Earnings (unaudited)


For the years ended December 31 (US$ millions, except per share amounts)	2023			2022			2021

Revenues
Product and service revenues	$	10,661		$	14,263		$	10,468
Gains (losses) on risk management, net		151			(1,867	)		(1,883	)
Sublease revenues		71			68			73
Total Revenues		10,883			12,464			8,658

Operating Expenses
Production, mineral and other taxes		342			415			293
Transportation and processing		1,766			1,786			1,616
Operating		859			802			625
Purchased product		2,815			4,055			2,951
Depreciation, depletion and amortization		1,825			1,113			1,190
Accretion of asset retirement obligation		19			18			22
Administrative		393			422			442
Total Operating Expenses		8,019			8,611			7,139
Operating Income (Loss)		2,864			3,853			1,519

Other (Income) Expenses
Interest		355			311			340
Foreign exchange (gain) loss, net		19			15			(23	)
Other (gains) losses, net		(20	)		(33	)		(37	)
Total Other (Income) Expenses		354			293			280
Net Earnings (Loss) Before Income Tax		2,510			3,560			1,239
Income tax expense (recovery)		425			(77	)		(177	)
Net Earnings (Loss)	$	2,085		$	3,637		$	1,416

Net Earnings (Loss) per Share of Common Stock
Basic	$	8.02		$	14.34		$	5.44
Diluted		7.90			14.08			5.32
Weighted Average Shares of Common Stock Outstanding (millions)
Basic		259.9			253.6			260.4
Diluted		263.9			258.4			266.4

Condensed Consolidated Statement of Comprehensive Income (unaudited)


For the years ended December 31 (US$ millions)	2023			2022			2021

Net Earnings (Loss)	$	2,085		$	3,637		$	1,416
Other Comprehensive Income (Loss), Net of Tax
Foreign currency translation adjustment		63			(107	)		2
Pension and other post-employment benefit plans		(4	)		6			14
Other Comprehensive Income (Loss)		59			(101	)		16
Comprehensive Income (Loss)	$	2,144		$	3,536		$	1,432


Ovintiv Inc.	1	Selected Financial Information

Condensed Consolidated Balance Sheet (unaudited)


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

Assets
Current Assets
Cash and cash equivalents	$	3		$	5
Accounts receivable and accrued revenues (net of allowances
of $5 million (2022: $4 million))		1,442			1,594
Risk management		214			53
Income tax receivable		17			43
		1,676			1,695
Property, Plant and Equipment, at cost:
Oil and natural gas properties, based on full cost accounting
Proved properties		64,084			57,054
Unproved properties		1,486			1,172
Other		907			882
Property, plant and equipment		66,477			59,108
Less: Accumulated depreciation, depletion and amortization		(51,837	)		(49,640	)
Property, plant and equipment, net		14,640			9,468
Other Assets		1,015			1,004
Risk Management		4			34
Deferred Income Taxes		53			271
Goodwill		2,599			2,584
	$	19,987		$	15,056

Liabilities and Shareholders’ Equity
Current Liabilities
Accounts payable and accrued liabilities	$	2,209		$	2,221
Current portion of operating lease liabilities		87			76
Income tax payable		232			4
Risk management		-			86
Current portion of long-term debt		284			393
		2,812			2,780
Long-Term Debt		5,453			3,177
Operating Lease Liabilities		832			814
Other Liabilities and Provisions		132			131
Risk Management		2			-
Asset Retirement Obligation		276			281
Deferred Income Taxes		110			184
		9,617			7,367

Shareholders’ Equity
Share capital - authorized 775 million shares of stock
2023 issued and outstanding: 271.7 million shares (2022: 245.7 million shares)		3			3
Paid in surplus		8,620			7,776
Retained earnings (Accumulated deficit)		697			(1,081	)
Accumulated other comprehensive income		1,050			991
Total Shareholders’ Equity		10,370			7,689
	$	19,987		$	15,056


Ovintiv Inc.	2	Selected Financial Information

Condensed Consolidated Statement of Cash Flows (unaudited)


For the years ended December 31 (US$ millions)	2023			2022			2021

Operating Activities
Net earnings (loss)	$	2,085		$	3,637		$	1,416
Depreciation, depletion and amortization		1,825			1,113			1,190
Accretion of asset retirement obligation		19			18			22
Deferred income taxes		144			(87	)		(21	)
Unrealized (gain) loss on risk management		(194	)		(741	)		488
Unrealized foreign exchange (gain) loss		(6	)		14			21
Foreign exchange (gain) loss on settlements		6			8			(11	)
Other		20			148			104
Net change in other assets and liabilities		(62	)		(57	)		(39	)
Net change in non-cash working capital		330			(187	)		(41	)
Cash From (Used in) Operating Activities		4,167			3,866			3,129

Investing Activities
Capital expenditures		(2,744	)		(1,831	)		(1,519	)
Acquisitions		(277	)		(286	)		(11	)
Corporate acquisition, net of cash acquired		(3,225	)		-			-
Proceeds from divestitures		772			228			1,025
Net change in investments and other		(45	)		103			(20	)
Cash From (Used in) Investing Activities		(5,519	)		(1,786	)		(525	)

Financing Activities
Net issuance (repayment) of revolving debt		(109	)		393			(950	)
Issuance of long-term debt		2,278			-			-
Repayment of long-term debt		-			(1,634	)		(1,137	)
Purchase of shares of common stock		(426	)		(719	)		(111	)
Dividends on shares of common stock		(307	)		(239	)		(122	)
Finance lease payments and other		(77	)		(69	)		(99	)
Cash From (Used in) Financing Activities		1,359			(2,268	)		(2,419	)

Foreign Exchange Gain (Loss) on Cash, Cash Equivalents
and Restricted Cash Held in Foreign Currency		(9	)		(2	)		-

Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash		(2	)		(190	)		185
Cash, Cash Equivalents and Restricted Cash, Beginning of Year		5			195			10
Cash, Cash Equivalents and Restricted Cash, End of Year	$	3		$	5		$	195

Cash, End of Year	$	3		$	5		$	26
Cash Equivalents, End of Year		-			-			169
Restricted Cash, End of Year		-			-			-
Cash, Cash Equivalents and Restricted Cash, End of Year	$	3		$	5		$	195


Ovintiv Inc.	3	Selected Financial Information

Ovintiv Inc.

