Ovintiv Closes Montney Asset Acquisition, Completing CAD$3.325 Billion Deal

Ovintiv Inc. (NYSE: OVV) has successfully finalized the acquisition of certain Montney assets from Paramount Resources Ltd. The transaction, which concluded on January 31, 2025, included a payment totaling CAD$3.325 billion in cash. The acquired assets present an addition of approximately 70 thousand barrels of oil equivalent per day (MBOE/d) production, 900 net 10,000-foot equivalent well locations, and about 109,000 net acres of strategically positioned land adjacent to Ovintiv’s existing Montney operations with convenient access to midstream infrastructure capacity.

President and CEO of Ovintiv, Brendan McCracken, expressed optimism about the newly acquired Montney asset. He highlighted its potential, terming it as one of the premier undeveloped acreage positions in North America. The acquisition is anticipated to extend Ovintiv’s premium Montney oil and condensate inventory lifespan to around 15 years, positioning the company as a leading operator in the region. The transaction, coupled with the impact of Ovintiv’s recent Uinta asset sale, is expected to be immediately and long-term accretive across all significant financial metrics. Ovintiv estimates a boost of approximately $300 million in its 2025 non-GAAP Free Cash Flow at current commodity strip pricing levels.

Initially valued at $2.377 billion (C$3.325 billion) when announced in November 2024, the final purchase price at closing lands at about $2.307 billion (C$3.325 billion) due to current foreign exchange rates. Realized losses linked to currency swaps stand at roughly $97 million. Ovintiv plans to release its full-year and first-quarter 2025 guidance simultaneous with the disclosure of its fourth quarter and full-year 2024 results on February 26, 2025.

Throughout the news release, it’s important to note that Ovintiv reports in U.S. dollars unless specified otherwise. Production estimates are reported after royalties unless stated differently. References to “Ovintiv,” “our,” or “the Company” generally encompass not only Ovintiv Inc. but also its subsidiaries and partnership interests.

The acquisition news underlines Ovintiv’s strategic growth trajectory, positioning the company well for future endeavors and consolidating its foothold in the energy sector.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Ovintiv’s 8K filing here.

Ovintiv Company Profile

Ovintiv Inc, together with its subsidiaries, explores, develops, produces, and markets natural gas, oil, and natural gas liquids in the United States and Canada. The company operates through USA Operations, Canadian Operations, and Market Optimization segments. Its principal assets include Permian in west Texas and Anadarko in west-central Oklahoma; and Montney in northeast British Columbia and northwest Alberta.