10-Q

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)


☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2026


☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission file number 001-39191

Ovintiv Inc.

(Exact name of registrant as specified in its charter)


Delaware		84-4427672
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

Suite 1700, 370 17th Street, Denver, Colorado, 80202, U.S.A.

(Address of principal executive offices)

Registrant’s telephone number, including area code (303) 623-2300

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Shares	OVV	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☒	Accelerated filer	☐

Non-accelerated filer	☐	Smaller reporting company	☐

		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐ No ☒


Number of registrant’s shares of common stock outstanding as of July 17, 2026			275,503,580

OVINTIV INC.

FORM 10-Q

TABLE OF CONTENTS


	PART I

Item 1.	Financial Statements	6
	Condensed Consolidated Statement of Earnings	6
	Condensed Consolidated Statement of Comprehensive Income	6
	Condensed Consolidated Balance Sheet	7
	Condensed Consolidated Statement of Changes in Shareholders’ Equity	8
	Condensed Consolidated Statement of Cash Flows	10
	Notes to Condensed Consolidated Financial Statements	11

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	38
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	65
Item 4.	Controls and Procedures	67

	PART II

Item 1.	Legal Proceedings	68
Item 1A.	Risk Factors	68
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	68
Item 3.	Defaults Upon Senior Securities	69
Item 4.	Mine Safety Disclosures	69
Item 5.	Other Information	69
Item 6.	Exhibits	69
Signatures		70

DEFINITIONS

Unless the context otherwise requires or otherwise expressly stated, all references in this Quarterly Report on Form 10-Q to “Ovintiv,” the “Company,” “us,” “we,” “our,” and “ours” refer to Ovintiv Inc. and its consolidated subsidiaries. In addition, the following are other abbreviations and definitions of certain terms used within this Quarterly Report on Form 10‑Q:

“AECO” means Alberta Energy Company and is the Canadian benchmark price for natural gas.

“ASU” means Accounting Standards Update.

“bbl” or “bbls” means barrel or barrels.

“BOE” means barrels of oil equivalent.

“Btu” means British thermal units, a measure of heating value.

“CORRA” means Canadian Overnight Repo Rate Average.

“DD&A” means depreciation, depletion and amortization expenses.

“FASB” means Financial Accounting Standards Board.

“GHG” means greenhouse gas.

“Mbbls/d” means thousand barrels per day.

“MBOE/d” means thousand barrels of oil equivalent per day.

“Mcf” means thousand cubic feet.

“MD&A” means Management’s Discussion and Analysis of Financial Condition and Results of Operations.

“MMBOE” means million barrels of oil equivalent.

“MMBtu” means million Btu.

“MMcf/d” means million cubic feet per day.

“NCIB” means normal course issuer bid.

“NGL” or “NGLs” means natural gas liquids.

“NYMEX” means New York Mercantile Exchange.

“NYSE” means New York Stock Exchange.

“OPEC” means Organization of the Petroleum Exporting Countries.

“SEC” means United States Securities and Exchange Commission.

“SOFR” means Secured Overnight Financial Rate.

“S&P 400” means Standard and Poor’s MidCap 400 index.

“TSX” means Toronto Stock Exchange.

“U.S.”, “United States” or “USA” means United States of America.

“U.S. GAAP” means U.S. Generally Accepted Accounting Principles.

“WTI” means West Texas Intermediate.

CONVERSIONS

In this Quarterly Report on Form 10-Q, a conversion of natural gas volumes to BOE is on the basis of six Mcf to one bbl. BOE is based on a generic energy equivalency conversion method primarily applicable at the burner tip and does not represent economic value equivalency at the wellhead. Given that the value ratio based on the current price of oil as compared to natural gas is significantly different from the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value, particularly if used in isolation.

CONVENTIONS

Unless otherwise specified, all dollar amounts are expressed in U.S. dollars, all references to “dollars”, “$” or “US$” are to U.S. dollars and all references to “C$” are to Canadian dollars. All amounts are provided on a before tax basis, unless otherwise stated. In addition, all information provided herein is presented on an after royalties basis.

The terms “include”, “includes”, “including” and “included” are to be construed as if they were immediately followed by the words “without limitation”, except where explicitly stated otherwise.

The term “liquids” is used to represent oil, NGLs and condensate. The term “liquids-rich” is used to represent natural gas streams with associated liquids volumes. The term “play” is used to describe an area in which hydrocarbon accumulations or prospects of a given type occur. Ovintiv’s focus of development is on hydrocarbon accumulations known to exist over a large areal expanse and/or thick vertical section and are developed using hydraulic fracturing. This type of development typically has a lower geological and/or commercial development risk and lower average decline rate, when compared to conventional development.

References to information contained on the Company’s website at www.ovintiv.com are not incorporated by reference into, and does not constitute a part of, this Quarterly Report on Form 10-Q.

FORWARD-LOOKING STATEMENTS AND RISK

This Quarterly Report on Form 10-Q contains certain forward-looking statements or information (collectively, “forward-looking statements”) within the meaning of applicable securities legislation, including Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). All statements, except for statements of historical fact, that relate to the anticipated future activities, plans, strategies, objectives or expectations of the Company are forward-looking statements. When used in this Quarterly Report on Form 10‑Q, and the other documents incorporated herein by reference (if any), the use of words and phrases including “aims,” “anticipates,” “believes,” “continue,” “could,” “estimates,” “expects,” “focused on,” “forecast,” “guidance,” “intends,” “maintain,” “may,” “opportunities,” “outlook,” “plans,” “potential,” “seeks,” “strategy,” “strives,” “targets,” “will,” “would” and other similar terminology is intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words or phrases. Without limiting the generality of the foregoing, forward-looking statements contained in this Quarterly Report on Form 10‑Q include: expectations of plans, strategies and objectives of the Company, including anticipated reserves development; the Company’s ability to consummate any future acquisition and divestiture transactions; the Company’s ability to successfully integrate any acquired assets into its business; drilling plans and programs, including the amount and availability of capital to complete these plans and programs; the composition of the Company’s assets and the anticipated capital returns associated with its assets; anticipated oil, NGL and natural gas prices; the anticipated success of, and benefits from, technology and innovation, including new or advanced drilling techniques or well completion designs; anticipated drilling and completions activity, including the number of drilling rigs and frac crews utilized; anticipated proceeds and future benefits from various joint venture, partnership and other agreements; anticipated or desired benefits from acquisitions; anticipated oil, NGLs and natural gas production and commodity mix; the Company’s ability to access capital markets, credit facilities and other sources of liquidity; the Company’s ability to timely achieve its stated sustainability goals, targets and initiatives; the impact of changes in federal, state, provincial, local and tribal laws, rules and regulations, including the impact of changes in trade policies and tariffs; anticipated compliance with current or proposed environmental legislation; the Company’s ability to manage debt and financial ratios and comply with financial covenants; the implementation and outcomes of risk management programs, including exposure to commodity prices, interest rate and foreign exchange rate fluctuations and the volume of oil, NGLs and natural gas production hedged; the declaration and payment of future dividends and the anticipated repurchase of the Company’s outstanding common shares; the Company’s ability to manage cost inflation and expected cost structures, including expected operating, transportation, processing and labor expenses; and the outlook of the oil and natural gas industry generally, including impacts from changes to the geopolitical environment.

The forward-looking statements included in this Quarterly Report on Form 10-Q involve risks and uncertainties that could cause actual results to differ materially from projected results. Accordingly, investors should not place undue reliance on forward-looking statements as a prediction of actual results. We have based these forward-looking statements on current expectations and assumptions about future events, taking into account all information currently known by us. While we consider these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory and other risks and uncertainties, many of which are difficult to predict and beyond our control. The risks and uncertainties that may affect the operations, performance and results of our business and forward-looking statements include,

but are not limited to, those set forth in Item 1A. Risk Factors of the Company’s most recent Annual Report on Form 10‑K for the fiscal year ended December 31, 2025 (the “2025 Annual Report on Form 10-K”) and other risks and uncertainties impacting the Company’s business as described from time to time in the Company’s other periodic filings with the SEC or Canadian securities regulators.

Although the Company believes the expectations represented by its forward-looking statements are reasonable based on the information available to it as of the date such statements are made, forward-looking statements are only predictions and statements of our current beliefs and there can be no assurance that such expectations will prove to be correct. All forward-looking statements contained in this Quarterly Report on Form 10‑Q are made as of the date of this document (or in the case of a document incorporated herein by reference, the date of such document) and, except as required by law, the Company undertakes no obligation to update publicly or revise any forward-looking statements. The forward-looking statements contained or incorporated by reference in this Quarterly Report on Form 10‑Q, and all subsequent forward-looking statements attributable to the Company, whether written or oral, are expressly qualified by these cautionary statements.

The reader should carefully read the risk factors described in Item 1A. Risk Factors of the 2025 Annual Report on Form 10‑K for a description of certain risks that could, among other things, cause actual results to differ from these forward-looking statements.

PART I

Item 1. Financial Statements

Condensed Consolidated Statement of Earnings (unaudited)


			Three Months Ended						Six Months Ended
			June 30,						June 30,
(US$ millions, except per share amounts)			2026			2025			2026			2025
Revenues		(Note 3)
Product and service revenues		(Note 4)	$	2,297		$	1,764		$	4,518		$	3,729
Sales of purchased product		(Note 4)		575			450			931			860
Gains (losses) on risk management, net		(Note 20)		122			87			59			71
Sublease revenues		(Note 11)		19			17			37			35
Total Revenues				3,013			2,318			5,545			4,695
Operating Expenses		(Note 3)
Production, mineral and other taxes				81			73			160			160
Transportation and processing				540			435			1,011			833
Operating	(Note 18)			183			219			410			424
Purchased product				563			440			907			842
Depreciation, depletion and amortization				519			556			1,080			1,101
Impairments		(Note 10)		-			-			1,485			730
Accretion of asset retirement obligation				7			8			14			14
Administrative	(Notes 9, 17, 18)			126			76			238			169
Total Operating Expenses				2,019			1,807			5,305			4,273
Operating Income (Loss)				994			511			240			422
Other (Income) Expenses
Interest	(Notes 5, 9, 12)			100			95			204			192
Foreign exchange (gain) loss, net		(Note 6)		23			22			21			32
(Gain) loss on divestitures, net		(Note 8)		337			-			337			-
Other (gains) losses, net				(5	)		(5	)		(34	)		(8	)
Total Other (Income) Expenses				455			112			528			216
Net Earnings (Loss) Before Income Tax				539			399			(288	)		206
Income tax expense (recovery)		(Note 7)		83			92			(114	)		58
Net Earnings (Loss)			$	456		$	307		$	(174	)	$	148
Net Earnings (Loss) per Share of Common Stock		(Note 14)
Basic			$	1.63		$	1.19		$	(0.63	)	$	0.57
Diluted				1.62			1.18			(0.63	)		0.57
Weighted Average Shares of Common Stock Outstanding (millions)		(Note 14)
Basic				280.0			259.0			274.1			259.7
Diluted				281.9			260.1			274.1			261.6

Condensed Consolidated Statement of Comprehensive Income (unaudited)


		Three Months Ended						Six Months Ended
		June 30,						June 30,
(US$ millions)		2026			2025			2026			2025

Net Earnings (Loss)		$	456		$	307		$	(174	)	$	148
Other Comprehensive Income (Loss), Net of Tax
Foreign currency translation adjustment	(Note 15)		(99	)		194			(185	)		202
Pension and other post-employment benefit plans	(Note 15)		(1	)		(1	)		(2	)		(2	)
Other Comprehensive Income (Loss)			(100	)		193			(187	)		200
Comprehensive Income (Loss)		$	356		$	500		$	(361	)	$	348

See accompanying Notes to the unaudited Condensed Consolidated Financial Statements

Condensed Consolidated Balance Sheet (unaudited)


			As at			As at
			June 30,			December 31,
(US$ millions)			2026			2025

Assets
Current Assets
Cash and cash equivalents			$	700		$	35
Accounts receivable and accrued revenues (net of allowances
of $6 million (2025: $6 million))		(Note 4)		1,302			1,128
Investment in marketable securities		(Note 9)		-			245
Risk management		(Notes 19, 20)		187			86
Income tax receivable				60			29
				2,249			1,523
Property, Plant and Equipment, at cost:		(Note 10)
Oil and natural gas properties, based on full cost accounting
Proved properties				60,174			70,133
Unproved properties				624			434
Other				947			864
Property, plant and equipment				61,745			71,431
Less: Accumulated depreciation, depletion and amortization				(48,542	)		(57,187	)
Property, plant and equipment, net		(Note 3)		13,203			14,244
Other Assets				1,290			1,299
Risk Management		(Notes 19, 20)		185			4
Deferred Income Taxes				29			744
Goodwill		(Notes 3, 8, 9)		2,324			2,576
		(Note 3)	$	19,280		$	20,390

Liabilities and Shareholders’ Equity
Current Liabilities
Accounts payable and accrued liabilities			$	2,093		$	1,861
Current portion of operating lease liabilities				105			117
Income tax payable				2			5
Risk management		(Notes 19, 20)		32			2
Current portion of long-term debt		(Note 12)		-			810
				2,232			2,795
Long-Term Debt		(Note 12)		3,695			4,392
Operating Lease Liabilities				1,118			1,105
Other Liabilities and Provisions	(Note 13)			220			100
Risk Management		(Notes 19, 20)		14			13
Asset Retirement Obligation				385			388
Deferred Income Taxes				117			402
				7,781			9,195
Commitments and Contingencies		(Note 22)
Shareholders’ Equity
Share capital - authorized 775 million shares of stock
2026 issued and outstanding: 276.6 million shares (2025: 253.3 million shares)		(Note 14)		3			3
Paid in surplus		(Note 14)		8,613			7,779
Retained earnings				2,097			2,440
Accumulated other comprehensive income		(Note 15)		786			973
Total Shareholders’ Equity				11,499			11,195
			$	19,280		$	20,390

See accompanying Notes to the unaudited Condensed Consolidated Financial Statements

Condensed Consolidated Statement of Changes in Shareholders’ Equity (unaudited)


Three Months Ended June 30, 2026 (US$ millions)		Share Capital		Paid in Surplus			Retained Earnings				Accumulated Other Comprehensive Income				Total Shareholders’ Equity

Balance, March 31, 2026		$	3	$	8,944			$	1,725			$	886			$	11,558
Net Earnings (Loss)			-		-				456				-				456
Dividends on Shares of Common Stock ($0.30 per share)	(Note 14)		-		-				(84	)			-				(84	)
Shares of Common Stock Purchased	(Note 14)		-		(345	)			-				-				(345	)
Equity-Settled Compensation Costs			-		14				-				-				14
Other Comprehensive Income (Loss)	(Note 15)		-		-				-				(100	)			(100	)
Balance, June 30, 2026		$	3	$	8,613			$	2,097			$	786			$	11,499

Three Months Ended June 30, 2025 (US$ millions)		Share Capital		Paid in Surplus			Retained Earnings				Accumulated Other Comprehensive Income				Total Shareholders’ Equity

Balance, March 31, 2025		$	3	$	8,024			$	1,269			$	784			$	10,080
Net Earnings (Loss)			-		-				307				-				307
Dividends on Shares of Common Stock ($0.30 per share)	(Note 14)		-		-				(77	)			-				(77	)
Shares of Common Stock Purchased	(Note 14)		-		(147	)			-				-				(147	)
Equity-Settled Compensation Costs			-		21				-				-				21
Other Comprehensive Income (Loss)	(Note 15)		-		-				-				193				193
Balance, June 30, 2025		$	3	$	7,898			$	1,499			$	977			$	10,377

See accompanying Notes to the unaudited Condensed Consolidated Financial Statements

Condensed Consolidated Statement of Changes in Shareholders’ Equity (unaudited)


Six Months Ended June 30, 2026 (US$ millions)			Share Capital		Paid in Surplus			Retained Earnings				Accumulated Other Comprehensive Income				Total Shareholders’ Equity

Balance, December 31, 2025			$	3	$	7,779			$	2,440			$	973			$	11,195
Net Earnings (Loss)				-		-				(174	)			-				(174	)
Dividends on Shares of Common Stock ($0.60 per share)		(Note 14)		-		-				(169	)			-				(169	)
Shares of Common Stock Purchased		(Note 14)		-		(429	)			-				-				(429	)
Shares of Common Stock Issued	(Notes 9, 14, 21)			-		1,277				-				-				1,277
Equity-Settled Compensation Costs				-		(14	)			-				-				(14	)
Other Comprehensive Income (Loss)		(Note 15)		-		-				-				(187	)			(187	)
Balance, June 30, 2026			$	3	$	8,613			$	2,097			$	786			$	11,499

Six Months Ended June 30, 2025 (US$ millions)			Share Capital		Paid in Surplus			Retained Earnings				Accumulated Other Comprehensive Income				Total Shareholders’ Equity

Balance, December 31, 2024			$	3	$	8,045			$	1,506			$	777			$	10,331
Net Earnings (Loss)				-		-				148				-				148
Dividends on Shares of Common Stock ($0.60 per share)		(Note 14)		-		-				(155	)			-				(155	)
Shares of Common Stock Purchased		(Note 14)		-		(147	)			-				-				(147	)
Equity-Settled Compensation Costs				-		-				-				-				-
Other Comprehensive Income (Loss)		(Note 15)		-		-				-				200				200
Balance, June 30, 2025			$	3	$	7,898			$	1,499			$	977			$	10,377

See accompanying Notes to the unaudited Condensed Consolidated Financial Statements

Condensed Consolidated Statement of Cash Flows (unaudited)


		Three Months Ended						Six Months Ended
		June 30,						June 30,
(US$ millions)		2026			2025			2026			2025

Operating Activities
Net earnings (loss)		$	456		$	307		$	(174	)	$	148
Depreciation, depletion and amortization			519			556			1,080			1,101
Impairments	(Note 10)		-			-			1,485			730
Accretion of asset retirement obligation			7			8			14			14
Deferred income taxes	(Note 7)		61			66			(149	)		(11	)
Unrealized (gain) loss on risk management	(Note 20)		(190	)		(54	)		(137	)		(8	)
Unrealized foreign exchange (gain) loss	(Note 6)		29			2			28			(43	)
Foreign exchange (gain) loss on settlements	(Note 6)		2			1			1			(41	)
(Gain) loss on divestitures, net	(Note 8)		337			-			337			-
Other			35			27			10			27
Net change in other assets and liabilities			(4	)		(11	)		(18	)		(22	)
Net change in non-cash working capital	(Note 21)		380			111			211			(9	)
Cash From (Used in) Operating Activities			1,632			1,013			2,688			1,886

Investing Activities
Capital expenditures	(Note 3)		(574	)		(521	)		(1,179	)		(1,138	)
Acquisitions	(Note 8)		(14	)		(3	)		(21	)		(2,313	)
Corporate acquisition, net of cash acquired	(Note 9)		-			-			(1,192	)		-
Proceeds from divestitures	(Note 8)		2,822			12			2,829			1,896
Net change in investments and other			(15	)		(46	)		44			102
Cash From (Used in) Investing Activities			2,219			(558	)		481			(1,453	)

Financing Activities
Net issuance (repayment) of revolving debt	(Notes 9, 12)		(877	)		396			(580	)		481
Issuance of debt under the Term Credit Agreement	(Notes 9, 12)		-			-			1,151			-
Repayment of debt under the Term Credit Agreement	(Note 12)		(1,151	)		-			(1,151	)		-
Repayment of long-term debt	(Note 12)		(720	)		(600	)		(1,179	)		(600	)
Purchase of shares of common stock	(Note 14)		(345	)		(147	)		(429	)		(147	)
Dividends on shares of common stock	(Note 14)		(84	)		(77	)		(169	)		(155	)
Other			1			(2	)		(147	)		(21	)
Cash From (Used in) Financing Activities			(3,176	)		(430	)		(2,504	)		(442	)

Foreign Exchange Gain (Loss) on Cash, Cash Equivalents
and Restricted Cash Held in Foreign Currency			(1	)		(13	)		-			(13	)

Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash			674			12			665			(22	)
Cash, Cash Equivalents and Restricted Cash, Beginning of Period			26			8			35			42
Cash, Cash Equivalents and Restricted Cash, End of Period		$	700		$	20		$	700		$	20

Cash, End of Period		$	31		$	19		$	31		$	19
Cash Equivalents, End of Period			669			1			669			1
Restricted Cash, End of Period			-			-			-			-
Cash, Cash Equivalents and Restricted Cash, End of Period		$	700		$	20		$	700		$	20

Supplementary Cash Flow Information	(Note 21)

See accompanying Notes to the unaudited Condensed Consolidated Financial Statements


1.	Basis of Presentation and Principles of Consolidation

Ovintiv is in the business of the exploration for, the development of, and the production and marketing of oil, NGLs and natural gas.