Supplemental Information

(unaudited)

For the year ended December 31, 2023

U.S. Dollar / U.S. Protocol

Fourth quarter report

for the year ended December 31, 2023

Supplemental Financial Information (unaudited)

Financial Results


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

Net Earnings (Loss)			2,085			856			406			336			487			3,637			1,335			1,186			1,357			(241	)

	Per share - basic (1)		8.02			3.14			1.48			1.35			1.99			14.34			5.39			4.70			5.28			(0.94	)
	Per share - diluted (1)		7.90			3.11			1.47			1.34			1.97			14.08			5.30			4.63			5.21			(0.94	)

Non-GAAP Adjusted Earnings (2)			1,810			647			481			232			450			1,769			228			353			628			560

	Per share - basic (1)		6.96			2.38			1.76			0.93			1.84			6.98			0.92			1.40			2.44			2.18
	Per share - diluted (1)		6.86			2.35			1.74			0.93			1.82			6.85			0.91			1.38			2.41			2.18

Non-GAAP Cash Flow (3)			3,899			1,237			1,112			699			851			4,110			895			948			1,224			1,043

	Per share - basic (1)		15.00			4.54			4.06			2.80			3.48			16.21			3.62			3.75			4.76			4.05
	Per share - diluted (1)		14.77			4.49			4.02			2.79			3.44			15.91			3.55			3.70			4.70			4.05

Foreign Exchange Rates (C$ per US$1)
	Average		1.350			1.362			1.341			1.343			1.353			1.301			1.358			1.306			1.277			1.266
	Period end		1.323			1.323			1.352			1.324			1.353			1.354			1.354			1.371			1.289			1.250

Non-GAAP Adjusted Earnings Summary

Net Earnings (Loss) Before Income Tax			2,510			1,067			393			437			613			3,560			1,110			1,274			1,422			(246	)
Before-tax (Addition) Deduction:
	Unrealized gain (loss) on risk management		194			326			(292	)		142			18			741			530			710			513			(1,012	)
	Non-operating foreign exchange gain (loss)		(2	)		(9	)		17			(15	)		5			(14	)		10			(20	)		(7	)		3
Adjusted Earnings (Loss) Before Income Tax			2,318			750			668			310			590			2,833			570			584			916			763
	Income tax expense (recovery) (4)		508			103			187			78			140			1,064			342			231			288			203

Non-GAAP Adjusted Earnings (2)			1,810			647			481			232			450			1,769			228			353			628			560

Non-GAAP Cash Flow Summary

Cash From (Used in) Operating Activities			4,167			1,362			906			831			1,068			3,866			875			962			1,344			685
(Add back) Deduct:
	Net change in other assets and liabilities		(62	)		(31	)		(14	)		(12	)		(5	)		(57	)		(15	)		(17	)		(13	)		(12	)
	Net change in non-cash working capital		330			156			(192	)		144			222			(187	)		(5	)		31			133			(346	)

Non-GAAP Cash Flow (3)			3,899			1,237			1,112			699			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)		Year		Q4		Q3		Q2		Q1		Year		Q4		Q3		Q2		Q1

Weighted Average Shares of Common Stock Outstanding

	Basic		259.9		272.3		273.7		249.4		244.3		253.6		247.5		252.5		257.2		257.4

	Diluted		263.9		275.4		276.3		250.8		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 23.7 percent (2022 - 23.0 percent and 23.9 percent, respectively).

Financial Metrics

     
    Year

    Year

    Debt to Capitalization

    36%

    32%

    Debt to Adjusted Capitalization (1)

    24%

    19%

    Debt to EBITDA (1)

    1.2x

    0.7x

    Debt to Adjusted EBITDA (1)

    1.3x

    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$)

Fourth quarter report

for the year ended December 31, 2023

Supplemental Operating Information (unaudited)

Production Volumes by Product


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

	Oil (Mbbls/d)		54		158.9		194.1		170.9		142.4		127.3		131.6		132.0		133.4		132.8		128.3
	NGLs - Plant Condensate (Mbbls/d)		15		42.9		46.1		43.3		43.5		38.7		44.0		42.7		46.0		42.6		44.6
Oil & Plant Condensate (Mbbls/d)			69		201.8		240.2		214.2		185.9		166.0		175.6		174.7		179.4		175.4		172.9
	Butane (Mbbls/d)		7		21.1		21.7		20.4		23.2		19.1		19.3		19.0		19.8		19.8		18.7
	Propane (Mbbls/d)		12		33.7		35.2		33.2		34.9		31.3		31.5		32.2		31.0		31.3		31.3
	Ethane (Mbbls/d)		12		35.4		34.0		33.1		38.7		35.8		34.7		37.5		36.1		35.9		29.2
NGLs - Other (Mbbls/d)			31		90.2		90.9		86.7		96.8		86.2		85.5		88.7		86.9		87.0		79.2
Oil & NGLs (Mbbls/d)			100		292.0		331.1		300.9		282.7		252.2		261.1		263.4		266.3		262.4		252.1

Natural Gas (MMcf/d)					1,642		1,645		1,625		1,743		1,555		1,494		1,561		1,500		1,426		1,487

Total (MBOE/d)					565.6		605.2		571.8		573.0		511.4		510.0		523.6		516.3		500.0		499.9

Production Volumes by Segment


		2023										2022
(average)		Year		Q4		Q3		Q2		Q1		Year		Q4		Q3		Q2		Q1

Oil (Mbbls/d)
	USA Operations		158.8		194.0		170.8		142.4		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		0.1		0.1		0.1
			158.9		194.1		170.9		142.4		127.3		131.6		132.0		133.4		132.8		128.3

NGLs - Plant Condensate (Mbbls/d)
	USA Operations		10.9		11.3		11.2		10.5		10.6		10.4		11.0		11.1		10.1		9.2
	Canadian Operations		32.0		34.8		32.1		33.0		28.1		33.6		31.7		34.9		32.5		35.4
			42.9		46.1		43.3		43.5		38.7		44.0		42.7		46.0		42.6		44.6

Oil & Plant Condensate (Mbbls/d)
	USA Operations		169.7		205.3		182.0		152.9		137.8		141.9		142.9		144.4		142.8		137.4
	Canadian Operations		32.1		34.9		32.2		33.0		28.2		33.7		31.8		35.0		32.6		35.5
			201.8		240.2		214.2		185.9		166.0		175.6		174.7		179.4		175.4		172.9

