DENVER, July 30, 2024 /CNW/ – Ovintiv Inc. (NYSE: OVV) (TSX: OVV) (“Ovintiv” or the “Company”) today announced its second quarter 2024 financial and operating results. Driven by operational excellence, the company generated robust financial outcomes and raised its full-year production guidance for the second time this year. Ovintiv reported net earnings of $340 million and achieved significant production volumes across its key assets, underscoring its commitment to delivering strong, consistent results for shareholders.
Asset Highlights
- Permian
- Production: Averaged 203 MBOE/d (81% liquids) in the second quarter.
- Wells Turned in Line (TIL): 40 net wells.
- 2024 Investment Plan: $1.35 to $1.45 billion to bring on 120 to 130 net wells.
- Montney
- Production: Averaged 251 MBOE/d (20% liquids) in the second quarter.
- Wells Turned in Line (TIL): 33 net wells.
- 2024 Investment Plan: $425 to $475 million to bring on 60 to 70 net wells.
- Uinta
- Production: Averaged 33 MBOE/d (87% liquids) in the second quarter.
- Wells Turned in Line (TIL): 7 net wells.
- 2024 Investment Plan: $300 to $350 million to bring on 25 to 30 net wells.
- Anadarko
- Production: Averaged 104 MBOE/d (57% liquids) in the second quarter.
- Wells Turned in Line (TIL): None during the quarter.
- 2024 Investment Plan: $100 to $125 million to bring on 7 to 10 net wells.
2Q24 Trimulfrac Results
The 2Q24 earnings presentation for Ovintiv mentions “Trimulfrac” in the context of their completion strategies and operational efficiency improvements. Here are the key points related to Trimulfrac:
- Trimulfrac Pad:
- The Trimulfrac pad has demonstrated impressive completion speeds, averaging around 4,800 feet per day in the first half of 2024(2Q24-earnings-presentat…).
- This innovative pad design has contributed significantly to the company’s operational efficiency, allowing for faster and more cost-effective completions(2Q24-earnings-presentat…).
- Completion Performance:
- The Trimulfrac completion technique is highlighted as a key factor in the increase in average completion speeds from approximately 2,700 feet per day in 2022 to over 4,200 feet per day in the first half of 2024(2Q24-earnings-presentat…).
- This technique has been applied to more than 50% of the completions in 2024 year-to-date, showcasing its importance in Ovintiv’s operational strategy(2Q24-earnings-presentat…).
- Cost Efficiency:
- The faster drilling and completion times associated with Trimulfrac have contributed to driving down overall drilling and completion costs. For example, the estimated D&C cost in the Permian for the second half of 2024 is between $625 and $675 per foot(2Q24-earnings-presentat…).
What is Trimulfrac?
The Trimulfrac approach is part of Ovintiv’s broader strategy to enhance operational efficiency and achieve higher returns through innovation and optimized techniques.
Trimulfrac is a completion technology used by Ovintiv in their hydraulic fracturing processes. It involves the use of a three-stream approach to deliver fluids and proppants more efficiently and effectively during the fracking process. This technology aims to enhance well productivity and optimize resource extraction by improving the distribution of proppant and fluid in the reservoir.
Key benefits of Trimulfrac typically include:
- Improved Efficiency: By delivering fluids and proppants more precisely, Trimulfrac can enhance the overall efficiency of the hydraulic fracturing process.
- Enhanced Well Performance: The technology can lead to better well performance and increased hydrocarbon recovery rates.
- Cost Savings: More efficient fracturing processes can result in cost savings in terms of reduced material use and operational time.
If you have specific details or a document referencing Trimulfrac in the 2Q24 earnings presentation for Ovintiv, please share it, and I can provide more targeted information.
How does Trimulfrac work?
The three-stream approach in hydraulic fracturing, particularly in the context of Ovintiv’s Trimulfrac technology, involves the simultaneous delivery of three separate streams of fluids and proppants into the wellbore. Here’s a breakdown of how this approach works and its benefits:
- Three Separate Streams:
- Fluid Stream: This stream typically carries the base fluid, which could be water or a gel, used to create the fractures in the rock formation.
- Proppant Stream: This stream contains the proppant material, such as sand or ceramics, which is designed to keep the fractures open once they are created, allowing hydrocarbons to flow more freely.
- Additive Stream: This stream includes various chemical additives that can be used to enhance the performance of the fracturing process, such as friction reducers, biocides, scale inhibitors, and surfactants.
- Precision Delivery:
- The three-stream approach allows for precise control over the ratio and timing of the fluids and proppants being delivered into the well. This precision can improve the effectiveness of the fracturing process.
- Enhanced Distribution:
- By managing the streams separately, operators can achieve better distribution of proppants within the fractures, leading to more uniform fracture networks and improved connectivity within the reservoir.
- Operational Flexibility:
- This method provides greater flexibility in adjusting the composition and concentration of the fracturing fluids and proppants in real-time based on real-time data and reservoir conditions.
- Improved Efficiency and Performance:
- The enhanced control and flexibility can lead to more efficient use of materials, reduced operational costs, and improved overall well performance.
The three-stream approach is designed to optimize the fracturing process by ensuring that the fluids and proppants are delivered in the most effective manner possible, ultimately leading to better well productivity and resource recovery.