The interim Condensed Consolidated Financial Statements include the accounts of Ovintiv and entities in which it holds a controlling interest. All intercompany balances and transactions are eliminated on consolidation. Undivided interests in oil and natural gas exploration and production joint ventures and partnerships are consolidated on a proportionate basis. Investments in non-controlled entities over which the Company has the ability to exercise significant influence are accounted for using the equity method.

The interim Condensed Consolidated Financial Statements are prepared in conformity with U.S. GAAP and the rules and regulations of the SEC. Pursuant to these rules and regulations, certain information and disclosures normally required under U.S. GAAP have been condensed or have been disclosed on an annual basis only. Accordingly, the interim Condensed Consolidated Financial Statements should be read in conjunction with the annual audited Consolidated Financial Statements and the notes thereto for the year ended December 31, 2025, which are included in Item 8 of Ovintiv’s 2025 Annual Report on Form 10‑K.

The interim Condensed Consolidated Financial Statements have been prepared following the same accounting policies and methods of computation as the annual audited Consolidated Financial Statements for the year ended December 31, 2025.

These unaudited interim Condensed Consolidated Financial Statements reflect, in the opinion of Management, all normal and recurring adjustments necessary to present fairly the financial position and results of the Company as at and for the periods presented. Interim condensed consolidated financial results are not necessarily indicative of consolidated financial results expected for the fiscal year.


2.	Recent Accounting Pronouncements

New Standards Issued Not Yet Adopted

•

As of January 1, 2027, Ovintiv will be required to adopt ASU 2024-03 “Disaggregation of Income Statement Expenses” for annual disclosures with interim disclosures required beginning in the first quarter of 2028. The new standard requires that an entity disclose tabular information about certain expenses including, but not limited to, purchases of inventory, employee compensation, and depreciation, depletion, and amortization expense that are presented within expense line captions reported in the statement of earnings. A qualitative description of the remaining other amounts within those expense line captions will be required. The Company will also be required to determine and disclose its definition of selling expenses and the total amount of selling expenses. The amendments are to be applied prospectively, with the option for retrospective application, and are not expected to have a material impact on the Company’s Consolidated Financial Statements.

•

As of January 1, 2028, Ovintiv will be required to adopt ASU 2026-02 “Environmental Credits and Environmental Obligations”. The guidance applies to entities with operations subject to environmental regulations and those that either internally generate or acquire environmental credits to achieve targets related to carbon footprint initiatives. Under the new standard, an entity will recognize and measure environmental credit assets based on their intended use and how the credits were obtained. Environmental credit obligations will be recognized and measured depending on whether an entity holds and expects to use compliance environmental credits to settle that obligation. Disclosures for environmental credits and obligations applies to annual reporting periods. The new standard will be applied retrospectively at the date of adoption through a cumulative-effect adjustment to the opening balance of retained earnings as of the beginning of the annual reporting period of adoption without recasting financial information before the period of adoption. Ovintiv is currently evaluating the impact of the new standard and does not expect the standard will have a material impact on the Company’s Consolidated Financial Statements.


3.	Segmented Information

Ovintiv’s exploration and production activities are subdivided into two geographic segments, including the USA Operations and Canadian Operations. These segments’ activities also include third-party purchases and sales of product to provide operational flexibility and cost mitigation for transportation commitments, product type, delivery points and customer diversification. The Company considers sales of purchased commodities as ancillary to its oil and gas development, exploration and producing activities and manages them to support such activities. In addition, the Company has a single, company-wide management team that allocates capital resources to maximize profitability and measures financial performance as a single enterprise.

Corporate and Other mainly includes unrealized gains or losses recorded on derivative financial instruments. Once the instruments are settled, the realized gains and losses are recorded in the reporting segment to which the derivative instruments relate. Corporate and Other also includes amounts related to sublease rentals and administrative costs not allocated to the operating segments.

The tables below summarize the results of operations and total assets by segment that are provided to the Chief Operating Decision Makers (“CODMs”) which have been identified as the Company’s President & Chief Executive Officer, Executive Vice President & Chief Operating Officer, and the Executive Vice President & Chief Financial Officer. The CODMs evaluate the performance of each of the reportable segments based on Operating Income (Loss) which is also used to assess performance and allocate capital for these segments by comparing actual to historical results and forecasted financial information.

The Company evaluates the effects of debt financing, interest expense and/or interest income, foreign exchange gains (losses) and other gains (losses) at a consolidated level.

Results of Operations (For the three months ended June 30)

Segment Information


	USA Operations						Canadian Operations
	2026			2025			2026			2025

Revenues
Product and service revenues	$	1,270		$	1,118		$	1,027		$	646
Sales of purchased product		506			396			69			54
Gains (losses) on risk management, net		(103	)		9			35			24
Sublease revenues		-			-			-			-
Total Revenues		1,673			1,523			1,131			724

Operating Expenses
Production, mineral and other taxes		71			67			10			6
Transportation and processing		90			115			450			320
Operating		135			177			48			42
Purchased product		506			395			57			45
Depreciation, depletion and amortization		282			370			233			180
Impairments		-			-			-			-
Total Operating Expenses		1,084			1,124			798			593
Operating Income (Loss)	$	589		$	399		$	333		$	131

	Corporate & Other						Consolidated
	2026			2025			2026			2025

Revenues
Product and service revenues	$	-		$	-		$	2,297		$	1,764
Sales of purchased product		-			-			575			450
Gains (losses) on risk management, net		190			54			122			87
Sublease revenues		19			17			19			17
Total Revenues		209			71			3,013			2,318

Operating Expenses
Production, mineral and other taxes		-			-			81			73
Transportation and processing		-			-			540			435
Operating		-			-			183			219
Purchased product		-			-			563			440
Depreciation, depletion and amortization		4			6			519			556
Impairments		-			-			-			-
Accretion of asset retirement obligation		7			8			7			8
Administrative		126			76			126			76
Total Operating Expenses		137			90			2,019			1,807
Operating Income (Loss)	$	72		$	(19	)		994			511

Other (Income) Expenses
Interest								100			95
Foreign exchange (gain) loss, net								23			22
(Gain) loss on divestitures, net								337			-
Other (gains) losses, net								(5	)		(5	)
Total Other (Income) Expenses								455			112
Net Earnings (Loss) Before Income Tax								539			399
Income tax expense (recovery)								83			92
Net Earnings (Loss)							$	456		$	307

Results of Operations (For the six months ended June 30)

Segment Information


	USA Operations						Canadian Operations
	2026			2025			2026			2025

Revenues
Product and service revenues	$	2,499		$	2,430		$	2,019		$	1,299
Sales of purchased product		773			764			158			96
Gains (losses) on risk management, net		(126	)		9			48			54
Sublease revenues		-			-			-			-
Total Revenues		3,146			3,203			2,225			1,449

Operating Expenses
Production, mineral and other taxes		142			150			18			10
Transportation and processing		205			227			806			606
Operating		311			346			99			78
Purchased product		773			763			134			79
Depreciation, depletion and amortization		618			745			453			345
Impairments		1,111			-			374			730
Total Operating Expenses		3,160			2,231			1,884			1,848
Operating Income (Loss)	$	(14	)	$	972		$	341		$	(399	)

	Corporate & Other						Consolidated
	2026			2025			2026			2025

Revenues
Product and service revenues	$	-		$	-		$	4,518		$	3,729
Sales of purchased product		-			-			931			860
Gains (losses) on risk management, net		137			8			59			71
Sublease revenues		37			35			37			35
Total Revenues		174			43			5,545			4,695

Operating Expenses
Production, mineral and other taxes		-			-			160			160
Transportation and processing		-			-			1,011			833
Operating		-			-			410			424
Purchased product		-			-			907			842
Depreciation, depletion and amortization		9			11			1,080			1,101
Impairments		-			-			1,485			730
Accretion of asset retirement obligation		14			14			14			14
Administrative		238			169			238			169
Total Operating Expenses		261			194			5,305			4,273
Operating Income (Loss)	$	(87	)	$	(151	)		240			422

Other (Income) Expenses
Interest								204			192
Foreign exchange (gain) loss, net								21			32
(Gain) loss on divestitures, net								337			-
Other (gains) losses, net								(34	)		(8	)
Total Other (Income) Expenses								528			216
Net Earnings (Loss) Before Income Tax								(288	)		206
Income tax expense (recovery)								(114	)		58
Net Earnings (Loss)							$	(174	)	$	148

Capital Expenditures by Segment


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2026		2025		2026		2025

USA Operations	$	331	$	350	$	748	$	808
Canadian Operations		242		170		429		328
Corporate & Other		1		1		2		2
	$	574	$	521	$	1,179	$	1,138

Goodwill, Property, Plant and Equipment and Total Assets by Segment


	Goodwill				Property, Plant and Equipment				Total Assets
	As at				As at				As at
	June 30,		December 31,		June 30,		December 31,		June 30,		December 31,
	2026		2025		2026		2025		2026		2025

USA Operations	$	1,436	$	1,938	$	7,960	$	11,613	$	10,220	$	14,393
Canadian Operations		888		638		5,143		2,522		6,972		3,921
Corporate & Other		-		-		100		109		2,088		2,076
	$	2,324	$	2,576	$	13,203	$	14,244	$	19,280	$	20,390


4.	Revenues from Contracts with Customers

The following table summarizes Ovintiv’s revenues from contracts with customers.

Revenues (For the three months ended June 30)


	USA Operations				Canadian Operations
	2026		2025		2026		2025

Revenues from Customers
Product revenues
Oil	$	1,124	$	831	$	2	$	2
NGLs		143		177		719		367
Natural gas		1		104		304		274
Sales of purchased product		506		396		69		54
Service revenues
Gathering and processing, and other		2		6		2		3
	$	1,776	$	1,514	$	1,096	$	700

	Corporate & Other				Consolidated
	2026		2025		2026		2025

Revenues from Customers
Product revenues
Oil	$	-	$	-	$	1,126	$	833
NGLs		-		-		862		544
Natural gas		-		-		305		378
Sales of purchased product		-		-		575		450
Service revenues
Gathering and processing, and other		-		-		4		9
	$	-	$	-	$	2,872	$	2,214

Revenues (For the six months ended June 30)


	USA Operations				Canadian Operations
	2026		2025		2026		2025

Revenues from Customers
Product revenues
Oil	$	2,047	$	1,806	$	7	$	4
NGLs		305		367		1,242		690
Natural gas		142		249		764		601
Sales of purchased product		773		764		158		96
Service revenues
Gathering and processing, and other		5		8		6		4
	$	3,272	$	3,194	$	2,177	$	1,395

	Corporate & Other				Consolidated
	2026		2025		2026		2025

Revenues from Customers
Product revenues
Oil	$	-	$	-	$	2,054	$	1,810
NGLs		-		-		1,547		1,057
Natural gas		-		-		906		850
Sales of purchased product		-		-		931		860
Service revenues
Gathering and processing, and other		-		-		11		12
	$	-	$	-	$	5,449	$	4,589

The Company’s revenues from contracts with customers consists of product sales including oil, NGLs and natural gas, sales of purchased product, as well as the provision of gathering and processing, and other services to third parties. Ovintiv had no contract asset or liability balances during the periods presented. As at June 30, 2026, receivables and accrued revenues from contracts with customers were $892 million ($845 million as at December 31, 2025).

Ovintiv’s product sales are sold under short-term contracts with terms that are less than one year at either fixed or market index prices or under long-term contracts exceeding one year at market index prices at the time of delivery.

The Company’s gathering and processing services are provided on an interruptible basis with transaction prices that are for fixed prices and/or variable consideration. Variable consideration received is related to recovery of plant operating costs or escalation of the fixed price based on a consumer price index. As the service contracts are interruptible, with service provided on an “as available” basis, there are no unsatisfied performance obligations remaining at June 30, 2026.

As at June 30, 2026, all remaining performance obligations are priced at market index prices or are variable volume delivery contracts. As such, the variable consideration is allocated entirely to the wholly unsatisfied performance obligation or promise to deliver units of production, and revenue is recognized at the amount for which the Company has the right to invoice the product delivered. As the period between when the product sales are transferred and Ovintiv receives payments is generally 30 to 60 days, there is no financing element associated with customer contracts. In addition, Ovintiv does not disclose unsatisfied performance obligations for customer contracts with terms less than 12 months or for variable consideration related to unsatisfied performance obligations.


5.	Interest


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2026		2025		2026		2025

Interest Expense on:
Debt	$	92	$	91	$	189	$	188
Finance leases		4		1		5		1
Other		4		3		10		3
	$	100	$	95	$	204	$	192

Interest expense on debt for the three and six months ended June 30, 2026, includes a one-time make-whole interest payment of approximately $20 million resulting from the early redemption of the Company’s $700 million, 5.65 percent senior notes due May 15, 2028, as discussed in Note 12. Additionally, interest expense on debt for the six months ended June 30, 2026, includes $4 million of financing fees associated with the Term Credit Agreement related to the NuVista Acquisition as defined in Note 9.

For the six months ended June 30, 2025, interest expense on debt includes $5 million of financing fees associated with two term facilities which were terminated in January 2025, following the closing of the Uinta divestiture and the Montney Acquisition as described in Note 8.


6.	Foreign Exchange (Gain) Loss, Net


	Three Months Ended					Six Months Ended
	June 30,					June 30,
	2026			2025		2026			2025

Unrealized Foreign Exchange (Gain) Loss on:
Translation of U.S. dollar risk management contracts issued from Canada	$	(1	)	$	2	$	(2	)	$	(85	)
Translation of intercompany notes		30			-		30			42
		29			2		28			(43	)
Foreign Exchange (Gain) Loss on Settlements of:
U.S. dollar risk management contracts issued from Canada		-			-		-			98
Intercompany notes		2			1		1			(41	)
Other Monetary Revaluations		(8	)		19		(8	)		18
	$	23		$	22	$	21		$	32

In 2024, the Company entered into $2.4 billion notional U.S. dollar denominated currency swaps at an average exchange rate of C$1.3825 to US$1 to manage the foreign exchange risk associated with the Montney Acquisition, which was denominated in Canadian dollars (see Note 8). In conjunction with the closing of the transaction, the Company settled the currency swaps and recognized a realized foreign exchange loss of approximately $97 million during the six months ended June 30, 2025.


7.	Income Taxes


	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2026			2025			2026			2025

Current Tax
United States	$	6		$	1		$	7		$	12
Canada		16			25			28			57
Total Current Tax Expense (Recovery)		22			26			35			69

Deferred Tax
United States		(39	)		63			(284	)		159
Canada		100			3			135			(170	)
Total Deferred Tax Expense (Recovery)		61			66			(149	)		(11	)
Income Tax Expense (Recovery)	$	83		$	92		$	(114	)	$	58
Effective Tax Rate		15.4	%		23.1	%		39.6	%		28.2	%

Ovintiv’s interim income tax expense is determined using the estimated annual effective income tax rate applied to year-to-date net earnings before income tax plus the effect of legislative changes and amounts in respect of prior periods. The estimated annual effective income tax rate is impacted by expected annual earnings, changes in valuation allowances, income tax related to foreign operations, state taxes, the effect of legislative changes, non-taxable items and tax differences on transactions, which can produce interim effective tax rate fluctuations.

During the six months ended June 30, 2026, the Canadian current income tax expense includes a recovery related to recently enacted Canadian legislation that accelerates capital cost recovery for years beginning in 2025.

During the six months ended June 30, 2026, the deferred tax recovery was primarily due to the estimated annual effective tax rate applied to jurisdictional earnings.

The effective tax rate of 15.4 percent for the three months ended June 30, 2026, is lower than the U.S. federal statutory rate of 21 percent primarily due to tax differences on the sale of the Anadarko assets applied to quarterly jurisdictional income.

The effective tax rate of 39.6 percent for the six months ended June 30, 2026, is higher than the U.S. federal statutory rate of 21 percent primarily due to tax differences on the sale of the Anadarko assets.

The effective tax rate of 23.1 percent for the three months ended June 30, 2025, was higher than the U.S. federal statutory rate of 21 percent primarily due to state tax.

The effective tax rate of 28.2 percent for the six months ended June 30, 2025, was higher than the U.S. federal statutory rate of 21 percent primarily due to resolution of prior period tax items.


8.	Acquisitions and Divestitures


	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2026			2025			2026			2025

Acquisitions
USA Operations	$	14		$	2		$	22		$	4
Canadian Operations		-			1			(1	)		2,309
Total Acquisitions		14			3			21			2,313

Divestitures
USA Operations		(2,822	)		(12	)		(2,829	)		(1,896	)
Total Divestitures		(2,822	)		(12	)		(2,829	)		(1,896	)
Net Acquisitions & (Divestitures)	$	(2,808	)	$	(9	)	$	(2,808	)	$	417

Acquisitions

For the three and six months ended June 30, 2026, acquisitions in the USA Operations were $14 million and $22 million, respectively, which primarily included properties with oil and liquids-rich potential.

On January 31, 2025, the Company completed the acquisition of approximately 109,000 net acres in the core of the Montney formation from Paramount Resources Ltd. for total cash consideration, including transaction costs, of approximately $2.308 billion (C$3.328 billion), after preliminary closing adjustments (the “Montney Acquisition”). The Company funded the Montney Acquisition with cash on hand, including proceeds from the Uinta divestiture as discussed below, and proceeds from short-term borrowings. The Montney Acquisition was accounted for as an asset acquisition as substantially all of the fair value of the assets acquired were concentrated in a single asset group, largely comprising proved oil and natural gas properties.

Divestitures

For the three and six months ended June 30, 2026, divestitures in the USA Operations were $2,822 million and $2,829 million, respectively, which primarily included the sale of Anadarko located in Oklahoma for proceeds of approximately $2,821 million, after preliminary closing adjustments and transaction costs.

For the three and six months ended June 30, 2025, divestitures in the USA Operations were $12 million and $1,896 million, respectively, which primarily included the sale of Uinta located in Utah for proceeds of approximately $1,882 million, after preliminary closing and other adjustments.

Amounts received from the Company’s divestiture transactions have been deducted from the U.S. full cost pool, except for divestitures that result in a significant alteration between capitalized costs and proved reserves in the country cost center. For divestitures that result in a gain or loss and constitute a business, goodwill is allocated to the divestiture. Accordingly, for the three and six months ended June 30, 2026, the Company recognized a loss of approximately $337 million, before tax, on the sale of the Anadarko assets in the U.S. cost center and allocated goodwill of $502 million to the transaction.