NGLs - Other (Mbbls/d)
	USA Operations		74.6		74.6		71.8		78.1		73.7		71.7		75.1		74.1		72.6		64.8
	Canadian Operations		15.6		16.3		14.9		18.7		12.5		13.8		13.6		12.8		14.4		14.4
			90.2		90.9		86.7		96.8		86.2		85.5		88.7		86.9		87.0		79.2

NGLs - Total (Mbbls/d)
	USA Operations		85.5		85.9		83.0		88.6		84.3		82.1		86.1		85.2		82.7		74.0
	Canadian Operations		47.6		51.1		47.0		51.7		40.6		47.4		45.3		47.7		46.9		49.8
			133.1		137.0		130.0		140.3		124.9		129.5		131.4		132.9		129.6		123.8

Oil & NGLs (Mbbls/d)
	USA Operations		244.3		279.9		253.8		231.0		211.5		213.6		218.0		218.5		215.4		202.2
	Canadian Operations		47.7		51.2		47.1		51.7		40.7		47.5		45.4		47.8		47.0		49.9
			292.0		331.1		300.9		282.7		252.2		261.1		263.4		266.3		262.4		252.1

Natural Gas (MMcf/d)
	USA Operations		517		524		508		530		507		492		506		502		485		475
	Canadian Operations		1,125		1,121		1,117		1,213		1,048		1,002		1,055		998		941		1,012
			1,642		1,645		1,625		1,743		1,555		1,494		1,561		1,500		1,426		1,487

Total (MBOE/d)
	USA Operations		330.4		367.1		338.5		319.2		296.1		295.5		302.3		302.1		296.1		281.3
	Canadian Operations		235.2		238.1		233.3		253.8		215.3		214.5		221.3		214.2		203.9		218.6
			565.6		605.2		571.8		573.0		511.4		510.0		523.6		516.3		500.0		499.9


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

Fourth quarter report

for the year ended December 31, 2023

Supplemental Financial & Operating Information (unaudited)

Results of Operations

Revenues and Realized Gains (Losses) on Risk Management


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

USA Operations

Revenues, excluding Realized Gains (Losses) on Risk Management (1)
	Oil		4,431			1,372			1,267			944		848			4,524			995			1,143			1,311			1,075
	NGLs (2)		676			170			174			149		183			1,045			198			270			311			266
	Natural Gas		458			114			103			86		155			1,108			251			349			302			206
			5,565			1,656			1,544			1,179		1,186			6,677			1,444			1,762			1,924			1,547
Realized Gains (Losses) on Risk Management (3)
	Oil		(24	)		(5	)		(19	)		-		-			(594	)		(75	)		(141	)		(235	)		(143	)
	NGLs (2)		-			-			-			-		-			-			-			-			-			-
	Natural Gas		33			11			15			5		2			(529	)		(122	)		(183	)		(148	)		(76	)
			9			6			(4	)		5		2			(1,123	)		(197	)		(324	)		(383	)		(219	)

Canadian Operations

Revenues, excluding Realized Gains (Losses) on Risk Management (1)
	Oil		3			1			2			-		-			3			1			1			1			-
	NGLs (2)		1,023			284			258			245		236			1,358			290			326			382			360
	Natural Gas		1,186			267			244			222		453			2,104			550			562			577			415
			2,212			552			504			467		689			3,465			841			889			960			775
Realized Gains (Losses) on Risk Management (3)
	Oil		-			-			-			-		-			-			-			-			-			-
	NGLs (2)		1			1			-			-		-			(125	)		(16	)		(26	)		(51	)		(32	)
	Natural Gas		(54	)		11			13			-		(78	)		(1,366	)		(324	)		(471	)		(374	)		(197	)
			(53	)		12			13			-		(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$)

Fourth quarter report

for the year ended December 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)		Year		Q4		Q3		Q2		Q1		Year		Q4		Q3		Q2		Q1

Total USA Operations Netback
	Price		46.15		49.03		49.62		40.56		44.52		61.91		51.96		63.44		71.39		61.08
	Production, mineral and other taxes		2.71		2.65		2.71		2.49		3.01		3.72		3.23		3.83		4.25		3.56
	Transportation and processing		4.54		3.80		3.98		5.10		5.51		5.80		5.81		6.14		5.91		5.31
	Operating		6.15		5.85		6.66		5.73		6.39		5.99		6.05		6.73		5.53		5.58
	Netback		32.75		36.73		36.27		27.24		29.61		46.40		36.87		46.74		55.70		46.63

Total Canadian Operations Netback
	Price		25.76		25.21		23.46		20.26		35.50		44.26		41.30		45.11		51.70		39.44
	Production, mineral and other taxes		0.18		0.16		0.24		0.14		0.19		0.18		0.19		0.12		0.15		0.19
	Transportation and processing		12.29		11.65		12.36		11.57		13.80		12.80		12.85		13.01		13.67		11.72
	Operating		1.04		1.38		1.30		0.10		1.50		1.62		1.52		1.69		1.35		1.90
	Netback		12.25		12.02		9.56		8.45		20.01		29.66		26.74		30.29		36.53		25.63

Total Operations Netback
	Price		37.67		39.66		38.95		31.56		40.72		54.49		47.45		55.83		63.36		51.62
	Production, mineral and other taxes		1.66		1.67		1.70		1.43		1.83		2.23		1.95		2.29		2.58		2.08
	Transportation and processing		7.76		6.89		7.40		7.97		9.00		8.75		8.78		8.99		9.08		8.12
	Operating		4.03		4.09		4.48		3.23		4.33		4.15		4.13		4.64		3.83		3.98
	Netback		24.22		27.01		25.37		18.93		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)		Year		Q4		Q3		Q2		Q1		Year		Q4		Q3		Q2		Q1

Administrative Expense			1.91		1.57		1.53		3.23		1.25		2.27		2.17		2.16		1.56		3.20
Administrative Expense, Excluding Long-Term Incentive,
	Transaction and Legal Costs, and Current Expected
	Credit Losses (1)		1.35		1.36		1.27		1.28		1.52		1.39		1.35		1.39		1.36		1.48

(1) Transaction costs refer to costs primarily incurred to facilitate the Permian Acquisition as defined in Note 9 of the Consolidated Financial Statements included in Part II, Item 8 of Ovintiv’s Annual Report on Form 10-K.


