Ovintiv Inc. has posted $335 million in internet revenue for the second quarter, down from $487 million within the prior quarter regardless of increased manufacturing.
The oil and fuel producer averaged 573,000 barrels of oil equal a day (boed) in output within the April-June interval, up 61.6 boed from the primary quarter, in accordance with an Ovintiv press launch.
Offsetting stronger manufacturing, costs throughout Ovintiv’s oil and fuel merchandise declined to a complete common of $31.56 a barrel of oil equal from $39.08 within the January-March interval.
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Regardless of the softer market Ovintiv raised its deliberate output for the complete yr to 535,000-550,000 boed from 521,000-546,000 boed. “The Firm expects the overwhelming majority of the acquired wells in progress to be on manufacturing by year-end”, it mentioned. ” Whole firm oil and condensate manufacturing is anticipated to common 210 Mbbls/d [thousand barrels per day] within the second half of the yr, with volumes rising from the third quarter to the fourth quarter.”
Projected capital spending for the entire of 2023 nevertheless has been lowered to $2.68 billion-$2.85 billion from $2.68 billion-$2.98 billion.
“On a mixed foundation, per unit upstream working expense and upstream transportation and processing expense are anticipated to be 5 % decrease within the second half of the yr in comparison with the unique full yr 2023 steering”, Ovintiv mentioned.
“In 2024, Ovintiv expects to ship complete firm common oil and condensate manufacturing volumes of larger than 200 Mbbls/d with complete capital funding of $2.1 billion to $2.5 billion”, it added.
Throughout the second quarter of 2023 Ovintiv accomplished the sale of its Bakken property but in addition concluded the acquisition of Midland Basin property which have added about 1,050 internet wells to its Permian stock.
It has additionally entered the S&P 400 index since June 20.
Ovintiv returned round $172 million to shareholders by way of dividend funds and buybacks within the second quarter. It had declared $0.3 in dividend per frequent unit for the interval and is carrying that over to the third quarter.
“Ovintiv stays dedicated to its capital allocation framework, which returns at the least 50 % of publish base dividend Non-GAAP Free Money Circulate to shareholders by way of buybacks and/or variable dividends”, the corporate mentioned in its newest quarterly efficiency report.
It had money and money equivalents of $52 million as of the top of the second quarter, whereas its long-term debt together with the present portion stood at $6.134 billion.
To contact the writer, e-mail jov.onsat@rigzone.com
