Ovintiv Inc. closed its previously announced Eagle Ford asset sale. The proceeds from this sale, combined with those recently received from the Duvernay asset sale, will be used for debt reduction.

In addition, the Company today announced that it has issued a notice to the trustee of its 5.75% notes due 2022 to redeem the entire $600 million aggregate principal amount. The outstanding 2022 notes will be redeemed, pursuant to their terms and conditions, on June 18, 2021. The Company also expects to redeem the entire $518 million aggregate principal amount of its outstanding 3.90% notes due 2021 at par in mid-August.

The combined redemption of the 2021 and 2022 notes represents approximately $1.1 billion of debt retirement for Ovintiv. Once redeemed, over $50 million of annualized interest expense will be removed from the Company's cost structure. The Company's next debt maturity is not until July of 2024.

"Today's Eagle Ford asset sale continues our track record of delivery and allows us to meaningfully accelerate debt reduction," said Ovintiv CEO, Doug Suttles. "With these proceeds, in combination with our strong free cash flow generation, we now expect to reach our debt target of $4.5 billion by the end of this year. Our priorities today are clear - reduce debt, maintain scale, drive efficiencies, and return cash to shareholders."

BMO Capital Markets and Citigroup Global Markets, Inc. served as Ovintiv's financial advisors and Davis Graham & Stubbs LLP served as Ovintiv's legal advisor for the Eagle Ford transaction.

About Ovintiv Inc.

Ovintiv (NYSE: OVV) (TSX: OVV) is one of the largest producers of oil, condensate and natural gas in North America. The Company is committed to preserving its financial strength, maximizing profitability through disciplined capital investments and operational efficiencies and returning capital to shareholders. A talented team, in combination with a culture of innovation and efficiency, fuels Ovintiv's economic performance, increases shareholder value and strengthens its commitment to sustainability in the communities where its employees live and work.