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

Fourth quarter report

for the year ended December 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$)		Year		Q4		Q3		Q2		Q1		Year		Q4		Q3		Q2		Q1

Oil Price ($/bbl)
	USA Operations		76.46		76.91		80.69		72.83		74.06		94.25		82.08		93.22		108.58		93.16
	Canadian Operations		81.59		75.10		100.64		-		71.44		87.28		81.48		82.86		100.11		82.80
	Total Operations		76.46		76.91		80.70		72.83		74.06		94.25		82.08		93.21		108.57		93.15

NGLs - Plant Condensate Price ($/bbl)
	USA Operations		58.53		57.24		59.96		55.09		61.84		73.22		57.95		66.62		86.56		85.09
	Canadian Operations		74.52		74.65		75.67		70.99		77.22		93.22		82.41		86.65		107.78		96.22
	Total Operations		70.46		70.38		71.61		67.14		73.01		88.52		76.14		81.82		102.74		93.93

Oil & Plant Condensate Price ($/bbl)
	USA Operations		75.31		75.83		79.42		71.61		73.12		92.72		80.24		91.18		107.02		92.62
	Canadian Operations		74.54		74.65		75.75		70.99		77.21		93.20		82.41		86.64		107.76		96.19
	Total Operations		75.19		75.66		78.86		71.50		73.81		92.81		80.63		90.29		107.16		93.35

NGLs - Other Price ($/bbl)
	USA Operations		16.27		16.21		16.91		13.43		18.73		29.35		20.03		29.82		34.88		33.55
	Canadian Operations		26.78		30.94		25.50		18.62		35.17		42.39		39.07		41.12		47.84		41.23
	Total Operations		18.09		18.85		18.39		14.43		21.11		31.45		22.95		31.49		37.03		34.94

NGLs - Total Price ($/bbl)
	USA Operations		21.66		21.61		22.72		18.39		24.14		34.88		24.85		34.61		41.21		39.95
	Canadian Operations		58.89		60.71		59.76		52.05		64.31		78.44		69.42		74.41		89.37		80.36
	Total Operations		34.98		36.20		36.11		30.78		37.19		50.84		40.22		48.91		58.64		56.21

Oil & NGLs Price ($/bbl)
	USA Operations		57.29		59.94		61.73		51.94		54.16		71.44		59.49		70.37		82.70		73.68
	Canadian Operations		58.93		60.75		59.84		52.06		64.32		78.46		69.44		74.43		89.39		80.37
	Total Operations		57.55		60.06		61.43		51.96		55.80		72.72		61.20		71.10		83.90		75.00

Natural Gas Price ($/Mcf)
	USA Operations		2.43		2.34		2.22		1.79		3.40		6.18		5.42		7.55		6.87		4.82
	Canadian Operations		2.89		2.58		2.38		2.02		4.80		5.75		5.67		6.11		6.73		4.56
	Total Operations		2.74		2.50		2.33		1.95		4.34		5.89		5.59		6.60		6.78		4.64

Total Price ($/BOE)
	USA Operations		46.15		49.03		49.62		40.56		44.52		61.91		51.96		63.44		71.39		61.08
	Canadian Operations		25.76		25.21		23.46		20.26		35.50		44.26		41.30		45.11		51.70		39.44
	Total Operations		37.67		39.66		38.95		31.56		40.72		54.49		47.45		55.83		63.36		51.62


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

Fourth quarter report

for the year ended December 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$)		Year			Q4			Q3			Q2		Q1			Year			Q4			Q3			Q2			Q1

Oil ($/bbl)
	USA Operations		(0.40	)		(0.27	)		(1.18	)		-		-			(12.38	)		(6.24	)		(11.48	)		(19.42	)		(12.43	)
	Canadian Operations		-			-			-			-		-			-			-			-			-			-
	Total Operations		(0.40	)		(0.27	)		(1.18	)		-		-			(12.37	)		(6.23	)		(11.47	)		(19.41	)		(12.41	)

NGLs - Plant Condensate ($/bbl)
	USA Operations		-			-			-			-		-			-			-			-			-			-
	Canadian Operations		0.09			0.10			-			-		-			(10.15	)		(5.57	)		(8.02	)		(17.14	)		(10.06	)
	Total Operations		0.05			0.08			-			-		-			(7.78	)		(4.13	)		(6.09	)		(13.07	)		(7.99	)

Oil & Plant Condensate ($/bbl)
	USA Operations		(0.38	)		(0.25	)		(1.12	)		-		-			(11.48	)		(5.76	)		(10.60	)		(18.05	)		(11.59	)
	Canadian Operations		-			-			-			-		-			(10.13	)		(5.56	)		(8.00	)		(17.10	)		(10.03	)
	Total Operations		(0.31	)		(0.20	)		(0.92	)		-		-			(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		(0.27	)		(0.19	)		(0.80	)		-		-			(7.62	)		(3.78	)		(7.00	)		(11.96	)		(7.88	)
	Canadian Operations		-			-			-			-		-			(7.19	)		(3.89	)		(5.85	)		(11.85	)		(7.14	)
	Total Operations		(0.21	)		(0.14	)		(0.66	)		-		-			(7.55	)		(3.79	)		(6.80	)		(11.94	)		(7.74	)

Natural Gas ($/Mcf)
	USA Operations		0.17			0.23			0.32			0.10		0.03			(2.94	)		(2.57	)		(3.97	)		(3.39	)		(1.78	)
	Canadian Operations		(0.13	)		0.11			0.12			-		(0.82	)		(3.74	)		(3.35	)		(5.12	)		(4.35	)		(2.16	)
	Total Operations		(0.03	)		0.15			0.18			0.03		(0.54	)		(3.47	)		(3.10	)		(4.75	)		(4.00	)		(2.04	)

Total ($/BOE)
	USA Operations		0.07			0.18			(0.12	)		0.17		0.05			(10.50	)		(7.00	)		(11.68	)		(14.24	)		(8.66	)
	Canadian Operations		(0.60	)		0.56			0.60			-		(3.97	)		(18.91	)		(16.80	)		(25.19	)		(22.62	)		(11.65	)
	Total Operations		(0.21	)		0.33			0.17			0.10		(1.64	)		(14.04	)		(11.14	)		(17.28	)		(17.66	)		(9.97	)


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

Fourth quarter report

for the year ended December 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$)		Year		Q4		Q3		Q2		Q1		Year		Q4		Q3		Q2		Q1

Oil Price ($/bbl)
	USA Operations		76.06		76.64		79.51		72.83		74.06		81.87		75.84		81.74		89.16		80.73
	Canadian Operations		81.59		75.10		100.64		-		71.44		87.28		81.48		82.86		100.11		82.80
	Total Operations		76.06		76.64		79.52		72.83		74.06		81.88		75.85		81.74		89.16		80.74

