Ovintiv sets 2026 plan around Permian, Montney after declaring portfolio shift ‘complete’
Ovintiv Inc.’s 2026 development plan is fully centered on the US Permian basin and Canada’s Montney play.
In an earnings call Feb. 24, leadership said the multi‑year restructuring effort has concluded, enabling the operator to shift from portfolio transformation to execution.
“The portfolio transition here is complete,” said president and chief executive officer Brendan McCracken. With the NuVista acquisition closed and the Anadarko exit pending, Ovintiv now operates exclusively in the two plays.
McCracken noted about “80% of the remaining sub‑$50 breakeven oil locations in North America are located in those two basins.”
Ovintiv 2026 operating plan
CAPEX: $2.3 billion
Corporate production targets:
• 209,000 b/d oil and condensate
• >2 bcfd natural gas
• 620,000–645,000 boe/d
Permian (2026):
• 5 rigs, 1–2 frac crews
• 125–135 net wells
• 117,000–123,000 b/d oil and condensate
• 270–295 MMcfd natural gas
• D&C cost < $600/ft
Montney (2026):
• 6 rigs, 1–2 frac crews
• 130–140 net wells
• 80,000–84,000 b/d oil and condensate
• 1.7–1.8 bcfd natural gas
• D&C cost < $500/ft
2026 guidance
For 2026, Ovintiv plans to invest $2.25–2.35 billion, up slightly from the $2.147 billion spent in 2025. McCracken said capital spend will be highest in first-quarter 2026 at about $625 million, “largely due to $50 million of capital allocated to the Anadarko and some drilling activity in the Montney that we inherited from NuVista.”
The program is designed to deliver 205,000–212,000 b/d of oil and condensate, some 2 bcfd of natural gas, and 620,000–645,000 boe/d total company production. For full-year 2025, the company produced 614,500 boe/d.
The company is pursuing a “stay‑flat” oil strategy, maintaining liquids output through steady activity rather than aggressive volume growth.
Permian
Ovintiv plans to run 5 rigs and 1-2 frac crews in the Permian basin this year, bringing 125–135 net wells online. Oil and condensate volumes are expected to average 117,000–123,000 b/d, with natural gas production of 270–295 MMcfd.
The company projects 2026 drilling and completion costs below $600/ft, about $25/ft lower than 2025. Chief operating officer Gregory Givens credited faster cycle times and ongoing application of surfactant technology. Ovintiv has now deployed surfactants in about 300 Permian wells, generating a 9% uplift in oil productivity versus comparable control wells.
Givens also reiterated that Ovintiv remains committed to its established cube‑development model. Responding to an analyst question, he said the company continues completing entire cubes at once, then returning “18 months later” to develop adjacent cubes—an approach that stabilizes well performance and reduces parent‑child degradation, he said.
“We are getting the whole cube at the same time, and that is working quite well for us,” he said.
The company plans to drill its first Barnett Woodford test well across Midland basin acreage in 2026. Ovintiv holds Barnett rights across roughly 100,000 acres and intends to move cautiously given the zone’s depth, higher pressure, and elevated cost structure.
Montney
In the Montney, Ovintiv expects to run 6 rigs and 1-2 frac crews, generating 130–140 net wells. Forecast production includes 80,000–84,000 b/d of oil and condensate and 1.7–1.8 bcfd of natural gas.
The operator projects sub‑$500/ft D&C costs, a $25/ft year‑over‑year reduction supported by shorter drilling cycle times and greater use of domestically sourced sand. Ovintiv expects $1 million per‑well cost savings across the asset base acquired from NuVista, following the earlier Paramount Resources integration that delivered $1.5 million per-well savings and cut drilling time by 14 days.
The company highlighted the Montney 15‑16 pad, Ovintiv’s first fully redesigned pad on the newly acquired acreage. The project utilized 14 wells per section, adding a third Lower Montney (Sexsmith) bench and validating about 130 upside drilling locations across the expanded land position, the company said. Early results exceeded expectations in both lower and upper zones, prompting Ovintiv to replicate the design across nearby blocks.
Montney volumes will face temporary pressure in the second quarter due to five midstream plant turnarounds occurring simultaneously—a rare alignment that will likely push output to the lower end of guidance. McCracken said the outages are part of normal 2–3‑year maintenance cycles, but that having several coincide is unusual and not expected to represent a sustained risk.
About the Author
Mikaila Adams
Managing Editor, Content Strategist
Mikaila Adams has 20 years of experience as an editor, most of which has been centered on the oil and gas industry. She enjoyed 12 years focused on the business/finance side of the industry as an editor for Oil & Gas Journal's sister publication, Oil & Gas Financial Journal (OGFJ). After OGFJ ceased publication in 2017, she joined Oil & Gas Journal and was later named Managing Editor - News. Her role has expanded into content strategy. She holds a degree from Texas Tech University.