Registered Shareholders

In the case of registered shareholders (i.e., shareholders noted on the shareholder register maintained by American Stock Transfer & Trust, LLC):

• Dividends payable to shareholders with a registered address in Canada will be converted into and paid in Canadian funds at the daily average exchange rate quoted for Canadian funds by the Bank of Canada on the dividend record date.
• Dividends payable to all other registered shareholder addresses will be paid in U.S. dollars.

Beneficial Shareholders

In the case of beneficial shareholders whose shares are held through a broker or an investment dealer who is a participant in a Canadian or a U.S. securities depository:

• Dividends payable to a U.S. depository, such as Cede & Co., will be paid in U.S. dollars.
• Dividends payable to a Canadian depository, such as CDS & Co., will be converted into and paid in Canadian funds at the daily average exchange rate quoted for Canadian funds by the Bank of Canada on the dividend record date.

Ovintiv Inc. expects that its dividends will constitute "qualified dividend income" for non-corporate U.S. holders, including individual U.S. holders, taxable at the lower applicable capital gains rate, provided that certain holding period requirements are met. Prior to 2020, Ovintiv Inc’s dividends were also  expected to constitute “qualified dividend income”.

For more information, please visit http://www.irs.gov or contact an accountant or professional tax advisor. 

For shareholders that are not United States persons, dividends will be subject to U.S. withholding taxes on the gross amount of the dividends at 30% (or, if applicable, the lower rates provided in the shareholders’ respective home country income tax treaty with the United States).

For Canadian shareholders that are eligible for benefits under Canada’s income tax treaty with the United States , the withholding tax rate on dividends is generally 15% provided the applicable U.S. W-8 form has been provided by the shareholder to America Stock Transfer & Trust, LLC. or their  broker.

Ovintiv Inc. advises all shareholders that, effective from January 1, 2006, all dividends paid on its common shares were designated as "eligible dividends" for Canadian income tax purposes.  For more information regarding the designation of dividends, please refer to the Canada Revenue Agency release dated December 20, 2006. If you have any questions regarding the taxation of eligible dividends, please contact your local office of the Canada Revenue Agency

Any decision to declare and pay a dividend will be determined at the discretion of Ovintiv Inc.’s Board of Directors after giving consideration to a number of factors including, but not limited to, company earnings, the financial requirements of the company's operations and the satisfaction by the company of liquidity and solvency tests prescribed by law.