9.	Business Combination

Acquisition of NuVista Energy Ltd. (“NuVista Acquisition”)

On February 3, 2026, Ovintiv completed the acquisition of all issued and outstanding common shares of NuVista Energy Ltd. (“NuVista”), a corporation organized under the laws of the Province of Alberta, Canada, in a cash and stock transaction valued at approximately $2.8 billion (C$3.8 billion), including Ovintiv’s previous purchase of 18.5 million common shares of NuVista. The Company issued approximately 30.1 million shares of Ovintiv common stock representing a value of approximately $1.3 billion (C$1.8 billion) and paid cash consideration of approximately $1.2 billion (C$1.6 billion), which was primarily funded with proceeds from the Term Credit Agreement as discussed in Note 12. Total transaction costs of approximately $23 million and $4 million have been included in administrative expense and interest expense, respectively.

The assets acquired are strategically located in close proximity to Ovintiv’s current operations and add approximately 930 net well locations and approximately 140,000 net acres in the core of the condensate-rich Montney in Alberta. The assets acquired generated revenues of $457 million and direct operating expenses of $177 million for the period from February 3, 2026, to June 30, 2026. The results of operations from the acquired NuVista assets have been included in Ovintiv’s consolidated financial statements since February 3, 2026.

Purchase Price Allocation

The NuVista Acquisition has been accounted for under the acquisition method of accounting, which requires that the assets and liabilities assumed be recognized at their fair values as of the acquisition date, with any excess of the purchase price over the estimated fair value of identified net assets acquired recorded as goodwill. The preliminary purchase price allocation represents the consideration paid and the fair values of the assets acquired and liabilities assumed as of the acquisition date.

The preliminary purchase price allocation was based on the initial valuation from estimates and assumptions that management believes are reasonable. These will be subject to change based on the determination of the final closing adjustments and when the remaining information necessary to complete the valuation is obtained. The Company expects the purchase price allocation to be completed within 12 months following the acquisition date, during which time the value of net assets and liabilities acquired may be revised as appropriate.


Preliminary Purchase Price Allocation

Consideration:
Fair value of shares of Ovintiv common stock issued (1)	$	1,277
Consideration paid in cash (2)		1,204
Total Consideration		2,481

Fair value of 18.5 million NuVista common shares held by Ovintiv (3)		270
Total Consideration and Fair Value of NuVista Shares held by Ovintiv	$	2,751

Assets Acquired:
Cash and cash equivalents	$	12
Accounts receivable and accrued revenues		157
Income tax receivable		12
Risk management assets, net		169
Proved properties		2,481
Unproved properties		596
Other property, plant and equipment		19
Operating lease right-of-use assets		111
Goodwill		283

Liabilities Assumed:
Accounts payable and accrued liabilities		(108	)
Debt		(229	)
Operating lease liabilities		(111	)
Asset retirement obligation		(51	)
Other long-term liabilities		(13	)
Deferred income taxes		(577	)
Total Purchase Price	$	2,751

(1)

Based on approximately 30.1 million Ovintiv shares of common stock at $42.47 per share (C$58.08 per share using the closing price as of February 2, 2026, on the TSX).

(2)

Includes approximately $53 million paid to NuVista employees in respect of liability awards held.

(3)

On October 1, 2025, Ovintiv purchased 18.5 million NuVista common shares for $212 million (C$296 million). As at December 31, 2025, these shares were remeasured at fair value and presented as investment in marketable securities in the Consolidated Balance Sheet. On February 2, 2026, the NuVista shares were remeasured at fair value using Ovintiv common stock at $42.47 per share (C$58.08 per share using the closing price on February 2, 2026, on the TSX).

The Company used the income approach valuation technique for the fair value of assets acquired and liabilities assumed. The carrying amounts of cash and cash equivalents, accounts receivable and accrued revenues, income tax receivable, risk management assets, net, accounts payable and accrued liabilities, and debt approximate their fair values due to their nature and/or short-term maturity of the instruments. The fair values of operating lease assets and liabilities, and other long-term liabilities were classified within Level 2 of the fair value hierarchy and were determined using quoted prices and rates from an available pricing source. The fair values of proved properties, unproved properties, other property, plant and equipment, and asset retirement obligation were categorized within Level 3 and were determined using relevant market assumptions, including discount rates, future commodity prices and costs, timing of development activities, projections of oil and gas reserves, and estimates for abandonment and reclamation. Level 3 inputs require significant judgment and estimates to be made.

Goodwill arose from the NuVista Acquisition primarily from the requirement to recognize deferred taxes on the difference between the fair value of the assets acquired and liabilities assumed and the respective carry-over tax basis. Goodwill is not amortized and is not deductible for tax purposes.

Unaudited Pro Forma Financial Information

The following unaudited pro forma financial information combines the historical financial results of Ovintiv with NuVista and has been prepared as though the acquisition had occurred on January 1, 2025. The pro forma information is not intended to reflect the actual results of operations that would have occurred if the NuVista Acquisition had been completed at the date indicated. In addition, the pro forma information is not intended to be a projection of Ovintiv’s results of operations for any future period.

Additionally, pro forma net earnings were adjusted to exclude transaction-related costs incurred of approximately $27 million recognized by Ovintiv and $22 million recognized by NuVista during the six months ended June 30, 2026. The pro forma financial information does not include any cost savings or other synergies that may result from the acquisition or any estimated costs that have been incurred to integrate the assets.


	Three Months Ended			Six Months Ended
	June 30,			June 30,
(US$ millions, except per share amounts)		2025		2026			2025

Revenues		$	2,549	$	5,678		$	5,182
Net Earnings (Loss)		$	335	$	(148	)	$	216

Net Earnings (Loss) per Share of Common Stock
Basic		$	1.16	$	(0.54	)	$	0.74
Diluted			1.15		(0.54	)		0.74


10.	Property, Plant and Equipment, Net


	As at June 30, 2026							As at December 31, 2025
			Accumulated							Accumulated
	Cost		DD&A			Net		Cost		DD&A			Net

USA Operations
Proved properties	$	38,417	$	(30,469	)	$	7,948	$	50,573	$	(39,294	)	$	11,279
Unproved properties		8		-			8		316		-			316
Other		6		(2	)		4		20		(2	)		18
		38,431		(30,471	)		7,960		50,909		(39,296	)		11,613

Canadian Operations
Proved properties		21,757		(17,351	)		4,406		19,560		(17,163	)		2,397
Unproved properties		616		-			616		118		-			118
Other		129		(8	)		121		12		(5	)		7
		22,502		(17,359	)		5,143		19,690		(17,168	)		2,522

Corporate & Other		812		(712	)		100		832		(723	)		109
	$	61,745	$	(48,542	)	$	13,203	$	71,431	$	(57,187	)	$	14,244

USA and Canadian Operations’ property, plant and equipment include internal costs directly related to exploration, development and construction activities of $68 million, which have been capitalized during the six months ended June 30, 2026 (2025 - $76 million).

For the three months ended June 30, 2026, the Company did not recognize ceiling test impairments in the USA and Canadian Operations. For the six months ended June 30, 2026, the Company recognized before-tax non-cash ceiling test impairments of $1,485 million, comprising $1,111 million in the USA Operations and $374 million in the Canadian Operations. The non-cash ceiling test impairments primarily resulted from declines in the 12-month average trailing prices which reduced proved reserves in the USA Operations, and the 12-month average trailing prices used in the ceiling test at March 31, 2026, which were lower than the market prices used for the NuVista Acquisition on February 3, 2026, in the Canadian Operations.

For the three months ended June 30, 2025, the Company did not recognize ceiling test impairments in the USA and Canadian Operations. For the six months ended June 30, 2025, the Company recognized a before-tax non-cash ceiling test impairment of $730 million in the Canadian Operations, which primarily resulted from the 12-month average trailing prices used in the ceiling test at March 31, 2025, which were lower than the market prices used for the Montney Acquisition on January 31, 2025.

The non-cash ceiling test impairments are included with accumulated DD&A in the table above.

The 12-month average trailing prices used in the ceiling test calculations were based on the benchmark prices presented below. The benchmark prices were adjusted for basis differentials to determine local reference prices, transportation costs and tariffs, heat content and quality.


	Oil & NGLs				Natural Gas
			Edmonton
	WTI		Condensate		Henry Hub		AECO
	($/bbl)		(C$/bbl)		($/MMBtu)		(C$/MMBtu)
12-Month Average Trailing Reserves Pricing (1)
June 30, 2026	$	71.90	$	98.72	$	3.64	$	1.73
December 31, 2025		65.34		90.09		3.39		1.76
June 30, 2025		70.48		97.10		2.86		1.48

(1)

All prices were held constant in all future years when estimating net revenues and reserves.


11.	Leases

The following table outlines Ovintiv’s estimated future sublease income as at June 30, 2026. All subleases are classified as operating leases.


(undiscounted)	2026		2027		2028		2029		2030		Thereafter		Total

Sublease Income	$	22	$	45	$	42	$	37	$	37	$	279	$	462

For the three and six months ended June 30, 2026, operating lease income was $14 million and $27 million, respectively (2025 - $13 million and $26 million, respectively), and variable lease income was $5 million and $10 million, respectively (2025 - $4 million and $9 million, respectively).


12.	Long-Term Debt


	As at			As at
	June 30,			December 31,
	2026			2025


Revolving Credit and Term Loan Borrowings	$	-		$	351
U.S. Unsecured Notes:
5.375% due January 1, 2026		-			459
5.65% due May 15, 2028		-			700
8.125% due September 15, 2030		300			300
7.20% due November 1, 2031		350			350
7.375% due November 1, 2031		500			500
6.25% due July 15, 2033		600			600
6.50% due August 15, 2034		599			599
6.625% due August 15, 2037		390			390
6.50% due February 1, 2038		430			430
5.15% due November 15, 2041		148			148
7.10% due July 15, 2053		400			400
Total Principal		3,717			5,227

Increase in Value of Debt Acquired		9			10
Unamortized Debt Discounts and Issuance Costs		(31	)		(35	)
Total Long-Term Debt	$	3,695		$	5,202

Current Portion	$	-		$	810
Long-Term Portion		3,695			4,392
	$	3,695		$	5,202

On April 9, 2026, Ovintiv announced its intention to redeem the Company’s $700 million, 5.65 percent senior notes due May 15, 2028. On April 20, 2026, the Company completed the senior note redemption using proceeds from the divestiture of its Anadarko assets as discussed in Note 8. Ovintiv paid approximately $737 million in cash including accrued and unpaid interest of $17 million and a one-time make-whole payment of $20 million, which is included in interest expense as discussed in Note 5.

On November 25, 2025, the Company entered into a $1.2 billion Two-Year Term Credit Agreement (“Term Credit Agreement”) to fund the cash component of the NuVista Acquisition. The Company closed the NuVista Acquisition on February 3, 2026, and paid cash consideration of approximately $1.2 billion, which was primarily funded with proceeds from the Term Credit Agreement. On April 10, 2026, following the closing of the divestiture of its Anadarko assets as discussed in Note 8, the Company repaid the balance under the Term Credit Agreement and the facility was terminated.

As at June 30, 2026, total long-term debt had a carrying value of $3,695 million and a fair value of $3,966 million (as at December 31, 2025 - carrying value of $5,202 million and a fair value of $5,510 million). The estimated fair value of long-term borrowings is categorized within Level 2 of the fair value hierarchy and has been determined based on market information of long-term debt with similar terms and maturity, or by discounting future payments of interest and principal at interest rates expected to be available to the Company at period end.


13.	Other Liabilities and Provisions


	As at		As at
	June 30,		December 31,
	2026		2025

Finance Lease Obligations (1)	$	111	$	-
Unrecognized Tax Benefits		14		15
Pensions and Other Post-Employment Benefits		76		75
Other		19		10
	$	220	$	100

(1)

During the six months ended June 30, 2026, the Company recognized two finance leases with terms up to 15 years.


14.	Share Capital

Authorized

Ovintiv is authorized to issue 750 million shares of common stock, par value $0.01 per share, and 25 million shares of preferred stock, par value $0.01 per share. No shares of preferred stock are outstanding.

Issued and Outstanding


	As at					As at
	June 30, 2026					December 31, 2025
	Number					Number
	(millions)			Amount		(millions)			Amount

Shares of Common Stock Outstanding, Beginning of Year		253.3		$	3		260.4		$	3
Shares of Common Stock Purchased		(7.6	)		-		(7.8	)		-
Shares of Common Stock Issued		30.9			-		0.7			-
Shares of Common Stock Outstanding, End of Period		276.6		$	3		253.3		$	3

On February 3, 2026, in accordance with the terms of the NuVista Acquisition agreement, Ovintiv issued approximately 30.1 million shares of common stock as a component of the consideration paid for the NuVista Acquisition. In conjunction with the share issuance, the Company recognized share capital of $301 thousand and paid in surplus of $1,277 million.

Ovintiv’s Performance Share Units (“PSU”) and Restricted Share Units (“RSU”) stock-based compensation plans allow the Company to settle the awards either in cash or in the Company’s common stock. Accordingly, Ovintiv issued 0.8 million shares of common stock during the six months ended June 30, 2026 (0.7 million shares of common stock during the twelve months ended December 31, 2025), as certain PSU and RSU grants vested during the period.

Normal Course Issuer Bid

On September 29, 2025, the Company announced it had received regulatory approval for the renewal of its NCIB program, which enables the Company to purchase, for cancellation or return to treasury, up to approximately 22.3 million shares of common stock over a 12-month period from October 3, 2025, to October 2, 2026.

During the three and six months ended June 30, 2026, the Company purchased approximately 6.1 million and 7.6 million shares, respectively, for total consideration of approximately $345 million and $429 million, respectively. Of the amounts paid during the same three and six month periods, $61 thousand and $76 thousand, respectively, were charged to share capital and $345 million and $429 million, respectively, were charged to paid in surplus.

During the three and six months ended June 30, 2025, the Company purchased approximately 4.1 million shares under its 2024 NCIB program, for total consideration of approximately $147 million. Of the amount paid during the same three and six month periods, $41 thousand was charged to share capital and $147 million was charged to paid in surplus.

For the twelve months ended December 31, 2025, the Company purchased approximately 7.8 million shares under its 2024 NCIB program which extended from October 3, 2024, to October 2, 2025, for total consideration of approximately $307 million. Of the amount paid, $78 thousand was charged to share capital and $307 million was charged to paid in surplus.

All NCIB purchases were made in accordance with their respective programs at prevailing market prices plus brokerage fees, with consideration allocated to share capital up to the par value of the shares, with any excess allocated to paid in surplus.

Dividends

During the three months ended June 30, 2026, the Company declared and paid dividends of $0.30 per share of common stock totaling $84 million (2025 - $0.30 per share of common stock totaling $77 million).

During the six months ended June 30, 2026, the Company declared and paid dividends of $0.60 per share of common stock totaling $169 million (2025 - $0.60 per share of common stock totaling $155 million).

On July 23, 2026, the Board of Directors declared a dividend of $0.30 per share of common stock payable on September 29, 2026, to shareholders of record as of September 15, 2026.

Earnings Per Share of Common Stock

The following table presents the calculation of net earnings (loss) per share of common stock:


	Three Months Ended				Six Months Ended
	June 30,				June 30,
(US$ millions, except per share amounts)	2026		2025		2026			2025

Net Earnings (Loss)	$	456	$	307	$	(174	)	$	148

Number of Shares of Common Stock:
Weighted average shares of common stock outstanding - Basic		280.0		259.0		274.1			259.7
Effect of dilutive securities (1)		1.9		1.1		-			1.9
Weighted Average Shares of Common Stock Outstanding - Diluted		281.9		260.1		274.1			261.6

Net Earnings (Loss) per Share of Common Stock
Basic	$	1.63	$	1.19	$	(0.63	)	$	0.57
Diluted (1)		1.62		1.18		(0.63	)		0.57

(1)

For the six months ended June 30, 2026, all of Ovintiv’s equity-settled awards were determined to be antidilutive and therefore excluded from the calculation of fully diluted net earnings (loss) per share of common stock.

Stock-Based Compensation Plans

Shares issued as a result of awards granted from stock-based compensation plans are generally funded out of the common stock authorized for issuance as approved by the Company’s shareholders. As at June 30, 2026, the Company has sufficient common stock held in reserve for issuance in accordance with its equity-settled stock-based compensation plans.


15.	Accumulated Other Comprehensive Income


	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2026			2025			2026			2025

Foreign Currency Translation Adjustment
Balance, Beginning of Period	$	844		$	739		$	930		$	731
Change in Foreign Currency Translation Adjustment		(99	)		194			(185	)		202
Balance, End of Period	$	745		$	933		$	745		$	933

Pension and Other Post-Employment Benefit Plans
Balance, Beginning of Period	$	42		$	45		$	43		$	46

Amounts Reclassified from Other Comprehensive Income:
Reclassification of net actuarial (gains) and losses to net earnings		(1	)		(2	)		(2	)		(3	)
Income taxes		-			1			-			1
Balance, End of Period	$	41		$	44		$	41		$	44
Total Accumulated Other Comprehensive Income	$	786		$	977		$	786		$	977


16.	Variable Interest Entities

Veresen Midstream Limited Partnership

Veresen Midstream Limited Partnership (“VMLP”) provides gathering, compression and processing services under various agreements related to the Company’s development of liquids and natural gas production in the Montney play. As at June 30, 2026, VMLP provides approximately 1,192 MMcf/d of natural gas gathering and compression and 933 MMcf/d of natural gas processing under long-term service agreements with remaining terms ranging from five to 19 years and have various renewal terms providing up to a potential maximum of 10 years.

Ovintiv has determined that VMLP is a variable interest entity and that Ovintiv holds variable interests in VMLP. Ovintiv is not the primary beneficiary as the Company does not have the power to direct the activities that most significantly impact VMLP’s economic performance. These key activities relate to the construction, operation, maintenance and marketing of the assets owned by VMLP. The variable interests arise from certain terms under the various long-term service agreements and include: i) a take or pay for volumes in certain agreements; ii) an operating fee of which a portion can be converted into a fixed fee once VMLP assumes operatorship of certain assets; and iii) a potential payout of minimum costs in certain agreements. The potential payout of minimum costs will be assessed in the eighth year of the assets’ service period and is based on whether there is an overall shortfall of total system cash flows from natural gas gathered and compressed under certain agreements. The potential payout amount can be reduced in the event VMLP markets unutilized capacity to third-party users. Ovintiv is not required to provide any financial support or guarantees to VMLP.

As a result of Ovintiv’s involvement with VMLP, the maximum total exposure to loss related to the commitments under the agreements is estimated to be $622 million as at June 30, 2026. The estimate comprises the take or pay volume commitments and the potential payout of minimum costs. The take or pay volume commitments associated with certain gathering and processing assets are included in Note 22 under Transportation and Processing. The potential payout requirement is highly uncertain as the amount is contingent on future production estimates, pace of development and downstream transportation constraints. As at June 30, 2026, accounts payable and accrued liabilities included $28 million ($29 million as at December 31, 2025) related to the take or pay commitment and payout of minimum costs.


17.	Restructuring Charges

In 2024, Ovintiv undertook a plan to reduce its workforce by approximately 10 percent as part of a corporate reorganization. During the three and six months ended June 30, 2025, the Company incurred restructuring charges of $1 million and $11 million, respectively, before tax, related to severance costs. As at December 31, 2025, $1 million of restructuring charges remained accrued, which were paid during the six months ended June 30, 2026.

