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Supplementary Oil and Gas Information | 12 Months Ended
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Dec. 31, 2025
Extractive Industries [Abstract] |
Supplementary Oil and Gas Information |
29. | Supplementary Oil and Gas Information (unaudited)
The unaudited supplementary information on oil and natural gas exploration and production activities for 2025, 2024 and 2023 has been presented in accordance with the FASB’s ASC Topic 932, “Extractive Activities - Oil and Gas” and the SEC’s final rule, “Modernization of Oil and Gas Reporting”. Disclosures by geographic area include the United States and Canada. Proved Oil and Natural Gas Reserves The following reserves disclosures reflect estimates of proved reserves, proved developed reserves, and proved undeveloped reserves, net of third-party royalty interests of oil, NGLs and natural gas owned at each year end and changes in proved reserves during each of the last three years. The Company’s estimates of proved reserves are made using available geological and reservoir data as well as production performance data. These estimates are reviewed annually by internal reservoir engineers and revised, either upward or downward, as warranted by additional data. The results of infill drilling are treated as positive revisions due to increases to expected recovery. Other revisions are due to changes in, among other things, development plans, reservoir performance, commodity prices, economic conditions, and government restrictions. Estimates of proved reserves are inherently imprecise and are continually subject to revision based on production history, results of additional exploration and development, price changes and other factors. The following reference prices were utilized in the determination of reserves and future net revenue:
|  | Oil & NGLs |  |  | Natural Gas |
|  | WTI ($/bbl) |  |  | Edmonton Condensate (C$/bbl) |  |  | Henry Hub ($/MMBtu) |  |  | AECO (C$/MMBtu) |
Reserves Pricing (1) |  |  |  |  |  |  |  |  |  |  |  |
2025 |  | $ | 65.34 |  |  | $ | 90.09 |  |  | $ | 3.39 |  |  | $ | 1.76 |
2024 |  |  | 75.48 |  |  |  | 99.60 |  |  |  | 2.13 |  |  |  | 1.26 |
2023 |  |  | 78.22 |  |  |  | 104.61 |  |  |  | 2.64 |  |  |  | 2.78 |
(1) All prices were held constant in all future years when estimating net revenues and reserves. PROVED RESERVES (1) (12-MONTH AVERAGE TRAILING PRICES)
| Oil (MMbbls) |  |  | NGLs (MMbbls) |  |  | Natural Gas (Bcf) |  |  | Total (MMBOE) |
| United States |  |  | Canada |  |  | Total |  |  | United States |  |  | Canada |  |  | Total |  |  | United States |  |  | Canada |  |  | Total |  |  |  |
2023 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning of year |  | 535.2 |  |  |  | 0.1 |  |  |  | 535.3 |  |  |  | 457.8 |  |  |  | 149.0 |  |  |  | 606.9 |  |  |  | 2,698 |  |  |  | 4,090 |  |  |  | 6,789 |  |  |  | 2,273.6 |
Revisions and improved recovery (2) |  | (134.0 | ) |  |  | - |  |  |  | (134.0 | ) |  |  | (89.1 | ) |  |  | (6.2 | ) |  |  | (95.4 | ) |  |  | (460 | ) |  |  | (21 | ) |  |  | (482 | ) |  |  | (309.6 | )
Extensions and discoveries |  | 64.7 |  |  |  | - |  |  |  | 64.7 |  |  |  | 23.3 |  |  |  | 20.4 |  |  |  | 43.6 |  |  |  | 146 |  |  |  | 916 |  |  |  | 1,061 |  |  |  | 285.3 |
Purchase of reserves in place |  | 160.0 |  |  |  | - |  |  |  | 160.0 |  |  |  | 46.6 |  |  |  | 1.1 |  |  |  | 47.7 |  |  |  | 201 |  |  |  | 17 |  |  |  | 218 |  |  |  | 243.9 |
