Ovintiv, Inc. (NYSE:OVV) Q2 2023 Earnings Conference Call July 28, 2023 11:00 AM ET

Company Participants

Jason Verhaest - IR

Brendan McCracken - President, CEO & Director

Gregory Givens - EVP & COO

Corey Code - EVP & CFO

Conference Call Participants

Arun Jayaram - JPMorgan Chase & Co.

Neal Dingmann - Truist Securities

Gabriel Daoud - TD Cowen

Joshua Silverstein - UBS

Umang Choudhary - Goldman Sachs

Phillips Johnston - Capital One

Jeoffrey Lambujon - Tudor, Pickering, Holt & Co.

Scott Gruber - Citigroup

Operator

Good morning, ladies and gentlemen and thank you for standing by. Welcome to Ovintiv's 2023 Second Quarter Results Conference Call. As a reminder, today's call is being recorded. [Operator Instructions] Please be advised that this conference call may not be recorded or rebroadcast without the expressed consent of Ovintiv.

I would now like to turn the conference call over to Jason Verhaest from Investor Relations. Please go ahead, Mr. Verhaest.

Jason Verhaest

Thanks, Michelle, and welcome, everyone to our second quarter '23 conference call. This call is being webcast and the slides are available on our website at ovintiv.com. Please take note of the advisory regarding forward-looking statements at the beginning of our slides and in our disclosure documents filed on SEDAR and EDGAR. Following prepared remarks, we will be available to take your questions. Please limit your time to one question and one follow-up.

I will now turn the call over to our President and CEO, Brendan McCracken.

Brendan McCracken

Good morning. Thank you for joining us. Our outstanding second quarter results continue the strong momentum we've created with our focus on execution, and making better wells for lower costs. We exceeded every one of our guidance targets on the quarter. We also closed two compelling transactions that have simplified our portfolio, extended our premium inventory enhanced our go-forward capital efficiency and expanded our margins.

I'll speak more to the progress we are making with the newly acquired Permian assets in a moment, but first, I want to touch on our second quarter results. Our production outperformance in the quarter is coming from our legacy business. The accelerated close was included with our previously issued 2Q guidance, and the new assets have performed right in line with our expectations during the quarter.

Quarter was a beat across the board from production to capital to per unit costs. We exceeded our targets delivered on both efficiencies and well productivity. Greg will cover this in more detail in a moment, but our oil production outperformance is the result of our completion design innovations and our capital reductions are the result of our execution efficiency gains. As a result, we've raised our full year production guidance and lowered our full year capital guide.