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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