10-Q · May 11, 2026
Ovintiv's Q1 2026 results reflected a noteworthy rise in revenue to $2.53 billion but a significant net loss of $630 million, driven by $1.485 billion in ceiling test impairments. Management forecasts an improved…
Earnings analysis · 10-Q
OVV earnings analysis
Filed July 23, 2026 · Our reading of the company's report
The latest report
Ovintiv delivered a strong Q2 operational and cash-flow recovery: total revenue rose 30.0% year over year to $3.013B, diluted EPS increased to $1.62 from $1.18, and operating cash flow reached $1.632B. Higher liquids…
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Ovintiv delivered a strong Q2 operational and cash-flow recovery: total revenue rose 30.0% year over year to $3.013B, diluted EPS increased to $1.62 from $1.18, and operating cash flow reached $1.632B. Higher liquids pricing and NuVista-supported Canadian volumes outweighed Anadarko-related volume losses, while the Anadarko sale reduced long-term debt to $3.695B from $5.202B at year-end. The outlook is constructive, with 2026 production guidance raised to 630.0-645.0 MBOE/d and capital spending maintained at $2.250B-$2.350B, but gas volumes missed Q2 guidance and the company recorded a $337M Anadarko sale loss.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $1.62
- Operating margin
- 33.0%
What stood out
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Revenue and operating profitability accelerated
Total revenue rose $481M sequentially from $2.532B in Q1 2026 and $695M year over year from $2.318B to $3.013B. Operating income was $994M, implying a 33.0% operating margin, versus approximately $511M and 22.0% in Q2 2025.
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EPS returned sharply to profitability
Diluted EPS improved to $1.62 from a $2.35 loss in Q1 2026 and from $1.18 in Q2 2025, an increase of $0.44 year over year. Q2 net earnings were $456M.
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Operating cash generation strengthened
Cash from operating activities increased $619M year over year to $1.632B, while capital expenditures were $574M, or 19.0% of total revenue. The filing reports Non-GAAP Cash Flow of $1.256B for the quarter.
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Canadian growth and liquids pricing drove revenue
Canadian Operations' revenue increased $336M year over year to $1.131B, while USA Operations increased $150M to $1.673B. Higher realized liquids prices were a primary driver, including a 56% rise in realized oil price to $100.69/bbl.
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Asset-sale proceeds materially delevered balance sheet
Long-term debt fell $1.507B from $5.202B at December 31, 2025 to $3.695B at June 30, 2026 after the Anadarko divestiture proceeds funded debt repayment. Debt to Adjusted EBITDA improved to 0.8x from 1.2x.
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Production outlook raised on Permian well performance
Management raised full-year total-production guidance to 630.0-645.0 MBOE/d after Q2 production of 614.6 MBOE/d; oil and plant-condensate production of 205.8 Mbbls/d exceeded the 200.0-205.0 Mbbls/d quarterly guidance range.
What to watch
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Gas volumes missed quarterly guidance
Natural-gas production was 1,959 MMcf/d, below the Q2 guidance range of 2,000-2,100 MMcf/d, due primarily to higher third-party plant downtime and prioritization of liquids volumes. Management cites continuing exposure to weather, LNG-export changes and regional disruptions for natural-gas prices.
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Anadarko divestiture created loss and volume headwind
The company recognized a $337M before-tax loss on the Anadarko asset sale and allocated $502M of goodwill to the transaction. The sale also reduced Q2 oil production by 21.2 Mbbls/d and natural-gas production by 223 MMcf/d.
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Commodity-price sensitivity drove large impairments
First-half 2026 included $1.485B of before-tax non-cash ceiling-test impairments, comprising $1.111B in the USA and $374M in Canada, tied to trailing commodity-price assumptions and the NuVista acquisition valuation. The impairment contributed to a six-month net loss of $174M.
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Hedges reduced Q2 realized cash flow
Realized commodity-risk-management results were a $68M loss in Q2, compared with a $78M realized gain in Q2 2025. The company had hedged 51.0 Mbbls/d of expected oil and condensate output and 757 MMcf/d of natural-gas output for the remainder of 2026.
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Working-capital balances increased
Accounts receivable increased $174M to $1.302B and accounts payable and accrued liabilities increased $232M to $2.093B from December 31, 2025. The filing reports no material changes to the risk factors previously disclosed in the 2025 Form 10-K.
Management's outlook
No revenue or EPS guidance was provided in the 10-Q. Ovintiv raised 2026 total-production guidance to 630.0-645.0 MBOE/d, including 210.0-212.0 Mbbls/d of oil and plant condensate, 83.0-85.0 Mbbls/d of other NGLs, and 2,025-2,075 MMcf/d of natural gas. It expects to meet capital-investment guidance of $2.250B-$2.350B.
Earlier filings 4
10-K · February 23, 2026
Ovintiv’s 2025 10-K emphasizes a multi-basin, capital-efficient strategy anchored in its Permian (U.S.) and Montney (Canada) positions and a shareholder-return framework while driving operational efficiency through AI…
10-Q · November 4, 2025
Ovintiv reported Q3 2025 revenues of $2,066 million, down from $2,324 million in Q3 2024, with operating income falling to $273 million (Q3 2024: $527 million) and diluted EPS of $0.57 (Q3 2024: $1.92). The company…
10-Q · May 6, 2025
Ovintiv reported Q1 2025 revenue of $2,377 million (up $25 million vs Q1 2024's $2,352 million) and generated strong operating cash flow of $873 million. However, the quarter included a $730 million impairment that…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.