OVV

• Overall Financial Performance & Capital Structure

  • Delivered Q2 2026 free cash flow of $682 million and cash flow per share of $4.46, both beating consensus analyst estimates
  • Reduced net debt to $2.995 billion by the end of Q2, bringing leverage down to 0.6x, the lowest leverage in over a decade; Fitch upgraded the company's credit rating to BBB from BBB-
  • Returned 63% of Q2 free cash flow to shareholders via share buybacks and base dividends, with year-to-date 2026 shareholder returns totaling ~45%, targeting full-year returns above 60%
  • Year-to-date 2026 free cash flow totals $1.3 billion, with 4% full-year oil production growth per share achieved with no increase to total capital spending or activity levels

• Portfolio & Inventory Growth

  • Added more than 3,200 new drilling locations to Permian and Montney inventory since 2023 at an average cost of $1.4 million per net 10 thousand foot location, with no shareholder dilution or balance sheet stress
  • Holds ~15 years of premium inventory in the Permian and ~20 years of premium oil inventory in the Montney; already organically replaced the full 2026 drilling program in both basins, converting previously upside locations to the premium category
  • The 100 thousand acre Barnett shale position on existing Permian acreage is being evaluated, with the first test well currently drilling and expected online by late 2026

• Stacked Innovation & Operational Advantage

  • Operates a stacked innovation model combining cumulative technical improvements, institutional expertise, and a unique private dataset, which has reversed the broader U.S. shale trend of performance degradation, delivering consistent high productivity at low cost
  • Key innovations include 10+ years of systematic cube development (co-developing multiple stacked zones from a single pad) with optimal 18-24 month reoccupation timing to minimize pressure depletion, maximizing resource recovery and value per acre
  • Surfactant treatments in the Permian deliver a 9% average productivity uplift at a cost of only $100 thousand per well, accounting for half of the segment's recent productivity gains; the company holds this intellectual property privately
  • AI and automation are deployed across operations, cutting cycle times, reducing downtime, flattening base well decline rates, and delivering significant cost savings; remote operations centers use AI to optimize artificial lift performance
  • Simulfrac and Trimulfrac completion technologies, advanced stage architecture, and domestic wet sand have reduced costs; the first 100% domestic wet sand pad in Canada cut sand costs by ~20% compared to imported dry sand
  • Montney completion speeds average 4.9 thousand feet per day, 20% faster than 2023 performance and 40% faster than peer averages in the play; a recent pacesetter achieved more than 7 thousand feet of lateral length per day with Simulfrac

• Gas Price Diversification Strategy

  • Maintains a diversified portfolio of physical and financial hedging to price gas away from the oversupplied AECO (Montney) and Waha (Permian) hubs, delivering consistent realized price premiums
  • Achieved a total company gas price realization of $1.99 per Mcf (70% of NYMEX) in Q2, outperforming peers in both basins; will continue pursuing further diversification, including new access via the Hub-to-Benson pipeline and emerging demand from Western Canadian data centers

• Full-year 2026 total company oil and condensate production guidance raised to 210 thousand to 212 thousand barrels per day, up from prior guidance, with the Permian go-forward run rate raised to 125 thousand barrels per day (maintained for 2026 and beyond); this equates to ~4% oil production growth per share with no additional capital spending
• Full-year NGL guidance increased to ~84 thousand barrels per day, while full-year natural gas guidance midpoint is maintained at 2.05 Bcf per day; Montney oil and condensate is guided to 80 thousand to 85 thousand barrels per day
• Full-year capital guidance is unchanged, with any cost inflation from higher diesel prices expected to be fully offset by operational efficiencies; Q3 2026 capital spend is expected to be ~$575 million, consistent with Q2 levels
• Management expects full-year 2026 shareholder returns (via buybacks and dividends) to exceed 60%, with increased buyback activity planned for the second half of 2026, driven by the perceived large gap between the company's market valuation and its intrinsic value at mid-cycle commodity prices
• No changes to the existing disciplined capital allocation framework, which prioritizes value creation: management will prioritize buybacks at current valuations, while retaining the optionality to invest in incremental production growth if it delivers higher returns than repurchases

Permian Basin: Oil and condensate production averaged 127 thousand barrels per day in Q2 2026, outperforming the prior 120 thousand barrels per day target run rate, driven by strong new well productivity and better-than-expected base production. The segment benefited from a 7% Midland oil price premium to WTI, plus $5 per barrel uplift from WTI roll, and avoided major Waha gas price discounts by selling less than half of Permian gas into the hub. It contributes roughly 62% of the company's total oil and condensate production at the new 125 thousand barrels per day go-forward run rate.

