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Fair Value Measurements | 12 Months Ended
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Dec. 31, 2025
Fair Value Disclosures [Abstract] |
Fair Value Measurements |
24. | 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. Fair value information related to pension plan assets is included in Note 23. Recurring fair value measurements are performed for risk management assets and liabilities and other derivative contracts, as discussed further in Note 25. These items are carried at fair value in the 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 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 |
As at December 31, 2024 |  | 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 |  | $ | - |  |  | $ | 116 |  |  | $ | - |  |  | $ | 116 |  |  | $ | (6 | ) |  | $ | 110 |
Foreign Currency Derivatives: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current assets |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (2 | ) |  |  | (2 | )
Risk Management Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commodity Derivatives: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current liabilities |  | $ | - |  |  | $ | 26 |  |  | $ | - |  |  | $ | 26 |  |  | $ | (6 | ) |  | $ | 20 |
Long-term liabilities |  |  | - |  |  |  | 21 |  |  |  | - |  |  |  | 21 |  |  |  | - |  |  |  | 21 |
Foreign Currency Derivatives: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current liabilities |  |  | - |  |  |  | 89 |  |  |  | - |  |  |  | 89 |  |  |  | (2 | ) |  |  | 87 |
(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 2030, consisting of commodity fixed price contracts, three-way options, 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. 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 partial downside price protection through the put options. During 2024, the Company transferred all remaining WTI three-way options from Level 3 into Level 2 as a result of the availability of more observable inputs, such as volatility and comparable contract terms, from independent active markets. 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 input 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:
|  |  |  |  |  | Risk Management |
|  |  |  |  |  | 2025 |  |  | 2024 |
Balance, Beginning of Year |  |  |  |  |  | $ | - |  |  | $ | 16 |
Total Gains (Losses) |  |  |  |  |  |  | 1 |  |  |  | 14 |
Purchases, Sales, Issuances and Settlements: |  |  |  |  |  |  |  |  |  |
Purchases, sales and issuances |  |  |  |  |  |  | - |  |  |  | - |
Settlements |  |  |  |  |  |  | - |  |  |  | 9 |
Transfers Out of Level 3 |  |  |  |  |  |  | - |  |  |  | (39 | )
Balance, End of Year |  |  |  |  |  | $ | 1 |  |  | $ | - |
Change in Unrealized Gains (Losses) During the |  |  |  |  |  |  |  |  |  |
Year Included in Net Earnings (Loss) |  |  |  |  |  | $ | 1 |  |  | $ | 23 |
Quantitative information about unobservable inputs used in Level 3 fair value measurements for risk management positions is presented below as at December 31, 2025:
|  | Valuation Technique |  | Unobservable Input |  | Range | Weighted Average |
Risk Management - Physical Forward Contract |  | Discounted Cash Flow Model |  | Forward Prices (1) |  | $0.65/Mcf - $2.58/Mcf |  | $1.14/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 $24 million (2024 - nil) increase or decrease to net risk management assets and liabilities.

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- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (bbb)(1) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 2: http://www.xbrl.org/2003/role/exampleRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 107 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482078/820-10-55-107 Reference 3: http://www.xbrl.org/2003/role/exampleRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 100 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482078/820-10-55-100 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (c)(3) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2E -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2E Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (g) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 940 -SubTopic 820 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147478119/940-820-50-1 + Details
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