Sale of reserves in place |  | (49.1 | ) |  |  | - |  |  |  | (49.1 | ) |  |  | (28.9 | ) |  |  | - |  |  |  | (28.9 | ) |  |  | (137 | ) |  |  | - |  |  |  | (137 | ) |  |  | (100.8 | )
Production |  | (58.0 | ) |  |  | - |  |  |  | (58.0 | ) |  |  | (31.2 | ) |  |  | (17.4 | ) |  |  | (48.6 | ) |  |  | (189 | ) |  |  | (411 | ) |  |  | (599 | ) |  |  | (206.5 | )
End of year |  | 518.8 |  |  |  | 0.1 |  |  |  | 518.9 |  |  |  | 378.4 |  |  |  | 146.9 |  |  |  | 525.3 |  |  |  | 2,259 |  |  |  | 4,591 |  |  |  | 6,850 |  |  |  | 2,185.9 |
Developed |  | 277.6 |  |  |  | 0.1 |  |  |  | 277.7 |  |  |  | 275.7 |  |  |  | 78.0 |  |  |  | 353.7 |  |  |  | 1,695 |  |  |  | 2,590 |  |  |  | 4,286 |  |  |  | 1,345.6 |
Undeveloped |  | 241.2 |  |  |  | - |  |  |  | 241.2 |  |  |  | 102.7 |  |  |  | 68.9 |  |  |  | 171.6 |  |  |  | 564 |  |  |  | 2,000 |  |  |  | 2,565 |  |  |  | 840.2 |
Total |  | 518.8 |  |  |  | 0.1 |  |  |  | 518.9 |  |  |  | 378.4 |  |  |  | 146.9 |  |  |  | 525.3 |  |  |  | 2,259 |  |  |  | 4,591 |  |  |  | 6,850 |  |  |  | 2,185.9 |
2024 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning of year |  | 518.8 |  |  |  | 0.1 |  |  |  | 518.9 |  |  |  | 378.4 |  |  |  | 146.9 |  |  |  | 525.3 |  |  |  | 2,259 |  |  |  | 4,591 |  |  |  | 6,850 |  |  |  | 2,185.9 |
Revisions and improved recovery (2) |  | 2.9 |  |  |  | 0.1 |  |  |  | 2.9 |  |  |  | 129.1 |  |  |  | (43.7 | ) |  |  | 85.4 |  |  |  | 639 |  |  |  | (2,476 | ) |  |  | (1,837 | ) |  |  | (217.9 | )
Extensions and discoveries |  | 118.0 |  |  |  | 0.3 |  |  |  | 118.3 |  |  |  | 58.2 |  |  |  | 13.6 |  |  |  | 71.8 |  |  |  | 346 |  |  |  | 315 |  |  |  | 660 |  |  |  | 300.1 |
Purchase of reserves in place |  | 1.8 |  |  |  | - |  |  |  | 1.8 |  |  |  | 1.0 |  |  |  | - |  |  |  | 1.0 |  |  |  | 6 |  |  |  | 1 |  |  |  | 7 |  |  |  | 4.0 |
Sale of reserves in place |  | (0.3 | ) |  |  | - |  |  |  | (0.3 | ) |  |  | (0.4 | ) |  |  | - |  |  |  | (0.4 | ) |  |  | (2 | ) |  |  | - |  |  |  | (2 | ) |  |  | (1.0 | )
Production |  | (61.4 | ) |  |  | (0.1 | ) |  |  | (61.5 | ) |  |  | (31.8 | ) |  |  | (17.1 | ) |  |  | (48.9 | ) |  |  | (197 | ) |  |  | (425 | ) |  |  | (621 | ) |  |  | (214.1 | )
End of year |  | 579.8 |  |  |  | 0.2 |  |  |  | 580.0 |  |  |  | 534.5 |  |  |  | 99.7 |  |  |  | 634.2 |  |  |  | 3,052 |  |  |  | 2,005 |  |  |  | 5,057 |  |  |  | 2,057.1 |
Developed |  | 273.7 |  |  |  | 0.2 |  |  |  | 274.0 |  |  |  | 336.2 |  |  |  | 59.9 |  |  |  | 396.1 |  |  |  | 1,953 |  |  |  | 1,269 |  |  |  | 3,222 |  |  |  | 1,207.1 |
Undeveloped |  | 306.0 |  |  |  | - |  |  |  | 306.0 |  |  |  | 198.4 |  |  |  | 39.8 |  |  |  | 238.2 |  |  |  | 1,099 |  |  |  | 736 |  |  |  | 1,835 |  |  |  | 850.0 |
Total |  | 579.8 |  |  |  | 0.2 |  |  |  | 580.0 |  |  |  | 534.5 |  |  |  | 99.7 |  |  |  | 634.2 |  |  |  | 3,052 |  |  |  | 2,005 |  |  |  | 5,057 |  |  |  | 2,057.1 |
2025 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning of year |  | 579.8 |  |  |  | 0.2 |  |  |  | 580.0 |  |  |  | 534.5 |  |  |  | 99.7 |  |  |  | 634.2 |  |  |  | 3,052 |  |  |  | 2,005 |  |  |  | 5,057 |  |  |  | 2,057.1 |
Revisions and improved recovery (2) |  | (29.9 | ) |  |  | 0.1 |  |  |  | (29.8 | ) |  |  | 10.1 |  |  |  | 10.8 |  |  |  | 20.9 |  |  |  | 190 |  |  |  | 1,053 |  |  |  | 1,243 |  |  |  | 198.2 |
Extensions and discoveries |  | 19.6 |  |  |  | - |  |  |  | 19.6 |  |  |  | 13.6 |  |  |  | 6.1 |  |  |  | 19.7 |  |  |  | 69 |  |  |  | 529 |  |  |  | 598 |  |  |  | 138.9 |
Purchase of reserves in place |  | 33.3 |  |  |  | - |  |  |  | 33.3 |  |  |  | 24.3 |  |  |  | 101.5 |  |  |  | 125.8 |  |  |  | 119 |  |  |  | 797 |  |  |  | 916 |  |  |  | 311.8 |
