We will be at the forefront of driving innovation to both profitably and sustainably produce oil and gas from shale.
Each year, since 2018, we have generated free cash flow and have returned nearly $2 billion to our shareholders.
Our products fuel the world — we make modern life possible. As one of the largest producers of oil, condensate, natural gas and natural gas liquids in North America, our team stands united by a commitment to drive progress and improve lives with respect and responsibility, not just in the communities where we operate, but for everyone.
Our products provide energy, which in turn supports better education, healthcare and equality opportunities. We will continue to pioneer innovative ways to provide safe, reliable and affordable energy.
Our core values of one, agile, innovative and driven guide our actions. Our foundational values of integrity, safety, sustainability, trust and respect guide our behavior and define what we expect of ourselves and others in the workplace. Our pride is reflected not only in what we achieve, but also in how we accomplish it.
Ovintiv has been at the forefront of our industry’s transition to a “new” business model. We are focused on generating free cash flow and delivering quality returns.
We are powered by our unique culture of innovation, teamwork and discipline. We relentlessly innovate to drive efficiency in every part of our business.
We manage risk by continuously driving efficiency gains, creating optionality across our multi-product and multi-basin portfolio, building flexibility into all our commercial arrangements and through commodity price risk management.
The combination of our top tier assets, our efficiency and our discipline enable us to sustainably deliver quality returns through the cycle.
Our capital structure is supported by solid credit facilities with deep liquidity. These facilities are firm through mid-2024 and provide access to capital at attractive rates. Our priority today is clear, reduce debt by at least $1 billion by year-end 2021.
Relentless Efficiency Gains
We are a leading operator in every basin where we are active. We have a proven track record of safely delivering durable reductions in both capital and cash costs in every part of our business. We also have proven our ability to generate leading well performance through cube development, which maximizes the value of every acre we develop. Successful technologies and practices are rapidly transferred across our portfolio. The result is quality returns through the commodity price cycle.
High-Quality Multi-Basin Portfolio with Multi-Product Exposure
We have built a multi-basin portfolio with core assets in the Permian, Anadarko and Montney. We have over a decade of premium inventory in each of our core assets. We use this asset base to maximize returns and manage risk.
Disciplined Capital Allocation
Our capital investments are carefully allocated to generate free cash flow and quality returns. Our capital allocation framework invests less than 75% of cash flow at mid-cycle prices. This allows for significant free cash flow to be available to return to shareholders.
Sophisticated risk management
We have a deep belief that our high-quality, multi-product and multi-basin portfolio provides options that effectively manage risk. We purposely created tremendous flexibility in every part of our business. This allows us to respond dynamically to the macro-environment without incurring fees or penalties. We also leverage our market fundamentals capability to inform our capital allocation and commodity price risk management.
Transparent ESG performance
We know we have many stakeholders and society’s expectations continue to grow. We embrace these expectations whether they are in response to climate change, diversity or governance. Since 2005, we have published an annual sustainability report. This has served as an effective tool to communicate performance and track progress on key issues important to stakeholders. In 2021, emissions-related performance metrics will be included in our annual compensation program for all employees.