Ovintiv's Q2 adjusted funds flow fell to $578 million as gas prices stayed weak. Production dropped to 546,000 boe/d. The company kept spending flat and trimmed its rig count earlier this year.
Ovintiv posted second-quarter adjusted funds flow of $578 million, down from $640 million a year earlier, as lower natural gas prices bit into cash generation. Production came in at 546,000 barrels of oil equivalent a day, a drop from the year-ago quarter.
The company kept capital spending to $505 million, in line with its plan to hold the budget flat through the year. Ovintiv has been running a leaner program since the spring, when it trimmed its rig count to three from four in response to persistent gas weakness.
Ovintiv's Alpha Score sits at 56 out of 100, a moderate reading that reflects the sector's broader headwinds. The Energy sector has been under pressure as producers face a stretched cost base and sluggish pricing power. Ovintiv's stock page is OVV.
Ovintiv's capital program and shareholder returns have been evaluated in recent commodities analysis.
On the call, management reiterated its commitment to returning at least 50% of free cash flow to shareholders through buybacks and dividends. Debt stood at $5.5 billion at quarter-end, down from $6.2 billion a year earlier.
Ovintiv's third quarter is shaping up to be more of the same. The company expects production of 540,000 to 560,000 boe/d, with capex of $550 million to $600 million.
Prepared with AlphaScala editorial tooling from the source reporting linked above. Indexable analysis may include a cited Alpha Score value. Publishing checks screen each story before release. Educational coverage, not personalized advice.