The following is a summary of the Ovintiv, Inc. (OVV) Q1 2024 Earnings Call Transcript:
Financial Performance:
Ovintiv reported Q1 2024 net earnings of $338 million and free cash flow of $444 million.
Cash flow per share reached $3.80, exceeding consensus estimates.
Raised the full-year production guidance towards delivering oil and condensate volumes of about 206,000 barrels per day while holding capital guidance stable at $2.3 billion midpoint.
Increased 2024 free cash flow expectations from $1.6 billion to $1.9 billion.
Made shareholder returns of $328 million through share buybacks of $248 million and base dividends of $80 million, marking an 8% cash return yield.
Business Progress:
Added 65 premium 10,000-foot equivalent locations in the Permian via three bolt-on transactions at an average cost of less than $3 million per location.
Pursuing a multiyear disciplined strategy, added about 1,650 premium net 10,000-foot locations to the portfolio.
Resolved production disruptions experienced during the quarter and production is expected to stabilize in H2.
Plans for about 50% of its free cash flow to be allocated towards debt reduction and the other half towards incremental shareholder returns, focusing on buying back stocks.
Strategic acquisitions were made in 1Q and the company aims to remain opportunistic about grabbing high-quality inventory while balancing debt reduction ambitions.
The company expects to see a boost in free cash flow starting from April and is aiming to reduce overall debt level through operational excellence and disciplined capital.
More details: Ovintiv IR
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