Ovintiv turns to profit in Q1 2023
Denver-based producer Ovintiv said May 9 it had net earnings in Q1 2023 of $486mn, reversing a Q1 2022 net loss of $241mn.
Cash from operating activities rose to $1.07bn from $685mn, while free cash flow, on capital expenditures of $610mn compared to $451mn a year ago, declined to $241mn from $592mn.
“Picking up where we left off in the fourth quarter, our first quarter outperformance reflects the combination of strong well results and cost efficiencies,” CEO Brendan McCracken said. “For the past two quarters, our average Permian well performance was among the highest oil volumes per lateral foot in Ovintiv’s history in the play.”
Total production in the first quarter averaged 511,400 barrels of oil equivalent (boe)/day, up from 499,900 boe/day in the comparable 2022 period. Total liquids production was essentially unchanged, at 252,200 barrels/day, but natural gas production rose to 1.6bn ft3/day from 1.5bn ft3/day.
Without factoring in realised risk management losses, Ovintiv’s Q1 2023 average realised natural gas price slipped to $4.34/’000 ft3 from $4.64/’000 ft3. The decline reflected weaker benchmark prices at Dawn, Nymex and AECO, which were 34%, 31% and 5% lower year-over-year.
Net of risk management losses, Ovintiv’s average realised price increased to $3.80/’000 ft3 from $2.60/’000 ft3.