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Released August 07, 2024 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Oil and gas producer Ovintiv Incorporated (NYSE:OVV) (Calgary, Alberta) raised its production guidance for full-year 2024 for the second time this year, after its overall second-quarter output exceeded expectations. The company now expects production volumes to average between 570,000 to 580,000 barrels of oil equivalent per day (BOE/d), compared with its previous forecast of 545,000 to 575,000 BOE/d. Industrial Info is tracking more than US$5.2 billion worth of active and proposed projects from Ovintiv, including about US$3 billion worth in Texas.
Click on the image at right for a graph detailing Ovintiv's active and proposed projects, by U.S. state or Canadian province.
Ovintiv's production in Canada's Montney Shale averaged 251,000 BOE/d in the second quarter, about 20% of which was attributed to liquids. The company is investing US$326 million in its Duvernay South and US$253 million in its Duvernay North Crude Oil & Natural Gas Fields for all of 2024, with 45 and 35 new wells to be drilled, respectively. The fields are located in southcentral Alberta, roughly halfway between Edmonton and Calgary.
Next year, Ovintiv expects to drill between 45 and 50 new wells in Duvernay South, and it expects to drill between 35 and 40 new wells in Duvernay North. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Production Project Database can read detailed reports on the 2024 Duvernay South and Duvernay North projects, and the 2025 Duvernay South and Duvernay North projects.
Ovintiv also notched up strong growth in the Permian Basin of Texas, where production averaged 203,000 BOE/d in the second quarter, about 81% of which was attributed to liquids. The company is investing US$816 million in its Nichols and US$654 million in its Wessendorff Crude Oil & Natural Gas Fields for all of 2024, with up to 100 and 90 new wells to be drilled, respectively. The fields are located near Karnes City, roughly halfway between San Antonio and the Texas coast.
Next year, Ovintiv expects to drill between 95 and 110 new wells in Nichols, and it expects to drill between 85 and 95 new wells in Wessendorff. Subscribers can read detailed reports on the 2024 Nichols and Wessendorff projects, and the 2025 Nichols and Wessendorff projects.
"We saw strong well-productivity in the Permian," said Greg Givens, the chief operating officer of Ovintiv, in a quarterly earnings-related conference call. "With the addition of our previously planned sixth rig in the play, our second quarter turn-in lines totaled 42 gross wells, approximately double the number of wells we brought on in the first quarter."
Ovintiv's production in the Uinta Basin of Utah averaged 33,000 BOE/d in the second quarter, about 87% of which was attributed to liquids. The company's 2024 plans include a US$350 million drilling program near Myton, Utah, which involves drilling more than 30 new wells. Next year, Ovintiv plans to drill between 35 and 40 new wells in the development. Subscribers can read detailed reports on the 2024 and 2025 Uinta projects.
"Our significant scale and running room in the play continue to differentiate Uinta from our in-basin peers," Givens said in the earnings call. "With over a decade of well inventory, ample takeaway capacity and margins similar to that of our Permian operations, the Uinta is a unique and highly competitive part of our portfolio."
Ovintiv's production in the Anadarko Basin of Oklahoma averaged 104,000 BOE/d in the second quarter, about 57% of which was attributed to liquids. The company is investing US$81 million in its Canadian County and US$78 million in its Kingfisher Crude Oil & Natural Gas Fields for all of 2024, with at least five new wells to be drilled in each field. Both developments are located just west of the Oklahoma City area.
Next year, Ovintiv expects to drill nine to 11 new wells in Canadian County and seven to 10 new wells in Kingfisher. Subscribers can read detailed reports on the 2024 Canadian County and Kingfisher projects, and the 2025 Canadian County and Kingfisher projects.
"Our [2024] drilling program in the Anadarko began in April, which is now well underway," Givens said. "We expect to begin bringing those wells on through the third and fourth quarters. We are targeting the oiliest parts of our acreage to leverage the strong oil performance we saw in 2023."