Sale of reserves in place |  | (108.2 | ) |  |  | - |  |  |  | (108.2 | ) |  |  | (14.9 | ) |  |  | - |  |  |  | (14.9 | ) |  |  | (201 | ) |  |  | - |  |  |  | (201 | ) |  |  | (156.6 | )
Production |  | (52.0 | ) |  |  | (0.2 | ) |  |  | (52.1 | ) |  |  | (31.9 | ) |  |  | (27.1 | ) |  |  | (58.9 | ) |  |  | (188 | ) |  |  | (492 | ) |  |  | (680 | ) |  |  | (224.3 | )
End of year |  | 442.5 |  |  |  | 0.2 |  |  |  | 442.7 |  |  |  | 535.8 |  |  |  | 191.1 |  |  |  | 726.8 |  |  |  | 3,041 |  |  |  | 3,892 |  |  |  | 6,933 |  |  |  | 2,325.1 |
Developed |  | 240.6 |  |  |  | 0.2 |  |  |  | 240.8 |  |  |  | 364.9 |  |  |  | 105.6 |  |  |  | 470.5 |  |  |  | 2,123 |  |  |  | 2,572 |  |  |  | 4,695 |  |  |  | 1,493.7 |
Undeveloped |  | 201.9 |  |  |  | - |  |  |  | 201.9 |  |  |  | 170.9 |  |  |  | 85.5 |  |  |  | 256.4 |  |  |  | 919 |  |  |  | 1,319 |  |  |  | 2,238 |  |  |  | 831.3 |
Total |  | 442.5 |  |  |  | 0.2 |  |  |  | 442.7 |  |  |  | 535.8 |  |  |  | 191.1 |  |  |  | 726.8 |  |  |  | 3,041 |  |  |  | 3,892 |  |  |  | 6,933 |  |  |  | 2,325.1 |
(1) Numbers may not add due to rounding. (2) Changes in reserve estimates resulting from application of improved recovery techniques are included in revisions of previous estimates. Definitions: a. “Proved” oil and gas reserves are those quantities of oil and gas which, by analysis of geoscience and engineering data, can be estimated with reasonable certainty to be economically producible from a given date forward, from known reservoirs, and under existing economic conditions, operating methods and government regulations. b. “Developed” oil and gas reserves are reserves of any category that are expected to be recovered through existing wells with existing equipment and operating methods or in which the cost of the required equipment is relatively minor compared to the cost of a new well. c. “Undeveloped” oil and gas reserves are reserves of any category that are expected to be recovered from new wells on undrilled acreage, or from existing wells where a relatively major expenditure is required for recompletion. Total Proved reserves increased 268.0 MMBOE including production of 224.3 MMBOE in 2025 due to the following: • Revisions and improved recovery of oil, NGLs and natural gas were positive primarily due to positive price revisions of 193.8 MMBOE and 93.2 MMBOE from revisions other than price, partially offset by changes in the approved development plan of 88.8 MMBOE. • Extensions and discoveries of oil, NGLs and natural gas increased proved reserves by 138.9 MMBOE due to successful drilling leading to increased technical delineation, as well as new proved undeveloped locations resulting from updated development plans in Montney and Permian. • Purchases of 311.8 MMBOE were primarily from the Montney Acquisition and properties with oil and liquids-rich potential in Permian. • Sales of reserves in place decreased proved reserves by 156.6 MMBOE primarily due to the Uinta divestiture. Total Proved reserves decreased 128.8 MMBOE including production of 214.1 MMBOE in 2024 due to the following: • Revisions and improved recovery of oil and NGLs were positive primarily due to positive revisions other than price of 97.5 MMBOE, and changes in the approved development plan of 17.9 MMBOE, partially offset by lower 12-month average trailing prices of 27.1 MMBOE. Revisions and improved recovery of natural gas were negative primarily due to lower 12-month average