In 2026, the Company completed further workforce reductions as part of a company-wide reorganization to better align staffing levels and organizational structure with the Company’s transformed portfolio following the sale of the Anadarko assets as discussed in Note 8. During the three and six months ended June 30, 2026, the Company incurred total restructuring charges of $45 million, before tax, related to severance costs. As at June 30, 2026, $12 million remains accrued and is expected to be paid by the end of the first quarter of 2027.

Restructuring charges are included in administrative expense presented in the Corporate and Other segment in the Condensed Consolidated Statement of Earnings.


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2026		2025		2026		2025

Severance and Outplacement	$	45	$	1	$	45	$	11
Restructuring Expenses	$	45	$	1	$	45	$	11


	As at			As at
	June 30,			December 31,
	2026			2025

Outstanding Restructuring Accrual, Beginning of Year	$	1		$	19
Restructuring Expenses Incurred		45			12
Restructuring Costs Paid		(34	)		(30	)
Outstanding Restructuring Accrual, End of Period (1)	$	12		$	1

(1)

Included in accounts payable and accrued liabilities in the Condensed Consolidated Balance Sheet.


18.	Compensation Plans

As at June 30, 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						Six Months Ended
	June 30,						June 30,
	2026			2025			2026			2025

Total Compensation Costs of Transactions Classified as Cash-Settled	$	-		$	(2	)	$	7		$	(1	)
Total Compensation Costs of Transactions Classified as Equity-Settled		13			21			30			37
Less: Total Share-Based Compensation Costs Capitalized		(2	)		(5	)		(8	)		(9	)
Total Share-Based Compensation Expense (Recovery)	$	11		$	14		$	29		$	27

Recognized in the Condensed Consolidated Statement of Earnings in:
Operating	$	1		$	6		$	7		$	9
Administrative		10			8			22			18
	$	11		$	14		$	29		$	27

As at June 30, 2026, the liability for cash-settled share-based payment transactions totaled $7 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 June 30, 2026		As at June 30, 2025
	US$ SAR	C$ TSAR	US$ SAR	C$ TSAR
	Share Units	Share Units (1)	Share Units	Share Units

Risk Free Interest Rate	2.72%	-	2.60%	2.60%
Dividend Yield	2.28%	-	3.15%	3.26%
Expected Volatility Rate (2)	37.85%	-	43.36%	41.08%
Expected Term	0.2 yrs	-	0.6 yrs	0.6 yrs
Market Share Price	US$52.65	-	US$38.05	C$51.86
Weighted Average Grant Date Fair Value	US$22.95	-	US$34.67	C$46.75

(1)

As at June 30, 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.


Six Months Ended June 30, 2026 (thousands of units)

RSUs			1,286
PSUs			415
DSUs (1)			5

(1)

Deferred Share Units (“DSUs”).


19.	Fair Value Measurements

The fair values of cash and cash equivalents, accounts receivable and accrued revenues, and accounts payable and accrued liabilities approximate their carrying amounts due to the short-term maturity of those instruments. The fair values of investment in marketable securities, and restricted cash and other marketable securities included in other assets approximate their carrying amounts due to the nature of the instruments held.

Recurring fair value measurements are performed for risk management assets and liabilities, as discussed further in Note 20. These items are carried at fair value in the Condensed Consolidated Balance Sheet and are classified within the three levels of the fair value hierarchy in the following tables.

Fair value changes and settlements for amounts related to risk management assets and liabilities are recognized in revenues and foreign exchange gains and losses according to their purpose.


As at June 30, 2026	Level 1 Quoted Prices in Active Markets		Level 2 Other Observable Inputs		Level 3 Significant Unobservable Inputs			Total Fair Value		Netting (1)			Carrying Amount

Risk Management Assets
Commodity Derivatives:
Current assets	$	4	$	196		$	-	$	200	$	(13	)	$	187
Long-term assets		-		148			38		186		(1	)		185

Risk Management Liabilities
Commodity Derivatives:
Current liabilities	$	-	$	45		$	-	$	45	$	(13	)	$	32
Long-term liabilities		-		15			-		15		(1	)		14

As at December 31, 2025	Level 1 Quoted Prices in Active Markets		Level 2 Other Observable Inputs		Level 3 Significant Unobservable Inputs			Total Fair Value		Netting (1)			Carrying Amount

Risk Management Assets
Commodity Derivatives:
Current assets	$	-	$	87		$	-	$	87	$	(1	)	$	86
Long-term assets		-		3			1		4		-			4

Risk Management Liabilities
Commodity Derivatives:
Current liabilities	$	-	$	3		$	-	$	3	$	(1	)	$	2
Long-term liabilities		-		13			-		13		-			13

(1)

Netting to offset derivative assets and liabilities where the legal right and intention to offset exists, or where counterparty master netting arrangements contain provisions for net settlement.

The Company’s Level 1 and Level 2 risk management assets and liabilities include contracts with terms to 2033, consisting of commodity fixed price contracts, three-way options, costless collars, basis swaps and physical forward contracts receiving a percentage of the Japan Korea Marker (“JKM”) index price. The Company uses discounted cash flow and option-pricing models for fair valuing commodity derivatives. The fair value models use inputs such as contracted notional volumes, market future prices, maturities, credit adjusted risk free rates, and market-based implied volatility factors. The fair values of these contracts are estimated using inputs which are either directly or indirectly observable from active markets, such as exchange and other published prices, broker quotes and observable trading activity throughout the term of the instruments.

The three-way options are a combination of a sold call, a bought put and a sold put. The costless collars are a combination of a sold call and a bought put. These contracts allow the Company to participate in the upside of commodity prices to the ceiling of the call option and provide the Company with complete (collars) or partial (three-way) downside price protection through the put options.

Level 3 Fair Value Measurements

During 2025, Ovintiv entered into a ten-year physical forward contract, with terms to 2037, to deliver 100 MMcf/d of natural gas volumes with a delivery point in Alberta and will receive the Chicago city-gates (“Chicago”) index price, less deducts. Delivery of natural gas volumes is expected to commence November 1, 2027. This contract is a derivative and is required to be measured at fair value each reporting period with changes in the fair value recorded in net earnings. The fair value of this contract is based on the discounted cash flow model using observable and unobservable inputs such as forward prices less deducts. The data used to develop the unobservable inputs are obtained from third parties whenever possible and reviewed by the Company for reasonableness.

A summary of changes in Level 3 fair value measurements for risk management positions is presented below:


	Six Months Ended
	June 30,
	2026		2025

Balance, Beginning of Year	$	1	$	-
Total Gains (Losses)		37		(2	)
Purchases, Sales, Issuances and Settlements:
Purchases, sales and issuances		-		-
Settlements		-		-
Transfers Out of Level 3		-		-
Balance, End of Period	$	38	$	(2	)
Change in Unrealized Gains (Losses) During the
Period Included in Net Earnings (Loss)	$	37	$	(2	)

Quantitative information about unobservable inputs used in Level 3 fair value measurements is presented below as at June 30, 2026:


	Valuation Technique	Unobservable Input	Range	Weighted Average

Risk Management - Physical Forward Contract	Discounted Cash Flow Model	Forward Prices (1)	$0.62/Mcf - $3.18/Mcf	$1.35/Mcf

(1)

Forward prices refers to the differential between Chicago and AECO forward prices.

A 10 percent increase or decrease in forward price differentials between Chicago and AECO for the physical forward contract would cause an approximate corresponding $28 million ($24 million as at December 31, 2025) increase or decrease to net risk management assets and liabilities.


20.	Financial Instruments and Risk Management

A) Financial Instruments

Ovintiv’s financial assets and liabilities are recognized in cash and cash equivalents, accounts receivable and accrued revenues, investment in marketable securities, other assets, accounts payable and accrued liabilities, risk management assets and liabilities, long-term debt, and other liabilities and provisions.

B) Risk Management Activities

Ovintiv uses derivative financial instruments to manage its exposure to fluctuating commodity prices and foreign currency exchange rates. The Company does not apply hedge accounting to any of its derivative financial instruments. As a result, gains and losses from changes in the fair value are recognized in net earnings (loss).

Commodity Price Risk

Commodity price risk arises from the effect that fluctuations in future commodity prices may have on revenues from production. To partially mitigate exposure to commodity price risk, the Company has entered into various derivative financial instruments. The use of these derivative instruments is governed under formal policies and is subject to limits established by the Board of Directors.

Oil and NGLs - To partially mitigate oil and NGL commodity price risk, the Company uses WTI- and NGL-based contracts such as fixed price contracts, options and costless collars. Ovintiv has also entered into basis swaps to manage against widening price differentials among various production areas, products and price points.

Natural Gas - To partially mitigate natural gas commodity price risk, the Company uses NYMEX-, AECO- and Waha-based contracts such as fixed price contracts, options and costless collars. Ovintiv has also entered into forward contracts to partially manage against widening price differentials among various production areas and benchmark price points.

Foreign Exchange Risk

Foreign exchange risk arises from changes in foreign currency exchange rates that may affect the fair value or future cash flows from the Company’s financial assets or liabilities. To partially mitigate the effect of foreign exchange fluctuations on future commodity revenues and expenses, the Company may enter into foreign currency derivative contracts. As at June 30, 2026, the Company does not have any notional U.S. dollar denominated currency swaps.

Risk Management Positions as at June 30, 2026


	Notional Volumes	Term	Average Price	Fair Value

Oil and NGL Contracts			US$/bbl

Fixed Price Contracts
WTI Fixed Price	4.0 Mbbls/d	2026	61.80	$	(5	)

WTI Three-Way Options
Sold call / bought put / sold put	46.0 Mbbls/d	2026	70.57 / 58.35 / 50.09		(27	)
Sold call / bought put / sold put	12.4 Mbbls/d	2027	91.00 / 59.47 / 50.00		(4	)

WTI Costless Collars
Sold call / bought put	1.0 Mbbls/d	2026	67.79 / 56.32		(1	)

Basis Contracts (1)		2026			5

Other Financial Positions					(3	)
Oil and NGLs Fair Value Position					(35	)

Natural Gas Contracts			US$/Mcf

Fixed Price Contracts
NYMEX Fixed Price	20 MMcf/d	2026	4.07		2
Waha Fixed Price	50 MMcf/d	2026	1.26		-
AECO Fixed Price	135 MMcf/d	2026	2.28		23
AECO Fixed Price	161 MMcf/d	2027	1.85		12
AECO Fixed Price	210 MMcf/d	2028	1.99		8

NYMEX Three-Way Options
Sold call / bought put / sold put	450 MMcf/d	2026	5.92 / 3.33 / 2.58		16
Sold call / bought put / sold put	225 MMcf/d	2027	4.67 / 3.50 / 2.50		14

NYMEX Costless Collars
Sold call / bought put	95 MMcf/d	2026	5.27 / 3.75		9
Sold call / bought put	15 MMcf/d	2027	4.72 / 3.50		2

AECO Costless Collars
Sold call / bought put	7 MMcf/d	2026	2.15 / 1.69		1
Sold call / bought put	8 MMcf/d	2027	2.36 / 1.76		1

Basis Contracts (2)		2026			44
		2027			51
		2028 - 2031			87

Other Financial Positions					-

Physical Forward Contracts (3)		2026			32
		2027			45
		2028 - 2037			14
Natural Gas Fair Value Position					361
Total Fair Value Position				$	326

(1)

Ovintiv has entered into oil differential swaps associated with Canadian condensate and WTI.

(2)

Ovintiv has entered into natural gas basis swaps associated with AECO, NYMEX, and Waha.

(3)

Ovintiv has entered into natural gas physical forward contracts associated with JKM and Chicago, as described in Note 19.

Earnings Impact of Realized and Unrealized Gains (Losses) on Risk Management Positions


	Three Months Ended					Six Months Ended
	June 30,					June 30,
	2026			2025		2026			2025

Realized Gains (Losses) on Risk Management
Commodity Derivatives:
Revenues	$	(68	)	$	33	$	(78	)	$	63
Foreign Currency Derivatives:
Foreign exchange (1)		-			-		-			(98	)
	$	(68	)	$	33	$	(78	)	$	(35	)

Unrealized Gains (Losses) on Risk Management
Commodity Derivatives:
Revenues	$	190		$	54	$	137		$	8
Foreign Currency Derivatives:
Foreign exchange		-			2		-			89
	$	190		$	56	$	137		$	97

Total Realized and Unrealized Gains (Losses) on Risk Management, net
Commodity Derivatives:
Revenues	$	122		$	87	$	59		$	71
Foreign Currency Derivatives:
Foreign exchange (1)		-			2		-			(9	)
	$	122		$	89	$	59		$	62

(1)

Includes a realized foreign exchange loss of $97 million for the six months ended June 30, 2025, related to notional U.S. dollar denominated currency swaps as discussed in Note 6.

Reconciliation of Unrealized Risk Management Positions from January 1 to June 30


	2026					2025
	Fair Value			Total Unrealized Gain (Loss)		Total Unrealized Gain (Loss)

Fair Value of Contracts, Beginning of Year	$	75
Change in Fair Value of Contracts in Place at Beginning of Year
and Contracts Entered into During the Period		59		$	59	$	62
Fair Value of NuVista Contracts Acquired (See Note 9)		169
Settlement of NuVista Contracts from Business Combination		(55	)
Fair Value of Contracts Realized During the Period		78			78		35
Fair Value of Contracts, End of Period	$	326		$	137	$	97

Risk management assets and liabilities arise from the use of derivative financial instruments and are measured at fair value. See Note 19 for a discussion of fair value measurements.

Unrealized Risk Management Positions


	As at		As at
	June 30,		December 31,
	2026		2025

Risk Management Assets
Current	$	187	$	86
Long-term		185		4
		372		90

Risk Management Liabilities
Current		32		2
Long-term		14		13
		46		15
Net Risk Management Assets (Liabilities)	$	326	$	75

C) Credit Risk

Credit risk arises from the potential that the Company may incur a loss if a counterparty to a financial instrument fails to meet its obligation in accordance with agreed terms. While exchange-traded contracts are subject to nominal credit risk due to the financial safeguards established by the exchanges and clearing agencies, over-the-counter traded contracts expose Ovintiv to counterparty credit risk. Counterparties to the Company’s derivative financial instruments consist primarily of major financial institutions and companies within the energy industry. This credit risk exposure is mitigated through the use of credit policies approved by the Board of Directors governing the Company’s credit portfolio including credit practices that limit transactions according to counterparties’ credit quality. Mitigation strategies may include master netting arrangements, requesting collateral, purchasing credit insurance and/or transacting credit derivatives. The Company executes commodity derivative financial instruments under master agreements that have netting provisions that provide for offsetting payables against receivables. Ovintiv actively evaluates the creditworthiness of its counterparties, assigns appropriate credit limits and monitors credit exposures against those assigned limits. As at June 30, 2026, Ovintiv’s maximum exposure of loss due to credit risk from derivative financial instrument assets on a gross and net fair value basis was $386 million and $372 million, respectively, as disclosed in Note 19. The Company had no significant credit derivatives in place and held no collateral at June 30, 2026.

Any cash equivalents include high-grade, short-term securities, placed primarily with financial institutions with investment grade ratings. Any foreign currency agreements entered into are with major financial institutions that have investment grade credit ratings.

A substantial portion of the Company’s accounts receivable are with customers and working interest owners in the oil and gas industry and are subject to normal industry credit risks. As at June 30, 2026, approximately 95 percent (94 percent as at December 31, 2025) of Ovintiv’s accounts receivable and financial derivative credit exposures were with investment grade counterparties.


21.	Supplementary Information

Supplemental disclosures to the Condensed Consolidated Statement of Cash Flows are presented below:

Net Change in Non-Cash Working Capital


	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2026			2025			2026			2025

Operating Activities
Accounts receivable and accrued revenues	$	216		$	130		$	47		$	72
Accounts payable and accrued liabilities		207			(24	)		200			(125	)
Current portion of operating lease liabilities		(24	)		6			(12	)		26
Income tax receivable and payable		(19	)		(1	)		(24	)		18
	$	380		$	111		$	211		$	(9	)

Non-Cash Activities


	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2026			2025			2026			2025

Non-Cash Operating Activities
ROU operating lease assets and liabilities	$	(3	)	$	(16	)	$	(125	)	$	(424	)

Non-Cash Investing Activities
Property, plant and equipment accruals	$	(19	)	$	(42	)	$	47		$	27
Capitalized long-term incentives		-			-			(3	)		(4	)
Property additions/dispositions (swaps)		1			6			5			33

Non-Cash Financing Activities
Finance lease assets and liabilities	$	-		$	-		$	(118	)	$	-
Common shares issued in conjunction with the
NuVista Acquisition (See Note 9)		-			-			(1,277	)		-


22.	Commitments and Contingencies

Commitments

The following table outlines the Company’s commitments as at June 30, 2026:


	Expected Future Payments
(undiscounted)	2026		2027		2028		2029		2030		Thereafter		Total

Transportation and Processing	$	495	$	968	$	861	$	790	$	736	$	4,528	$	8,378
Drilling and Field Services		108		19		2		1		1		5		136
Building Leases & Other Commitments		6		7		6		4		4		8		35
Total	$	609	$	994	$	869	$	795	$	741	$	4,541	$	8,549

Operating leases with terms greater than one year are not included in the commitments table above. The table above includes short-term leases with contract terms less than 12 months, such as well services and equipment, field office leases, as well as non-lease operating cost components associated with building leases.

Included within transportation and processing in the table above are certain commitments associated with midstream service agreements with VMLP as described in Note 16. Divestiture transactions can reduce certain commitments disclosed above.

Contingencies

Ovintiv is involved in various legal claims and actions arising in the normal course of the Company’s operations. Although the outcome of these claims cannot be predicted with certainty, the Company does not expect these matters to have a material adverse effect on Ovintiv’s financial position, cash flows or results of operations. Management’s assessment of these matters may change in the future as these matters are subject to a number of uncertainties. For any material matters that the Company believes an unfavorable outcome is reasonably possible, the Company discloses the nature and a range of potential exposures, if reasonably estimable. If an unfavorable outcome were to occur, there exists the possibility of a material impact on the Company’s consolidated net earnings or loss for the period in which the effect becomes reasonably estimable. The Company accrues for such items when a liability is both probable and the amount can be reasonably estimated. Such accruals are based on the Company’s information known about the matters, estimates of the outcomes of such matters and experience in handling similar matters.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The MD&A is intended to provide a narrative description of the Company’s business from management’s perspective, which includes an overview of Ovintiv’s condensed consolidated results for the three and six months ended June 30, 2026, and period-over-period comparison. This MD&A should be read in conjunction with the unaudited interim Condensed Consolidated Financial Statements and accompanying notes for the period ended June 30, 2026 (“Consolidated Financial Statements”), which are included in Part I, Item 1 of this Quarterly Report on Form 10-Q and the audited Consolidated Financial Statements and accompanying notes and MD&A for the year ended December 31, 2025, which are included in Items 8 and 7, respectively, of the 2025 Annual Report on Form 10‑K.

Common industry terms and abbreviations are used throughout this MD&A and are defined in the Definitions, Conversions and Conventions sections of this Quarterly Report on Form 10-Q. This MD&A includes the following sections:

•

Executive Overview

•

Results of Operations

•

Liquidity and Capital Resources

•

Non-GAAP Measures

     Executive Overview

    

Strategy

Ovintiv aims to be a leading North American energy producer and is focused on developing its high-quality multi-basin portfolio of oil and natural gas producing plays. Ovintiv is committed to delivering quality returns from its capital investment, generating significant cash flows and providing durable cash returns to its shareholders through the commodity price cycle. The Company aims to achieve its strategic priorities through execution excellence, disciplined capital allocation, and commercial acumen and risk management. In addition, the Company is dedicated to driving progress in the area of sustainability, aligning with its commitment to corporate responsibility.

