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Supplementary Oil and Gas Information
 12 Months Ended
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.