Financial Analysis

9. Business Combination Acquisition of NuVista Energy Ltd. (NuVista Acquisition) On February 3, 2026, Ovintiv completed the acquisition of all issued and outstanding common shares of NuVista Energy Ltd. (NuVista), a corporation organized under the laws of the Province of Alberta, Canada, in a cash and stock transaction valued at approximately $ 2.8 billion (C$ 3.8 billion), including Ovintivs previous purchase of 18.5 million common shares of NuVista. The Company issued approximately 30.1 million shares of Ovintiv common stock representing a value of approximately $ 1.3 billion (C$ 1.8 billion) and paid cash consideration of approximately $ 1.2 billion (C$ 1.6 billion), which was primarily funded with proceeds from the Term Credit Agreement as discussed in Note 12. Total transaction costs of approximately $ 23 million and $ 4 million have been included in administrative expense and interest expense, respectively. The assets acquired are strategically located in close proximity to Ovintivs current operations and add approximately 930 net well locations and approximately 140,000 net acres in the core of the condensate-rich Montney in Alberta. The assets acquired generated revenues of $ 457 million and direct operating expenses of $ 177 million for the period from February 3, 2026, to June 30, 2026. The results of operations from the acquired NuVista assets have been included in Ovintivs consolidated financial statements since February 3, 2026. Purchase Price Allocation The NuVi …

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22. Commitments and Contingencies Commitments The following table outlines the Companys commitments as at June 30, 2026: Expected Future Payments (undiscounted) 2026 2027 2028 2029 2030 Thereafter Total Transportation and Processing $ 495 $ 968 $ 861 $ 790 $ 736 $ 4,528 $ 8,378 Drilling and Field Services 108 19 2 1 1 5 136 Building Leases & Other Commitments 6 7 6 4 4 8 35 Total $ 609 $ 994 $ 869 $ 795 $ 741 $ 4,541 $ 8,549 Operating leases with terms greater than one year are not included in the commitments table above. The table above includes short-term leases with contract terms less than 12 months, such as well services and equipment, field office leases, as well as non-lease operating cost components associated with building leases. Included within transportation and processing in the table above are certain commitments associated with midstream service agreements with VMLP as described in Note 16. Divestiture transactions can reduce certain commitments disclosed above. Contingencies Ovintiv is involved in various legal claims and actions arising in the normal course of the Companys operations. Although the outcome of these claims cannot be predicted with certainty, the Company does not expect these matters to have a material adverse effect on Ovintivs financial position, cash flows or results of operations. Managements assessment of these matters may change in the future as these matters are subject to a number of uncertainties. For any material matters that the C …

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Revenues (For the three months ended June 30) USA Operations Canadian Operations 2026 2025 2026 2025 Revenues from Customers Product revenues Oil $ 1,124 $ 831 $ 2 $ 2 NGLs 143 177 719 367 Natural gas 1 104 304 274 Sales of purchased product 506 396 69 54 Service revenues Gathering and processing, and other 2 6 2 3 $ 1,776 $ 1,514 $ 1,096 $ 700 Corporate & Other Consolidated 2026 2025 2026 2025 Revenues from Customers Product revenues Oil $ - $ - $ 1,126 $ 833 NGLs - - 862 544 Natural gas - - 305 378 Sales of purchased product - - 575 450 Service revenues Gathering and processing, and other - - 4 9 $ - $ - $ 2,872 $ 2,214 Revenues (For the six months ended June 30) USA Operations Canadian Operations 2026 2025 2026 2025 Revenues from Customers Product revenues Oil $ 2,047 $ 1,806 $ 7 $ 4 NGLs 305 367 1,242 690 Natural gas 142 249 764 601 Sales of purchased product 773 764 158 96 Service revenues Gathering and processing, and other 5 8 6 4 $ 3,272 $ 3,194 $ 2,177 $ 1,395 Corporate & Other Consolidated 2026 2025 2026 2025 Revenues from Customers Product revenues Oil $ - $ - $ 2,054 $ 1,810 NGLs - - 1,547 1,057 Natural gas - - 906 850 Sales of purchased product - - 931 860 Service revenues Gathering and processing, and other - - 11 12 $ - $ - $ 5,449 $ 4,589

