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Leases | 12 Months Ended
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Dec. 31, 2025
Leases [Abstract] |
Leases |
14. | Leases
Operating leases include drilling rigs, compressors, office and buildings, certain land easements and various equipment utilized in the development and production of oil, NGLs and natural gas. Subleases relate to office and building leases. The tables below summarize Ovintiv’s operating and finance lease costs and include ROU assets and lease liabilities, amounts recognized in net earnings (loss) during the year and other lease information.
As at December 31 (US$ millions, unless otherwise specified) |  |  |  | 2025 |  |  | 2024 |
Consolidated Balance Sheet (1): |  |  |  |  |  |  |  |
Operating Lease ROU Assets, in Other Assets |  |  |  | $ | 1,187 |  |  | $ | 788 |
Finance Lease ROU Assets, in Other Property Plant and Equipment (2) |  |  |  |  | - |  |  |  | 12 |
Operating Lease Liabilities: |  |  |  |  |  |  |  |
Current |  |  |  |  | 117 |  |  |  | 82 |
Long-term |  |  |  |  | 1,105 |  |  |  | 737 |
Finance Lease Liabilities (2): |  |  |  |  |  |  |  |
Current, in accounts payable and accrued liabilities |  |  |  |  | - |  |  |  | 8 |
Long-term, in other liabilities and provisions |  |  |  |  | - |  |  |  | 12 |
Weighted Average Discount Rate |  |  |  |  |  |  |  |
Operating leases |  |  |  | 5.40% |  |  | 5.42% |
Finance leases (2) |  |  |  |  | - |  |  | 6.11% |
Weighted Average Remaining Lease Term |  |  |  |  |  |  |  |
Operating leases |  |  |  | 12.2 years |  |  | 12.1 years |
Finance leases (2) |  |  |  |  | - |  |  | 2.5 years |
(1) Total ROU assets and liabilities are recorded at the gross contractual amount. A portion of the future lease payments will be recovered from other working interest owners based on their proportionate share when incurred. (2) In 2025, the Company reclassified an office building lease from a finance to an operating lease following a contract modification.
For the years ended December 31 |  |  |  | 2025 |  |  | 2024 |
Lease Costs (1): |  |  |  |  |  |  |  |
Operating Lease Costs, Excluding Short-Term Leases |  |  |  | $ | 264 |  |  | $ | 271 |
Finance Lease Costs: |  |  |  |  |  |  |  |
Amortization of ROU assets |  |  |  |  | 3 |  |  |  | 5 |
Interest on lease liabilities |  |  |  |  | 1 |  |  |  | 1 |
Total Finance Lease Costs |  |  |  |  | 4 |  |  |  | 6 |
Short-Term Lease Costs |  |  |  |  | 251 |  |  |  | 259 |
Variable Lease Costs |  |  |  |  | 62 |  |  |  | 117 |
Sublease Income: |  |  |  |  |  |  |  |
Operating lease income |  |  |  |  | 53 |  |  |  | 53 |
Variable lease income |  |  |  |  | 20 |  |  |  | 21 |
Other Information (2): |  |  |  |  |  |  |  |
Cash Paid for Amounts Included in the Measurement of Lease Liabilities: |  |  |  |  |  |  |  |
Operating cash outflows from operating leases |  |  |  |  | 244 |  |  |  | 198 |
Investing cash outflows from operating leases |  |  |  |  | 267 |  |  |  | 326 |
Operating cash outflows from finance leases |  |  |  |  | 1 |  |  |  | 1 |
Financing cash outflows from finance leases |  |  |  |  | 4 |  |  |  | 7 |
Supplemental Non-Cash Information: |  |  |  |  |  |  |  |
New ROU operating lease assets and liabilities |  |  |  |  | 454 |  |  |  | 46 |
(1) Lease costs include amounts capitalized into property, plant and equipment in the Consolidated Balance Sheet and lease expense recognized in the Consolidated Statement of Earnings. (2) Rights to extend or terminate a lease are included in the lease term when t here is reasonable certainty the right will be exercised. Lease contracts include rights to extend leases after the initial term, ranging from month-to-month to less than 10 years. Operating lease expense is reflected in the Consolidated Statement of Earnings as follows:
For the years ended December 31 |  |  |  | 2025 |  |  | 2024 |
Operating Lease Expense |  |  |  |  |  |  |  |
Transportation and processing |  |  |  | $ | 40 |  |  | $ | 2 |
Operating |  |  |  |  | 114 |  |  |  | 101 |
Administrative |  |  |  |  | 94 |  |  |  | 101 |
Total Operating Lease Expense |  |  |  | $ | 248 |  |  | $ | 204 |
The following table outlines the Company’s future lease payments and lease liabilities related to the Company’s operating leases as at December 31, 2025:
|  | 2026 |  |  | 2027 |  |  | 2028 |  |  | 2029 |  |  | 2030 |  |  | Thereafter |  |  | Total |
Operating Leases (1) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Expected Future Lease Payments |  | $ | 180 |  |  | $ | 149 |  |  | $ | 128 |  |  | $ | 123 |  |  | $ | 122 |  |  | $ | 979 |  |  | $ | 1,681 |
Less: Discounting |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 459 |
Present Value of Future Operating |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Lease Payments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 1,222 |
Sublease Income (undiscounted) |  | $ | (49 | ) |  | $ | (46 | ) |  | $ | (42 | ) |  | $ | (38 | ) |  | $ | (38 | ) |  | $ | (290 | ) |  | $ | (503 | )
(1) Lease payments are presented based on the gross contractual amount. A portion of the future lease payments will be recovered from other working interest owners based on their proportionate share when incurred. There are no ma terial commitments for leases with terms greater than one year that have not yet commenced at December 31, 2025.

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