Ovintiv's Q3 Earnings Beat Estimates, Revenues Down 12% Y/Y

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Ovintiv Inc. OVV reported third-quarter 2024 adjusted earnings per share of $1.85, which beat the Zacks Consensus Estimate of $1.09. The beat can be attributed to better-than-expected total production, which exceeded the consensus mark by 3% and a 17.4% year-over-year reduction in expenses. Additionally, the bottom line increased from the year-ago level of $1.74.

The Denver, CO-based oil and gas exploration and production company’s total revenues of $2.3 billion decreased 12.3% from the year-ago quarter’s figure and missed the Zacks Consensus Estimate by 3.4%.  This was due to a year-over-year decline in revenues from products and services.

Ovintiv Inc. Price, Consensus and EPS Surprise

Ovintiv Inc. Price, Consensus and EPS Surprise
Ovintiv Inc. Price, Consensus and EPS Surprise

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

On Nov. 7, OVV’s board of directors declared a quarterly dividend of 30 cents per share for its common shareholders of record as of Dec. 13, 2024. The dividends will be paid out on Dec. 31.

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In the reported quarter, the company repurchased approximately 3.7 million shares of common stock for a total of around $162 million and paid dividends of 30 cents per share, amounting to $78 million.  OVV reduced total debt by $210 million, bringing this to $5.88 billion and reported a non-GAAP debt to adjusted EBITDA ratio of 1.2 times during the same time.

OVV’s Production & Prices

Total third-quarter production was 592,600 barrels of oil equivalent per day (BOE/d) compared with 571,800 BOE/d in the prior-year period. The figure beat our prediction of 577,800 BOE/d.

Natural gas production increased 1,725 million cubic feet per day (MMcf/d) in the third quarter of 2024, compared with 1,625 MMcf/d in the prior-year quarter. The figure beat our estimate of 1,683.6 MMcf/d.

Total liquids production increased to 305 thousand barrels per day (Mbbls/d) in the third quarter of 2024, up from 300.9 Mbbls/d in the third quarter of 2023. The figure beat our prediction of 297.2 Mbbls/d.

Ovintiv's realized natural gas price was $1.88 per thousand cubic feet compared with the year-ago level of $2.51 and missed our estimate of $2.51.

Realized oil price decreased to $73.23 per barrel from $79.52 in the third quarter of 2024. The figure also missed our projection of $80.32.

OVV’s Costs, Capex & Balance Sheet

Total expenses in the reported quarter decreased to $1.8 billion from the year-ago quarter’s figure of $2.18 billion, due to lower costs associated with transportation and processing, production, mineral and other taxes, operating, purchased products and administration.

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