Ovintiv Inc has authorized a new share buyback program totaling $3 billion as it revised its investor return framework following the $2.7-billion acquisition of NuVista Energy Ltd.
The Denver, Colorado-based oil and gas producer initially planned to pause its share redemption program for two quarters to free up cash for the purchase of Calgary, Canada-based NuVista, according to an online statement by Ovintiv November 4, 2025 announcing the completion of the transaction.
Announcing the new buyback program in its report for the fourth quarter (Q4) of 2025, Ovintiv said it “expects to commence share buybacks immediately”.
“Ovintiv’s planned 2026 shareholder returns will increase to at least 75 percent of full-year non-GAAP [generally accepted accounting principles] free cash flow. Longer term, the company has revised its shareholder return framework, such that 50-100 percent of annual non-GAAP free cash flow is returned to shareholders via the combination of base dividend payments and share buybacks”, the Q4 report said. Quarterly dividend remains at $0.3 per share.
The merger is part of Ovintiv’s “portfolio transformation” under which it has also entered into an agreement to sell substantially all its Anadarko assets, located on Oklahoma’s side of the basin, to an undisclosed buyer for $3 billion.
For Q4 2025, Ovintiv logged $355 million in net profit adjusted for extraordinary or nonrecurring items, up from $351 million for Q4 2024 despite a decline in oil output and realized oil prices. Net income before adjustment and income tax was $372 million, compared to negative $101 million for Q4 2024.
Oil production averaged 140,900 barrels per day (bpd) in the October-December 2025 period, down from 167,100 bpd in the same three-month period in 2024.
However, total production grew to 623,400 barrels of oil equivalent per day (boepd) in Q4 2025 from 579,900 boepd in Q4 2024. Natural gas production increased to 1.91 billion cubic feet per day (Bcfpd) in Q4 2025 from 1.68 Bcfpd in Q4 2024.
This year Ovintiv expects to average 620,000-645,000 boepd in production including contribution from NuVistra and assuming the Anadarko divestment closes April.
Ovintiv’s average realized oil price fell to $61.89 a barrel in Q4 2025 from $67.93 per barrel in Q4 2024. That was partially offset by an increase in the average realized gas price to $2.65 per thousand cubic feet from $2.42 per thousand cubic feet.
Operating activities delivered $954 million in cash, down from $1.02 billion for Q4 2024 primarily due to a difference in net change in non-cash working capital.
Non-GAAP cash flow, which Ovintiv defines as cash from operating activities excluding net changes in other assets and liabilities and net changes in non-cash working capital, stood at $973 million, down from $1 billion for Q4 2024.
Non-GAAP free cash flow – which according to Ovintiv is non-GAAP cash flow in excess of capital expenditure, excluding net acquisitions and divestitures – was $508 million, up from $452 million for Q4 2024.
“Ovintiv had approximately $4.5 billion in total liquidity as at December 31, 2025, which included available credit facilities of $3.5 billion, an available Term Credit Agreement of $1.2 billion, available uncommitted demand lines of $125 million and cash and cash equivalents of $35 million, net of outstanding commercial paper of $351 million”, the company said.
Debt totaled $5.2 billion at the end of 2025. Ovintiv expects to reduce net debt, or total debt less cash and cash equivalents, to around $3.6 billion through proceeds from the pending Anadarko disposition.
To contact the author, email jov.onsat@rigzone.com
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