Analyst Note| Dave Meats, CFA |
Ovintiv delivered total production of 538 thousand barrels of oil equivalent per day in the first quarter, which was 3% lower sequentially and 6% lower year over year. Crude and condensate volumes were 198 mbbls/d, at the midpoint of guidance issued near the end of the quarter (following the announcement of the firm’s Eagle Ford divestiture). This already incorporated the effects of Winter Storm Uri, which forced widespread shut-ins across several of the regions that Ovintiv operates in. The firm’s financial results were better than expected, with adjusted earnings per share coming in at $1.10 (FactSet consensus was $0.82). Non-GAAP free cash flow was $540 million, which was primarily deployed for debt reduction.