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Investing.com -- Ovintiv Inc. (NYSE:OVV) (TSX:OVV) shares surged 4.5% after the oil and gas producer reported better-than-expected second quarter earnings and raised its full-year production guidance while lowering capital expenditure forecasts.
The company reported second quarter earnings of $1.18 per share, exceeding analyst estimates of $0.98 by $0.20. Ovintiv generated $1.01 billion in cash from operating activities and $392 million in non-GAAP free cash flow after capital expenditures of $521 million. Second quarter production averaged 615 thousand barrels of oil equivalent per day (MBOE/d), surpassing the company’s guidance across all product categories.
"Our second quarter results are a reflection of the quality of the business we have built," said Ovintiv President and CEO Brendan McCracken. "Strong well performance across our portfolio, the rapid integration of our new Montney assets and enhanced capital efficiency have enabled us to reduce our expected 2025 capital investment and operating costs while increasing our full year production guidance."
Ovintiv raised its full-year production guidance to 600-620 MBOE/d from the previous 595-615 MBOE/d, while reducing its capital expenditure forecast to $2.125-$2.175 billion, $50 million lower at the midpoint. The company now expects to generate $1.65 billion in free cash flow for 2025, assuming $60 WTI oil and $3.75 NYMEX natural gas prices for the second half of the year.
During the quarter, Ovintiv returned $223 million to shareholders through a combination of $77 million in dividends ($0.30 per share) and $146 million in share repurchases (approximately 4.1 million shares). The company reduced its net debt by $217 million to approximately $5.31 billion.
Ovintiv’s board declared a quarterly dividend of $0.30 per share, payable on September 29 to shareholders of record as of September 15.
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