trailing prices of 1,914 Bcf (319.1 MMBOE), and changes in the approved development plan of 239 Bcf (39.8 MMBOE), partially offset by positive revisions other than price of 316 Bcf (52.7 MMBOE). • Extensions and discoveries of oil, NGLs and natural gas increased proved reserves by 300.1 MMBOE due to successful drilling leading to increased technical delineation, as well as new proved undeveloped locations resulting from updated development plans in Permian, Montney and Uinta. Total Proved reserves decreased 87.7 MMBOE including production of 206.5 MMBOE in 2023 due to the following: • Revisions and improved recovery of oil, NGLs and natural gas were negative primarily due to changes in the approved development plan of 330.0 MMBOE and revisions other than price of 9.2 MMBOE, partially offset by positive price revisions of 29.6 MMBOE from lower royalties in Canada due to lower 12-month average trailing prices. • Extensions and discoveries of oil, NGLs and natural gas increased proved reserves by 285.3 MMBOE due to successful drilling leading to increased technical delineation, as well as new proved undeveloped locations resulting from updated development plans in Montney, Permian and Uinta. • Purchases of 243.9 MMBOE were primarily from the Permian Acquisition. • Sale of reserves in place decreased proved developed reserves by 100.8 MMBOE primarily due to the divestiture of the Bakken. STANDARDIZED MEASURE OF DISCOUNTED FUTURE NET CASH FLOWS RELATING TO PROVED OIL AND GAS RESERVES In calculating the standardized measure of discounted future net cash flows, constant price and cost assumptions were applied to Ovintiv’s annual future production from proved reserves to determine cash inflows. Estimates of future net cash flows from proved reserves are computed based on the average beginning-of-the-month prices during the 12-month period for the year. Future production and development costs include estimates for abandonment and dismantlement costs associated with asset retirement obligations and assume the continuation of existing economic, operating and regulatory conditions. Future income taxes are calculated by applying statutory income tax rates to future pre-tax cash flows after provision for the tax cost of the oil and natural gas properties based upon existing laws and regulations. The effect of tax credits is also considered in determining the income tax expense. The discount was computed by application of a 10 percent discount factor to the future net cash flows. Ovintiv cautions that the discounted future net cash flows relating to proved oil and gas reserves are an indication of neither the fair market value of Ovintiv’s oil and natural gas properties, nor the future net cash flows expected to be generated from such properties. The discounted future net cash flows do not include the fair market value of exploratory properties and probable or possible oil and gas reserves, nor is consideration given to the effect of anticipated future changes in oil and natural gas prices, development, asset retirement and production costs, and possible changes to tax and royalty regulations. The prescribed discount rate of 10 percent may not appropriately reflect future interest rates.
|  | United States |  |  | Canada |
|  | 2025 |  |  | 2024 |  |  | 2023 |  |  | 2025 |  |  | 2024 |  |  | 2023 |
Future Cash Inflows |  | $ | 41,435 |  |  | $ | 52,682 |  |  | $ | 47,946 |  |  | $ | 15,123 |  |  | $ | 6,562 |  |  | $ | 19,697 |
