Ovintiv Reports $159 Million Net Loss in Q1 2025 Amid Strategic Acquisition

Ovintiv Inc. reported a net loss of $159 million for the first quarter of 2025, translating to a loss of $0.61 per diluted share, a significant decline from a net income of $338 million, or $1.25 per share, in the same period last year. The company's total revenues increased slightly to $2.377 billion from $2.352 billion year-over-year, driven by higher upstream product revenues, which rose to $1.965 billion from $1.938 billion. However, the company faced substantial operating expenses totaling $2.466 billion, up from $1.858 billion in the prior year, largely due to a non-cash ceiling test impairment of $730 million recognized in its Canadian operations.

The financial performance reflects a strategic shift for Ovintiv, which completed a significant acquisition of approximately 109,000 net acres in the Montney formation from Paramount Resources for $2.308 billion on January 31, 2025. This acquisition was funded through cash on hand and proceeds from the divestiture of its Uinta Basin assets, which generated $1.884 billion in proceeds. The divestiture, effective October 1, 2024, allowed the company to streamline its operations while enhancing its asset portfolio in a key growth area.

Operationally, Ovintiv produced an average of 588.3 thousand barrels of oil equivalent per day (MBOE/d) during the quarter, a 3% increase from the previous year. The production mix consisted of 294.4 Mbbls/d of liquids and 1,764 million cubic feet per day (MMcf/d) of natural gas. The company reported a 35% increase in average realized natural gas prices, which contributed to higher revenues, although oil production volumes decreased due to the Uinta asset sale. The company’s total liquidity stood at approximately $3.5 billion as of March 31, 2025, bolstered by available credit facilities and cash reserves.

Looking ahead, Ovintiv anticipates continued volatility in oil and natural gas markets, influenced by global economic conditions and geopolitical factors. The company plans to maintain a disciplined capital allocation strategy, focusing on high-margin projects and operational efficiencies. For 2025, Ovintiv has set a capital investment guidance range of $2.15 billion to $2.25 billion, with expectations to meet production targets of 595.0 to 615.0 MBOE/d. The company remains committed to enhancing shareholder value through strategic acquisitions, disciplined spending, and a focus on sustainability initiatives.