Montney: Oil and condensate production averaged between 80 thousand and 85 thousand barrels per day in Q2 2026, impacted by planned plant turnarounds that pulled natural gas volumes below guidance, but the impact on revenue was negligible due to weak AECO prices. The segment realized a 187% premium to AECO for natural gas, and gained an exceptional $40 million in one-quarter revenue from historically high sulfur prices (a byproduct of production), with Canadian condensate selling at a $94 per barrel premium to WTI. Montney productivity tracks above 2026 type curve, and it contributes roughly 38% of the company's total oil and condensate production at current guidance.

• Commodity price volatility is an ongoing uncertainty; management notes it lacks a crystal ball for future oil and gas prices, and maintains a balanced capital allocation approach to account for potential price downturns
• Full deployment of 100% domestic wet sand in the Montney is limited by local mining infrastructure buildout, and full adoption is not expected until ~2028
• Surfactant efficacy in the Montney is still unproven; testing is in early stages, and results will not be available for some time
• Global oil demand fundamentals (particularly Chinese demand normalization) remain uncertain, impacting timing of potential future production growth investments
• The company operates in two of the weakest price natural gas basins in North America; while diversification has mitigated this risk, low gas prices would still negatively impact revenue if diversification efforts underperform

Q: How sustainable is Ovintiv's productivity advantage from stacked innovation, given the common perception that there are no real trade secrets in the Permian? / A: Management explains that the advantage is not from a single innovation like surfactants, but from the entire stacked system of improvements combined with company-specific institutional knowledge and a large unique private dataset. The competitive moat comes from the company's culture of learning from both its own and peers' innovations, years of hands-on execution experience, and the ability to establish causal relationships between design changes and performance that cannot be easily replicated by peers at scale.

Q: What is Ovintiv's outlook on potential TSX index inclusion following recent eligibility rule changes? / A: Management notes that S&P has opened a comment period ending August 21 for proposed changes that explicitly list Ovintiv as one of three companies eligible for inclusion, with a final decision expected before the September 18 rebalancing. Analyst estimates project 3 to 7 million shares of direct buying from index funds if included, plus additional active buying from benchmark-aligned managers, which management describes as a constructive tailwind, especially amid recent consolidation of other Montney producers.

Q: Is the new 125 thousand barrels per day Permian run rate sustainable on a go-forward basis, not just for the second half of 2026? / A: Yes, management confirms the 125 thousand barrels per day is the sustained go-forward run rate, achieved with no increase in activity or capital spending. The uplift comes from consistent strong new well performance across the entire Permian portfolio, paired with meaningful improvements to base production from AI-driven monitoring, automation, and optimization that reduced failures, cut downtime, and slowed decline rates.

Q: What is the outlook for the company's 100 thousand acre Barnett shale position on existing Permian acreage? / A: The position was acquired decades ago and requires no new transaction to develop; the company is taking a gradual approach, learning from peer activity across the basin. The first test well is currently drilling, with the lateral phase underway and production expected late 2026, which will provide data on productivity and costs that can be traded with peers to further de-risk the play. Management only plans 1-2 wells per year in the near term as it evaluates the opportunity.

Q: How do you balance capital allocation between share buybacks, debt reduction, and growth in the current environment? / A: Management notes it has already achieved top-quartile low leverage and recently completed $3.4 billion in debt reduction in the quarter, so it is taking a balanced prudent approach that prioritizes buybacks given the large perceived gap between market price and intrinsic value. The company retains flexibility to adjust to future commodity price changes, and will continue to fund small bolt-on inventory acquisitions (in the low hundreds of millions of dollars range) out of free cash flow alongside buybacks.