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18. Compensation Plans As at June 30, 2026, the Company has sufficient common stock held in reserve for issuance in accordance with its equity-settled stock-based compensation plans. The Company has recognized the following share-based compensation costs: Three Months Ended Six Months Ended June 30, June 30, 2026 2025 2026 2025 Total Compensation Costs of Transactions Classified as Cash-Settled $ - $ ( 2 ) $ 7 $ ( 1 ) Total Compensation Costs of Transactions Classified as Equity-Settled 13 21 30 37 Less: Total Share-Based Compensation Costs Capitalized ( 2 ) ( 5 ) ( 8 ) ( 9 ) Total Share-Based Compensation Expense (Recovery) $ 11 $ 14 $ 29 $ 27 Recognized in the Condensed Consolidated Statement of Earnings in: Operating $ 1 $ 6 $ 7 $ 9 Administrative 10 8 22 18 $ 11 $ 14 $ 29 $ 27 As at June 30, 2026, the liability for cash-settled share-based payment transactions totaled $ 7 million ($ 6 million as at December 31, 2025), which is recognized in accounts payable and accrued liabilities in the Condensed Consolidated Balance Sheet. The following weighted average assumptions were used to determine the fair value of Stock Appreciation Rights (SAR) and Tandem Stock Appreciation Rights (TSAR) units outstanding: As at June 30, 2026 As at June 30, 2025 US$ SAR C$ TSAR US$ SAR C$ TSAR Share Units Share Units (1) Share Units Share Units Risk Free Interest Rate 2.72 % - 2.60 % 2.60 % Dividend Yield 2.28 % - 3.15 % 3.26 % Expected Volatility Rate (2) 37.85 % - 43.36 % 41.08 % Expected Ter …

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19. Fair Value Measurements The fair values of cash and cash equivalents, accounts receivable and accrued revenues, and accounts payable and accrued liabilities approximate their carrying amounts due to the short-term maturity of those instruments. The fair values of investment in marketable securities, and restricted cash and other marketable securities included in other assets approximate their carrying amounts due to the nature of the instruments held. Recurring fair value measurements are performed for risk management assets and liabilities, as discussed further in Note 20. These items are carried at fair value in the Condensed Consolidated Balance Sheet and are classified within the three levels of the fair value hierarchy in the following tables. Fair value changes and settlements for amounts related to risk management assets and liabilities are recognized in revenues and foreign exchange gains and losses according to their purpose. As at June 30, 2026 Level 1 Quoted Prices in Active Markets Level 2 Other Observable Inputs Level 3 Significant Unobservable Inputs Total Fair Value Netting (1) Carrying Amount Risk Management Assets Commodity Derivatives: Current assets $ 4 $ 196 $ - $ 200 $ ( 13 ) $ 187 Long-term assets - 148 38 186 ( 1 ) 185 Risk Management Liabilities Commodity Derivatives: Current liabilities $ - $ 45 $ - $ 45 $ ( 13 ) $ 32 Long-term liabilities - 15 - 15 ( 1 ) 14 As at December 31, 2025 Level 1 Quoted Prices in Active Markets Level 2 Other Observable I …

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7. Income Taxes Three Months Ended Six Months Ended June 30, June 30, 2026 2025 2026 2025 Current Tax United States $ 6 $ 1 $ 7 $ 12 Canada 16 25 28 57 Total Current Tax Expense (Recovery) 22 26 35 69 Deferred Tax United States ( 39 ) 63 ( 284 ) 159 Canada 100 3 135 ( 170 ) Total Deferred Tax Expense (Recovery) 61 66 ( 149 ) ( 11 ) Income Tax Expense (Recovery) $ 83 $ 92 $ ( 114 ) $ 58 Effective Tax Rate 15.4 % 23.1 % 39.6 % 28.2 % Ovintivs interim income tax expense is determined using the estimated annual effective income tax rate applied to year-to-date net earnings before income tax plus the effect of legislative changes and amounts in respect of prior periods. The estimated annual effective income tax rate is impacted by expected annual earnings, changes in valuation allowances, income tax related to foreign operations, state taxes, the effect of legislative changes, non-taxable items and tax differences on transactions, which can produce interim effective tax rate fluctuations. During the six months ended June 30, 2026, the Canadian current income tax expense includes a recovery related to recently enacted Canadian legislation that accelerates capital cost recovery for years beginning in 2025. During the six months ended June 30, 2026, the deferred tax recovery was primarily due to the estimated annual effective tax rate applied to jurisdictional earnings. The effective tax rate of 15.4 percent for the three months ended June 30, 2026, is lower than the U.S. federal sta …