Ovintiv's full-year capital-spending program is expected to total between US$2.25 billion to US$2.35 billion. McCracken said the company's 2024 capex is "repeatable in 2025 and beyond," with an average of "about US$2.3 billion for the next seven to 10 years, assuming flat commodity prices."
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 reports for active and planned projects 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).
Click on the image at right for a graph detailing Ovintiv's active and proposed projects, by U.S. state or Canadian province.Ovintiv's production in Canada's Montney Shale averaged 251,000 BOE/d in the second quarter, about 20% of which was attributed to liquids. The company is investing US$326 million in its Duvernay South and US$253 million in its Duvernay North Crude Oil & Natural Gas Fields for all of 2024, with 45 and 35 new wells to be drilled, respectively. The fields are located in southcentral Alberta, roughly halfway between Edmonton and Calgary.
Next year, Ovintiv expects to drill between 45 and 50 new wells in Duvernay South, and it expects to drill between 35 and 40 new wells in Duvernay North. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Production Project Database can read detailed reports on the 2024 Duvernay South and Duvernay North projects, and the 2025 Duvernay South and Duvernay North projects.
Ovintiv also notched up strong growth in the Permian Basin of Texas, where production averaged 203,000 BOE/d in the second quarter, about 81% of which was attributed to liquids. The company is investing US$816 million in its Nichols and US$654 million in its Wessendorff Crude Oil & Natural Gas Fields for all of 2024, with up to 100 and 90 new wells to be drilled, respectively. The fields are located near Karnes City, roughly halfway between San Antonio and the Texas coast.
Next year, Ovintiv expects to drill between 95 and 110 new wells in Nichols, and it expects to drill between 85 and 95 new wells in Wessendorff. Subscribers can read detailed reports on the 2024 Nichols and Wessendorff projects, and the 2025 Nichols and Wessendorff projects.
"We saw strong well-productivity in the Permian," said Greg Givens, the chief operating officer of Ovintiv, in a quarterly earnings-related conference call. "With the addition of our previously planned sixth rig in the play, our second quarter turn-in lines totaled 42 gross wells, approximately double the number of wells we brought on in the first quarter."
Ovintiv's production in the Uinta Basin of Utah averaged 33,000 BOE/d in the second quarter, about 87% of which was attributed to liquids. The company's 2024 plans include a US$350 million drilling program near Myton, Utah, which involves drilling more than 30 new wells. Next year, Ovintiv plans to drill between 35 and 40 new wells in the development. Subscribers can read detailed reports on the 2024 and 2025 Uinta projects.
"Our significant scale and running room in the play continue to differentiate Uinta from our in-basin peers," Givens said in the earnings call. "With over a decade of well inventory, ample takeaway capacity and margins similar to that of our Permian operations, the Uinta is a unique and highly competitive part of our portfolio."
Ovintiv's production in the Anadarko Basin of Oklahoma averaged 104,000 BOE/d in the second quarter, about 57% of which was attributed to liquids. The company is investing US$81 million in its Canadian County and US$78 million in its Kingfisher Crude Oil & Natural Gas Fields for all of 2024, with at least five new wells to be drilled in each field. Both developments are located just west of the Oklahoma City area.
Next year, Ovintiv expects to drill nine to 11 new wells in Canadian County and seven to 10 new wells in Kingfisher. Subscribers can read detailed reports on the 2024 Canadian County and Kingfisher projects, and the 2025 Canadian County and Kingfisher projects.
"Our [2024] drilling program in the Anadarko began in April, which is now well underway," Givens said. "We expect to begin bringing those wells on through the third and fourth quarters. We are targeting the oiliest parts of our acreage to leverage the strong oil performance we saw in 2023."
Ovintiv's full-year capital-spending program is expected to total between US$2.25 billion to US$2.35 billion. McCracken said the company's 2024 capex is "repeatable in 2025 and beyond," with an average of "about US$2.3 billion for the next seven to 10 years, assuming flat commodity prices."
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 reports for active and planned projects 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).
