Ovintiv Enters Into Agreement for Cedar LNG Capacity

Rhea-AI Summary

Ovintiv (NYSE: OVV) signed a 12-year agreement for 0.5 mtpa of Pembina's liquefaction capacity at the Cedar LNG facility to enable export of 0.5 mtpa of LNG. The agreement covers transportation and liquefaction services for a 12-year term commencing with commercial operations at Cedar LNG, which are anticipated in late 2028. The arrangement gives Ovintiv additional export market access from Canada’s west coast, described as the shortest shipping route to Asian LNG markets, and complements its existing natural gas transportation portfolio.

The agreement positions Ovintiv to monetize Montney gas via global LNG markets while relying on Cedar LNG reaching commercial operations on the stated timeline.

Positive

• 0.5 mtpa liquefaction capacity secured for 12 years
• Access to shorter shipping routes to Asian LNG markets
• Adds export access complementary to existing transportation portfolio

Negative

• Capacity delivery is contingent on Cedar LNG commercial operations anticipated in late 2028

Key Figures

LNG capacity 0.5 million tonnes per annum Liquefaction capacity at Cedar LNG under the Agreement

Contract term 12 years Duration of transportation and liquefaction Agreement with Pembina

LNG export volume 0.5 mtpa Annual LNG export enabled for Ovintiv from Cedar LNG

Start of operations Late 2028 Anticipated commencement of Cedar LNG commercial operations

Market Reality Check

$39.24 Last Close

Volume Volume 3,654,705 is 22% above the 20-day average of 2,989,920 shares. normal

Technical Price $39.24 is slightly above the 200-day MA at $39.03 and 15.3% below the 52-week high of $46.35.

Peers on Argus

OVV is down 0.37% with peers PR (-1.37%), AR (-1.11%), CTRA (-0.15%), DVN (-2.79%), and TPL (-0.60%) also negative, indicating broader E&P weakness despite the LNG capacity agreement.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Nov 04	Q3 2025 earnings	Positive	-0.7%	Strong cash generation and higher full-year production outlook.
Nov 04	NuVista acquisition	Positive	-0.7%	Accretive NuVista deal with Montney growth and planned Anadarko sale.
Oct 07	Earnings call notice	Neutral	-1.0%	Announcement of Q3 2025 results release and conference call schedule.
Sep 29	Buyback renewal	Positive	-0.6%	Renewal of NCIB for up to 22.3M shares aligning with capital framework.
Jul 24	Q2 2025 earnings	Positive	+3.6%	Strong Q2 results with higher guidance and debt reduction.

Pattern Detected

Recent fundamentally positive announcements (earnings strength, buybacks, accretive acquisition) frequently saw negative price reactions, suggesting a pattern of selling into good news.

Recent Company History

Over the last six months, Ovintiv reported strong Q2 and Q3 2025 results, with increased production guidance, meaningful free cash flow, and continued net debt reduction. The company renewed an NCIB to repurchase up to 22,287,709 shares and maintained a framework returning at least 50% of post-base dividend free cash flow to shareholders. It also announced a ~$2.7B NuVista acquisition plus planned Anadarko divestiture. Today’s LNG capacity agreement extends this strategy of enhancing market access and capital efficiency.

Market Pulse Summary

This announcement secures 0.5 mtpa of LNG liquefaction capacity for 12 years at Cedar LNG, anticipated to start operations in late 2028, giving Ovintiv added export optionality for its Montney gas. It complements earlier moves such as production growth, debt reduction, and portfolio reshaping. Investors may focus on project execution, contract start timing, and how this agreement integrates with prior capital allocation commitments like share buybacks and balance sheet targets.

Key Terms

lng technical

"The Agreement enables the export of 0.5 mtpa of LNG"

Liquefied natural gas (LNG) is natural gas that has been cooled into a liquid so it takes up far less space for transport and storage, like turning a bulky bundle into a compact package for shipping. Investors care because LNG enables gas trade across regions without pipelines, so changes in production, export capacity, shipping, or demand can quickly affect energy company revenues, infrastructure operators and commodity prices, amplifying both opportunity and risk.

forward-looking statements regulatory

"ADVISORY REGARDING FORWARD-LOOKING STATEMENTS –"

Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.

AI-generated analysis. Not financial advice.