In support of the Company’s commitment to enhancing shareholder value, Ovintiv utilizes its shareholder return framework to provide competitive returns to shareholders while strengthening its balance sheet.

Ovintiv continually monitors and evaluates changing market conditions to maximize cash flows, mitigate risks and renew its premium well inventory. The Company’s high-quality assets, located in the United States and Canada, form a multi-basin, multi-product portfolio which enables flexible and efficient investment of capital that supports the Company’s strategy.

Ovintiv seeks to deliver results in a socially and environmentally responsible manner. Best practices are deployed across its assets, allowing the Company to capitalize on operational efficiencies and decrease emissions intensity. The Company’s sustainability reporting, which outlines its key metrics, targets and relative progress achieved, can be found in the Company Outlook section of this MD&A and on the Company’s website.

Underpinning Ovintiv’s strategy are core values of one, agile, innovative and driven, which guide the organization to be collaborative, responsive, flexible and determined. The Company is committed to excellence with a passion to drive corporate financial performance and shareholder value.

For additional information on Ovintiv’s strategy, its reporting segments and the plays in which the Company operates, refer to Items 1 and 2 of the 2025 Annual Report on Form 10-K.

In evaluating its operations and assessing its leverage, Ovintiv reviews performance-based measures such as Non‑GAAP Cash Flow and debt-based metrics such as Debt to Adjusted Capitalization, Debt to EBITDA and Debt to Adjusted EBITDA, which are non-GAAP measures and do not have any standardized meaning under U.S. GAAP. These measures may not be similar to measures presented by other issuers and should not be viewed as a substitute for measures reported under U.S. GAAP. Additional information regarding these measures, including reconciliations to the closest GAAP measure, can be found in the Non-GAAP Measures section of this MD&A.

Highlights

During the first six months of 2026, the Company focused on executing its 2026 capital investment plan aimed at maximizing profitability through operational and capital efficiencies, and delivering cash from operating activities. In conjunction with closing the NuVista Acquisition, as discussed below, the Company was also focused on integrating the new assets into its existing operations.

Higher upstream product revenues in the first six months of 2026 compared to 2025, primarily resulted from higher average realized oil and plant condensate prices, excluding the impact of risk management activities, and higher plant condensate and natural gas production volumes, partially offset by lower oil production volumes. Average oil and plant condensate prices increased 26 percent and 29 percent, respectively, primarily due to higher benchmark prices. Plant condensate and natural gas production volumes increased primarily due to the NuVista Acquisition in the first quarter of 2026. Oil production volumes decreased primarily due to the sale of the Company’s Anadarko assets in the second quarter of 2026. Ovintiv continues to focus on optimizing realized prices from the diversification of the Company’s downstream markets.

Significant Developments

•

On April 9, 2026, the Company closed the previously announced divestiture of its Anadarko assets, comprising approximately 360,000 net acres in the Anadarko Basin of Oklahoma, for proceeds of approximately $2.8 billion, after preliminary closing adjustments and transaction costs. The transaction had an effective date of January 1, 2026. Following the closing of the divestiture, Ovintiv repaid the balance under its Term Credit Agreement and the facility was terminated. The Term Credit Agreement is defined in the Liquidity and Capital Resources section of this MD&A.

•

On April 9, 2026, Ovintiv issued a notice to the trustee to redeem the Company’s $700 million, 5.65 percent senior notes due May 15, 2028. The senior notes were redeemed on April 20, 2026, using proceeds from the divestiture of the Company’s Anadarko assets, and is expected to result in annualized interest savings of approximately $40 million.

•

On February 23, 2026, Ovintiv announced an update to its shareholder return framework in support of the Company’s commitment to enhancing shareholder value. The new framework commits to returning between 50 percent and 100 percent of annual Non-GAAP Cash Flow in excess of capital expenditures through base dividends and share buybacks.

•

On February 3, 2026, the Company closed its previously announced acquisition of all the issued and outstanding common shares of NuVista Energy Ltd. (“NuVista”) in a cash and stock transaction valued at approximately $2.8 billion (C$3.8 billion) (“NuVista Acquisition”), including Ovintiv’s previous purchase of 18.5 million common shares of NuVista. The Company issued approximately 30.1 million shares of Ovintiv common stock and paid cash consideration of approximately $1.2 billion (C$1.6 billion). Additionally, Ovintiv assumed and subsequently repaid NuVista’s debt, totaling approximately $282 million (C$385 million). The assets acquired are strategically located adjacent to Ovintiv’s current operations in the oil-rich Alberta Montney and add approximately 930 net well locations to Ovintiv’s existing Montney inventory and approximately 140,000 net acres.

Financial Results

Three months ended June 30, 2026

•

Reported net earnings of $456 million, or $1.62 per share diluted.

•

Recognized a loss on the divestiture of the Company’s Anadarko assets of $337 million, before tax, and allocated goodwill of $502 million to the transaction.

•

Recognized a net gain on risk management in revenues of $122 million, before tax.

•

Generated cash from operating activities of $1,632 million and Non-GAAP Cash Flow of $1,256 million.

•

Purchased for cancellation, approximately 6.1 million shares of common stock for total consideration of approximately $345 million.

•

Paid dividends of $0.30 per share of common stock totaling $84 million.

Six months ended June 30, 2026

•

Reported a net loss of $174 million, or $0.63 per share diluted, including non-cash ceiling test impairments of $1,154 million, after tax, or $4.21 per share diluted.

•

Recognized a loss on the divestiture of the Company’s Anadarko assets of $337 million, before tax, and allocated goodwill of $502 million to the transaction.

•

Recognized a net gain on risk management in revenues of $59 million, before tax.

•

Generated cash from operating activities of $2,688 million and Non-GAAP Cash Flow of $2,495 million.

•

Purchased for cancellation, approximately 7.6 million shares of common stock for total consideration of approximately $429 million.

•

Paid dividends of $0.60 per share of common stock totaling $169 million.

•

Had approximately $4.4 billion in total liquidity as at June 30, 2026, which included available credit facilities of $3.5 billion, available uncommitted demand lines of $159 million, and cash and cash equivalents of $700 million.

•

Reported Debt to EBITDA of 1.3 times and Non-GAAP Debt to Adjusted EBITDA of 0.8 times.

Capital Investment

During the six months ended June 30, 2026

•

Executed the Company’s 2026 capital plan with expenditures totaling $1,179 million.

Production

During the six months ended June 30, 2026

•

Produced average liquids volumes of 306.4 Mbbls/d, which accounted for 47 percent of total production volumes. Average oil and plant condensate volumes of 215.5 Mbbls/d, represented 70 percent of total liquids production volumes.

•

Produced average natural gas volumes of 2,041 MMcf/d, which accounted for 53 percent of total production volumes.

•

Produced average total volumes of 646.6 MBOE/d.

Operating Expenses

During the six months ended June 30, 2026

•

Incurred upstream transportation and processing expenses of $989 million or $8.45 per BOE, an increase of $172 million compared to 2025, primarily due to increased production volumes related to the NuVista Acquisition in the first quarter of 2026.

•

Incurred upstream operating expenses of $408 million or $3.49 per BOE, a decrease of $12 million compared to 2025, primarily due to the sale of the Company’s Anadarko assets in the second quarter of 2026, partially offset by increased activity related to the NuVista Acquisition in the first quarter of 2026.

•

Incurred total production, mineral and other taxes of $160 million, which represents approximately 3.55 percent of upstream product revenues. Total production, mineral and other taxes were in line with 2025.

Additional information on the items above and other expenses can be found in the Results of Operations section of this MD&A.

2026 Outlook

Industry Outlook

Oil and Natural Gas Markets

The oil and gas industry is cyclical and commodity prices are inherently volatile. Oil prices reflect global supply and demand dynamics as well as the geopolitical and macroeconomic environment. Natural gas prices are primarily impacted by structural changes in supply and demand, deviations from seasonally normal weather, as well as volatility in regional markets.

Oil prices for the remainder of 2026 are expected to be impacted by the conflict in the Middle East, the interplay among the pace of global economic growth, global oil demand, OPEC+ and non-OPEC+ production, other geopolitical events, and macroeconomic uncertainties.

Natural gas prices for the remainder of 2026 are expected to be impacted by the interplay among natural gas production and associated natural gas from oil production, changes in demand from the power generation sector, changes in export levels of U.S. and Canadian liquefied natural gas, impacts from seasonal weather, as well as supply chain constraints or other disruptions resulting from geopolitical events.

Political developments, including trade disputes and policy changes, continue to elevate global uncertainty and financial market volatility. U.S. sanctions and tariffs on select products may disrupt global supply and demand, leading to commodity price volatility. These actions can provoke retaliatory measures from other countries, further increasing economic volatility and the risk of a global recession.

Company Outlook

The Company will continue to exercise discretion and discipline, and intends to optimize capital allocation through the remainder of 2026 as the commodity price environment evolves.

Markets for oil and natural gas are exposed to different price risks and are inherently volatile. The Company enters into derivative financial instruments to mitigate price volatility and provide more certainty around cash flows. As at June 30, 2026, the Company has hedged approximately 51.0 Mbbls/d of expected oil and condensate production and 757 MMcf/d of expected natural gas production for the remainder of the year. In addition, Ovintiv proactively utilizes commodity derivatives and transportation contracts to diversify the Company’s sales markets, thereby reducing significant exposure to any given market and regional pricing.

Additional information on Ovintiv’s hedging program can be found in Note 20 to the Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q.

Capital Investment

The Company continues to execute its 2026 capital investment program, focusing on maximizing returns from high-margin oil and condensate, and generating cash flows in excess of capital expenditures.

During the second quarter of 2026, the Company invested $574 million, which was in line with its second quarter guidance range of $550 million to $600 million. The Company expects to meet its full year 2026 capital investment guidance range of $2,250 million to $2,350 million.

Ovintiv continually strives to improve well performance and lower costs through innovative techniques. Ovintiv’s large-scale cube development model utilizes multi-well pads and advanced completion designs to maximize returns and resource recovery from its reservoirs. Ovintiv’s disciplined capital program and continuous innovation create flexibility to allocate capital in changing commodity markets to maximize cash flows while preserving the long-term value of the Company’s multi-basin portfolio.

Production

During the second quarter of 2026, total average production volumes were 614.6 MBOE/d, which was in line with the second quarter guidance range of 610.0 MBOE/d to 635.0 MBOE/d. Average oil and plant condensate production volumes were 205.8 Mbbls/d and average other NGL production volumes were 82.4 Mbbls/d, which exceeded their second quarter guidance ranges of 200.0 Mbbls/d to 205.0 Mbbls/d and 75.0 Mbbls/d to 80.0 Mbbls/d, respectively. Average natural gas production volumes were 1,959 MMcf/d, which was lower than the second quarter guidance range of 2,000 MMcf/d to 2,100 MMcf/d primarily due to higher third-party plant downtime and the prioritization of liquids production volumes over natural gas production volumes.

In July 2026, the Company updated its full year 2026 production guidance ranges to reflect strong well performance in Permian. The Company expects to meet its updated full year 2026 total production guidance range of 630.0 MBOE/d to 645.0 MBOE/d, including oil and plant condensate production volumes of approximately 210.0 Mbbls/d to 212.0 Mbbls/d, other NGLs production volumes of approximately 83.0 Mbbls/d to 85.0 Mbbls/d and natural gas production volumes of approximately 2,025 MMcf/d to 2,075 MMcf/d.

Operating Expenses

Ovintiv promotes a collaborative culture that values knowledge exchange, open communication, continuous improvement and learning. This culture stimulates innovation and fosters the creation of best practices resulting in efficiency improvements and enhanced operational performance for the Company.

The Company is on track to incur upstream transportation and processing costs of approximately $8.75 per BOE to $9.25 per BOE, upstream operating expenses of approximately $3.00 per BOE to $3.50 per BOE, and total production, mineral and other taxes of approximately 3.25 to 3.75 percent of upstream product revenues for the remainder of the year.

Additional information on Ovintiv’s third quarter and updated full year 2026 Corporate Guidance can be accessed on the Company’s website at www.ovintiv.com.

Sustainability

Ovintiv recognizes the importance of implementing and maintaining sustainable practices to manage its environmental footprint. The Company participates in emission reduction programs and has adopted a range of strategies to help reduce emissions from its operations. These strategies include incorporating new and proven technologies, optimizing processes in its operations and working closely with third-party providers to develop best practices. The Company continues to look for innovative techniques and efficiencies in support of its commitment to emission reductions.

In May 2026, Ovintiv published its 2025 Sustainability Report. The report highlights the Company’s 2025 sustainability results, and its progress in emissions intensity reductions with the goal to meet its Scope 1&2 GHG emissions target by 2030. As at the end of 2025, the Company had achieved 85 percent of its Scope 1&2 GHG emissions intensity reduction target of 50 percent by 2030, measured against the 2019 baseline. Ovintiv remains committed to its GHG emissions reduction target and has tied the target to the Company’s annual compensation program for all employees. In addition, Ovintiv continues to work towards eliminating routine flaring in its operations.

In conjunction with the Company’s strategy, Ovintiv may acquire assets to strengthen its portfolio. Acquisitions are assessed and evaluated for environmental impacts and alignment with the Company’s GHG emissions intensity target. Ovintiv continues to work to integrate sustainable practices within acquired operations to support company-wide sustainability objectives, while maintaining its 2030 GHG emissions intensity target.

The Company’s social commitment framework, which is rooted in the Company’s foundational values of integrity, safety, sustainability, trust and respect, reflects Ovintiv’s positive contributions to the communities where it operates and highlights the Company’s approach to enabling an inclusive culture.

Ovintiv remains committed to protecting the health and safety of its workforce. Safety is a foundational value at Ovintiv and plays a critical role in the Company’s belief that a safe workplace is a strong indicator of a well-managed business. This safety-oriented mindset enables the Company to quickly respond to emergencies and minimize impacts to employees and business continuity. Safety performance goals are incorporated into the Company’s annual compensation program. Additional information on talent management and employee safety can be found in the Human Capital section of Items 1 and 2 of the 2025 Annual Report on Form 10-K.

Additional information on Ovintiv’s sustainable business practices are included in its most recent Sustainability Report on the Company’s website at www.ovintiv.com.

     Results of Operations

    

Selected Financial Information


	Three months ended June 30,					Six months ended June 30,
($ millions)		2026		2025			2026			2025

Product and Service Revenues
Upstream product revenues		$	2,293	$	1,755		$	4,507		$	3,717
Service revenues (1)			4		9			11			12
Total Product and Service Revenues			2,297		1,764			4,518			3,729

Sales of Purchased Product			575		450			931			860
Gains (Losses) on Risk Management, Net			122		87			59			71
Sublease Revenues			19		17			37			35
Total Revenues			3,013		2,318			5,545			4,695

Total Operating Expenses (2)			2,019		1,807			5,305			4,273
Operating Income (Loss)			994		511			240			422
Total Other (Income) Expenses (3)			455		112			528			216
Net Earnings (Loss) Before Income Tax			539		399			(288	)		206
Income Tax Expense (Recovery)			83		92			(114	)		58

Net Earnings (Loss)		$	456	$	307		$	(174	)	$	148

(1)

Service revenues comprise third-party gathering and processing fees, and other revenues.

(2)

Total Operating Expenses include non-cash items such as DD&A, impairments, accretion of asset retirement obligations and long-term incentive costs. The three and six months ended June 30, 2026, include non-cash ceiling test impairments of nil and $1,485 million, respectively (2025 ‑ nil and $730 million, respectively).

(3)

The three and six months ended June 30, 2026, include a loss on the divestiture of the Company’s Anadarko assets of $337 million, respectively.

Revenues

Ovintiv’s revenues are substantially derived from sales of oil, NGLs and natural gas production. Increases or decreases in Ovintiv’s revenue, profitability and future production are highly dependent on the commodity prices the Company receives. Prices are market driven and fluctuate due to factors beyond the Company’s control, such as supply and demand, seasonality and geopolitical and economic factors. The Company’s realized prices generally reflect WTI, NYMEX, Edmonton Condensate and AECO benchmark prices, as well as other downstream benchmarks, including Houston and Dawn. The Company proactively mitigates price risk and optimizes margins by entering into firm transportation contracts to diversify market access to different sales points. Realized prices, excluding the impact of risk management activities, may differ from the benchmarks for many reasons, including quality, location, or production being sold at different market hubs.

Benchmark prices relevant to the Company are shown in the table below.

Benchmark Prices


	Three months ended June 30,				Six months ended June 30,
(average for the period)	2026		2025		2026		2025

Oil & NGLs
WTI ($/bbl)	$	92.79	$	63.74	$	82.36	$	67.58
Houston ($/bbl)		95.76		64.91		84.32		68.80
Edmonton Condensate (C$/bbl)		132.32		88.21		115.27		94.39

Natural Gas
NYMEX ($/MMBtu)	$	2.90	$	3.44	$	3.97	$	3.55
AECO (C$/Mcf)		1.51		2.07		2.00		2.05
Dawn (C$/MMBtu)		3.53		3.97		4.79		4.82

Production Volumes and Realized Prices


	Three months ended June 30,									Six months ended June 30,
	Production Volumes (1)					Realized Prices (2)				Production Volumes (1)				Realized Prices (2)
	2026			2025		2026		2025		2026		2025		2026		2025

Oil (Mbbls/d, $/bbl)
USA Operations		122.6			141.6	$	100.78	$	64.50		131.8		146.0	$	85.78	$	68.24
Canadian Operations		0.4			0.4		75.39		63.42		0.6		0.3		73.30		66.40
Total		123.0			142.0		100.69		64.50		132.4		146.3		85.74		68.24

NGLs - Plant Condensate (Mbbls/d, $/bbl)
USA Operations		7.2			11.4		77.39		50.76		9.2		10.8		65.03		54.34
Canadian Operations		75.6			57.8		94.20		62.76		73.9		51.4		83.25		65.05
Total		82.8			69.2		92.75		60.79		83.1		62.2		81.24		63.18

NGLs - Other (Mbbls/d, $/bbl)
USA Operations		55.6			76.8		18.19		17.52		65.1		73.6		16.68		19.52
Canadian Operations		26.8			18.7		28.90		21.44		25.8		18.5		27.46		25.12
Total		82.4			95.5		21.67		18.28		90.9		92.1		19.73		20.64

Total Oil & NGLs (Mbbls/d, $/bbl)
USA Operations		185.4			229.8		75.10		48.11		206.1		230.4		63.02		52.03
Canadian Operations		102.8			76.9		77.14		52.73		100.3		70.2		68.86		54.54
Total		288.2			306.7		75.83		49.27		306.4		300.6		64.93		52.62

Natural Gas (MMcf/d, $/Mcf)
USA Operations		329			508		0.03		2.26		424		509		1.86		2.70
Canadian Operations		1,630			1,343		2.05		2.24		1,617		1,298		2.61		2.56
Total		1,959			1,851		1.71		2.24		2,041		1,807		2.45		2.60

Total Production (MBOE/d, $/BOE)
USA Operations		240.2			314.7		58.01		38.81		276.9		315.3		49.78		42.40
Canadian Operations		374.4			300.6		30.10		23.47		369.7		286.6		30.08		24.95
Total		614.6			615.3		41.00		31.32		646.6		601.9		38.51		34.10

Production Mix (%)
Oil & Plant Condensate		34			34						33		35
NGLs - Other		13			16						14		15
Total Oil & NGLs		47			50						47		50
Natural Gas		53			50						53		50

Production Change
Period Over Period (%) (3)
Total Oil & NGLs		(6	)		1						2		-
Natural Gas		6			6						13		7
Total Production		-			4						7		3

(1)

Average daily.

