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Leases (Tables)

12 Months Ended

Dec. 31, 2025

Summary of Operating and Finance Lease Costs

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 there 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.

Schedule Operating Lease Expense

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

Schedule of Future Lease Payments and Lease Liabilities Related to Operating and Finance Leases

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.