Ovintiv to Acquire NuVista Energy in $3.8 Billion Deal Expanding Montney Presence

Ovintiv Inc. has entered into a definitive agreement to acquire all outstanding shares of NuVista Energy Ltd. in a cash-and-stock transaction valued at approximately $2.7 billion (C$3.8 billion), including C$300 million in net debt and Ovintiv's existing 9.6% NuVista ownership. The strategic acquisition positions Ovintiv to significantly expand its presence in Alberta's oil-rich Montney formation, adding approximately 140,000 net acres of which 70% are undeveloped. This substantial land addition comes with current production of 100 thousand barrels of oil equivalent per day and approximately 930 total net well locations, providing significant development runway for future growth.

The transaction, priced at an average of about C$17.80 per NuVista share, is expected to deliver immediate financial benefits including approximately 10% Non-GAAP Free Cash Flow accretion and $100 million in annual synergies. President and CEO Brendan McCracken emphasized the strategic value of the acquisition, noting it delivers top decile rate of return assets in the heart of the Montney oil window at an attractive price. He highlighted NuVista's strong well performance, strategic infrastructure, and gas diversification as key benefits that complement Ovintiv's existing portfolio.

To fund the cash portion of the transaction, Ovintiv plans to utilize existing liquidity and a term loan, while temporarily pausing share buybacks for two quarters. The company will maintain its base dividend throughout this period. Concurrent with the acquisition announcement, Ovintiv revealed plans to divest its Anadarko Basin assets in 2026, with proceeds earmarked to accelerate debt reduction toward a Non-GAAP Net Debt target of $4 billion by year-end 2026. This strategic repositioning reflects the company's focus on optimizing its asset portfolio and strengthening its financial position.

The acquisition represents a significant consolidation move within the Canadian energy sector, bringing together two established operators in the Montney formation. More information about Ovintiv's operations and strategy is available on the company's website at https://www.ovintiv.com/. The full details of the transaction and additional corporate information can be found in the official press release available at https://ibn.fm/BdKGc. The combination is expected to create a stronger, more efficient operator in the Montney region with enhanced scale and operational capabilities.