Ovintiv USA’s 2025 Drilling Strategy: How the Permian Fit’s the Corporate Playbook

Ovintiv USA's 2025 drilling strategy heavily favors the Permian Basin as its core growth engine, with over 70% of activity (133 wells) in the Midland Basin, building premium inventory at bargain rates. Management explicitly positions Permian alongside Montney as strategic oil plays, using a "ground game" of bolt-on acquisitions to amass 1,000+ locations since 2023 at $1.4-2M per well—now worth $7M amid rising values. This fits broader Permian narratives of efficiency amid Goldman's $52 oil forecast, natgas surges, and Trump's permit boom, ideal for your basin-focused blog.​

Permian Focus Breakdown

In 2025, Ovintiv drilled 133 Midland Basin wells using four high-intensity Helmerich & Payne rigs across Martin, Midland, Andrews, Howard, and Upton counties, executing a standardized manufacturing program. Added 170 premium locations at $1.5M/well (pure inventory, no production), yielding ~100,000 BOE/d with low declines, low opex, and strong pricing for FCF punch. Capital: $1.2-1.3B (85% on high-return oil plays), targeting 130-140 net wells, 11,500-ft laterals, D&C costs $600-650/ft ($25/ft drop YoY).​

Portfolio Reset: Anadarko Exit

Anadarko (40 wells in Kingfisher/Blaine/Canadian) runs as cash-flow harvest ahead of sale—nothing left to prove technically, maximizing PDP for monetization. Minor plays: Uinta (10 wells, liquids-rich), Williston/Delaware (2 each, maintenance/bolt-ons). Q3 2025 call confirmed reset: Permian for growth, non-core divestitures to cut debt below $5B.​

Ties to Permian Trends

Strategy thrives despite Goldman's $52 WTI glut via low-cost ops (top-quartile), aligning with $50 math challenges and 55% permit surge unlocking federal acres. Associated gas feeds natgas pipeline flows (109 Bcf/d), LNG/power tests, boosting midstream like Oneok. Cube developments extend well life, cutting spend while hiking H2 2025 output