Less Future: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Production costs |  |  | 12,732 |  |  |  | 15,122 |  |  |  | 14,405 |  |  |  | 7,505 |  |  |  | 3,959 |  |  |  | 8,147 |
Development costs |  |  | 6,895 |  |  |  | 10,269 |  |  |  | 8,849 |  |  |  | 3,004 |  |  |  | 1,537 |  |  |  | 2,264 |
Income taxes |  |  | 3,042 |  |  |  | 3,690 |  |  |  | 2,735 |  |  |  | 155 |  |  |  | 94 |  |  |  | 2,016 |
Future Net Cash Flows |  |  | 18,766 |  |  |  | 23,601 |  |  |  | 21,957 |  |  |  | 4,459 |  |  |  | 972 |  |  |  | 7,270 |
Less 10% annual discount for estimated |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
timing of cash flows |  |  | 8,871 |  |  |  | 10,741 |  |  |  | 10,182 |  |  |  | 1,440 |  |  |  | 160 |  |  |  | 2,963 |
Discounted Future Net Cash Flows |  | $ | 9,895 |  |  | $ | 12,860 |  |  | $ | 11,775 |  |  | $ | 3,019 |  |  | $ | 812 |  |  | $ | 4,307 |
|  |  |  |  |  |  |  |  |  |  | Total |
|  |  |  |  |  |  |  |  |  |  | 2025 |  |  | 2024 |  |  | 2023 |
Future Cash Inflows |  |  |  |  |  |  |  |  |  |  | $ | 56,558 |  |  | $ | 59,244 |  |  | $ | 67,643 |
Less Future: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Production costs |  |  |  |  |  |  |  |  |  |  |  | 20,237 |  |  |  | 19,081 |  |  |  | 22,552 |
Development costs |  |  |  |  |  |  |  |  |  |  |  | 9,899 |  |  |  | 11,806 |  |  |  | 11,113 |
Income taxes |  |  |  |  |  |  |  |  |  |  |  | 3,197 |  |  |  | 3,784 |  |  |  | 4,751 |
Future Net Cash Flows |  |  |  |  |  |  |  |  |  |  |  | 23,225 |  |  |  | 24,573 |  |  |  | 29,227 |
Less 10% annual discount for estimated |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
timing of cash flows |  |  |  |  |  |  |  |  |  |  |  | 10,311 |  |  |  | 10,901 |  |  |  | 13,145 |
Discounted Future Net Cash Flows |  |  |  |  |  |  |  |  |  |  | $ | 12,914 |  |  | $ | 13,672 |  |  | $ | 16,082 |
CHANGES IN STANDARDIZED MEASURE OF DISCOUNTED FUTURE NET CASH FLOWS RELATING TO PROVED OIL AND GAS RESERVES
|  | United States |  |  | Canada |
|  | 2025 |  |  | 2024 |  |  | 2023 |  |  | 2025 |  |  | 2024 |  |  | 2023 |
Balance, Beginning of Year |  | $ | 12,860 |  |  | $ | 11,775 |  |  | $ | 18,968 |  |  | $ | 812 |  |  | $ | 4,307 |  |  | $ | 8,531 |
Changes Resulting From: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Sales of oil and gas produced during the year |  |  | (3,163 | ) |  |  | (3,984 | ) |  |  | (3,969 | ) |  |  | (1,197 | ) |  |  | (580 | ) |  |  | (1,067 | )
Discoveries and extensions, net of related costs |  |  | 338 |  |  |  | 2,106 |  |  |  | 1,141 |  |  |  | 365 |  |  |  | 152 |  |  |  | 1,059 |
Purchases of proved reserves in place |  |  | 587 |  |  |  | 34 |  |  |  | 2,440 |  |  |  | 907 |  |  |  | - |  |  |  | 24 |
Sales and transfers of proved reserves in place |  |  | (1,551 | ) |  |  | (11 | ) |  |  | (1,765 | ) |  |  | - |  |  |  | - |  |  |  | - |
Net change in prices and production costs |  |  | (3,678 | ) |  |  | (1,704 | ) |  |  | (5,730 | ) |  |  | 1,112 |  |  |  | (1,700 | ) |  |  | (6,867 | )
Revisions to quantity estimates |  |  | 90 |  |  |  | 2,148 |  |  |  | (5,250 | ) |  |  | 721 |  |  |  | (3,073 | ) |  |  | (143 | )
Accretion of discount |  |  | 1,451 |  |  |  | 1,286 |  |  |  | 2,290 |  |  |  | 89 |  |  |  | 549 |  |  |  | 1,094 |
Development costs incurred during the year |  |  | 1,555 |  |  |  | 1,850 |  |  |  | 2,184 |  |  |  | 615 |  |  |  | 441 |  |  |  | 575 |
Changes in estimated future development costs |  |  | 1,053 |  |  |  | (67 | ) |  |  | (1,384 | ) |  |  | (361 | ) |  |  | (393 | ) |  |  | (120 | )
Other |  |  | (1 | ) |  |  | - |  |  |  | 1 |  |  |  | - |  |  |  | (1 | ) |  |  | - |