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12. Long-Term Debt As at As at June 30, December 31, 2026 2025 Revolving Credit and Term Loan Borrowings $ - $ 351 U.S. Unsecured Notes: 5.375 % due January 1, 2026 - 459 5.65 % due May 15, 2028 - 700 8.125 % due September 15, 2030 300 300 7.20 % due November 1, 2031 350 350 7.375 % due November 1, 2031 500 500 6.25 % due July 15, 2033 600 600 6.50 % due August 15, 2034 599 599 6.625 % due August 15, 2037 390 390 6.50 % due February 1, 2038 430 430 5.15 % due November 15, 2041 148 148 7.10 % due July 15, 2053 400 400 Total Principal 3,717 5,227 Increase in Value of Debt Acquired 9 10 Unamortized Debt Discounts and Issuance Costs ( 31 ) ( 35 ) Total Long-Term Debt $ 3,695 $ 5,202 Current Portion $ - $ 810 Long-Term Portion 3,695 4,392 $ 3,695 $ 5,202 On April 9, 2026, Ovintiv announced its intention to redeem the Companys $ 700 million, 5.65 percent senior notes due May 15, 2028 . On April 20, 2026, the Company completed the senior note redemption using proceeds from the divestiture of its Anadarko assets as discussed in Note 8. Ovintiv paid approximately $ 737 million in cash including accrued and unpaid interest of $ 17 million and a one-time make-whole payment of $ 20 million, which is included in interest expense as discussed in Note 5. On November 25, 2025, the Company entered into a $ 1.2 billion Two-Year Term Credit Agreement (Term Credit Agreement) to fund the cash component of the NuVista Acquisition. The Company closed the NuVista Acquisition on February 3, 2026, and …

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New Standards Issued Not Yet Adopted As of January 1, 2027, Ovintiv will be required to adopt ASU 2024-03 Disaggregation of Income Statement Expenses for annual disclosures with interim disclosures required beginning in the first quarter of 2028. The new standard requires that an entity disclose tabular information about certain expenses including, but not limited to, purchases of inventory, employee compensation, and depreciation, depletion, and amortization expense that are presented within expense line captions reported in the statement of earnings. A qualitative description of the remaining other amounts within those expense line captions will be required. The Company will also be required to determine and disclose its definition of selling expenses and the total amount of selling expenses. The amendments are to be applied prospectively, with the option for retrospective application, and are not expected to have a material impact on the Companys Consolidated Financial Statements. As of January 1, 2028, Ovintiv will be required to adopt ASU 2026-02 Environmental Credits and Environmental Obligations. The guidance applies to entities with operations subject to environmental regulations and those that either internally generate or acquire environmental credits to achieve targets related to carbon footprint initiatives. Under the new standard, an entity will recognize and measure environmental credit assets based on their intended use and how the credits were obtained. Enviro …

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17. Restructuring Charges In 2024 , Ovintiv undertook a plan to reduce its workforce by approximately 10 percent as part of a corporate reorganization. During the three and six months ended June 30, 2025, the Company incurred restructuring charges of $ 1 million and $ 11 million, respectively, before tax, related to severance costs. As at December 31, 2025, $ 1 million of restructuring charges remained accrued, which were paid during the six months ended June 30, 2026. In 2026, the Company completed further workforce reductions as part of a company-wide reorganization to better align staffing levels and organizational structure with the Companys transformed portfolio following the sale of the Anadarko assets as discussed in Note 8. During the three and six months ended June 30, 2026, the Company incurred total restructuring charges of $ 45 million, before tax, related to severance costs. As at June 30, 2026, $ 12 million remains accrued and is expected to be paid by the end of the first quarter of 2027. Restructuring charges are included in administrative expense presented in the Corporate and Other segment in the Condensed Consolidated Statement of Earnings. Three Months Ended Six Months Ended June 30, June 30, 2026 2025 2026 2025 Severance and Outplacement $ 45 $ 1 $ 45 $ 11 Restructuring Expenses $ 45 $ 1 $ 45 $ 11 As at As at June 30, December 31, 2026 2025 Outstanding Restructuring Accrual, Beginning of Year $ 1 $ 19 Restructuring Expenses Incurred 45 12 Restructuring Co …

