Trimulfrac Tour
January 18, 2024
Forward Looking Statements
This presentation contains forward-looking statements or information (collectively, “forward-looking statements”) within the meaning of applicable securities legislation, including Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, except for statements of historical fact, that relate to the anticipated future activities, plans, strategies, objectives or expectations of
the Company, including fiscal year 2023 and 2024 guidance, the expectation of delivering sustainable durable returns to shareholders in future years, plans regarding share buybacks and debt reduction, timing and expectations
regarding well completion and performance, are forward-looking statements. When used in this presentation, the use of words and phrases including “anticipates,” “believes,” “continue,” “could,” “estimates,” “expects,” “focused on,”
“forecast,” “guidance,” “intends,” “maintain,” “may,” “opportunities,” “outlook,” “plans,” “potential,” “strategy,” “targets,” “will,” “would” and other similar terminology are intended to identify forward-looking statements, although not all
forward-looking statements contain such identifying words or phrases.
Readers are cautioned against unduly relying on forward-looking statements which, are based on current expectations and by their nature, involve numerous assumptions that are subject to both known and unknown risks and
uncertainties (many of which are beyond our control) that may cause such statements not to occur, or actual results to differ materially and/or adversely from those expressed or implied. These assumptions include, without
limitation: future commodity prices and basis differentials, the Company’s ability to successfully integrate the Midland basin assets; other risks and uncertainties related to the closing of pending transactions; future foreign
exchange rates; the ability of the Company to access credit facilities and capital markets; data contained in key modeling statistics; the availability of attractive commodity or financial hedges and the enforceability of risk
management programs; the Company’s ability to capture and maintain gains in productivity and efficiency; the ability for the Company to general cash returns and execute on its share buyback plan; expectations of plans,
strategies and objectives of the Company, including anticipated production volumes and capital investment; benefits from technology and innovations; expectations that counterparties will fulfill their obligations pursuant to
gathering, processing, transportation and marketing agreements; access to adequate gathering, transportation, processing and storage facilities; assumed tax, royalty and regulatory regimes; the outlook of the oil and natural
gas industry generally, including impacts from changes to the geopolitical environment; expectations and projections made in light of, and generally consistent with, the Company’s historical experience and its perception of
historical industry trends, including with respect to the pace of technological development; and the other assumptions contained herein.
Risks and uncertainties that may affect the Company’s financial or operating performance include: market and commodity price volatility, including widening price or basis differentials, and the associated impact to the
Company’s stock price, credit rating, financial condition, oil and natural gas reserves and access to liquidity; uncertainties, costs and risks involved in our operations, including hazards and risks incidental to both the drilling and
completion of wells and the production, transportation, marketing and sale of oil, condensate, NGL and natural gas; availability of equipment, services, resources and personnel required to perform the Company’s operating
activities; service or material cost inflation; our ability to generate sufficient cash flow to meet our obligations and reduce debt; the impact of a pandemic, epidemic or other widespread outbreak of an infectious disease on
commodity prices and the Company’s operations; our ability to secure adequate transportation and storage for oil, condensate, NGL and natural gas, as well as access to end markets or physical sales locations; interruptions to
oil, condensate, NGL and natural gas production, including potential curtailments of gathering, transportation or refining operations; variability and discretion of the Company’s board of directors to declare and pay dividends, if
any; the timing and costs associated with drilling and completing wells, and the construction of well facilities and gathering and transportation pipelines; business interruption, property and casualty losses (including weather
related losses) or unexpected technical difficulties and the extent to which insurance covers any such losses; counterparty and credit risk; the actions of members of OPEC and other state-controlled oil companies with respect to
oil, condensate, NGLs and natural gas production and the resulting impacts on oil, condensate, NGLs and natural gas prices; the impact of changes in our credit rating and access to liquidity, including costs thereof; changes in
political or economic conditions in the United States and Canada, including fluctuations in foreign exchange rates, tariffs, taxes, interest rates and inflation rates; failure to achieve or maintain our cost and efficiency initiatives; risks
associated with technology, including electronic, cyber and physical security breaches; changes in royalty, tax, environmental, greenhouse gas, carbon, accounting and other laws or regulations or the interpretations thereof; our
ability to timely obtain environmental or other necessary government permits or approvals; the Company’s ability to utilize U.S. net operating loss carryforwards and other tax attributes; risks associated with existing and potential
lawsuits and regulatory actions made against the Company, including with respect to environmental liabilities and other liabilities that are not adequately covered by an effective indemnity or insurance; risks related to the
purported causes and impact of climate change, and the costs therefrom; the impact of disputes arising with our partners, including suspension of certain obligations and inability to dispose of assets or interests in certain
arrangements; the Company’s ability to acquire or find additional oil and natural gas reserves; imprecision of oil and natural gas reserves estimates and estimates of recoverable quantities, including the impact to future net
revenue estimates; land, legal, regulatory and ownership complexities inherent in the U.S., Canada and other applicable jurisdictions; risks associated with past and future acquisitions or divestitures of oil and natural gas assets,
including the receipt of any contingent amounts contemplated in the transaction agreements (such transactions may include third-party capital investments, farm-ins, farm-outs or partnerships); our ability to repurchase the
Company’s outstanding shares of common stock, including risks associated with obtaining any necessary stock exchange approvals; the existence of alternative uses for the Company’s cash resources which may be superior to
the payment of dividends or effecting repurchases of the Company’s outstanding shares of common stock; risks associated with decommissioning activities, including the timing and cost thereof; risks and uncertainties
described in Item the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s most recent Annual Report on Form 10-K and Quarterly Report on Form
10-Q; and other risks and uncertainties impacting the Company’s business as described from time to time in the Company’s filings with the SEC or Canadian securities regulators.