Net change in income taxes |  |  | 354 |  |  |  | (573 | ) |  |  | 2,849 |  |  |  | (44 | ) |  |  | 1,110 |  |  |  | 1,221 |
Balance, End of Year |  | $ | 9,895 |  |  | $ | 12,860 |  |  | $ | 11,775 |  |  | $ | 3,019 |  |  | $ | 812 |  |  | $ | 4,307 |
|  |  |  |  |  |  |  |  |  |  | Total |
|  |  |  |  |  |  |  |  |  |  | 2025 |  |  | 2024 |  |  | 2023 |
Balance, Beginning of Year |  |  |  |  |  |  |  |  |  |  | $ | 13,672 |  |  | $ | 16,082 |  |  | $ | 27,499 |
Changes Resulting From: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Sales of oil and gas produced during the year |  |  |  |  |  |  |  |  |  |  |  | (4,360 | ) |  |  | (4,564 | ) |  |  | (5,036 | )
Discoveries and extensions, net of related costs |  |  |  |  |  |  |  |  |  |  |  | 703 |  |  |  | 2,258 |  |  |  | 2,200 |
Purchases of proved reserves in place |  |  |  |  |  |  |  |  |  |  |  | 1,494 |  |  |  | 34 |  |  |  | 2,464 |
Sales and transfers of proved reserves in place |  |  |  |  |  |  |  |  |  |  |  | (1,551 | ) |  |  | (11 | ) |  |  | (1,765 | )
Net change in prices and production costs |  |  |  |  |  |  |  |  |  |  |  | (2,566 | ) |  |  | (3,404 | ) |  |  | (12,597 | )
Revisions to quantity estimates |  |  |  |  |  |  |  |  |  |  |  | 811 |  |  |  | (925 | ) |  |  | (5,393 | )
Accretion of discount |  |  |  |  |  |  |  |  |  |  |  | 1,540 |  |  |  | 1,835 |  |  |  | 3,384 |
Development costs incurred during the year |  |  |  |  |  |  |  |  |  |  |  | 2,170 |  |  |  | 2,291 |  |  |  | 2,759 |
Changes in estimated future development costs |  |  |  |  |  |  |  |  |  |  |  | 692 |  |  |  | (460 | ) |  |  | (1,504 | )
Other |  |  |  |  |  |  |  |  |  |  |  | (1 | ) |  |  | (1 | ) |  |  | 1 |
Net change in income taxes |  |  |  |  |  |  |  |  |  |  |  | 310 |  |  |  | 537 |  |  |  | 4,070 |
Balance, End of Year |  |  |  |  |  |  |  |  |  |  | $ | 12,914 |  |  | $ | 13,672 |  |  | $ | 16,082 |
RESULTS OF OPERATIONS The following table sets forth revenue and direct cost information relating to the Company’s oil and natural gas exploration and production activities.
|  | United States |  |  | Canada |
|  | 2025 |  |  | 2024 |  |  | 2023 |  |  | 2025 |  |  | 2024 |  |  | 2023 |
Oil, NGL and Natural Gas Revenues (1) |  | $ | 4,573 |  |  | $ | 5,612 |  |  | $ | 5,586 |  |  | $ | 2,603 |  |  | $ | 1,746 |  |  | $ | 2,226 |
Less: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Production, mineral and other taxes |  |  | 265 |  |  |  | 319 |  |  |  | 327 |  |  |  | 21 |  |  |  | 14 |  |  |  | 15 |
Transportation and processing (2) |  |  | 450 |  |  |  | 510 |  |  |  | 547 |  |  |  | 1,235 |  |  |  | 1,043 |  |  |  | 1,056 |
Operating (2) |  |  | 695 |  |  |  | 799 |  |  |  | 743 |  |  |  | 150 |  |  |  | 109 |  |  |  | 88 |
Depreciation, depletion and amortization |  |  | 1,475 |  |  |  | 1,971 |  |  |  | 1,519 |  |  |  | 683 |  |  |  | 297 |  |  |  | 286 |
Impairments |  |  | 49 |  |  |  | - |  |  |  | - |  |  |  | 871 |  |  |  | 450 |  |  |  | - |
Accretion of asset retirement obligation |  |  | 10 |  |  |  | 9 |  |  |  | 8 |  |  |  | 18 |  |  |  | 10 |  |  |  | 11 |
Operating Income (Loss) |  |  | 1,629 |  |  |  | 2,004 |  |  |  | 2,442 |  |  |  | (375 | ) |  |  | (177 | ) |  |  | 770 |
Income Taxes |  |  | 354 |  |  |  | 436 |  |  |  | 531 |  |  |  | (89 | ) |  |  | (42 | ) |  |  | 182 |
Results of Operations |  | $ | 1,275 |  |  | $ | 1,568 |  |  | $ | 1,911 |  |  | $ | (286 | ) |  | $ | (135 | ) |  | $ | 588 |
|  |  |  |  | Total |
|  |  |  |  |  |  |  |  |  |  | 2025 |  |  | 2024 |  |  | 2023 |
