What's Happening?
Ovintiv has announced a strategic shift in its 2026 capital program, concentrating investments in the Permian Basin and Montney. The company plans to allocate $2.25 billion to $2.35 billion to sustain liquids growth and strengthen its core inventory.
In the Permian, Ovintiv will invest $1.325 billion to $1.375 billion, running approximately five rigs and bringing 125 to 135 net wells online. In the Montney, the company will allocate $875 million to $925 million, with plans to run six rigs and bring 130 to 140 net wells online. This focus aims to enhance production and profitability in these key areas.
Why It's Important?
Ovintiv's decision to concentrate its capital investment in the Permian and Montney basins underscores the company's commitment to maximizing returns from its most valuable assets. By focusing on these regions, Ovintiv aims to boost its production of oil, condensate, and natural gas, thereby enhancing its competitive position in the energy market. This strategic move is expected to improve the company's profitability and shareholder returns, as it leverages its extensive inventory of drilling locations. The investment also reflects confidence in the long-term potential of these basins to deliver sustainable growth.
What's Next?
Ovintiv will continue to execute its capital program throughout 2026, with a focus on operational efficiency and cost management. The company plans to finalize the sale of its Anadarko assets in April, further sharpening its focus on the Permian and Montney. Ovintiv's management will monitor market conditions and adjust its strategy as needed to ensure continued value creation for shareholders. The company's performance in these basins will be closely watched by investors and industry analysts as an indicator of its ability to deliver on its growth objectives.