DENVER, Dec. 15, 2025 /PRNewswire/ - Ovintiv Inc. (NYSE: OVV) (TSX: OVV) ("Ovintiv" or the "Company") and a subsidiary of Pembina Pipeline Corporation ("Pembina") (TSX: PPL; NYSE: PBA) today announced the signing of a 12-year agreement (the "Agreement") for 0.5 million tonnes per annum ("mtpa") of Pembina's liquefaction capacity at the Cedar LNG facility ("Cedar LNG").

The Agreement enables the export of 0.5 mtpa of LNG, under which Pembina will provide transportation and liquefaction capacity to Ovintiv over a 12-year term, commencing with commercial operations at Cedar LNG, anticipated in late 2028. It provides Ovintiv, one of Canada's largest natural gas producers, with access to additional export markets, complementary to the Company's existing portfolio of natural gas transportation arrangements. Export from the west coast of Canada offers the shortest shipping distance to Asian LNG markets from North America.

"Today's announcement marks a significant advancement in our strategy to expand market access and maximize the profitability of our Montney gas resource through participation in global LNG markets," said Meghan Eilers, EVP of Midstream and Marketing at Ovintiv. "We are excited to partner with Pembina to supply low-cost Canadian natural gas to overseas markets, supporting energy security and global emissions reductions."

Important information

Unless otherwise specified or the context otherwise requires, references to "Ovintiv," "we," "its," "our" or to "the Company" includes reference to subsidiaries of and partnership interests held by Ovintiv Inc. and its subsidiaries.

Please visit Ovintiv's website and Investor Relations page at www.ovintiv.com and investor.ovintiv.com, where Ovintiv often discloses important information about the Company, its business, and its results of operations.

ADVISORY REGARDING FORWARD-LOOKING STATEMENTS – This news release 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 targets and initiatives, emissions reductions, expected access to additional LNG markets, and the anticipated timing of commencing with commercial operations at Cedar LNG, are forward-looking statements. When used in this news release, the use of words and phrases including "anticipate," "strategy," "will," 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 global LNG demand; expectations of plans, strategies and objectives of the Company, including anticipated production volumes and capital investment; the outlook of the oil and natural gas industry generally, including impacts from changes to the geopolitical environment; the impact of changes in federal, state, provincial, local and tribal laws, rules and regulations, including the impact of changes in trade policies, tariffs, and interprovincial pipeline development and capacity; and projections made in light of, and generally consistent with, the Company's historical experience and its perception of historical industry trends; and the other assumptions contained herein.

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. All forward-looking statements contained in this news release are made as of the date of this news release and, except as required by law, the Company undertakes no obligation to update publicly; revise or keep current any forward-looking statements. The forward-looking statements contained or incorporated by reference in this news release, and all subsequent forward-looking statements attributable to the Company, whether written or oral, are expressly qualified by these cautionary statements.

The reader should carefully read the risk factors described in 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, Quarterly Reports on Form 10-Q, and in other filings with the SEC or Canadian securities regulators, for a description of certain risks that could, among other things, cause actual results to differ from these forward-looking statements. Other unpredictable or unknown factors not discussed in this news release could also have material adverse effects on forward-looking statements.

Further information on Ovintiv Inc. is available on the Company's website, www.ovintiv.com, or by contacting:

Investor contact: (888) 525-0304

Media contact: (403) 645-2252

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SOURCE Ovintiv Inc.

FAQ

What did Ovintiv (OVV) announce on December 15, 2025 about Cedar LNG capacity?

Ovintiv signed a 12-year agreement for 0.5 mtpa of Pembina's Cedar LNG liquefaction and transportation capacity.

When will Ovintiv's Cedar LNG capacity under the OVV agreement begin?

Service begins with Cedar LNG commercial operations, which are anticipated in late 2028.

How much LNG capacity did Ovintiv secure at Cedar LNG (OVV)?

Ovintiv secured 0.5 million tonnes per annum (mtpa) of liquefaction capacity.

How long is the Ovintiv (OVV) agreement for Cedar LNG capacity?

The agreement term is 12 years.

What markets will Ovintiv (OVV) access through the Cedar LNG agreement?

The agreement provides access to additional export markets, notably Asian LNG markets via Canada’s west coast.

Does the Ovintiv Cedar LNG capacity agreement change its existing transportation arrangements (OVV)?

The agreement is described as complementary to Ovintiv's existing natural gas transportation portfolio.