Oil, NGL and Natural Gas Revenues (1) |  |  |  |  |  |  |  |  |  |  | $ | 7,176 |  |  | $ | 7,358 |  |  | $ | 7,812 |
Less: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Production, mineral and other taxes |  |  |  |  |  |  |  |  |  |  |  | 286 |  |  |  | 333 |  |  |  | 342 |
Transportation and processing (2) |  |  |  |  |  |  |  |  |  |  |  | 1,685 |  |  |  | 1,553 |  |  |  | 1,603 |
Operating (2) |  |  |  |  |  |  |  |  |  |  |  | 845 |  |  |  | 908 |  |  |  | 831 |
Depreciation, depletion and amortization |  |  |  |  |  |  |  |  |  |  |  | 2,158 |  |  |  | 2,268 |  |  |  | 1,805 |
Impairments |  |  |  |  |  |  |  |  |  |  |  | 920 |  |  |  | 450 |  |  |  | - |
Accretion of asset retirement obligation |  |  |  |  |  |  |  |  |  |  |  | 28 |  |  |  | 19 |  |  |  | 19 |
Operating Income (Loss) |  |  |  |  |  |  |  |  |  |  |  | 1,254 |  |  |  | 1,827 |  |  |  | 3,212 |
Income Taxes |  |  |  |  |  |  |  |  |  |  |  | 265 |  |  |  | 394 |  |  |  | 713 |
Results of Operations |  |  |  |  |  |  |  |  |  |  | $ | 989 |  |  | $ | 1,433 |  |  | $ | 2,499 |
(1) Excludes gains (losses) on risk management and sales of volumes purchased from third parties. (2) Excludes costs related to the purchase and sale of third-party volumes. CAPITALIZED COSTS Capitalized costs include the cost of properties, equipment and facilities for oil and natural gas producing activities. Capitalized costs for proved properties include costs for oil and natural gas leaseholds where proved reserves have been identified, development wells and related equipment and facilities, including development wells in progress. Capitalized costs for unproved properties include costs for acquiring oil and natural gas leaseholds where no proved reserves have been identified.
|  | United States |  |  | Canada |
|  | 2025 |  |  | 2024 |  |  | 2023 |  |  | 2025 |  |  | 2024 |  |  | 2023 |
Proved Oil and Gas Properties |  | $ | 50,573 |  |  | $ | 50,246 |  |  | $ | 47,440 |  |  | $ | 19,560 |  |  | $ | 15,763 |  |  | $ | 16,644 |
Unproved Oil and Gas Properties |  |  | 316 |  |  |  | 741 |  |  |  | 1,449 |  |  |  | 118 |  |  |  | 23 |  |  |  | 37 |
Total Capital Cost |  |  | 50,889 |  |  |  | 50,987 |  |  |  | 48,889 |  |  |  | 19,678 |  |  |  | 15,786 |  |  |  | 16,681 |
Accumulated DD&A |  |  | 39,294 |  |  |  | 37,770 |  |  |  | 35,799 |  |  |  | 17,163 |  |  |  | 14,821 |  |  |  | 15,332 |
Net Capitalized Costs |  | $ | 11,595 |  |  | $ | 13,217 |  |  | $ | 13,090 |  |  | $ | 2,515 |  |  | $ | 965 |  |  | $ | 1,349 |
|  |  |  |  | Total |
|  |  |  |  |  |  |  |  |  |  | 2025 |  |  | 2024 |  |  | 2023 |
Proved Oil and Gas Properties |  |  |  |  |  |  |  |  |  |  | $ | 70,133 |  |  | $ | 66,009 |  |  | $ | 64,084 |
Unproved Oil and Gas Properties |  |  |  |  |  |  |  |  |  |  |  | 434 |  |  |  | 764 |  |  |  | 1,486 |
Total Capital Cost |  |  |  |  |  |  |  |  |  |  |  | 70,567 |  |  |  | 66,773 |  |  |  | 65,570 |
Accumulated DD&A |  |  |  |  |  |  |  |  |  |  |  | 56,457 |  |  |  | 52,591 |  |  |  | 51,131 |
Net Capitalized Costs |  |  |  |  |  |  |  |  |  |  | $ | 14,110 |  |  | $ | 14,182 |  |  | $ | 14,439 |
COSTS INCURRED Costs incurred includes both capitalized costs and costs charged to expense when incurred. Costs incurred also includes internal costs directly related to acquisition, exploration, and development activities, new asset retirement costs established in the current year as well as increases or decreases to the asset retirement obligations resulting from changes to cost estimates during the year.