NGLs - Plant Condensate Price ($/bbl)
	USA Operations		58.53		57.24		59.96		55.09		61.84		73.22		57.95		66.62		86.56		85.09
	Canadian Operations		74.61		74.75		75.67		70.99		77.22		83.07		76.84		78.63		90.64		86.16
	Total Operations		70.51		70.46		71.61		67.14		73.01		80.74		72.01		75.73		89.67		85.94

Oil & Plant Condensate Price ($/bbl)
	USA Operations		74.93		75.58		78.30		71.61		73.12		81.24		74.48		80.58		88.97		81.03
	Canadian Operations		74.54		74.65		75.75		70.99		77.21		83.07		76.85		78.64		90.66		86.16
	Total Operations		74.88		75.46		77.94		71.50		73.81		81.59		74.91		80.20		89.29		82.08

NGLs - Other Price ($/bbl)
	USA Operations		16.27		16.21		16.91		13.43		18.73		29.35		20.03		29.82		34.88		33.55
	Canadian Operations		26.78		30.94		25.50		18.62		35.17		42.39		39.07		41.12		47.84		41.23
	Total Operations		18.09		18.85		18.39		14.43		21.11		31.45		22.95		31.49		37.03		34.94

NGLs - Total Price ($/bbl)
	USA Operations		21.66		21.61		22.72		18.39		24.14		34.88		24.85		34.61		41.21		39.95
	Canadian Operations		58.89		60.71		59.76		52.05		64.31		71.24		65.53		68.55		77.50		73.20
	Total Operations		34.98		36.20		36.11		30.78		37.19		48.20		38.88		46.81		54.34		53.33

Oil & NGLs Price ($/bbl)
	USA Operations		57.02		59.75		60.93		51.94		54.16		63.82		55.71		63.37		70.74		65.80
	Canadian Operations		58.93		60.75		59.84		52.06		64.32		71.27		65.55		68.58		77.54		73.23
	Total Operations		57.34		59.92		60.77		51.96		55.80		65.17		57.41		64.30		71.96		67.26

Natural Gas Price ($/Mcf)
	USA Operations		2.60		2.57		2.54		1.89		3.43		3.24		2.85		3.58		3.48		3.04
	Canadian Operations		2.76		2.69		2.50		2.02		3.98		2.01		2.32		0.99		2.38		2.40
	Total Operations		2.71		2.65		2.51		1.98		3.80		2.42		2.49		1.85		2.78		2.60

Total Price ($/BOE)
	USA Operations		46.22		49.21		49.50		40.73		44.57		51.41		44.96		51.76		57.15		52.42
	Canadian Operations		25.16		25.77		24.06		20.26		31.53		25.35		24.50		19.92		29.08		27.79
	Total Operations		37.46		39.99		39.12		31.66		39.08		40.45		36.31		38.55		45.70		41.65

Total Netback ($/BOE)
	USA Operations		32.82		36.91		36.15		27.41		29.66		35.90		29.87		35.06		41.46		37.97
	Canadian Operations		11.65		12.58		10.16		8.45		16.04		10.75		9.94		5.10		13.91		13.98
	Total Operations		24.01		27.34		25.54		19.03		23.92		25.32		21.45		22.63		30.21		27.47


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

Fourth quarter report

for the year ended December 31, 2023

Supplemental Oil and Gas Operating Statistics (unaudited)

Results by Play


		2023										2022
(average)		Year		Q4		Q3		Q2		Q1		Year		Q4		Q3		Q2		Q1

Oil Production (Mbbls/d)

USA Operations
	Permian		99.5		140.2		121.4		75.6		59.6		62.7		65.4		60.8		62.6		61.8
	Anadarko		30.6		26.8		30.2		32.4		33.1		35.5		34.4		35.9		36.5		35.4
	Uinta		19.1		26.8		18.9		17.8		12.8		17.9		15.4		19.9		19.6		16.6
	Bakken (1)		9.4		-		-		16.4		21.5		15.3		16.5		16.5		14.0		14.3
	Other (2)		0.2		0.2		0.3		0.2		0.2		0.1		0.2		0.2		-		0.1
Total USA Operations			158.8		194.0		170.8		142.4		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		0.1		0.1		0.1
	Other (2)		-		-		-		-		-		-		-		-		-		-
Total Canadian Operations			0.1		0.1		0.1		-		0.1		0.1		0.1		0.1		0.1		0.1


Total			158.9		194.1		170.9		142.4		127.3		131.6		132.0		133.4		132.8		128.3


NGLs - Plant Condensate Production (Mbbls/d)

USA Operations
	Permian		4.1		4.9		4.6		3.7		3.0		3.1		3.2		3.4		3.1		2.7
	Anadarko		5.9		6.0		6.1		5.6		5.8		5.9		6.2		6.3		5.7		5.4
	Uinta		0.3		0.4		0.4		0.2		0.2		0.2		0.4		0.2		0.2		0.2
	Bakken (1)		0.6		-		-		0.9		1.5		1.1		1.1		1.2		1.1		0.9
	Other (2)		-		-		0.1		0.1		0.1		0.1		0.1		-		-		-
Total USA Operations			10.9		11.3		11.2		10.5		10.6		10.4		11.0		11.1		10.1		9.2

Canadian Operations
	Montney		32.0		34.8		32.1		33.0		28.1		33.6		31.7		34.9		32.5		35.3
	Other (2)		-		-		-		-		-		-		-		-		-		0.1
Total Canadian Operations			32.0		34.8		32.1		33.0		28.1		33.6		31.7		34.9		32.5		35.4


Total			42.9		46.1		43.3		43.5		38.7		44.0		42.7		46.0		42.6		44.6


Oil & Plant Condensate Production (Mbbls/d)

USA Operations
	Permian		103.6		145.1		126.0		79.3		62.6		65.8		68.6		64.2		65.7		64.5
	Anadarko		36.5		32.8		36.3		38.0		38.9		41.4		40.6		42.2		42.2		40.8
	Uinta		19.4		27.2		19.3		18.0		13.0		18.1		15.8		20.1		19.8		16.8
	Bakken (1)		10.0		-		-		17.3		23.0		16.4		17.6		17.7		15.1		15.2
	Other (2)		0.2		0.2		0.4		0.3		0.3		0.2		0.3		0.2		-		0.1
Total USA Operations			169.7		205.3		182.0		152.9		137.8		141.9		142.9		144.4		142.8		137.4

Canadian Operations
	Montney		32.1		34.9		32.2		33.0		28.2		33.7		31.8		35.0		32.6		35.4
	Other (2)		-		-		-		-		-		-		-		-		-		0.1
Total Canadian Operations			32.1		34.9		32.2		33.0		28.2		33.7		31.8		35.0		32.6		35.5


Total			201.8		240.2		214.2		185.9		166.0		175.6		174.7		179.4		175.4		172.9

(1) Production volumes associated with Bakken were included in USA Operations until the asset was divested on June 12, 2023.

