Ovintiv (OVV) risk factors, 2026 10-K

Operational Risks

1. 01Oil and natural gas exploration, development and production activities involve substantial costs and risks and may not result in commercially productive reserves
2. 02We are subject to risks and uncertainties associated with evolving environmental regulations in all jurisdictions in which we operate28% rewritten
3. 10Our ability to operate and complete projects is dependent on numerous factors outside of our control
4. 11Our operations involve many risks, some of which could result in unforeseen interruptions and expose us to substantial losses and liabilities, for which our insurance may not fully protect us
5. 12cyberattacks targeting oil and gas infrastructure
6. 13To the extent such weather events or natural disasters become more frequent or more severe, disruptions to our business and costs to repair damaged facilities could increase
7. 14delays imposed by or resulting from compliance with or changes in environmental and other governmental, regulatory or contractual requirements
8. 15the ability to successfully clean out the wellbore after completion of the final fracture stimulation stage44% rewritten
9. 16The proved reserves data provided in this Annual Report on Form 10-K is an estimate only and any inaccuracies in the methodology or assumptions underlying our proved reserves estimates could cause the quantity and net present value of our oil, NGLs, and natural gas reserves to be materially overstated or understated
10. 17If we fail to find, develop or acquire additional oil, NGLs and natural gas reserves, our reserves and production will decline materially from their current levels
11. 18Horizontal multi-well pad drilling involves certain risks which may cause volatility in our operating results
12. 19We are subject to risks and liabilities from acquisitions and any anticipated or desired benefits from such acquisitions may not be realized23% rewritten
13. 20the inability to hire, train or retain qualified personnel to manage and operate the acquired assets or business
14. 21We are dependent on partners to fund certain projects conducted through joint ventures and partnerships
15. 22We do not operate all of our assets, and, in such instances, we may have a limited ability to exercise influence over the operation and development of such assets
16. 23Our customers, counterparties and lenders may be unable to satisfy their contractual or legal obligations
17. 24We retain certain indemnification obligations related to our corporate reorganization in November of 2009
18. 25We may be unable to dispose of certain assets and may be required to retain liabilities for certain matters
19. 26Our operations may be affected by indigenous treaty, title and other rights93% rewritten
20. 27natural gas companies and/or bring shareholder proposals demanding that oil and natural gas companies increase climate disclosure; change business practices or operations; or appoint new board representationnew
21. 28Estimates used in various scenario planning analyses could differ materially from actual results as the policy and regulatory environment evolves
22. 29Increased scrutiny of sustainability matters could have an adverse effect on our operations88% rewritten

Financial and Liquidity Risk

1. 03Our risk management activities may prevent us from fully benefiting from an increase in oil, NGLs and natural gas prices and expose us to certain other risks
2. 04Regulation and Litigation Risk
3. 30Downgrades in our credit ratings could increase our cost of capital and limit our access to capital, suppliers or counterparties
4. 31Our level of indebtedness may limit our financial flexibility30% rewritten
5. 32increasing our vulnerability to general adverse economic and industry conditions
6. 33The decision to return capital to shareholders, whether through cash dividends, share buybacks or otherwise, and the amount and timing of such capital returns is subject to the discretion of the Board of Directors and will vary from time to time
7. 34We are subject to extensive federal, state, provincial and local government laws, rules and regulations that can adversely affect the cost, manner and feasibility of our business, and increased regulation in the future could increase costs, impose additional operating restrictions and cause delays
8. 35We currently are, and from time to time in the future may be, subject to claims, litigation, administrative proceedings and regulatory actions that may not be resolved in our favor
9. 36The ability of Canadian and other non-resident shareholders to effect service of process or enforce remedies against Ovintiv, its directors, officers, experts, and assets may be limited

General Risks

1. 05We could be adversely affected by security threats, including cybersecurity threats and related disruptions100% rewritten
2. 38The oil and natural gas industry is highly competitive and many of our competitors have available resources in excess of our own65% rewritten

Market Risks

1. 06A substantial or extended decline in oil, NGLs or natural gas prices, or a substantial increase in oil, NGLs and natural gas price differentials, could have a material adverse effect on our business, financial condition, results of operations, and the trading prices of our securities
2. 07the nature and extent of governmental regulations, including any changes or other actions with respect to emissions, climate change, tariffs or tax laws
3. 08The trading price of our securities, including our common stock, is subject to volatility
4. 09Fluctuations in exchange rates could affect expenses or result in realized and unrealized losses

Tax Risks

1. 37U.S. and Canadian tax laws and regulations may change over time, and such changes may result in increased taxes on our business