Readers are cautioned that the assumptions, risks and uncertainties referenced above are not exhaustive. Although the Company believes the expectations represented by its forward-looking statements are reasonable based
on the information available to it as of the date such statements are made, forward-looking statements are only predictions and statements of our current beliefs and there can be no assurance that such expectations will prove
to be correct. Unless otherwise stated herein, all statements, including forward-looking statements, contained in this presentation are made as of the date of this presentation and, except as required by law, the Company
undertakes no obligation to update publicly, revise or keep current any such statements. The forward-looking statements contained or incorporated by reference in this presentation and all subsequent forward-looking
statements attributable to the Company, whether written or oral, are expressly qualified by these cautionary statements.
Disclaimers
For convenience, references in this presentation to “Ovintiv”, “OVV”, the “Company”, “we”, “us” and “our” may, where applicable, refer only to or include any relevant direct and indirect subsidiary entities and partnerships
(“Subsidiaries”) of Ovintiv Inc., and the assets, activities and initiatives of such Subsidiaries. The terms “include”, “includes”, “including” and “included” are to be construed as if they were immediately followed by the
words “without limitation”, except where explicitly stated otherwise. The term “liquids” is used to represent oil, NGLs and condensate. The term “condensate” refers to plant condensate. The conversion of natural gas
volumes to barrels of oil equivalent (“BOE”) is on the basis of six thousand cubic feet to one barrel. BOE is based on a generic energy equivalency conversion method primarily applicable at the burner tip and does not
represent economic value equivalency at the wellhead. Readers are cautioned that BOE may be misleading, particularly if used in isolation. There is no certainty that Ovintiv will drill all gross premium well inventory
locations and if drilled there is no certainty that such locations will result in additional oil and gas reserves or production. The locations on which Ovintiv will actually drill wells, including the number and timing thereof,
is ultimately dependent upon the availability of capital, regulatory and partner approvals, seasonal restrictions, equipment and personnel, oil and natural gas prices, costs, actual drilling results, transportation
constraints and other factors. Reserves are the estimated remaining quantities of oil and natural gas and related substances anticipated to be recoverable from known accumulations, from a given date forward,
based on an analysis of drilling, geological, geophysical and engineering data; the use of established technology; and specified economic conditions, which are generally accepted as being reasonable. Proved
reserves are those reserves which can be estimated with a high degree of certainty to be recoverable. All reserves estimates referenced in this presentation are effective as of December 31, 2022 and prepared by
qualified reserves evaluators in accordance with United States Securities and Exchange Commission regulations. Detailed U.S. protocol disclosure, as well as additional information relating to risks associated with the
estimates of reserves, is contained in the Company’s most recent Annual Report on Form 10-K.
Trimulfrac Tour
OVV’s Keys to Success
High-Quality Portfolio
• Four top-tier assets with substantial operating scale
• Innovations distributed across the portfolio to drive results Montney
Strong production across all
Operational Excellence Drives Efficiencies
• Proven operational flexibility and margin enhancement
products & advantaged costs
• Optimized development programs across asset base
Multi-Product Commodity Exposure
• Premium return options across both oil & condensate and gas
• Maximizing price realizations through market diversification Uinta
Emerging and undeveloped high-
Deep Premium Inventory margin oil option
• 10-15 yrs of oil & condensate & >20 yrs of natural gas Premium inventory
• Proven organic assessment and appraisal program
Anadarko
Strong cash flows &
Premium Multi-Basin Portfolio & Resource multi-product option
Durable Expertise & Culture to Convert Resource to Free Cash Flow
Returns Disciplined Capital Allocation
Recipe
= Durable Return on Invested Capital &
Return of Cash to Shareholders
Permian
Strong oil mix, substantial
resource & proven well results 4
Note: Premium reflects >35% IRR at $55/bbl WTI oil and $2.75/MMBtu NYMEX
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Ovintiv Innovation
We lead with safety.
