Ovintiv Inc. Revenue Disclosure
3. |
Revenues from Contracts with Customers |
The following table summarizes Ovintiv’s revenues from contracts with customers.
Revenues
|
|
|
|
|
|
|
|
USA Operations |
|
|
Canadian Operations |
|
||||||||||||||||||
For the years ended December 31 |
|
|
|
|
|
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Revenues from Customers |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Product revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Oil |
|
|
|
|
|
|
|
$ |
3,413 |
|
|
$ |
4,549 |
|
|
$ |
4,444 |
|
|
$ |
10 |
|
|
$ |
10 |
|
|
$ |
3 |
|
NGLs |
|
|
|
|
|
|
|
|
693 |
|
|
|
740 |
|
|
|
679 |
|
|
|
1,422 |
|
|
|
992 |
|
|
|
1,029 |
|
Natural gas |
|
|
|
|
|
|
|
|
447 |
|
|
|
318 |
|
|
|
458 |
|
|
|
1,159 |
|
|
|
741 |
|
|
|
1,192 |
|
Sales of purchased product |
|
|
|
|
|
|
|
|
1,311 |
|
|
|
1,449 |
|
|
|
2,590 |
|
|
|
176 |
|
|
|
136 |
|
|
|
259 |
|
Service revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Gathering and processing, and other |
|
|
|
|
|
|
|
|
20 |
|
|
|
5 |
|
|
|
5 |
|
|
|
12 |
|
|
|
3 |
|
|
|
2 |
|
|
|
|
|
|
|
|
|
$ |
5,884 |
|
|
$ |
7,061 |
|
|
$ |
8,176 |
|
|
$ |
2,779 |
|
|
$ |
1,882 |
|
|
$ |
2,485 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
Corporate & Other |
|
|
Consolidated |
|
||||||||||||||||||||||
|
|
|
|
|
|
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Revenues from Customers |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Product revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Oil |
|
|
|
|
|
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
3,423 |
|
|
$ |
4,559 |
|
|
$ |
4,447 |
|
NGLs |
|
|
|
|
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
2,115 |
|
|
|
1,732 |
|
|
|
1,708 |
|
Natural gas |
|
|
|
|
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1,606 |
|
|
|
1,059 |
|
|
|
1,650 |
|
Sales of purchased product |
|
|
|
|
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1,487 |
|
|
|
1,585 |
|
|
|
2,849 |
|
Service revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Gathering and processing, and other |
|
|
|
|
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
32 |
|
|
|
8 |
|
|
|
7 |
|
|
|
|
|
|
|
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
8,663 |
|
|
$ |
8,943 |
|
|
$ |
10,661 |
|
The Company’s revenues from contracts with customers consists of product sales including oil, NGLs and natural gas, sales of purchased product, as well as the provision of gathering and processing, and other services to third parties. Ovintiv had no contract asset or liability balances during the periods presented. As at December 31, 2025, receivables and accrued revenues from contracts with customers were $845 million (2024 - $921 million).
Ovintiv’s product sales are sold under short-term contracts with terms that are less than one year at either fixed or market index prices or under long-term contracts exceeding one year at market index prices at the time of delivery.
The Company’s gathering and processing services are provided on an interruptible basis with transaction prices that are for fixed prices and/or variable consideration. Variable consideration received is related to recovery of plant operating costs or escalation of the fixed price based on a consumer price index. As the service contracts are interruptible, with service provided on an “as available” basis, there are no unsatisfied performance obligations remaining at December 31, 2025.
As at December 31, 2025, all remaining performance obligations are priced at market index prices or are variable volume delivery contracts. As such, the variable consideration is allocated entirely to the wholly unsatisfied performance obligation or promise to deliver units of production, and revenue is recognized at the amount for which the Company has the right to invoice the product delivered. As the period between when the product sales are transferred and Ovintiv receives payments is generally 30 to 60 days, there is no financing element associated with customer contracts. In addition, Ovintiv does not disclose unsatisfied performance obligations for customer contracts with terms less than 12 months or for variable consideration related to unsatisfied performance obligations.
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.