Ovintiv Inc. Income Taxes Disclosure

During the year ended December 31, 2025, the current income tax expense was primarily due to the Canadian earnings subject to current tax.

During the year ended December 31, 2024, the current income tax expense was primarily due to the Canadian earnings subject to current tax and the impact of the corporate alternative minimum tax (“CAMT”) in the U.S.

During the year ended December 31, 2023, the current income tax expense was primarily due to the full utilization of Ovintiv’s operating losses in Canada and recognition of prior year deferred income, resulting in current tax in 2023.

During the year ended December 31, 2025, the deferred tax recovery was primarily due to the impact of the commercial restructure in Canada described below and ceiling test impairments in Canada, partially offset by taxes on U.S. earnings.

During the year ended December 31, 2024, the deferred tax expense was primarily due to taxes on U.S. earnings, partially offset by deferred tax recovery in Canada due to ceiling test impairments.

During the year ended December 31, 2023, the deferred tax expense was primarily due to taxes on U.S. earnings, offset by the recognition of U.S. research and development credits of $136 million. In addition, the deferred tax recovery in Canada was primarily from the recognition of prior year deferred income as discussed above.

The following disclosures reflect the Company’s prospective adoption of ASU 2023-09 (see Note 1).

During the year ended December 31, 2025, Ovintiv restructured its existing arrangement with a subsidiary of Mitsubishi Corporation for ownership and development of the Cutbank Ridge lands within the Montney area of British Columbia. This commercial restructure is designed to enhance alignment between the two companies and streamline administrative processes. The tax impact of the restructure is reflected in the table above.

The effective tax rate of (61.3) percent for the year ended December 31, 2025, is lower than the U.S. federal statutory tax rate of 21 percent primarily due to the recognition of a net deferred tax asset resulting from the commercial restructure discussed above.

During the year ended December 31, 2024, a valuation allowance of $45 million was reversed primarily related to utilization of Canadian net capital losses. During the year ended December 31, 2023, a valuation allowance of $18 million was reversed primarily related to operating losses and utilization of Canadian net capital losses.

The effective tax rate of 16.7 percent for the year ended December 31, 2024, is lower than the U.S. federal statutory tax rate of 21 percent primarily due to the recognition of U.S. research and development credits.

The effective tax rate of 16.9 percent for the year ended December 31, 2023, is lower than the U.S. federal statutory tax rate of 21 percent primarily due to the recognition of U.S. research and development credits as described above.

As at December 31, 2025, Ovintiv has a valuation allowance against certain U.S. state losses in the amount of $29 million (2024 - $29 million), foreign tax credits of $22 million (2024 - nil) and Canadian net capital losses in the amount of $714 million (2024 - $1,175 million) as it is more likely than not that these benefits will not be realized based on expected future taxable earnings as determined in accordance with the Company’s accounting policies.

As at December 31, 2025, the Company has recorded a deferred income tax liability of nil (2024 - $11 million) on the undistributed earnings from its foreign investments. As at December 31, 2025, the Company had a taxable temporary difference of approximately $261 million (2024 ‑ $137 million) in respect of unremitted earnings that continue to be permanently reinvested for which a deferred income tax liability of $13 million (2024 - $7 million) has not been

recognized and becomes subject to taxation upon the remittance of dividends. The deferred tax liability considers U.S. federal, state and foreign withholding tax implications.

The Company recognizes tax benefits from uncertain tax positions only if it is more likely than not the tax position will be sustained upon audit by the taxing authorities. During the year ended December 31, 2025, the Company recorded unrecognized tax benefits of $54 million (2024 - $59 million).

If recognized, all of Ovintiv’s unrecognized tax benefits as at December 31, 2025, would affect Ovintiv’s effective income tax rate. The nature of the unrecognized tax benefits is highly uncertain.

Ovintiv may recognize interest accrued in respect of unrecognized tax benefits in interest expense. During 2025, Ovintiv recognized an expense of $1 million (2024 - $1 million; 2023 - nil) in interest expense. As at December 31, 2025, Ovintiv had a liability of $1 million (2024 - $1 million) for interest accrued in respect of unrecognized tax benefits.

Ovintiv and its subsidiaries file income tax returns in the U.S. and Canada. Issues in dispute for audited years and audits for subsequent years are ongoing and in various stages of completion.