Ovintiv takes small loss in Q3
Gas-focused Ovintiv said November 2 it had a small loss of $72mn in Q3 2021 but blamed the loss largely on a $954mn pre-tax loss on its risk management programmes. In the comparable 2020 quarter, the Denver-based producer reported a loss of $1.5bn, which included impairments totalling $1.34bn.
Financial highlights for the period included $845mn of cash flow and free cash flow of $480mn alongside a $409mn reduction of net debt. Operating earnings increased to $391mn from a loss of $8mn a year ago.
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“Our third quarter results demonstrate our commitment to unlocking shareholder value by delivering on our strategic priorities,” Ovintiv CEO Brendan McCracken said. “Year-to-date, we have generated nearly $1.4bn of free cash flow, dropped our net debt by more than $2.1bn, and increased our base dividend by about 50%.”
In Q4, he said, Ovintiv will return about $150mn to shareholders through the $0.14/share base dividend and a share buyback program that will see its public float reduced by about 10% by September 2022.
Total production in Q3 2021 averaged 534,700 barrels of oil equivalent (boe)/day, up from 510,200 boe/day in Q3 2020. Natural gas production increased to 1.6bn ft3/day from 1.4bn ft3/day, with all of the increase registered in Canada, where Ovintiv’s Montney production averaged 1.07bn ft3/day, up from 983mn ft3/day in the third quarter last year. US natural gas production slipped to 495mn ft3/day from 507mn ft3/day.