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4. Revenues from Contracts with Customers The following table summarizes Ovintivs revenues from contracts with customers. Revenues (For the three months ended June 30) USA Operations Canadian Operations 2026 2025 2026 2025 Revenues from Customers Product revenues Oil $ 1,124 $ 831 $ 2 $ 2 NGLs 143 177 719 367 Natural gas 1 104 304 274 Sales of purchased product 506 396 69 54 Service revenues Gathering and processing, and other 2 6 2 3 $ 1,776 $ 1,514 $ 1,096 $ 700 Corporate & Other Consolidated 2026 2025 2026 2025 Revenues from Customers Product revenues Oil $ - $ - $ 1,126 $ 833 NGLs - - 862 544 Natural gas - - 305 378 Sales of purchased product - - 575 450 Service revenues Gathering and processing, and other - - 4 9 $ - $ - $ 2,872 $ 2,214 Revenues (For the six months ended June 30) USA Operations Canadian Operations 2026 2025 2026 2025 Revenues from Customers Product revenues Oil $ 2,047 $ 1,806 $ 7 $ 4 NGLs 305 367 1,242 690 Natural gas 142 249 764 601 Sales of purchased product 773 764 158 96 Service revenues Gathering and processing, and other 5 8 6 4 $ 3,272 $ 3,194 $ 2,177 $ 1,395 Corporate & Other Consolidated 2026 2025 2026 2025 Revenues from Customers Product revenues Oil $ - $ - $ 2,054 $ 1,810 NGLs - - 1,547 1,057 Natural gas - - 906 850 Sales of purchased product - - 931 860 Service revenues Gathering and processing, and other - - 11 12 $ - $ - $ 5,449 $ 4,589 The Companys revenues from contracts with customers consists of product sales including oil, NG …

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3. Segmented Information Ovintivs exploration and production activities are subdivided into two geographic segments, including the USA Operations and Canadian Operations. These segments activities also include third-party purchases and sales of product to provide operational flexibility and cost mitigation for transportation commitments, product type, delivery points and customer diversification. The Company considers sales of purchased commodities as ancillary to its oil and gas development, exploration and producing activities and manages them to support such activities. In addition, the Company has a single, company-wide management team that allocates capital resources to maximize profitability and measures financial performance as a single enterprise. Corporate and Other mainly includes unrealized gains or losses recorded on derivative financial instruments. Once the instruments are settled, the realized gains and losses are recorded in the reporting segment to which the derivative instruments relate. Corporate and Other also includes amounts related to sublease rentals and administrative costs not allocated to the operating segments. The tables below summarize the results of operations and total assets by segment that are provided to the Chief Operating Decision Makers (CODMs) which have been identified as the Companys President & Chief Executive Officer, Executive Vice President & Chief Operating Officer, and the Executive Vice President & Chief Financial Of …

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14. Share Capital Authorized Ovintiv is authorized to issue 750 million shares of common stock, par value $ 0.01 per share, and 25 million shares of preferred stock, par value $ 0.01 per share. No shares of preferred stock are outstanding. Issued and Outstanding As at As at June 30, 2026 December 31, 2025 Number Number (millions) Amount (millions) Amount Shares of Common Stock Outstanding, Beginning of Year 253.3 $ 3 260.4 $ 3 Shares of Common Stock Purchased ( 7.6 ) - ( 7.8 ) - Shares of Common Stock Issued 30.9 - 0.7 - Shares of Common Stock Outstanding, End of Period 276.6 $ 3 253.3 $ 3 On February 3, 2026, in accordance with the terms of the NuVista Acquisition agreement, Ovintiv issued approximately 30.1 million shares of common stock as a component of the consideration paid for the NuVista Acquisition. In conjunction with the share issuance, the Company recognized share capital of $ 301 thousand and paid in surplus of $ 1,277 million. Ovintivs Performance Share Units (PSU) and Restricted Share Units (RSU) stock-based compensation plans allow the Company to settle the awards either in cash or in the Companys common stock. Accordingly, Ovintiv issued 0.8 million shares of common stock during the six months ended June 30, 2026 ( 0.7 million shares of common stock during the twelve months ended December 31, 2025), as certain PSU and RSU grants vested during the period. Normal Course Issuer Bid On September 29, 2025, the Company announced it had received regulatory approval …

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