As at March 31, 2026, the Company has sufficient common stock held in reserve for issuance in accordance with its equity-settled stock-based compensation plans.

The Company has recognized the following share-based compensation costs:


	Three Months Ended
	March 31,
	2026			2025

Total Compensation Costs of Transactions Classified as Cash-Settled	$	7		$	1
Total Compensation Costs of Transactions Classified as Equity-Settled		17			16
Less: Total Share-Based Compensation Costs Capitalized		(6	)		(4	)
Total Share-Based Compensation Expense (Recovery)	$	18		$	13

Recognized in the Condensed Consolidated Statement of Earnings in:
Operating	$	6		$	3
Administrative		12			10
	$	18		$	13

As at March 31, 2026, the liability for cash-settled share-based payment transactions totaled $8 million ($6 million as at December 31, 2025), which is recognized in accounts payable and accrued liabilities in the Condensed Consolidated Balance Sheet.

The following weighted average assumptions were used to determine the fair value of Stock Appreciation Rights (“SAR”) and Tandem Stock Appreciation Rights (“TSAR”) units outstanding:


	As at March 31, 2026		As at March 31, 2025
	US$ SAR	C$ TSAR	US$ SAR	C$ TSAR
	Share Units	Share Units (1)	Share Units	Share Units

Risk Free Interest Rate	2.79%	-	2.47%	2.47%
Dividend Yield	2.02%	-	2.80%	2.80%
Expected Volatility Rate (2)	37.60%	-	43.45%	40.36%
Expected Term	0.5 yrs	-	0.8 yrs	0.8 yrs
Market Share Price	US$59.36	-	US$42.80	C$61.59
Weighted Average Grant Date Fair Value	US$22.95	-	US$34.49	C$46.80

(1)

As at March 31, 2026, all TSARs outstanding as at December 31, 2025, have been settled.

(2)

Volatility was estimated using historical rates.

The following units were granted primarily in conjunction with the Company’s annual grant of long-term incentive awards. The PSUs and RSUs were granted at the volume-weighted average trading price of shares of Ovintiv common stock for the five days prior to the grant date.


Three Months Ended March 31, 2026 (thousands of units)

RSUs			1,232
PSUs			406
DSUs (1)			2

(1)

Deferred Share Units (“DSUs”).