(2) 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$)

Fourth quarter report

for the year ended December 31, 2023

Supplemental Oil and Gas Operating Statistics (unaudited)

Results by Play (continued)


		2023										2022
(average)		Year		Q4		Q3		Q2		Q1		Year		Q4		Q3		Q2		Q1

NGLs - Other Production (Mbbls/d)

USA Operations
	Permian		33.0		39.0		35.1		31.0		26.8		26.3		27.0		26.8		26.2		25.4
	Anadarko		36.3		33.7		35.2		37.8		38.5		37.3		39.3		38.6		38.2		32.7
	Uinta		1.2		1.8		1.2		1.1		0.7		0.9		0.9		1.0		0.8		0.7
	Bakken (1)		4.0		-		-		8.1		7.7		7.1		7.9		7.6		7.3		5.9
	Other (2)		0.1		0.1		0.3		0.1		-		0.1		-		0.1		0.1		0.1
Total USA Operations			74.6		74.6		71.8		78.1		73.7		71.7		75.1		74.1		72.6		64.8

Canadian Operations
	Montney		15.6		16.3		14.9		18.7		12.5		13.8		13.6		12.8		14.4		14.4
	Other (2)		-		-		-		-		-		-		-		-		-		-
Total Canadian Operations			15.6		16.3		14.9		18.7		12.5		13.8		13.6		12.8		14.4		14.4


Total			90.2		90.9		86.7		96.8		86.2		85.5		88.7		86.9		87.0		79.2


NGLs - Total Production (Mbbls/d)

USA Operations
	Permian		37.1		43.9		39.7		34.7		29.8		29.4		30.2		30.2		29.3		28.1
	Anadarko		42.2		39.7		41.3		43.4		44.3		43.2		45.5		44.9		43.9		38.1
	Uinta		1.5		2.2		1.6		1.3		0.9		1.1		1.3		1.2		1.0		0.9
	Bakken (1)		4.6		-		-		9.0		9.2		8.2		9.0		8.8		8.4		6.8
	Other (2)		0.1		0.1		0.4		0.2		0.1		0.2		0.1		0.1		0.1		0.1
Total USA Operations			85.5		85.9		83.0		88.6		84.3		82.1		86.1		85.2		82.7		74.0

Canadian Operations
	Montney		47.6		51.1		47.0		51.7		40.6		47.4		45.3		47.7		46.9		49.7
	Other (2)		-		-		-		-		-		-		-		-		-		0.1
Total Canadian Operations			47.6		51.1		47.0		51.7		40.6		47.4		45.3		47.7		46.9		49.8


Total			133.1		137.0		130.0		140.3		124.9		129.5		131.4		132.9		129.6		123.8


Oil & NGLs Production (Mbbls/d)

USA Operations
	Permian		136.6		184.1		161.1		110.3		89.4		92.1		95.6		91.0		91.9		89.9
	Anadarko		72.8		66.5		71.5		75.8		77.4		78.7		79.9		80.8		80.4		73.5
	Uinta		20.6		29.0		20.5		19.1		13.7		19.0		16.7		21.1		20.6		17.5
	Bakken (1)		14.0		-		-		25.4		30.7		23.5		25.5		25.3		22.4		21.1
	Other (2)		0.3		0.3		0.7		0.4		0.3		0.3		0.3		0.3		0.1		0.2
Total USA Operations			244.3		279.9		253.8		231.0		211.5		213.6		218.0		218.5		215.4		202.2

Canadian Operations
	Montney		47.7		51.2		47.1		51.7		40.7		47.5		45.4		47.8		47.0		49.8
	Other (2)		-		-		-		-		-		-		-		-		-		0.1
Total Canadian Operations			47.7		51.2		47.1		51.7		40.7		47.5		45.4		47.8		47.0		49.9


Total			292.0		331.1		300.9		282.7		252.2		261.1		263.4		266.3		262.4		252.1

(1) Production volumes associated with Bakken were included in USA Operations until the asset was divested on June 12, 2023.

(2) 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$)

Fourth quarter report

for the year ended December 31, 2023

Supplemental Oil and Gas Operating Statistics (unaudited)

Results by Play (continued)


		2023										2022
(average)		Year		Q4		Q3		Q2		Q1		Year		Q4		Q3		Q2		Q1

Natural Gas Production (MMcf/d)

USA Operations
	Permian		185		213		195		171		158		149		156		149		146		145
	Anadarko		283		277		285		289		281		286		286		290		287		279
	Uinta		22		30		24		20		15		16		19		16		15		13
	Bakken (1)		23		-		-		44		49		36		39		41		32		32
	Other (2)		4		4		4		6		4		5		6		6		5		6
Total USA Operations			517		524		508		530		507		492		506		502		485		475

Canadian Operations
	Montney		1,095		1,094		1,092		1,177		1,017		970		1,023		970		907		978
	Other (2)		30		27		25		36		31		32		32		28		34		34
Total Canadian Operations			1,125		1,121		1,117		1,213		1,048		1,002		1,055		998		941		1,012


Total			1,642		1,645		1,625		1,743		1,555		1,494		1,561		1,500		1,426		1,487


Total Production (MBOE/d)

USA Operations
	Permian		167.3		219.5		193.9		138.9		115.8		117.0		121.7		115.9		116.2		114.0
	Anadarko		119.9		112.8		119.0		124.0		124.2		126.3		127.6		129.1		128.2		120.1
	Uinta		24.3		33.9		24.4		22.4		16.3		21.6		19.8		23.6		23.0		19.7
	Bakken (1)		17.9		-		-		33.0		38.8		29.6		32.0		32.1		27.7		26.4
	Other (2)		1.0		0.9		1.2		0.9		1.0		1.0		1.2		1.4		1.0		1.1
Total USA Operations			330.4		367.1		338.5		319.2		296.1		295.5		302.3		302.1		296.1		281.3

Canadian Operations
	Montney		230.2		233.6		229.1		247.8		210.1		209.1		215.8		209.5		198.2		212.9
	Other (2)		5.0		4.5		4.2		6.0		5.2		5.4		5.5		4.7		5.7		5.7
Total Canadian Operations			235.2		238.1		233.3		253.8		215.3		214.5		221.3		214.2		203.9		218.6


Total			565.6		605.2		571.8		573.0		511.4		510.0		523.6		516.3		500.0		499.9

(1) Production volumes associated with Bakken were included in USA Operations until the asset was divested on June 12, 2023.

