v3.26.1
Compensation Plans (Tables)
3 Months Ended
Mar. 31, 2026
Share-Based Payment Arrangement [Abstract]  
Amounts Recognized For Share-Based Payment Transactions

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

 

Schedule of Weighted Average Assumptions Used to Fair Value Share Units

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.
Schedule of Share-based Compensation Activity

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”).