Ovintiv to Acquire NuVista Energy for $2.7 Billion
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Ovintiv and NuVista Energy have entered into a definitive agreement where Ovintiv will acquire all of the outstanding shares of NuVista Energy in a cash and stock transaction that values NuVista at approximately $2.7 billion (CAD$3.8 billion).
The acquisition is expected to add approximately 930 net 10,000-foot equivalent well locations, and approximately 140,000 net acres (approximately 70 percent undeveloped) in the core of the oil-rich Alberta Montney. Full year 2026 production from the acquired assets is expected to average approximately 100 MBOE/d (approximately 25 thousand barrels per day (Mbbls/) of oil and condensate). The assets are directly adjacent to Ovintiv’s current operations and include access to processing and downstream infrastructure with significant available capacity. The transaction has been unanimously approved by the boards of directors of both companies.
“The NuVista assets were identified as part of an in-depth technical and commercial analysis to identify the highest value undeveloped oil resource in North America. The position is 70 percent undeveloped and is an exceptional fit with our existing acreage and infrastructure. The team at NuVista has done a tremendous job building these assets which have demonstrated top-tier well performance,” said Ovintiv President and CEO, Brendan McCracken.
“We are excited to apply our industry-leading expertise to the combined position. In addition to the high-quality resource and fit with our legacy assets, NuVista has secured significant processing capacity, further unlocking optionality for future oil and condensate growth, paired with a downstream market access portfolio that provides valuable natural gas price diversification outside of the AECO market,” added McCracken.
“This acquisition, combined with the inventory additions from our bolt-on acquisition work in the Permian is putting our investors into top tier resource at very attractive full cycle returns. It demonstrates the power of our durable returns strategy and further reinforces our increasingly distinctive and growing premium-return inventory life,” concluded McCracken.
Ovintiv also said it will launch a divestiture process for its Anadarko asset.
Ovintiv together with its subsidiaries, explores, develops, produces, and markets natural gas, oil, and natural gas liquids in North America. It has a portfolio of contiguous positions in the Permian and Anadarko basins, and the Montney.
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