Ovintiv Upbeat on North American Oil Market as Prices Surge

Researched by Industrial Info Resources (Sugar Land, Texas)--Crude oil prices, once thought to be facing a prolonged period of weakness, recently spiked following Israel's surprise attack on Iran's nuclear infrastructure. But executives at Ovintiv Incorporated (Calgary, Alberta) say the oil and gas exploration company is well-positioned for any wild swings in the market, with a strong slate of drilling programs spread across the most active shale plays in North America. Industrial Info is tracking more than US$5.4 billion worth of active and proposed projects across the U.S. and Canada from Ovintiv, more than half of which is attributed to projects in Texas' Permian Basin.

Click on the image at right for a graph detailing Ovintiv's active and proposed projects, by shale play.

Ovintiv's oil and condensate results in its most recently completed quarter were driven by the Permian Basin, where it saw strong well results and outperformed its base volumes. Among Ovintiv's projects to kick off recently in the Permian is its US$825 million drilling program in the Sprayberry Field near Big Spring, Texas, which could include as many as 100 new wells. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Project Database can learn more from a detailed project report.

In January, Ovintiv finalized a sale of virtually all of its assets in Utah's Uinta Basin to FourPoint Resources LLC, a subsidiary of FourPoint Energy (Denver, Colorado), and acquire oil-rich assets in Canada's Montney Shale from Paramount Resources Limited (Calgary). In a recent quarterly earnings-related conference call, Brendan McCracken, the chief executive officer of Ovintiv, said the "Montney for Uinta" plan "boosted our free cash flow by increasing our average price realizations, lowering our cost structure and enhancing our capital efficiency."

Ovintiv's remaining projects in the Uinta include a US$375 million drilling program near Myton, Utah, which involves drilling as many as 40 new wells. The project, which started in April and is expected to wrap up toward the end of the year, includes enhancements to existing fields and facilities. Subscribers can learn more from a detailed project report.

In the Oklahoma's Anadarko Basin, Ovintiv started work in March on its US$90 million program in the Canadian County Field, which will involve drilling up to 12 new wells, and its US$85 million program in the Kingfisher County Field, which will involve drilling up to 10. Both projects are expected to run into December. Subscribers can read detailed reports on the Canadian County and the Kingfisher County projects.

Greg Givens, the chief operating officer of Ovintiv, noted in the earnings call that the company had no completion activity in the Anadarko at the end of 2024: "So, we picked up our completion crews in January, started completing wells and started growing volumes through the [first] quarter. Looking at the most recent activity in April, we were at 28,000 barrels per day in that asset. So, I'm very confident we'll be able to grow that to 30,000 and keep it at 30,000 for the rest of the year."

Ovintiv also has managed to avoid much of the economic upheaval associated with U.S. President Donald Trump's tariffs. "We pre-purchased essentially all of the steel and tubular goods needed for our 2025 program and have no other significant supply chain exposure," McCracken said. "All of our Canadian condensate is sold locally in Alberta and is not subject to tariffs. And our Canadian natural gas that is sold in the U.S. is USMCA compliant and, therefore, not subject to the 10% tariff on Canadian energy products."

Subscribers to Industrial Info's GMI Project and Plant databases can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.

Subscribers can click here for a full list of detailed project reports for active and proposed projects across the U.S. and Canada from Ovintiv.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).