OVV Ovintiv Inc

Exhibit 99.1

UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL STATEMENTS OF OVINTIV INC.

On June 12, 2023, Ovintiv Inc. (“Ovintiv”) completed the acquisition (the “Permian Acquisition”) to purchase the outstanding equity interests of six Delaware limited liability companies including Black Swan Permian, LLC and Black Swan Operating, LLC (together, “Black Swan Combined”), PetroLegacy Energy II, LLC, PearlSnap Midstream, LLC, Piedra Energy III, LLC and Piedra Energy IV, LLC and associated subsidiaries (collectively, the “Permian LLCs”) from NMB Seller Representative, LLC, representing the respective sellers including, Black Swan Oil & Gas, LLC, PetroLegacy II Holdings, LLC, Piedra Energy III Holdings, LLC and Piedra Energy IV Holdings, LLC (collectively the “Sellers”), which are portfolio companies of funds managed by EnCap Investments L.P (“EnCap”). The Company paid aggregate cash consideration of approximately $3.2 billion and issued 31.8 million shares of Ovintiv common stock, representing a value of the consideration of approximately $1.2 billion, subject to final closing adjustments. The cash portion of the consideration was funded through a combination of net proceeds from the Company’s issuance of senior notes offered on May 31, 2023, net proceeds from the sale of the Company’s Bakken assets, cash on hand and proceeds from short-term borrowings. The Permian Acquisition is strategically located in close proximity to Ovintiv’s current Permian operations and adds approximately 1,050 net well locations to Ovintiv’s existing Permian inventory and approximately 65,000 net acres.

The Permian Acquisition has been accounted for under the acquisition method and as a single transaction because the purchase agreement was entered into at the same time with EnCap and in contemplation of one another to achieve an overall economic effect. As the Permian Acquisition was completed on June 12, 2023, the effects from the issuance of the senior notes and short-term borrowings (“financing transaction”) and the consideration paid in Permian Acquisition were included in the Ovintiv’s unaudited historical condensed consolidated balance sheet as of June 30, 2023; therefore, a pro forma balance sheet is not included herein. In addition, Ovintiv’s unaudited historical condensed consolidated statement of earnings for the six months ended June 30, 2023 include the results from the Permian Acquisition and the financing transaction from June 12, 2023 through June 30, 2023.

The unaudited pro forma condensed combined statements of earnings, included herein, for the six months ended June 30, 2023 and for the year ended December 31, 2022 were prepared as if the Permian Acquisition and the financing transaction had occurred on January 1, 2022. The unaudited pro forma condensed combined statements of earnings are derived from the historical consolidated financial statements of Ovintiv and the Permian LLCs, adjusted to reflect the combination of Ovintiv and the Permian LLCs. Certain of the Permian LLCs historical amounts have been reclassified to conform to Ovintiv’s financial statement presentation.

The unaudited pro forma condensed combined financial statements reflect the following pro forma adjustments, based on available information and certain assumptions that Ovintiv believes are reasonable:

The unaudited pro forma condensed combined financial statement of earnings for the year ended December 31, 2022 do not reflect a pro forma adjustment related to the proceeds and sale of Ovintiv’s Bakken oil and gas properties (“Bakken Assets”), which closed on June 12, 2023. The Bakken Assets were purchased by Grayson Mill Bakken, LLC, also a portfolio company of funds managed by EnCap, under a separate purchase agreement. The Bakken Assets were determined to not be significant and comprise less than five percent of the Company’s total assets and revenue. However, the proceeds received from the sale of the Bakken Assets were to be $706 million, after closing adjustments, and were used to fund the Permian Acquisition. As a result, the issuance of senior unsecured debt financing used to fund the Permian Acquisition was $2.3 billion and $250 million from incremental borrowings under the credit facility and short-term borrowings as compared to the $3.125 billion of debt financing reflected in the unaudited pro forma condensed combined statement of earnings.

The unaudited pro forma condensed combined financial statements of earnings have been derived from and should be read together with Ovintiv’s audited historical consolidated financial statements and related notes included in its Annual Report on Form 10-K as of and or the year ended December 31, 2022 and its unaudited historical condensed consolidated financial statements and related notes included in its Quarterly Report on Form 10-Q as of and for the six months ended June 30, 2023, and with the respective Permian LLC’s audited historical consolidated financial statements as of and for the year ended December 31, 2022, unaudited historical consolidated financial statements for the periods ended January 1, 2023 to March 31, 2023 and statements of revenues and direct operating expenses, which are incorporated by reference, and unaudited historical consolidated financial information for the periods ended April 1, 2023 to June 11, 2023, as applicable.

