Ovintiv Declares $0.30 Quarterly Dividend, Unveils New Shareholder Return Framework

Ovintiv Inc. (NYSE: OVV), a Denver-based oil and gas producer focused on the Permian Basin and Canada's Montney formation, declared a quarterly dividend of $0.30 per share on February 23, 2026. The dividend will be paid March 31 to shareholders of record as of March 13. Read more dividend announcements.

The dividend maintains the company's regular quarterly payout as it executes a new capital return strategy. Ovintiv announced that planned 2026 shareholder returns will increase to at least 75% of full-year free cash flow, up from prior levels.

The board also authorized a $3.0 billion share buyback program, which the company expects to commence immediately. The new shareholder return framework targets returning 50% to 100% of annual free cash flow through a combination of dividends and repurchases.

2025 Financial Performance

Ovintiv generated $3.7 billion in cash from operating activities in 2025 and $1.6 billion in free cash flow after capital expenditures of $2.1 billion. Total shareholder returns in 2025 reached approximately $612 million, split between $304 million in share repurchases of 7.8 million shares and $308 million in dividend payments.

The company produced an average of 615,000 barrels of oil equivalent per day in 2025, including 209,000 barrels per day of oil and condensate. Full-year Permian production averaged 215,000 barrels of oil equivalent per day, while Montney production averaged 299,000 barrels of oil equivalent per day.

Balance Sheet and Liquidity

Ovintiv had approximately $4.5 billion in total liquidity as of December 31, 2025, including $3.5 billion in available credit facilities and $35 million in cash and cash equivalents, net of $351 million in outstanding commercial paper. Non-GAAP debt to EBITDA stood at 1.6 times at year-end.

Following the close of its Anadarko asset disposition, the company expects net debt to total approximately $3.6 billion. Ovintiv maintains investment-grade ratings from four credit rating agencies.

Reserves and Production Outlook

SEC proved reserves at year-end 2025 totaled 2.3 billion barrels of oil equivalent, with approximately 50% liquids and 64% proved developed. Total proved reserves replacement excluding acquisitions and divestitures was 150% of 2025 production, giving the company a reserve life index greater than 10 years.

For 2026, Ovintiv plans to invest $1.325 billion to $1.375 billion in the Permian to run approximately five rigs and bring on 125 to 135 net wells. In the Montney, the company plans to invest $875 million to $925 million to run approximately six rigs and bring on 130 to 140 net wells.