Ovintiv Q4 Earnings Surpass Estimates, Revenues Decline Y/Y

Ovintiv Inc. OVV reported fourth-quarter 2025 adjusted earnings per share of $1.39, which beat the Zacks Consensus Estimate of 98 cents. The bottom line also increased from the year-ago level of $1.35. The outperformance was driven by higher plant condensate, natural gas liquids and natural gas production volumes and higher average realized natural gas prices.

The Denver, CO-based oil and gas exploration and production company’s total revenues of $2.1 billion decreased 1.9% from the year-ago quarter’s figure due to lower oil production volumes and lower average realized oil and plant condensate prices. However, the top line beat the Zacks Consensus Estimate by 10.2%.

Ovintiv Inc. Price, Consensus and EPS Surprise

Ovintiv Inc. price-consensus-eps-surprise-chart | Ovintiv Inc. Quote

On Feb. 23, 2026, Ovintiv's board of directors declared a quarterly dividend of 30 cents per share, which will be paid on March 31, to its shareholders of record as of March 13.

The company demonstrated a strong commitment to shareholder value in 2025, distributing a total of approximately $612 million. This was achieved through $304 million in share buybacks, representing 7.8 million shares and $308 million in base dividend payments.

The company completed the $2.7 billion acquisition of NuVista Energy Ltd. on Feb. 3, 2026, adding roughly 100 MBOE/d of production, about 930 net equivalent well locations and nearly 140,000 net acres of land. In parallel, it agreed to divest its Anadarko assets, making an announcement in February 2026 of a definitive deal to sell them for total cash proceeds of $3 billion.

OVV’s Q4 Production & Prices

Total fourth-quarter production was 623,400 barrels of oil equivalent per day (BOE/d) compared with 579,900 BOE/d in the prior-year period. The figure beat our prediction of 620,000 BOE/d.

Natural gas production increased to 1,905 million cubic feet per day (MMcf/d) in the fourth quarter of 2025 from 1,680 MMcf/d in the prior-year quarter. Additionally, the figure marginally missed our estimate of 1,906 MMcf/d.

Total liquids production increased to 305.9 thousand barrels per day (Mbbls/d) in the fourth quarter of 2025 from 299.8 Mbbls/d in the prior-year quarter. Furthermore, the figure beat our prediction of 304 Mbbls/d.

In the fourth quarter of 2025, natural gas contributed approximately 50.9%, and liquids accounted for about 49.1% of the total production.

Ovintiv's realized natural gas price was $2.65 per thousand cubic feet compared with the year-ago level of $2.42. The realized oil price decreased to $61.89 per barrel from $67.93 in the prior-year quarter.

OVV’s Costs, Capex & Balance Sheet

Total expenses of $1.7 billion decreased 21.7% from the year-ago quarter’s figure of $2.2 billion. However, the figure was higher than our projection of $1.6 billion.

Ovintiv’s cash from operating activities in the quarter under review was $954 million, compared to the year-ago figure of $1 billion.

OVV's capital investments were $465 million compared with $552 million in the year-ago period. The company generated a non-GAAP free cash flow of $508 million in the reported quarter.

As of Dec. 31, the company had cash and cash equivalents worth $35 million and long-term debt of $4.4 billion. Its debt-to-capitalization was 28.2%.

OVV’s Asset Performance

In the fourth quarter of 2025, average production from the Permian Basin reached approximately 219 MBOE/d, with liquids making up 79% of the total. A total of 30 net wells were brought online during the period. For the full year 2026, capital spending in this region is projected to be between $1.325 billion and $1.375 billion, supporting the development of around 5 rigs and 125-135 net wells.

From the Montney play, fourth-quarter output averaged 305 MBOE/d, with liquids contributing about 25% of the volume. The company turned in 20 net wells during the quarter. Full-year 2026 capital expenditures for Montney are expected to be between $875 million and $925 million, supporting the development of 6 rigs and 130-140 net well additions.