The unaudited pro forma condensed combined financial statements of earnings are provided for illustrative purposes only and are not intended to represent what Ovintiv’s results of operations would have been had the Permian Acquisition actually been consummated on the assumed dates, nor is it indicative of Ovintiv’s future results of operations. The unaudited pro forma condensed combined financial statements of earnings does not reflect future events that may occur after the Permian Acquisition, including, but not limited to, the anticipated realization of ongoing savings from potential operating efficiencies, asset dispositions, cost savings or economies of scale that the combined company may achieve with respect to the combined operations. As a result, future results may vary significantly from the pro forma results reflected herein.

Unaudited Pro Forma Condensed Combined Statement of Earnings

For the Six Months Ended June 30, 2023

Unaudited Pro Forma Condensed Combined Statement of Earnings

For the Year Ended December 31, 2022

NOTES TO UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL STATEMENTS OF EARNINGS

Note 1 — Basis of Presentation

The unaudited pro forma condensed combined financial statements of earnings have been derived from the historical consolidated financial statements of Ovintiv and the historical financial information of the Permian LLCs in accordance with Article 11 of the Securities and Exchange Commission’s (“SEC”) Regulation S-X. Certain of the Permian LLCs historical amounts have been reclassified to conform to Ovintiv’s financial statement presentation. The unaudited pro forma condensed combined statements of earnings for the period ended June 30, 2023 and the year ended December 31, 2022 give effect to the Permian Acquisition and the related financing transactions as if they had occurred on January 1, 2022.

The unaudited pro forma condensed combined financial statements of earnings reflect pro forma adjustments that are described in the accompanying notes and are based on available information and certain assumptions that Ovintiv believes are reasonable. However, actual results may differ from those reflected in these statements. In Ovintiv’s opinion, all adjustments that are necessary to present fairly the pro forma information have been made. The following unaudited pro forma condensed combined financial statements of earnings do not purport to represent what the results of operations would have been if the Permian Acquisition and the related financing transactions had actually occurred on the dates indicated above, nor are they indicative of Ovintiv’s future results of operations. No adjustments have been made to the pro forma financial information to reflect costs savings or synergies that may be obtained as a result of the Permian Acquisition described herein.

The unaudited pro forma condensed combined financial information includes adjustments to conform the Permian LLCs accounting policies to Ovintiv’s accounting policies, including adjusting the Permian LLCs oil and gas properties to the full cost method. The Permian LLCs followed the successful efforts method of accounting for oil and gas properties, while Ovintiv follows the full cost method of accounting for oil and gas properties. Certain costs that are expensed under the successful efforts method are capitalized under the full cost method, including unsuccessful exploration drilling costs, geological and geophysical costs, delay rentals on leases and administrative expenses directly related to exploration and development activities. Under the full cost method of accounting, property acquisition costs, costs of wells, related equipment and facilities and future development costs are all included in a single full cost pool, which is amortized on a units-of-production basis over total proved reserves. Under the successful efforts method of accounting, property acquisition costs are amortized on a units-of-production basis over total proved reserves, while costs of wells and related equipment and facilities are amortized on a units-of-production basis over proved developed reserves. Under the full cost method of accounting, proceeds from the divestiture of properties are normally deducted from the full cost pool without recognition of a gain or loss unless the deduction significantly alters the relationship between capitalized costs and proved reserves in the cost center, in which case a gain or loss is recognized in net earnings. Under the successful efforts method of accounting, gains or losses are recognized on divestitures of properties.

Note 2. Adjustments to the Unaudited Pro Forma Condensed Combined Statements of Earnings

The following adjustments have been made to the accompanying unaudited pro forma condensed combined statements of earnings for the periods ended June 30, 2023 and the year ended December 31, 2022:

The unaudited pro forma condensed combined statement of earnings for the period ending December 31, 2022 do not reflect a pro forma adjustment related to the proceeds and sale of Ovintiv’s Bakken Assets, which closed on June 12, 2023. Proceeds from the sale of the Bakken Asset were $706 million, after closing adjustments, and were used to fund the Permian Acquisition. As a result, the debt financing used to fund the Permian Acquisition was $2.3 billion from the senior unsecured note issued on May 31, 2023 and $250 million from incremental borrowings under the credit facility and short-term borrowings.