(2)

Average per-unit prices, excluding the impact of risk management activities.

(3)

Includes production impacts of acquisitions and divestitures.

Upstream Product Revenues, Excluding Realized Gains (Losses) on Risk Management


	Three months ended June 30,

($ millions)	Oil			NGLs - Plant Condensate		NGLs - Other			Natural Gas			Total

2025 Upstream Product Revenues	$	833		$	384	$	160		$	378		$	1,755
Increase (decrease) due to:
Sales prices		405			232		22			(94	)		565
Production volumes		(112	)		82		(18	)		21			(27	)
2026 Upstream Product Revenues	$	1,126		$	698	$	164		$	305		$	2,293

	Six months ended June 30,

($ millions)	Oil			NGLs - Plant Condensate		NGLs - Other			Natural Gas			Total

2025 Upstream Product Revenues	$	1,810		$	712	$	345		$	850		$	3,717
Increase (decrease) due to:
Sales prices		415			261		(24	)		(50	)		602
Production volumes		(171	)		249		4			106			188
2026 Upstream Product Revenues	$	2,054		$	1,222	$	325		$	906		$	4,507

Oil Revenues

Three months ended June 30, 2026, versus June 30, 2025

Oil revenues were higher by $293 million compared to the second quarter of 2025 primarily due to:

•

An increase of $36.19 per bbl, or 56 percent, in the average realized oil prices which increased revenues by $405 million. The increase reflected higher Houston and WTI benchmark prices which were up 48 percent and 46 percent, respectively, and higher regional pricing relative to benchmark prices; and

•

Lower average oil production volumes of 19.0 Mbbls/d decreased revenues by $112 million. Lower production volumes were primarily due to the sale of the Anadarko assets in the second quarter of 2026 (21.2 Mbbls/d), partially offset by successful drilling in Permian (1.4 Mbbls/d).

Six months ended June 30, 2026, versus June 30, 2025

Oil revenues were higher by $244 million compared to the first six months of 2025 primarily due to:

•

An increase of $17.50 per bbl, or 26 percent, in the average realized oil prices which increased revenues by $415 million. The increase reflected higher Houston and WTI benchmark prices which were up 23 percent and 22 percent, respectively, and higher regional pricing relative to benchmark prices; and

•

Lower average oil production volumes of 13.9 Mbbls/d decreased revenues by $171 million. Lower production volumes were primarily due to the sale of the Anadarko assets in the second quarter of 2026 (9.4 Mbbls/d) and the sale of the Uinta assets in the first quarter of 2025 (3.0 Mbbls/d).

NGL Revenues

Three months ended June 30, 2026, versus June 30, 2025

NGL revenues were higher by $318 million compared to the second quarter of 2025 primarily due to:

•

An increase of $31.96 per bbl, or 53 percent, in the average realized plant condensate prices which increased revenues by $232 million. The increase primarily reflected the higher Edmonton Condensate benchmark price which was up 50 percent and higher regional pricing relative to benchmark prices; and

•

Higher average plant condensate production volumes of 13.6 Mbbls/d increased revenues by $82 million. Higher production volumes were primarily due to the NuVista Acquisition in the first quarter of 2026 (27.2 Mbbls/d), partially offset by the sale of the Anadarko assets in the second quarter of 2026 (4.8 Mbbls/d), higher effective royalty rates in Montney (3.2 Mbbls/d), natural declines in Montney (3.2 Mbbls/d) and lower production volumes in Montney due to increased third-party plant downtime and pipeline restrictions (2.8 Mbbls/d).

Six months ended June 30, 2026, versus June 30, 2025

NGL revenues were higher by $490 million compared to the first six months of 2025 primarily due to:

•

An increase of $18.06 per bbl, or 29 percent, in the average realized plant condensate prices which increased revenues by $261 million. The increase primarily reflected the higher Edmonton Condensate benchmark price which was up 22 percent, higher regional pricing relative to benchmark prices and a lower U.S./Canadian dollar foreign exchange rate; and

•

Higher average plant condensate production volumes of 20.9 Mbbls/d increased revenues by $249 million. Higher production volumes were primarily due to the NuVista Acquisition in the first quarter of 2026 (22.3 Mbbls/d) and the Montney assets acquired in the first quarter of 2025 (3.7 Mbbls/d), partially offset by lower production volumes in Montney due to increased third-party plant downtime and pipeline restrictions (2.4 Mbbls/d) and the sale of the Anadarko assets in the second quarter of 2026 (2.2 Mbbls/d).

Natural Gas Revenues

Three months ended June 30, 2026, versus June 30, 2025

Natural gas revenues were lower by $73 million compared to the second quarter of 2025 primarily due to:

•

A decrease of $0.53 per Mcf, or 24 percent, in the average realized natural gas prices which decreased revenues by $94 million. The decrease reflected lower regional pricing relative to benchmark prices in the USA Operations and the lower AECO and NYMEX benchmark prices which were down 27 percent and 16 percent, respectively, partially offset by higher regional pricing relative to benchmark prices in the Canadian Operations; and

•

Higher average natural gas production volumes of 108 MMcf/d increased revenues by $21 million. Higher production volumes were primarily due to the NuVista Acquisition in the first quarter of 2026 (423 MMcf/d), partially offset by the sale of the Anadarko assets in the second quarter of 2026 (223 MMcf/d) and natural declines in Montney (88 MMcf/d).

Six months ended June 30, 2026, versus June 30, 2025

Natural gas revenues were higher by $56 million compared to the first six months of 2025 primarily due to:

•

Higher average natural gas production volumes of 234 MMcf/d increased revenues by $106 million. Higher production volumes were primarily due to the NuVista Acquisition in the first quarter of 2026 (348 MMcf/d) and the Montney assets acquired in the first quarter of 2025 (34 MMcf/d), partially offset by the sale of the Anadarko assets in the second quarter of 2026 (117 MMcf/d); and

•

A decrease of $0.15 per Mcf, or six percent, in the average realized natural gas prices which decreased revenues by $50 million. The decrease reflected lower regional pricing relative to benchmark prices in the USA Operations, partially offset by the higher NYMEX benchmark price which was up 12 percent and higher regional pricing relative to benchmark prices in the Canadian Operations.

Sales of Purchased Product

Revenues from the sale of purchased product relate to activities that provide operational flexibility and cost mitigation for transportation commitments, product type, delivery points and customer diversification within the USA and Canadian Operations segments.


	Three months ended June 30,				Six months ended June 30,
($ millions)	2026		2025		2026		2025

Sales of Purchased Product	$	575	$	450	$	931	$	860

Three months ended June 30, 2026, versus June 30, 2025

Sales of purchased product revenues increased $125 million compared to the second quarter of 2025 primarily due to:

•

Higher realized third-party liquids pricing ($208 million) and higher sales of third-party purchased natural gas volumes ($29 million);

partially offset by:

•

Lower sales of third-party purchased liquids volumes ($100 million) and lower realized third-party natural gas pricing ($13 million).

Six months ended June 30, 2026, versus June 30, 2025

Sales of purchased product revenues increased $71 million compared to the first six months of 2025 primarily due to:

•

Higher realized third-party liquids and natural gas pricing ($214 million and $12 million, respectively), and higher sales of third-party purchased natural gas volumes ($32 million);

partially offset by:

•

Lower sales of third-party purchased liquids volumes ($187 million).

Gains (Losses) on Risk Management, Net

As a means of managing commodity price volatility, Ovintiv enters into commodity derivative financial instruments on a portion of its expected oil, NGLs and natural gas production volumes. Additional information on the Company’s commodity price positions as at June 30, 2026, can be found in Note 20 to the Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q.

The following tables provide the effects of the Company’s risk management activities on revenues.


	Three months ended June 30,					Six months ended June 30,
($ millions)	2026			2025		2026			2025

Realized Gains (Losses) on Risk Management
Commodity Price
Oil	$	(103	)	$	9	$	(126	)	$	9
NGLs - Plant Condensate		(15	)		-		(20	)		-
Natural Gas		50			24		68			54
Total		(68	)		33		(78	)		63

Unrealized Gains (Losses) on Risk Management		190			54		137			8
Total Gains (Losses) on Risk Management, Net	$	122		$	87	$	59		$	71

	Three months ended June 30,					Six months ended June 30,
(Per-unit)	2026			2025		2026			2025

Realized Gains (Losses) on Risk Management
Commodity Price
Oil ($/bbl)	$	(9.16	)	$	0.73	$	(5.26	)	$	0.35
NGLs - Plant Condensate ($/bbl)	$	(2.01	)	$	-	$	(1.32	)	$	-
Natural Gas ($/Mcf)	$	0.28		$	0.14	$	0.18		$	0.16
Total ($/BOE)	$	(1.21	)	$	0.59	$	(0.67	)	$	0.57

Ovintiv recognizes fair value changes from its risk management activities each reporting period. The changes in fair value result from new positions and settlements that occur during each period, as well as the relationship between contract prices and the associated forward curves. Realized gains or losses on risk management activities related to commodity price mitigation are included in the USA and Canadian Operations’ revenues as the contracts are cash settled. Unrealized gains or losses on fair value changes of unsettled contracts are included in the Corporate and Other segment.

Additional information on fair value changes can be found in Note 19 to the Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q.

Sublease Revenues

Sublease revenues primarily include amounts related to the sublease of office space in The Bow office building recorded in the Corporate and Other segment. Additional information on office sublease income can be found in Note 11 to the Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q.

Operating Expenses

Production, Mineral and Other Taxes

Production, mineral and other taxes include production and property taxes. Production taxes are generally assessed as a percentage of oil, NGLs and natural gas production revenues. Property taxes are generally assessed based on the value of the underlying assets.


	Three months ended June 30,				Six months ended June 30,
($ millions)	2026		2025		2026		2025

USA Operations	$	71	$	67	$	142	$	150
Canadian Operations		10		6		18		10
Total	$	81	$	73	$	160	$	160

	Three months ended June 30,				Six months ended June 30,
($/BOE)	2026		2025		2026		2025

USA Operations	$	3.22	$	2.36	$	2.83	$	2.64
Canadian Operations	$	0.28	$	0.21	$	0.26	$	0.19
Production, Mineral and Other Taxes	$	1.43	$	1.31	$	1.36	$	1.47

Three months ended June 30, 2026, versus June 30, 2025

Production, mineral and other taxes increased $8 million compared to the second quarter of 2025 primarily due to:

•

Higher oil commodity prices ($18 million) and higher property taxes due to the NuVista Acquisition in the first quarter of 2026 ($4 million);

partially offset by:

•

The sale of the Anadarko assets in the second quarter of 2026 ($14 million).

Six months ended June 30, 2026, versus June 30, 2025

Production, mineral and other taxes were in line with the first six months of 2025 primarily due to:

•

Higher oil commodity prices ($19 million) and higher property taxes due to the NuVista Acquisition in the first quarter of 2026 ($7 million);

partially offset by:

•

The sales of the Anadarko assets in the second quarter of 2026 and the Uinta assets in the first quarter of 2025 ($14 million and $5 million, respectively) and lower effective production tax rates ($4 million).

Transportation and Processing

Transportation and processing expense includes transportation costs incurred to move product from production points to sales points including gathering, compression, pipeline tariffs, trucking and storage costs. Ovintiv also incurs costs related to processing provided by third parties or through ownership interests in processing facilities.


	Three months ended June 30,				Six months ended June 30,
($ millions)	2026		2025		2026		2025

Upstream
USA Operations	$	90	$	114	$	205	$	226
Canadian Operations		439		312		784		591
Upstream Transportation and Processing		529		426		989		817

Other (1)		11		9		22		16
Total	$	540	$	435	$	1,011	$	833

	Three months ended June 30,				Six months ended June 30,
($/BOE)	2026		2025		2026		2025

USA Operations	$	4.12	$	4.01	$	4.10	$	3.96
Canadian Operations	$	12.89	$	11.40	$	11.71	$	11.38
Upstream Transportation and Processing	$	9.47	$	7.62	$	8.45	$	7.50

(1)

The second quarter and first six months of 2026 include pipeline transportation fees associated with previously divested assets in the USA Operations of nil, respectively (2025 - $1 million, respectively) and other third-party transportation and processing fees with no associated volumes in the Canadian Operations of approximately $11 million and $22 million, respectively (2025 ‑ $8 million and $15 million, respectively).

Three months ended June 30, 2026, versus June 30, 2025

Transportation and processing expense increased $105 million compared to the second quarter of 2025 primarily due to:

•

Higher production volumes due to the NuVista Acquisition in the first quarter of 2026 ($91 million), higher midstream transportation costs in Montney ($31 million) and higher transportation costs in Permian due to increased gas production volumes ($7 million);

partially offset by:

•

The sale of the Anadarko assets in the second quarter of 2026 ($36 million).

Six months ended June 30, 2026, versus June 30, 2025

Transportation and processing expense increased $178 million compared to the first six months of 2025 primarily due to:

•

Higher production volumes due to the NuVista Acquisition in the first quarter of 2026 ($159 million), higher midstream transportation costs in Montney ($49 million), higher transportation costs in Permian due to increased gas production volumes ($13 million) and a lower U.S./Canadian dollar exchange rate ($13 million);

partially offset by:

•

The sale of the Anadarko assets in the second quarter of 2026 ($36 million), a settlement related to a downstream transportation contract in the Canadian Operations ($19 million) and lower downstream transportation costs in Montney due to a third-party adjustment ($6 million).

Operating

Operating expense includes costs paid by the Company, net of amounts capitalized, on oil and natural gas properties in which Ovintiv has a working interest. These costs primarily include labor, service contract fees, chemicals, fuel, water hauling, electricity and workovers.


	Three months ended June 30,				Six months ended June 30,
($ millions)	2026		2025		2026		2025

Upstream
USA Operations	$	133	$	173	$	309	$	342
Canadian Operations		48		42		99		78
Upstream Operating Expense		181		215		408		420

Other		2		4		2		4
Total	$	183	$	219	$	410	$	424

	Three months ended June 30,				Six months ended June 30,
($/BOE)	2026		2025		2026		2025

USA Operations	$	6.09	$	6.03	$	6.15	$	5.99
Canadian Operations	$	1.42	$	1.56	$	1.49	$	1.52
Upstream Operating Expense	$	3.25	$	3.84	$	3.49	$	3.86

Three months ended June 30, 2026, versus June 30, 2025

Operating expense decreased $36 million compared to the second quarter of 2025 primarily due to:

•

The sale of the Anadarko assets in the second quarter of 2026 ($35 million) and lower salaries and benefits resulting from the corporate reorganization during the quarter ($11 million);

partially offset by:

•

Higher activity due to the NuVista Acquisition in the first quarter of 2026 ($9 million).

Six months ended June 30, 2026, versus June 30, 2025

Operating expense decreased $14 million compared to the first six months of 2025 primarily due to:

•

The sales of the Anadarko assets in the second quarter of 2026 ($35 million) and lower salaries and benefits resulting from the corporate reorganization during the quarter ($11 million);

partially offset by:

•

Higher activity due to the NuVista Acquisition in the first quarter of 2026 ($17 million), and increased workover activity in Montney and Permian ($9 million).

Purchased Product

Purchased product expense includes purchases of oil, NGLs and natural gas from third parties that are used to provide operational flexibility and cost mitigation for transportation commitments, product type, delivery points and customer diversification within the USA and Canadian Operations segments.


	Three months ended June 30,					Six months ended June 30,
($ millions)		2026		2025		2026		2025

Purchased Product		$	563	$	440	$	907	$	842

Three months ended June 30, 2026, versus June 30, 2025

Purchased product expense increased $123 million compared to the second quarter of 2025 primarily due to:

•

Higher third-party liquids purchase prices ($205 million) and higher third-party purchased natural gas volumes ($22 million);

partially offset by:

•

Lower third-party purchased liquids volumes ($99 million) and lower third-party natural gas purchase prices ($7 million).

Six months ended June 30, 2026, versus June 30, 2025

Purchased product expense increased $65 million compared to the first six months of 2025 primarily due to:

•

Higher third-party liquids and natural gas purchase prices ($211 million and $14 million, respectively), and higher third-party purchased natural gas volumes ($26 million);

partially offset by:

•

Lower third-party purchased liquids volumes ($186 million).

Depreciation, Depletion & Amortization

Proved properties within each country cost center are depleted using the unit-of-production method based on proved reserves as discussed in Note 1 to the Consolidated Financial Statements included in Item 8 of the 2025 Annual Report on Form 10-K. Depletion rates are impacted by impairments, acquisitions, divestitures and foreign exchange rates, as well as fluctuations in 12-month average trailing prices which affect proved reserves volumes. Corporate assets are carried at cost and depreciated on a straight-line basis over the estimated service lives of the assets.

Additional information can be found under Upstream Assets and Reserve Estimates in the Critical Accounting Estimates section of the MD&A included in Item 7 of the 2025 Annual Report on Form 10-K.


	Three months ended June 30,				Six months ended June 30,
($ millions)	2026		2025		2026		2025

Upstream
USA Operations	$	282	$	370	$	618	$	745
Canadian Operations		233		180		453		345
Upstream DD&A		515		550		1,071		1,090

Corporate & Other		4		6		9		11
Total	$	519	$	556	$	1,080	$	1,101

	Three months ended June 30,				Six months ended June 30,
($/BOE)	2026		2025		2026		2025

USA Operations	$	12.93	$	12.91	$	12.34	$	13.04
Canadian Operations	$	6.82	$	6.56	$	6.76	$	6.64
Upstream DD&A	$	9.20	$	9.81	$	9.15	$	10.00

Three months ended June 30, 2026, versus June 30, 2025

DD&A decreased $37 million compared to the second quarter of 2025 primarily due to:

•

Lower production volumes in the USA Operations primarily due to the sale of the Anadarko assets in the second quarter of 2026 ($88 million);

partially offset by:

•

Higher production volumes in the Canadian Operations primarily due to the NuVista Acquisition in the first quarter of 2026 ($43 million) and a higher depletion rate in the Canadian Operations ($9 million).

The upstream depletion rate in the USA Operations increased $0.02 per BOE primarily due to lower reserve volumes from the sale of the Anadarko assets in the second quarter of 2026, partially offset by a decrease in the depletable base resulting from the ceiling test impairment recognized in the first quarter of 2026. The upstream depletion rate in the Canadian Operations increased $0.26 per BOE primarily due to a higher depletable base resulting from the NuVista Acquisition in the first quarter of 2026, partially offset by the ceiling test impairments recognized in the first quarter of 2026 and the third quarter of 2025.

Six months ended June 30, 2026, versus June 30, 2025

DD&A decreased $21 million compared to the first six months of 2025 primarily due to:

•

Lower production volumes in the USA Operations primarily due to the sale of the Anadarko assets in the second quarter of 2026 ($91 million), and a lower depletion rate in the USA Operations ($35 million);

partially offset by:

•

Higher production volumes in the Canadian Operations primarily due to the NuVista Acquisition in the first quarter of 2026 ($102 million) and a lower U.S./Canadian dollar foreign exchange rate ($8 million).

The upstream depletion rate in the USA Operations decreased $0.70 per BOE primarily due to a lower depletable base resulting from the ceiling test impairment recognized in the first quarter of 2026, partially offset by the lower reserve volumes resulting from the sale of the Anadarko assets in the second quarter of 2026. The upstream depletion rate in the Canadian Operations increased $0.12 per BOE primarily due to a higher depletable base resulting from the NuVista Acquisition in the first quarter of 2026, partially offset by the ceiling test impairments recognized in the first quarter of 2026 and the third quarter of 2025.