|  | United States |  |  | Canada |
|  | 2025 |  |  | 2024 |  |  | 2023 |  |  | 2025 |  |  | 2024 |  |  | 2023 |
Acquisition Costs |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Unproved |  | $ | 60 |  |  | $ | - |  |  | $ | 1,063 |  |  | $ | 128 |  |  | $ | - |  |  | $ | - |
Proved |  |  | 200 |  |  |  | 200 |  |  |  | 3,868 |  |  |  | 2,321 |  |  |  | 5 |  |  |  | 6 |
Total Acquisition Costs |  |  | 260 |  |  |  | 200 |  |  |  | 4,931 |  |  |  | 2,449 |  |  |  | 5 |  |  |  | 6 |
Exploration Costs |  |  | 2 |  |  |  | 6 |  |  |  | 3 |  |  |  | 1 |  |  |  | - |  |  |  | - |
Development Costs |  |  | 1,553 |  |  |  | 1,925 |  |  |  | 2,224 |  |  |  | 550 |  |  |  | 467 |  |  |  | 562 |
Total Costs Incurred |  | $ | 1,815 |  |  | $ | 2,131 |  |  | $ | 7,158 |  |  | $ | 3,000 |  |  | $ | 472 |  |  | $ | 568 |
|  |  |  |  |  |  |  |  |  |  | Total |
|  |  |  |  |  |  |  |  |  |  | 2025 |  |  | 2024 |  |  | 2023 |
Acquisition Costs |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Unproved |  |  |  |  |  |  |  |  |  |  | $ | 188 |  |  | $ | - |  |  | $ | 1,063 |
Proved |  |  |  |  |  |  |  |  |  |  |  | 2,521 |  |  |  | 205 |  |  |  | 3,874 |
Total Acquisition Costs |  |  |  |  |  |  |  |  |  |  |  | 2,709 |  |  |  | 205 |  |  |  | 4,937 |
Exploration Costs |  |  |  |  |  |  |  |  |  |  |  | 3 |  |  |  | 6 |  |  |  | 3 |
Development Costs |  |  |  |  |  |  |  |  |  |  |  | 2,103 |  |  |  | 2,392 |  |  |  | 2,786 |
Total Costs Incurred |  |  |  |  |  |  |  |  |  |  | $ | 4,815 |  |  | $ | 2,603 |  |  | $ | 7,726 |
COSTS NOT SUBJECT TO DEPLETION OR AMORTIZATION Upstream costs in respect of significant unproved properties are excluded from the country cost center’s depletable base as follows:
As at December 31 |  |  |  | 2025 |  |  | 2024 |
United States |  |  |  | $ | 316 |  |  | $ | 741 |
Canada |  |  |  |  | 118 |  |  |  | 23 |
|  |  |  | $ | 434 |  |  | $ | 764 |
The following is a summary of the costs related to Ovintiv’s unproved properties as at December 31, 2025:
|  | 2025 |  |  | 2024 |  |  | 2023 |  | Prior to 2023 |  |  | Total |
Acquisition Costs |  | $ | 197 |  |  | $ | - |  |  | $ | 183 |  |  | $ | 23 |  |  | $ | 403 |
Exploration Costs |  |  | 3 |  |  |  | 6 |  |  |  | 3 |  |  |  | 19 |  |  |  | 31 |
|  | $ | 200 |  |  | $ | 6 |  |  | $ | 186 |  |  | $ | 42 |  |  | $ | 434 |
Acquisition costs primarily include costs incurred to acquire or lease properties. Exploration costs primarily include costs related to geological and geophysical studies and unevaluated costs associated with drilling and equipping exploratory wells. Ultimate recoverability of these costs and the timing of inclusion within the applicable country cost center’s depletable base is dependent upon either the finding of proved oil, NGL and natural gas reserves, expiration of leases or recognition of impairments. The $434 million of oil and natural gas properties not subject to depletion or amortization primarily includes leasehold and mineral costs related to Permian and Montney. These acquisition costs are associated with acquired acreage for which proved reserves have yet to be assigned from future development. The Company continually assesses the development timeline of the acquired acreage. The timing and amount of the transfer of property acquisition costs into the depletable base are based on several factors and may be subject to changes over time from drilling plans, drilling results, availability of capital, project economics and other assessments of the property. The inclusion of these acquisition costs in the depletable base is expected to occur within three years. The remaining costs excluded from depletion are related to properties which are not individually significant.

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