It is a foundational
value & drives decision-
making across the
organization Company-wide knowledge & technology exchange
Strategic partnerships with top
performing service companies
providing best in class equipment
• 3 days w/ 375 attendees
• 24 Presentations & 70 Posters
• 14 Breakout Sessions
• Core Showcase
Innovation is a core value that drives industry leading capital
efficiency & performance results
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Permian Innovation Evolution
Proven track record of peer leading innovation
Stacked innovations leads to greater capital
efficiencies & savings
Discover and break through limiting barriers
Trimulfrac
2014
6
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What is Trimulfrac?
Zipper Frac Simulfrac Trimulfrac
Frac 1 well at a time Frac 2 wells simultaneously Frac 3 wells simultaneously
A B A B A B A B A B A B
Wellbores (Groups A & B)
Prepping for Frac
Pumping
Frac pump
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Ovintiv Drilling Rig
Efficient Drilling Supports
Trimulfrac
Faster drilling optimizes rig : frac ratio
5 rigs and 1 frac crew
Maximizes capital efficiency
Centralized geo steering
Less downtime and faster cycle times
Longer laterals increase cube value
Routinely drilling >2.5 miles
Permian Drilling Highlights
5
High spec rigs
~12,000
Avg. lateral Length (ft)
#2
in drilling speed
operating today across Midland Basin1
8
1) Rystad US Oilfield Services Solution – Drilling Services Report 2Q 2023. Rystad Energy research and analysis, Rystad Energy ShaleWellCube. Drilling efficiency by operator Min. 30 wells spud.
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Ovintiv Trimulfrac Fleet
Exemplifying Ovintiv’s
Innovative Culture
Execution requires logistical expertise
Sand, water and other infrastructure in place today
No additional capex for water or sand infrastructure required
No increase in operational risk
No sand or water-related downtime in ’23 (>50 wells)
Sand piles and robust water infrastructure support continued ops
Additional innovations generate cost savings
Permian Trimulfrac Highlights Trimulfrac savings do not include cost reductions from e-fleets
2x 15% ~25% 10
Well Performance (Enverus)
Cume. Oil Mbbls / 1,000 ft
Cycle time improvement Completion $/ft well costs Of FY23 program used All OVV Trimulfrac (>50 wells)
vs. zipper (2k ft/d – 4k ft/d) savings vs. zipper Trimulfrac 8 2023 OVV
0%
6
$400k
Well cost savings zipper
$125k
Well cost savings,
>50%
Of FY24 program to use
4
2 Performance
degradation
to Simulfrac Simulfrac to Trimulfrac Trimulfrac 0
0 1 2 3 4 5 9
Months
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Sand Supply Logistics
Sand Supply & Logistics
are Essential for Trimulfrac
Ovintiv sand piles eliminated sand downtime
Demonstrated evidence of logistical success
Ovintiv has wet sand close to all acreage
Within 40 miles across all counties
Provides robust and resilient sand supply
Sand exploration program provides future access
No additional infrastructure required
Sand Mines
OVV Acreage
Permian Sand Highlights
~75%
Cost reduction over 6 years
~70
Fleet of belly dump
vs sand outside of Permian trucks available
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Water Supply Logistics
Outlet water to active completions locations
Water Supply & Logistics are
Essential for Trimulfrac
Ovintiv water logistics eliminated water downtime
Catch-basin for add’l recycling Demonstrated evidence of logistical success
Separation equipment Inlet water from well facilities
Ovintiv has expansive high-rate delivery infrastructure
Large storage capacity enables Trimulfrac efficiencies
Permian Water Highlights
No additional infrastructure required across portfolio
>800 MM
Gallons of recycled water
100%
Recycled water since ‘20 in
Increased delivery volumes on acquired acreage by 3x
Sufficient water for Trimulfrac across acquired positions
storage Midland & Martin
>8 B
Gallons of water
~4x
Increase in percentage of
recycled recycled water used since ‘17
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Low Emissions Advanced Facility (LEAF)
Upgraded tank
Tank gas Automated flare
relief devices
blanketing letdown for
designed to
2.5 psi tanks to ensure precise control
minimize leak
to mitigate vapor seal and minimizing
potential
tank flaring & tank flaring
thief hatch
leaks
Advanced VRU control to
Low emission
maintain correct tank pressure
Typical LEAF Facility wellpad
Zero venting
Secondary
gas sales LEAF Facility Highlights Instrument
Air to
~50% ~$0
point to
mitigate
minimize
natural gas
associated
GHG reductions vs. prior design Cost increase vs. Prior Design venting
gas flaring
Limits flaring / enables more gas-to-sales
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