Ceiling Test Impairment

Under full cost accounting, the carrying amount of Ovintiv’s oil and natural gas properties within each country cost center is subject to a ceiling test performed quarterly. Ceiling test impairments are recognized when the capitalized costs, net of accumulated depletion and the related deferred income taxes, exceed the sum of the estimated after-tax future net cash flows from proved reserves as calculated under SEC requirements using the 12-month average trailing prices and discounted at 10 percent. The 12‑month average trailing price is calculated as the average of the price on the first day of each month within the trailing 12‑month period.

In the second quarter of 2026, the Company did not recognize ceiling test impairments in the USA and Canadian Operations. In the first six months of 2026, the Company recognized before-tax non-cash ceiling test impairments of $1,485 million, comprising $1,111 million in the USA Operations and $374 million in the Canadian Operations. The non-cash ceiling test impairments recognized in the first quarter of 2026 primarily resulted from declines in the 12-month average trailing prices which reduced proved reserves in the USA Operations, and the 12-month average trailing prices used in the ceiling test at March 31, 2026, which were lower than the market prices used for the NuVista Acquisition on February 3, 2026, in the Canadian Operations.

The 12-month average trailing prices used in the ceiling test calculations were based on the benchmark prices below. The benchmark prices were adjusted for basis differentials to determine local reference prices, transportation costs and tariffs, heat content and quality.


	Oil & NGLs				Natural Gas
	WTI ($/bbl)		Edmonton Condensate (C$/bbl)		Henry Hub ($/MMBtu)		AECO (C$/MMBtu)

12-Month Average Trailing Reserves Pricing (1)
June 30, 2026	$	71.90	$	98.72	$	3.64	$	1.73
March 31, 2026		63.31		86.26		3.72		1.80
December 31, 2025		65.34		90.09		3.39		1.76
June 30, 2025		70.48		97.10		2.86		1.48

(1)

All prices were held constant in all future years when estimating net revenues and reserves.

The Company believes that the discounted after-tax future net cash flows from proved reserves required to be used in the ceiling test calculation are not indicative of the fair market value of Ovintiv’s oil and natural gas properties or the future net cash flows expected to be generated from such properties. The discounted after-tax future net cash flows do not consider the fair market value of unamortized unproved properties, or probable or possible liquids and natural gas reserves. In addition, there is no consideration given to the effect of future changes in commodity prices. Ovintiv manages its business using estimates of reserves and resources based on forecast prices and costs. Additional information on the ceiling test calculation can be found in Note 10 to the Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10‑Q.

Administrative

Administrative expense represents costs associated with corporate functions provided by Ovintiv staff. These expenses primarily include salaries and benefits, operating leases, office, information technology, transaction, restructuring and long-term incentive costs.


	Three months ended June 30,				Six months ended June 30,
($ millions)	2026		2025		2026		2025

Administrative, excluding Long-Term Incentive Costs,
Restructuring Costs, and Transaction and Legal Costs (1)	$	71	$	67	$	151	$	139
Long-term incentive costs		10		8		22		18
Restructuring costs		45		1		45		11
Transaction and legal costs		-		-		20		1
Total Administrative	$	126	$	76	$	238	$	169

	Three months ended June 30,				Six months ended June 30,
($/BOE)	2026		2025		2026		2025

Administrative, excluding Long-Term Incentive Costs,
Restructuring Costs, and Transaction and Legal Costs (1)	$	1.28	$	1.19	$	1.29	$	1.28
Long-term incentive costs		0.17		0.15		0.18		0.17
Restructuring costs		0.80		0.03		0.39		0.10
Transaction and legal costs		-		-		0.17		0.01
Total Administrative	$	2.25	$	1.37	$	2.03	$	1.56

(1)

The second quarter and first six months of 2026 includes costs related to The Bow office lease of $28 million and $57 million, respectively (2025 - $26 million and $54 million, respectively), half of which is recovered from sublease revenues.

Three months ended June 30, 2026, versus June 30, 2025

Administrative expense increased $50 million compared to the second quarter of 2025 primarily due to:

•

Higher restructuring costs ($44 million).

Six months ended June 30, 2026, versus June 30, 2025

Administrative expense increased $69 million compared to the first six months of 2025 primarily due to:

•

Higher restructuring costs ($34 million) and transaction costs incurred related to the NuVista Acquisition ($23 million).

In 2024, Ovintiv undertook a plan, which extended into 2025, to reduce its workforce by approximately 10 percent as part of a corporate reorganization. In 2026, the Company completed further workforce reductions as part of a company-wide reorganization to better align staffing levels and organizational structure with the Company’s transformed portfolio following the sale of the Anadarko assets. Additional information on the NuVista Acquisition, restructuring charges and long-term incentive costs can be found in Notes 9, 17 and 18, respectively, to the Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10‑Q.

Other (Income) Expenses


	Three months ended June 30,						Six months ended June 30,
($ millions)	2026			2025			2026			2025

Interest	$	100		$	95		$	204		$	192
Foreign Exchange (Gain) Loss, Net		23			22			21			32
(Gain) Loss on Divestitures, Net		337			-			337			-
Other (Gains) Losses, Net		(5	)		(5	)		(34	)		(8	)
Total Other (Income) Expenses	$	455		$	112		$	528		$	216

Interest

Interest expense primarily includes interest on Ovintiv’s short-term and long-term debt. Additional information on changes in interest and long-term debt can be found in Notes 5 and 12, respectively, to the Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q.

Three months ended June 30, 2026, versus June 30, 2025

Interest expense increased $5 million compared to the second quarter of 2025 primarily due to:

•

A one-time make-whole interest payment resulting from the early redemption of the Company’s $700 million senior notes during the quarter ($20 million);

partially offset by:

•

Interest savings related to the repayment of the Company’s $700 million senior notes during the quarter, its $459 million senior notes in the first quarter of 2026 and its $600 million senior notes in the second quarter of 2025 ($18 million).

Six months ended June 30, 2026, versus June 30, 2025

Interest expense increased $12 million compared to the first six months of 2025 primarily due to:

•

A one-time make-whole interest payment resulting from the early redemption of the Company’s $700 million senior notes during the quarter ($20 million), higher interest expense on short-term borrowings and the Term Credit Agreement ($11 million) and higher interest expense on finance leases ($4 million);

partially offset by:

•

Foreign Exchange (Gain) Loss, Net

Foreign exchange gains and losses primarily result from the impact of fluctuations in the Canadian to U.S. dollar exchange rate. Additional information on changes in foreign exchange gains or losses can be found in Note 6 to the Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q. Additional information on foreign exchange rates and the effects of foreign exchange rate changes can be found in Part I, Item 3 of this Quarterly Report on Form 10-Q.

Three months ended June 30, 2026, versus June 30, 2025

Net foreign exchange loss increased $1 million compared to the second quarter of 2025 primarily due to:

•

Unrealized foreign exchange losses on the translation of intercompany notes in 2026 ($30 million);

partially offset by:

•

Gains on other monetary revaluations compared to losses in 2025 ($27 million).

Six months ended June 30, 2026, versus June 30, 2025

Net foreign exchange loss decreased $11 million compared to the first six months of 2025 primarily due to:

•

Realized foreign exchange losses on the settlement of U.S. dollar risk management contracts issued from Canada in 2025 ($98 million), gains on other monetary revaluations compared to losses in 2025 ($26 million) and lower unrealized foreign exchange losses on the translation of intercompany notes ($12 million);

partially offset by:

•

Lower unrealized foreign exchange gains on the translation of U.S. dollar risk management contracts issued from Canada ($83 million) and realized foreign exchange losses on the settlement of intercompany notes compared to gains in 2025 ($42 million).

(Gain) Loss on Divestitures, Net

During the second quarter and first six months of 2026, the Company recognized a before-tax loss on the sale of the Company’s Anadarko assets of $337 million, respectively, as discussed in the Significant Developments section of this MD&A.

Amounts received from the Company’s divestiture transactions are deducted from the respective U.S. and Canadian full cost pools, except for divestitures that result in a significant alteration between capitalized costs and proved reserves in a country cost center, in which case a gain or loss is recognized. Additional information on the loss on divestiture can be found in Note 8 to the Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q.

Other (Gains) Losses, Net

Other (gains) losses, net, primarily includes other non-recurring revenues or expenses and may also include items such as interest income and adjustments related to other assets.

In the first quarter of 2026, the Company recognized a gain of approximately $25 million resulting from the fair value remeasurement of the previously acquired 18.5 million NuVista common shares in conjunction with the closing of the NuVista Acquisition.

Income Tax

During the first six months of 2026, the current income tax expense of $35 million was lower than 2025 primarily due to recently enacted Canadian legislation that accelerates capital cost recovery and favorable changes in the calculation of Corporate Alternative Minimum Tax in the U.S.

During the first six months of 2026, the deferred income tax recovery of $149 million was higher than 2025, primarily due to the impact of the non-cash ceiling test impairment recognized in the U.S. in the first quarter of 2026.

The determination of income and other tax liabilities of the Company and its subsidiaries requires interpretation of complex domestic and foreign tax laws and regulations, that are subject to change. The Company’s interpretation of tax laws may differ from the interpretation of the tax authorities. As a result, there are tax matters under review for which the timing of resolution is uncertain. The Company believes that the provision for income taxes is adequate.

Additional information on income taxes can be found in Note 7 to the Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q.

     Liquidity and Capital Resources

    

Sources of Liquidity

The Company has the flexibility to access cash equivalents and a range of funding alternatives at competitive rates through committed revolving credit facilities as well as debt and equity capital markets. Ovintiv closely monitors the accessibility of cost-effective credit and ensures that sufficient liquidity is in place to fund capital expenditures and dividend payments. In addition, the Company may use cash and cash equivalents, cash from operating activities, or proceeds from asset divestitures to fund its operations and shareholder return framework or to manage its capital structure as discussed below. As at June 30, 2026, $476 million in cash and cash equivalents was held by Canadian subsidiaries. The cash held by Canadian subsidiaries is accessible and may be subject to additional U.S. income taxes and Canadian withholding taxes if repatriated.

The Company’s capital structure consists of total shareholders’ equity plus long-term debt, including any current portion. The Company’s objectives when managing its capital structure are to maintain financial flexibility to preserve Ovintiv’s access to capital markets and its ability to meet financial obligations and finance internally generated growth, as well as potential acquisitions. Ovintiv has a practice of maintaining capital discipline and strategically managing its capital structure by adjusting capital spending, adjusting dividends paid to shareholders, issuing new shares of common stock, purchasing shares of common stock for cancellation or return to treasury, issuing new debt and repaying or repurchasing existing debt.


	As at June 30,
($ millions, except as indicated)	2026		2025

Cash and Cash Equivalents	$	700	$	20
Available Credit Facilities		3,500		3,350
Available Uncommitted Demand Lines (1)		159		132
Issuance of U.S. Commercial Paper		-		(331	)
Total Liquidity	$	4,359	$	3,171

Long-Term Debt, including current portion	$	3,695	$	5,333
Total Shareholders’ Equity	$	11,499	$	10,377

Debt to Capitalization (%) (2)		24		34
Debt to Adjusted Capitalization (%) (2)		16		23

(1)

Includes four uncommitted demand lines totaling $349 million, net of $190 million in related undrawn letters of credit (2025 - $312 million and $180 million, respectively).

(2)

These measures are defined in the Non-GAAP Measures section of this MD&A.

The Company has full access to two committed revolving U.S. dollar denominated credit facilities totaling $3.5 billion, which include a $2.2 billion revolving credit facility for Ovintiv Inc. and a $1.3 billion revolving credit facility for a Canadian subsidiary (collectively, the “Credit Facilities”). The Credit Facilities, which mature in December 2029, provide financial flexibility and allow the Company to fund its operations or capital investment program. As at June 30, 2026, there were no outstanding amounts under the revolving Credit Facilities.

Depending on the Company’s credit rating and market demand, the Company may issue from its two U.S. Commercial Paper (“CP”) programs, which include a $1.5 billion program for Ovintiv Inc. and a $1.0 billion program for a Canadian subsidiary. As at June 30, 2026, the Company had no balance outstanding under its U.S. CP program. All of Ovintiv’s credit ratings are investment grade as at June 30, 2026.

On November 25, 2025, the Company entered into a $1.2 billion Two-Year Term Credit Agreement (“Term Credit Agreement”) to fund the cash component of its previously announced NuVista Acquisition. On February 3, 2026, the Company closed the NuVista Acquisition, whereby it issued approximately 30.1 million shares of Ovintiv common stock and paid cash consideration of approximately $1.2 billion (C$1.6 billion), which was primarily funded with proceeds from the Term Credit Agreement. On April 10, 2026, following the closing of the divestiture of its Anadarko assets, the Company repaid the balance under the Term Credit Agreement and the facility was terminated.

Additional information on the Anadarko divestiture, the NuVista Acquisition and the Term Credit Agreement can be found in Notes 8, 9 and 12, respectively, to the Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q.

The available Credit Facilities, uncommitted demand lines, and cash and cash equivalents, provide Ovintiv with total liquidity of approximately $4.4 billion as at June 30, 2026. As at June 30, 2026, Ovintiv also had approximately $190 million in undrawn letters of credit issued in the normal course of business as collateral security.

Ovintiv has a U.S. shelf registration statement under which the Company may issue from time to time, debt securities, common stock, preferred stock, warrants, units, share purchase contracts and share purchase units in the U.S. The U.S. shelf registration statement was renewed in March 2026 and expires in March 2029.

The obligations under the Company’s existing debt securities are fully and unconditionally guaranteed on a senior unsecured basis by Ovintiv Canada ULC, an indirect wholly-owned subsidiary of the Company. Additional information on the Company’s Canadian Operations segment and the Bow office lease can be found in the Results of Operations section in this MD&A and in the Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q, and the MD&A and audited Consolidated Financial Statements and accompanying notes for the year ended December 31, 2025, which are included in Items 7 and 8, respectively, of the 2025 Annual Report on Form 10-K.

Ovintiv is currently in compliance with all financial covenants under the Credit Facilities. Management monitors Debt to Adjusted Capitalization, which is a non-GAAP measure defined in the Non-GAAP Measures section of this MD&A, as a proxy for Ovintiv’s financial covenant under the Credit Facilities, which requires Debt to Adjusted Capitalization to be less than 60 percent. As at June 30, 2026, the Company’s Debt to Adjusted Capitalization was 16 percent. The definitions used in the covenant under the Credit Facilities adjust capitalization for cumulative historical ceiling test impairments recorded in conjunction with the Company’s January 1, 2012, adoption of U.S. GAAP. Additional information on financial covenants can be found in Note 15 to the Consolidated Financial Statements included in Item 8 of the 2025 Annual Report on Form 10‑K.

Sources and Uses of Cash

The following table summarizes the sources and uses of the Company’s cash and cash equivalents.


			Three months ended June 30,						Six months ended June 30,
($ millions)	Activity Type		2026			2025			2026		2025

Sources of Cash and Cash Equivalents
Cash from operating activities		Operating	$	1,632		$	1,013		$	2,688	$	1,886
Proceeds from divestitures		Investing		2,822			12			2,829		1,896
Net issuance of revolving debt		Financing		-			396			-		481
Issuance of debt under the Term Credit Agreement		Financing		-			-			1,151		-
Other	Investing/Financing			1			-			44		102
				4,455			1,421			6,712		4,365

Uses of Cash and Cash Equivalents
Capital expenditures		Investing		574			521			1,179		1,138
Acquisitions		Investing		14			3			21		2,313
Corporate acquisition, net of cash acquired		Investing		-			-			1,192		-
Net repayment of revolving debt		Financing		877			-			580		-
Repayment of debt under the Term Credit Agreement		Financing		1,151			-			1,151		-
Repayment of long-term debt		Financing		720			600			1,179		600
Purchase of shares of common stock		Financing		345			147			429		147
Dividends on shares of common stock		Financing		84			77			169		155
Other	Investing/Financing			15			48			147		21
				3,780			1,396			6,047		4,374
Foreign Exchange Gain (Loss) on Cash, Cash Equivalents and Restricted Cash Held in Foreign Currency				(1	)		(13	)		-		(13	)
Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash			$	674		$	12		$	665	$	(22	)

Operating Activities

Net cash from operating activities in the second quarter and first six months of 2026 was $1,632 million and $2,688 million, respectively, and was primarily a reflection of the impacts from production volumes, average realized commodity prices, realized gains/losses on risk management and changes in non‑cash working capital.

Additional detail on changes in non-cash working capital can be found in Note 21 to the Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q. Ovintiv expects it will continue to meet the payment terms of its suppliers.

Non-GAAP Cash Flow in the second quarter and first six months of 2026 was $1,256 million and $2,495 million, respectively, and was primarily impacted by the items affecting cash from operating activities which are discussed below and in the Results of Operations section of this MD&A.

Three months ended June 30, 2026, versus June 30, 2025

Net cash from operating activities increased $619 million compared to the second quarter of 2025 primarily due to:

•

Higher realized liquids commodity prices ($659 million), changes in non-cash working capital ($269 million), higher plant condensate and natural gas production volumes ($103 million), and lower operating expense, excluding non-cash long-term incentive costs ($31 million);

partially offset by:

•

Lower oil and other NGLs production volumes ($130 million), higher transportation and processing expense ($105 million), realized losses on risk management in revenues compared to gains in 2025 ($101 million), lower realized natural gas commodity prices ($94 million) and higher administrative expense, excluding non-cash long-term incentive costs ($49 million).

Six months ended June 30, 2026, versus June 30, 2025

Net cash from operating activities increased $802 million compared to the first six months of 2025 primarily due to:

•

Higher realized oil and plant condensate commodity prices ($676 million), higher NGLs and natural gas production volumes ($359 million), changes in non-cash working capital ($220 million), realized foreign exchange losses on risk management contracts issued from Canada in 2025 ($98 million), lower current income tax expense ($34 million) and lower operating expense, excluding non-cash long-term incentive costs ($11 million);

partially offset by:

•

Higher transportation and processing expense ($178 million), lower oil production volumes ($171 million), realized losses on risk management in revenues compared to gains in 2025 ($141 million), lower realized natural gas and other NGLs commodity prices ($74 million), and higher administrative expense, excluding non-cash long-term incentive costs ($68 million).

Investing Activities

Cash from investing activities in the first six months of 2026 was $481 million primarily due to the sale of the Company’s Anadarko assets, partially offset by the NuVista Acquisition in the first quarter of 2026 and capital expenditures.

Divestitures in the first six months of 2026 were $2,829 million, which primarily included the sale of the Anadarko assets in Oklahoma. Divestitures in the first six months of 2025 were $1,896 million, which primarily included the sale of the Uinta assets in Utah. Acquisitions in the first six months of 2025 were $2,313 million, which primarily included the Montney Acquisition.

The corporate acquisition in the first six months of 2026 was $1,192 million, which reflects the net cash paid to complete the NuVista Acquisition.

Capital expenditures increased $41 million compared to the first six months of 2025, primarily due to increased capital activity in Montney primarily due to the NuVista Acquisition in the first quarter of 2026 and increased drilling and completions costs in Permian, partially offset by decreased capital activity resulting from the sale of the Anadarko assets.

Capital expenditures are summarized in Note 3, acquisition and divestiture activities, including additional information regarding the Montney Acquisition and the sales of the Anadarko and Uinta assets, can be found in Note 8, and additional information regarding the NuVista Acquisition can be found in Note 9 to the Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q.