(2) 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$)

Fourth quarter report

for the year ended December 31, 2023

Supplemental Oil and Gas Operating Statistics (unaudited)

Results by Play (continued)


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

Capital Expenditures, Excluding Capitalized Internal Costs

USA Operations
	Permian		1,360			335			524		295			206			632		130		181			165			156
	Anadarko		180			24			3		55			98			375		55		99			118			103
	Uinta		396			123			136		76			61			117		3		27			58			29
	Bakken (1)		105			(2	)		-		42			65			243		73		81			42			47
	Other (2)		7			2			3		1			1			7		3		-			2			2
Total USA Operations			2,048			482			666		469			431			1,374		264		388			385			337

Canadian Operations
	Montney		544			127			130		152			135			295		50		81			97			67
	Other (2)		(2	)		-			-		-			(2	)		5		-		7			(2	)		-
Total Canadian Operations			542			127			130		152			133			300		50		88			95			67

Total Capital Expenditures, Excluding Capitalized Internal Costs			2,590			609			796		621			564			1,674		314		476			480			404

Capitalized Directly Attributable Internal Costs

USA Operations
	Permian		83			29			16		19			19			60		15		15			13			17
	Anadarko		21			5			5		4			7			31		9		7			7			8
	Uinta		31			9			8		7			7			9		3		1			2			3
	Bakken (1)		5			-			-		2			3			18		4		5			4			5
	Other (2)		1			-			-		1			-			1		-		-			(1	)		2
Total USA Operations			141			43			29		33			36			119		31		28			25			35

Canadian Operations
	Montney		6			6			6		(15	)		9			33		10		7			5			11
	Other (2)		1			1			-		-			-			1		-		-			1			-
Total Canadian Operations			7			7			6		(15	)		9			34		10		7			6			11

Total Capitalized Directly Attributable Internal Costs			148			50			35		18			45			153		41		35			31			46

Total Capital Expenditures

USA Operations
	Permian		1,443			364			540		314			225			692		145		196			178			173
	Anadarko		201			29			8		59			105			406		64		106			125			111
	Uinta		427			132			144		83			68			126		6		28			60			32
	Bakken (1)		110			(2	)		-		44			68			261		77		86			46			52
	Other (2)		8			2			3		2			1			8		3		-			1			4
Total USA Operations			2,189			525			695		502			467			1,493		295		416			410			372

Canadian Operations
	Montney		550			133			136		137			144			328		60		88			102			78
	Other (2)		(1	)		1			-		-			(2	)		6		-		7			(1	)		-
Total Canadian Operations			549			134			136		137			142			334		60		95			101			78

Corporate & Other			6			1			3		1			1			4		3		-			-			1
Total Capital Expenditures			2,744			660			834		640			610			1,831		358		511			511			451
Net Acquisitions & (Divestitures)			(495	)		(27	)		47		(702	)		187			58		254		(213	)		3			14
Net Capital Investment			2,249			633			881		(62	)		797			1,889		612		298			514			465

(1) Capital expenditures associated with Bakken were included in USA Operations until the asset was divested on June 12, 2023.

(2) 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$)

Fourth quarter report

for the year ended December 31, 2023

Supplemental Oil and Gas Operating Statistics (unaudited)

Results by Play (continued)


		2023										2022
		Year		Q4		Q3		Q2		Q1		Year		Q4		Q3		Q2		Q1

Drilling Activity (net wells drilled)

USA Operations
	Permian		113		25		45		26		17		62		15		18		16		13
	Anadarko		11		-		2		2		7		54		10		13		18		13
	Uinta		33		12		10		8		3		12		-		2		5		5
	Bakken (1)		11		-		-		6		5		25		7		8		8		2
Total USA Operations			168		37		57		42		32		153		32		41		47		33

Canadian Operations
	Montney		96		28		19		23		26		52		8		12		16		16
	Other (2)		-		-		-		-		-		3		-		3		-		-
Total Canadian Operations			96		28		19		23		26		55		8		15		16		16


Total			264		65		76		65		58		208		40		56		63		49

Completions Activity (net wells on production)

USA Operations
	Permian		184		60		83		27		14		66		16		21		11		18
	Anadarko		25		4		1		7		13		57		8		16		15		18
	Uinta		21		8		10		3		-		11		3		2		6		-
	Bakken (1)		16		-		-		8		8		19		6		9		-		4
Total USA Operations			246		72		94		45		35		153		33		48		32		40

Canadian Operations
	Montney		77		15		22		29		11		63		11		21		12		19
Total Canadian Operations			77		15		22		29		11		63		11		21		12		19


Total			323		87		116		74		46		216		44		69		44		59

(1) Net wells drilled and net wells on production associated with Bakken were included in USA Operations until the asset was divested on June 12, 2023.

(2) 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 year ended December 31, 2023

U.S. Dollar / U.S. Protocol

For the year ended December 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			Q4 2023				YTD 2023

Cash from (used in) Operating Activities		$		1,362		$		4,167
Deduct (add back):
	Net change in other assets and liabilities			(31	)			(62	)
	Net change in non-cash working capital			156				330
Non-GAAP Cash Flow		$		1,237		$		3,899

Per Share - Basic		$		4.54		$		15.00
Per Share - Diluted				4.49				14.77

Non-GAAP Free Cash Flow

Non-GAAP Cash Flow		$		1,237		$		3,899
Deduct:
	Capital expenditures			660				2,744
Non-GAAP Free Cash Flow		$		577		$		1,155

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			Q4 2023				YTD 2023

Net Earnings (Loss) Before Income Tax		$		1,067		$		2,510
Before-tax (Addition) Deduction:
	Unrealized gain (loss) on risk management			326				194
	Non-operating foreign exchange gain (loss)			(9	)			(2	)
Adjusted Earnings (Loss) Before Income Tax				750				2,318
	Income tax expense (recovery)			103				508
Non-GAAP Adjusted Earnings		$		647		$		1,810

Per Share - Basic		$		2.38		$		6.96
Per Share - Diluted				2.35				6.86

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	$		5,737
Total Shareholders' Equity			10,370
Capitalization	$		16,107

Debt to Capitalization		36%


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	$		5,737
Total Shareholders' Equity			10,370
Equity Adjustment for Impairments at December 31, 2011			7,746
Adjusted Capitalization	$		23,853

Debt to Adjusted Capitalization		24%

EBITDA, Debt to EBITDA, Adjusted EBITDA and Debt to Adjusted EBITDA (Leverage Ratio) - 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.


