Ovintiv Inc. OVV reported fourth-quarter 2023 adjusted earnings per share (EPS) of $2.35, which beat the Zacks Consensus Estimate of $1.94. The bottom line also improved from the year-ago level of 91 cents. The upside can be attributed to lower expenses year over year.

Total revenues of $3.2 billion decreased 1.4% from the year-ago quarter’s figure. This was due to a year-over-year decline in revenues from products and services. The top line, however, beat the Zacks Consensus Estimate by 14.3%. This was due to higher-than-expected production. Total oil production came in at 194,100 barrels of oil equivalent per day (BOE/d), which outpaced the Zacks Consensus Estimate of 174,000 BOE/d.

OVV’s board of directors declared a quarterly dividend of 30 cents per share for its common shareholders of record as of Mar 15, 2024. The dividend will be paid out on Mar 28.

During this quarter, the company returned approximately $135 million to shareholders through share buybacks of $53 million and a base dividend of $82 million.

Ovintiv Inc. Price, Consensus and EPS Surprise

Ovintiv Inc. price-consensus-eps-surprise-chart | Ovintiv Inc. Quote

 

Production & Prices

Total fourth-quarter production was 605,200 BOE/d compared with 523,600 BOE/d in the prior-year period.  The figure beat our projection of 567,000 BOE/d. Higher volumes can be attributed to a 5.4% year-over-year increase in natural gas production that amounted to 1,645 million cubic feet per day (MMcf/d). Production of liquids increased to 331,100 BOE/d.

Ovintiv's realized natural gas price was $2.65 per thousand cubic feet compared with the year-ago quarter’s figure of $2.49. However, the reported figure fell short of our projection of $3.13 per thousand cubic feet.

The realized oil price increased to $76.64 per barrel from $75.85 in the fourth quarter of 2022. However, the figure fell short of our projection of $85.70.

Costs, Capex & Balance Sheet

Total expenses in the reported quarter decreased to $1.98 billion from the year-ago figure of $2.05 billion.

Ovintiv’s cash from operating activities in the quarter under review summed at $1.4 billion, up from the year-ago figure of $875 million. Its capital investments amounted to $660 million compared with $358 million in the year-ago period. Ovintiv generated non-GAAP free cash flow of $577 billion in the reported quarter.

As of Dec 31, the company had cash and cash equivalents worth $3 million and long-term debt of $5.7 billion. Its debt-to-capitalization at the end of the reported quarter was 34.5%.