OVV’s Q1 & 2026 Guidance

Ovintiv expects its total production for the first quarter of 2026 to be between 660 MBOE/d and 680 MBOE/d. This includes oil and condensate production between 220 Mbbls/d and 225 Mbbls/d, natural gas liquids production of 96-100 Mbbls/d and natural gas production between 2,075 MMcf/d and 2,125 MMcf/d. Capital investment for the first quarter is projected between $600 million and $650 million.

This Zacks Rank #4 (Sell) company has projected its full-year 2026 capital investment between $2.2 billion and $2.3 billion. For 2026, OVV anticipates total production to average between 620 MBOE/d and 645 MBOE/d. Full-year oil and condensate production is expected to range from 205 Mbbls/d to 212 Mbbls/d, while NGLs production is projected between 80 Mbbls/d and 85 Mbbls/d. Natural gas production for the year is estimated to be between 2,000 MMcf/d and 2,100 MMcf/d.

Ovintiv expects to return at least 75% of its full-year 2026 non-GAAP free cash flow to shareholders. Over the longer term, the company has updated its capital return strategy to distribute between 50% and 100% of annual non-GAAP free cash flow through a mix of base dividends and share repurchases. To enable execution of the new framework, the company’s board of directors has authorized a share buyback program totaling $3 billion.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Important Earnings at a Glance

While we have discussed OVV’s fourth-quarter results in detail, let us take a look at three other key reports in this space.

TechnipFMC plc FTI reported fourth-quarter 2025 adjusted earnings of 70 cents per share, which beat the Zacks Consensus Estimate of 51 cents. The bottom line also increased from the year-ago quarter’s reported profit of 54 cents. The outperformance is primarily driven by strong results in both the Subsea and the Surface Technologies segments.

Newcastle & Houston-based oil and gas equipment and services provider’s revenues of $2.5 billion missed the Zacks Consensus Estimate by 25 million. However, the top line increased from the year-ago quarter’s reported figure of $2.4 billion.

As of Dec. 31, 2025, FTI had cash and cash equivalents worth $1 billion and long-term debt of $395.7 million, with a debt-to-capitalization of 10.5%.

ProPetro Holding Corp. PUMP reported a fourth-quarter 2025 adjusted profit per share of 1 cent, which beat the Zacks Consensus Estimate of a loss of 13 cents. The bottom line also improved from the year-ago loss of 1 cent per share, backed by a 16.3% year-over-year decline in costs and expenses.

Revenues of $290 million beat the consensus mark of $280 million. This improvement can be attributed to better-than-expected service revenues in the Wireline and Hydraulic Fracturing segments. Revenues in the Wireline segment reached $55.4 million, surpassing the consensus estimate by 7.4%. Revenues in the Hydraulic Fracturing segment reached $203.9 million, surpassing the consensus estimate by 1.4%. However, the top line decreased 9.6% from the year-ago quarter’s level of $321 million. This was due to a year-over-year decline in service revenues from the Hydraulic Fracturing and Cementing segments.

As of Dec. 31, 2025, PUMP had $91.3 million in cash and cash equivalents and $45 million in borrowings under its ABL Credit Facility.

Targa Resources Corp. TRGP reported fourth-quarter 2025 adjusted earnings of $2.51 per share, which beat the Zacks Consensus Estimate of $2.39. The bottom line also increased from the year-ago quarter’s level of $1.44. The outperformance can be attributed to the increased operating margin in the company’s Gathering and Processing segment and Logistics and Transportation segment, and a decrease in the company’s product costs.

Total quarterly revenues of $4 billion decreased from the prior-year quarter’s level of $4.4 billion. The top line also missed the Zacks Consensus Estimate of $5.2 billion. The weak quarterly revenues can be attributed to lower sales of commodities.

As of Dec. 31, 2025, TRGP had cash and cash equivalents of $166.1 million and long-term debt of $16.7 billion, with a debt-to-capitalization of around 83.9%.

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