			Q1 2023			Q2 2023			Q3 2023				Q4 2023			YTD 2023

Long-Term Debt, Including Current Portion															$		5,737

Net Earnings (Loss)		$		487	$		336	$		406		$		856	$		2,085
Add back (deduct):
	Depreciation, depletion and amortization			364			419			486				556			1,825
	Interest			71			80			98				106			355
	Income tax expense (recovery)			126			101			(13	)			211			425
EBITDA		$		1,048	$		936	$		977		$		1,729	$		4,690

Debt to EBITDA (times)																	1.2


			Q1 2023				Q2 2023				Q3 2023				Q4 2023				YTD 2023

Long-Term Debt, Including Current Portion																		$		5,737

Net Earnings (Loss)		$		487		$		336		$		406		$		856		$		2,085
Add back (deduct):
	Depreciation, depletion and amortization			364				419				486				556				1,825
	Accretion of asset retirement obligation			5				4				5				5				19
	Interest			71				80				98				106				355
	Unrealized (gains) losses on risk management			(18	)			(142	)			292				(326	)			(194	)
	Foreign exchange (gain) loss, net			(3	)			25				(22	)			19				19
	Other (gains) losses, net			(3	)			(11	)			(2	)			(4	)			(20	)
	Income tax expense (recovery)			126				101				(13	)			211				425
Adjusted EBITDA		$		1,029		$		812		$		1,250		$		1,423		$		4,514

Debt to Adjusted EBITDA (times)																				1.3

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.

Upstream Operating Cash Flow, excluding Risk Management and Upstream Operating Free Cash Flow - Upstream Operating Cash Flow, excluding Risk Management is a measure that adjusts the USA and Canadian Operations revenues for production, mineral and other taxes, transportation and processing expense, operating expense and the impacts of realized risk management activities. It is calculated as total upstream operating income excluding upstream depreciation, depletion and amortization, and the impact of risk management activities. Upstream Operating Free Cash Flow is defined as Upstream Operating Cash Flow, excluding Risk Management, in excess of upstream capital investment, excluding net acquisitions and divestitures. Management monitors these measures as it reflects operating performance and measures the amount of cash generated from the Company’s upstream operations.


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)			Year		Q4		Q3		Q2		Q1		Year		Q4		Q3		Q2		Q1
USA Operations
	Upstream Product Revenue (2,3)			5,565		1,656		1,544		1,179		1,186		6,677		1,444		1,762		1,924		1,547
	Production, mineral and other taxes			327		90		84		73		80		401		90		106		115		90
	Transportation and processing			547		128		124		148		147		626		162		170		159		135
	Operating (4)			743		198		208		167		170		646		168		187		149		142
				3,948		1,240		1,128		791		789		5,004		1,024		1,299		1,501		1,180
Canadian Operations
	Upstream Product Revenue (2,3)			2,212		552		504		467		689		3,465		841		889		960		775
	Production, mineral and other taxes			15		3		5		3		4		14		4		3		3		4
	Transportation and processing			1,056		256		265		268		267		1,002		261		257		253		231
	Operating (4)			88		29		28		2		29		127		31		34		25		37
				1,053		264		206		194		389		2,322		545		595		679		503
Total Operations
	Upstream Product Revenue (2,3)			7,777		2,208		2,048		1,646		1,875		10,142		2,285		2,651		2,884		2,322
	Production, mineral and other taxes			342		93		89		76		84		415		94		109		118		94
	Transportation and processing			1,603		384		389		416		414		1,628		423		427		412		366
	Operating (4)			831		227		236		169		199		773		199		221		174		179
				5,001		1,504		1,334		985		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)			Year		Q4		Q3		Q2		Q1		Year		Q4		Q3		Q2		Q1
USA Operations				120,609,505		33,771,820		31,141,172		29,044,015		26,652,510		107,860,420		27,807,460		27,788,876		26,946,920		25,317,450
Canadian Operations				85,848,365		21,907,316		21,465,900		23,096,801		19,378,260		78,306,370		20,363,280		19,710,448		18,555,628		19,677,060
Total				206,457,870		55,679,136		52,607,072		52,140,816		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)			Year		Q4		Q3		Q2		Q1		Year		Q4		Q3		Q2		Q1
Total USA Operations
	Price			46.14		49.03		49.58		40.59		44.50		61.90		51.93		63.41		71.40		61.10
	Production, mineral and other taxes			2.71		2.66		2.70		2.51		3.00		3.72		3.24		3.81		4.27		3.55
	Transportation and processing			4.54		3.79		3.98		5.10		5.52		5.80		5.83		6.12		5.90		5.33
	Operating			6.16		5.86		6.68		5.75		6.38		5.99		6.04		6.73		5.53		5.61
	Netback			32.73		36.72		36.22		27.23		29.60		46.39		36.82		46.75		55.70		46.61
Total Canadian Operations
	Price			25.77		25.20		23.48		20.22		35.56		44.25		41.30		45.10		51.74		39.39
	Production, mineral and other taxes			0.17		0.14		0.23		0.13		0.21		0.18		0.20		0.15		0.16		0.20
	Transportation and processing			12.30		11.69		12.35		11.60		13.78		12.80		12.82		13.04		13.63		11.74
	Operating			1.03		1.32		1.30		0.09		1.50		1.62		1.52		1.72		1.35		1.88
	Netback			12.27		12.05		9.60		8.40		20.07		29.65		26.76		30.19		36.59		25.56
Total Operations
	Price			37.67		39.66		38.93		31.57		40.73		54.48		47.44		55.81		63.38		51.61
	Production, mineral and other taxes			1.66		1.67		1.69		1.46		1.82		2.23		1.95		2.29		2.59		2.09
	Transportation and processing			7.76		6.90		7.39		7.98		8.99		8.74		8.78		8.99		9.05		8.13
	Operating			4.03		4.08		4.49		3.24		4.32		4.15		4.13		4.65		3.82		3.98
Netback				24.22		27.01		25.36		18.89		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