Financing Activities

Net cash used in financing activities has been impacted by Ovintiv’s strategic objective to return value to shareholders by repaying existing debt, purchasing shares of common stock and paying dividends.

Net cash used in financing activities in the first six months of 2026 increased $2,062 million compared to 2025. The increase was primarily due to a net repayment of revolving debt in 2026 of $580 million compared to a net issuance in 2025 of $481 million, increased repayment of long-term debt, including the early redemption of the Company’s May 2028 senior notes during the second quarter of 2026 ($579 million), increased purchases of shares of common stock ($282 million) and the settlement of a property acquisition payable in the first quarter of 2026 ($123 million). Additionally, during the first six months of 2026, the Company borrowed and subsequently repaid $1,151 million under the Term Credit Agreement.

In January 2026, Ovintiv redeemed its $459 million, 5.375 percent senior notes due January 1, 2026, with cash on hand and proceeds from short-term borrowings. On April 20, 2026, the Company redeemed its $700 million, 5.65 percent senior notes due May 15, 2028, with proceeds from the divestiture of its Anadarko assets, which is expected to result in annualized interest savings of approximately $40 million. The early redemption resulted in a one-time make-whole payment of $20 million.

The Company’s long-term debt totaled $3,695 million at June 30, 2026. There was no current portion of long-term debt outstanding at June 30, 2026. The Company’s long-term debt at December 31, 2025, including the current portion of $810 million, totaled $5,202 million. As at June 30, 2026, the Company has no fixed rate long-term debt due until 2030 and beyond.

From time to time, Ovintiv may seek to retire or repurchase the Company’s outstanding debt through cash purchases and/or exchanges for other debt or equity securities, in open market purchases, privately negotiated transactions or otherwise. Such repurchases or exchanges, if any, will depend on prevailing market conditions, the Company’s liquidity requirements, contractual restrictions and other factors.

In support of the Company’s commitment to enhancing shareholder value, Ovintiv utilizes its shareholder return framework to provide competitive returns to shareholders. As discussed in the Significant Developments section of this MD&A, the Company updated its shareholder return framework, which commits to returning between 50 percent and 100 percent of annual Non-GAAP Cash Flow in excess of capital expenditures through base dividends and share buybacks.

For additional information on long-term debt, refer to Note 12 to the Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q. Further details on the Company’s debt-based metrics can be found in the Non-GAAP measures section of this MD&A.

Dividends

The Company pays quarterly dividends to common shareholders at the discretion of the Board of Directors.


	Three months ended June 30,					Six months ended June 30,
($ millions, except as indicated)		2026		2025		2026		2025

Dividend Payments		$	84	$	77	$	169	$	155
Dividend Payments ($/share)		$	0.30	$	0.30	$	0.60	$	0.60

On July 23, 2026, the Board of Directors declared a dividend of $0.30 per share of common stock payable on September 29, 2026, to shareholders of record as of September 15, 2026.

Dividends paid in the first six months of 2026 increased $14 million compared to 2025 due to additional shares of common stock issued as part of the NuVista Acquisition.

Normal Course Issuer Bid

In the second quarter and first six months of 2026, the Company purchased, for cancellation, approximately 6.1 million and 7.6 million shares of common stock, respectively, for total consideration of approximately $345 million and $429 million, respectively. For additional information on the NCIB, refer to Note 14 to the Consolidated Financial Statements included in Part I, Item 1 and Part II, Item 2, “Unregistered Sales of Equity Securities and Use of Proceeds” of this Quarterly Report on Form 10‑Q.

Material Cash Requirements

For information on material cash requirements, refer to the Material Cash Requirements section of the MD&A included in Item 7 of the 2025 Annual Report on Form 10-K.

Commitments and Contingencies

For information on commitments and contingencies, refer to Note 22 to the Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q.

Critical Accounting Estimates

There have been no significant changes to the Company’s critical accounting policies and use of estimates from the disclosures reported in the Critical Accounting Estimates section of the MD&A included in Item 7 of the 2025 Annual Report on Form 10‑K.

     Non-GAAP Measures

    

Certain measures in this document do not have any standardized meaning as prescribed by U.S. GAAP and, therefore, are considered non-GAAP measures. These measures may not be comparable to similar measures presented by other issuers and should not be viewed as a substitute for measures reported under U.S. GAAP. These measures are commonly used in the oil and gas industry and by Ovintiv to provide shareholders and potential investors with additional information regarding the Company’s liquidity and its ability to generate funds to finance its operations. Non-GAAP measures include: Non-GAAP Cash Flow, Debt to Adjusted Capitalization, Debt to EBITDA and Debt to Adjusted EBITDA. Management’s use of these measures is discussed further below.

Cash from Operating Activities and Non-GAAP Cash Flow

Non-GAAP Cash Flow is a non-GAAP measure defined as cash from (used in) operating activities excluding net change in other assets and liabilities, and net change in non-cash working capital.

Management believes this measure is useful to the Company and its investors as a measure of operating and financial performance across periods and against other companies in the industry, and is an indication of the Company’s ability to generate cash to finance capital investment programs, to service debt and to meet other financial obligations. This measure is used, along with other measures, in the calculation of certain performance targets for the Company’s management and employees.


	Three months ended June 30,						Six months ended June 30,
($ millions)	2026			2025			2026			2025

Cash From (Used in) Operating Activities	$	1,632		$	1,013		$	2,688		$	1,886
(Add back) deduct:
Net change in other assets and liabilities		(4	)		(11	)		(18	)		(22	)
Net change in non-cash working capital		380			111			211			(9	)
Non-GAAP Cash Flow	$	1,256		$	913		$	2,495		$	1,917

Debt to Capitalization and Debt to Adjusted Capitalization

Debt to Adjusted Capitalization is a non-GAAP measure which adjusts capitalization for historical ceiling test impairments that were recorded as at December 31, 2011. Management monitors Debt to Adjusted Capitalization as a proxy for the Company’s financial covenant under the Credit Facilities which require Debt to Adjusted Capitalization to be less than 60 percent. Adjusted Capitalization includes debt, total shareholders’ equity and an equity adjustment for cumulative historical ceiling test impairments recorded as at December 31, 2011, in conjunction with the Company’s January 1, 2012, adoption of U.S. GAAP.


($ millions, except as indicated)	June 30, 2026		December 31, 2025

Debt (Long-Term Debt, including Current Portion)	$	3,695	$	5,202
Total Shareholders’ Equity		11,499		11,195
Capitalization	$	15,194	$	16,397
Debt to Capitalization	24%		32%

Debt (Long-Term Debt, including Current Portion)	$	3,695	$	5,202
Total Shareholders’ Equity		11,499		11,195
Equity Adjustment for Impairments at December 31, 2011		7,746		7,746
Adjusted Capitalization	$	22,940	$	24,143
Debt to Adjusted Capitalization	16%		22%

Debt to EBITDA and Debt to Adjusted EBITDA

Debt to EBITDA and Debt to Adjusted EBITDA are non-GAAP measures. EBITDA is defined as trailing 12-month net earnings (loss) before income taxes, depreciation, depletion and amortization, and interest. Adjusted EBITDA is EBITDA adjusted for impairments, accretion of asset retirement obligation, unrealized gains/losses on risk management, foreign exchange gains/losses, gains/losses on divestitures and other gains/losses.

Management believes these measures are useful to the Company and its investors as a measure of financial leverage and the Company’s ability to service its debt and other financial obligations. These measures are used, along with other measures, in the calculation of certain financial performance targets for the Company’s management and employees.


($ millions, except as indicated)	June 30, 2026			December 31, 2025

Debt (Long-Term Debt, including Current Portion)	$	3,695		$	5,202

Net Earnings (Loss)		920			1,242
Add back (deduct):
Depreciation, depletion and amortization		2,158			2,179
Interest		388			376
Income tax expense (recovery)		(644	)		(472	)
EBITDA	$	2,822		$	3,325
Debt to EBITDA (times)		1.3			1.6


Debt (Long-Term Debt, including Current Portion)	$	3,695		$	5,202

Net Earnings (Loss)		920			1,242
Add back (deduct):
Depreciation, depletion and amortization		2,158			2,179
Impairments		1,675			920
Accretion of asset retirement obligation		28			28
Interest		388			376
Unrealized (gains) losses on risk management		(135	)		(6	)
Foreign exchange (gain) loss, net		20			31
(Gain) loss on divestitures, net		337			-
Other (gains) losses, net		(72	)		(46	)
Income tax expense (recovery)		(644	)		(472	)
Adjusted EBITDA	$	4,675		$	4,252
Debt to Adjusted EBITDA (times)		0.8			1.2

Item 3: Quantitative and Qualitative Disclosures About Market Risk

The primary objective of the following information is to provide forward-looking quantitative and qualitative information about Ovintiv’s potential exposure to market risks. The term “market risk” refers to the Company’s risk of loss arising from adverse changes in oil, NGL and natural gas prices, foreign currency exchange rates and interest rates. The following disclosures are not meant to be precise indicators of expected future losses but rather indicators of reasonably possible losses. The forward-looking information provides indicators of how the Company views and manages ongoing market risk exposures.

COMMODITY PRICE RISK

Commodity price risk arises from the effect that fluctuations in future commodity prices, including oil, NGLs and natural gas, may have on future revenues, expenses and cash flows. Realized pricing is primarily driven by the prevailing worldwide price for oil, and spot market prices applicable to the Company’s natural gas production. Pricing for oil, NGLs and natural gas production is volatile and unpredictable as discussed in Part 1, Item 2 of this Quarterly Report on Form 10‑Q in the Executive Overview section in Management’s Discussion and Analysis of Financial Condition and Results of Operations and in Item 1A. “Risk Factors” of the 2025 Annual Report on Form 10‑K. To partially mitigate exposure to commodity price risk, the Company may enter into various derivative financial instruments including futures, forwards, swaps, options and costless collars. The use of these derivative instruments is governed under formal policies and is subject to limits established by the Board of Directors and may vary from time to time. Both exchange traded and over-the-counter traded derivative instruments may be subject to margin-deposit requirements, and the Company may be required from time to time to deposit cash or provide letters of credit with exchange brokers or counterparties to satisfy these margin requirements. For additional information relating to the Company’s derivative and financial instruments, see Notes 19 and 20 to the Condensed Consolidated Financial Statements under Part I, Item 1 of this Quarterly Report on Form 10‑Q.

The table below summarizes the sensitivity of the fair value of the Company’s risk management positions to fluctuations in commodity prices, with all other variables held constant. The Company has used a 10 percent variability to assess the potential impact of commodity price changes. Fluctuations in commodity prices could have resulted in unrealized gains (losses) impacting pre-tax net earnings as follows:


	June 30, 2026
(US$ millions)	10% Price Increase			10% Price Decrease

Oil Price	$	(55	)	$	39
NGLs - Plant Condensate Price		(6	)		6
Natural Gas Price		61			(58	)

FOREIGN EXCHANGE RISK

Foreign exchange risk arises from changes in foreign exchange rates that may affect the fair value or future cash flows from the Company’s financial assets or liabilities. As Ovintiv operates primarily in the United States and Canada, fluctuations in the exchange rate between the U.S. and Canadian dollars can have a significant effect on the Company’s reported results.

The table below summarizes selected foreign exchange impacts on Ovintiv’s financial results when compared to the same periods in 2025.


	Three Months Ended June 30,				Six Months Ended June 30,
	$ millions		$/BOE		$ millions		$/BOE

Increase (Decrease) in:
Capital investment (1)	$	1			$	8
Transportation and processing expense (1)		-	$	-		13	$	0.11
Operating expense (1)		-		-		2		0.01
Administrative expense		-		-		2		0.02
Depreciation, depletion and amortization (1)		-		-		8		0.07

(1)

Reflects upstream operations.

Foreign exchange gains and losses also arise when monetary assets and monetary liabilities denominated in foreign currencies are translated and settled, and primarily include:

•

U.S. dollar denominated financing debt issued from Canada

•

U.S. dollar denominated risk management assets and liabilities held in Canada

•

U.S. dollar denominated cash and short-term investments held in Canada

•

Foreign denominated intercompany loans

To partially mitigate the effect of foreign exchange fluctuations on future commodity revenues and expenses, the Company may enter into foreign currency derivative contracts from time to time. As at June 30, 2026, the Company does not have any notional U.S. dollar denominated currency swaps.

As at June 30, 2026, Ovintiv did not have any U.S. dollar denominated financing debt issued from Canada that was subject to foreign exchange exposure.

The table below summarizes the sensitivity to foreign exchange rate fluctuations, with all other variables held constant. The Company has used a 10 percent variability to assess the potential impact from Canadian to U.S. foreign currency exchange rate changes. Fluctuations in foreign currency exchange rates could have resulted in unrealized gains (losses) impacting pre-tax net earnings as follows:


	June 30, 2026
(US$ millions)	10% Rate Increase			10% Rate Decrease

Foreign Currency Exchange	$	(48	)	$	58

INTEREST RATE RISK

Interest rate risk arises from changes in market interest rates that may affect the fair value or future cash flows from the Company’s financial assets or liabilities. The Company may partially mitigate its exposure to interest rate changes by holding a mix of both fixed and floating rate debt and may also enter into interest rate derivatives to partially mitigate effects of fluctuations in market interest rates.

As at June 30, 2026, Ovintiv did not have any floating rate revolving credit and term loan borrowings outstanding. Accordingly, on a before-tax basis, the sensitivity for each one percent change in interest rates on floating rate revolving credit and term loan borrowings was nil.

Item 4: Controls and Procedures

DISCLOSURE CONTROLS AND PROCEDURES

Ovintiv’s Chief Executive Officer and Chief Financial Officer performed an evaluation of the effectiveness of the Company’s disclosure controls and procedures as defined in Rules 13a-15(e) and 15d-15(e) of the Exchange Act. The Company’s disclosure controls and procedures are designed to ensure that information required to be disclosed by the Company in reports it files or submits under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the rules and forms of the SEC, and to ensure that the information required to be disclosed by the Company in reports that it files or submits under the Exchange Act, is accumulated and communicated to the Company’s management, including the principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure. Based on this evaluation, the Chief Executive Officer and Chief Financial Officer have concluded that the Company’s disclosure controls and procedures were effective as of June 30, 2026.

CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING

For the second quarter ended June 30, 2026, management’s assessment of, and conclusion on, the effectiveness of internal controls over financial reporting did not include the internal controls related to the NuVista Energy Ltd. acquisition that closed on February 3, 2026. Upon closing, NuVista Energy Ltd.’s total assets acquired represented 17 percent of the Company’s consolidated total assets as of March 31, 2026. The assets acquired generated revenues of $457 million for the period from February 3, 2026, to June 30, 2026, which represented eight percent of the Company’s consolidated total revenues for the six months ended June 30, 2026. Under guidelines established by the SEC, companies are permitted to exclude acquisitions from their assessment of internal controls over financial reporting for a period of up to one year following an acquisition while integration occurs. The Company is in the process of assessing the internal controls over financial reporting of NuVista Energy Ltd. Except as noted above, there were no changes in the Company’s internal controls over financial reporting during the second quarter of 2026 that have materially affected, or are reasonably likely to affect, the Company’s internal controls over financial reporting.

PART II

Item 1. Legal Proceedings

Please refer to Item 3 of the 2025 Annual Report on Form 10‑K and Note 22 to the Condensed Consolidated Financial Statements under Part I, Item 1 of this Quarterly Report on Form 10‑Q.

Item 1A. Risk Factors

There have been no material changes to the risk factors previously disclosed in Item 1A., "Risk Factors" of our Annual Report on Form 10-K for the year ended December 31, 2025.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Issuer Purchase of Equity Securities

On September 29, 2025, Ovintiv announced it had received regulatory approval to purchase, for cancellation or return to treasury, up to approximately 22.3 million shares of common stock pursuant to a NCIB over a 12-month period from October 3, 2025, and ending October 2, 2026. The number of shares of common stock authorized for purchase represents 10 percent of Ovintiv’s public float as at September 26, 2025.

During the three months ended June 30, 2026, the Company purchased 6,105,772 shares of common stock for approximately $345 million, at a weighted average price of $56.48. The following table presents the common shares purchased during the three months ended June 30, 2026.


Period	Total Number of Shares Purchased (1)		Average Price Paid per Share (2)		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs		Maximum Number of Shares That May Yet be Purchased Under the Plans or Programs
April 1 to April 30, 2026		1,693,622	$	56.54		1,693,622		19,106,831
May 1 to May 31, 2026		1,568,113		58.35		1,568,113		17,538,718
June 1 to June 30, 2026		2,844,037		55.41		2,844,037		14,694,681
Total		6,105,772	$	56.48		6,105,772		14,694,681

(1)

For the three months ended June 30, 2026, 3,615,818 shares of common stock were repurchased through our broker in accordance with a Rule 10b5‑1 compliant plan initially adopted by the Company on September 30, 2021.

(2)

Includes commissions but excludes excise taxes.

In the second quarter of 2025, Ovintiv renewed its exemption order (the “NCIB Exemption”) from the Alberta Securities Commission and the Ontario Securities Commission, which permits Ovintiv to make repurchases (the “Proposed Bids”), under its current and any future normal course issuer bids, through the facilities of the NYSE and other U.S.-based trading systems (collectively, “U.S. Markets”), in excess of the maximum allowable purchases under applicable Canadian securities laws. The Company’s initial NCIB Exemption was granted in the first quarter of 2022. The NCIB Exemption applies to any Proposed Bid commenced within 36 months of the date of the exemption order and is subject to several other conditions, including that Ovintiv remain a U.S. and SEC foreign issuer under applicable Canadian securities laws. The purchases of common stock under a Proposed Bid must also be made in compliance with other applicable Canadian securities laws and applicable U.S. rules. Additionally, the NCIB Exemption imposes restrictions on the number of shares of common stock that may be acquired under the exemption, including that: (a) Ovintiv may not acquire common stock in reliance upon the exemption under subsection 4.8(3) of Canadian National Instrument 62-104 – Take-Over Bids and Issuer Bids (“NI 62-104”) from the requirements applicable to issuer bids (the “Other Published Markets Exemption”) if the aggregate number of shares of common stock purchased by Ovintiv, and any person or company acting jointly or in concert with Ovintiv, in reliance on the NCIB Exemption and the Other Published Markets Exemption within any period of 12 months exceeds 5 percent of the outstanding common stock on the first day of such 12-month period; and (b) the aggregate number of shares of common stock purchased pursuant to (i) a Proposed Bid in reliance on the NCIB Exemption; (ii) exempt issuer bid purchases made in the normal course through the facilities of the TSX; and (iii) the Other Published Markets Exemption does not exceed, over the 12-month period of its current NCIB, 10 percent of Ovintiv’s public float. As a result, the NCIB Exemption effectively allows Ovintiv to purchase up to 10 percent of its public float on U.S. Markets under its NCIB. Without the NCIB Exemption this amount would be limited to 5 percent of Ovintiv’s outstanding common stock within a 12-month period under applicable Canadian securities law.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

None.

Item 6. Exhibits


Exhibit No		Description
31.1		Certification of Chief Executive Officer pursuant to Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934.
31.2		Certification of Chief Financial Officer pursuant to Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934.
32.1*		Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350.
32.2*		Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350.
101.INS		Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.SCH		Inline XBRL Taxonomy Extension Schema With Embedded Linkbases Document.
104		The cover page from the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2026, has been formatted in Inline XBRL.

* The certifications on Exhibits 32.1 and 32.2 hereto are deemed not “filed” for purposes of Section 18 of the Exchange Act or otherwise subject to the liability of that section. Such certifications will not be deemed incorporated by reference to any filings under the Securities Act or the Exchange Act.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.