Ovintiv Acquires NuVista Energy in $3.8 Billion Deal to Expand Alberta Montney Position

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 C$3.8 billion, including C$300 million in net debt and Ovintiv's existing 9.6% NuVista ownership. The deal, priced at an average of about C$17.80 per NuVista share, represents a significant consolidation in Canada's energy sector that will substantially expand Ovintiv's position in the strategically important Alberta Montney formation.

The acquisition adds roughly 140,000 net acres to Ovintiv's portfolio, with approximately 70% of these acres remaining undeveloped, providing substantial long-term growth potential. The transaction also brings 100 thousand barrels of oil equivalent per day in current production capacity from the Montney formation, one of North America's most productive energy plays. Ovintiv expects the acquisition to contribute approximately 930 total net well locations, creating significant drilling inventory for future development.

President and CEO Brendan McCracken described the acquisition as delivering "top decile rate of return assets in the heart of the Montney oil window at an attractive price." He cited NuVista's strong well performance, strategic infrastructure, and gas diversification as key benefits that will enhance Ovintiv's overall portfolio. The company projects approximately $100 million in annual synergies from the combination and immediate Non-GAAP Free Cash Flow accretion of about 10%, providing immediate financial benefits to shareholders.

Ovintiv plans to fund the cash portion of the transaction through existing liquidity and a term loan, while temporarily pausing share buybacks for two quarters. The company will maintain its base dividend throughout this period. In a related strategic move, Ovintiv announced plans to divest its Anadarko Basin assets in 2026, using the proceeds to accelerate debt reduction toward a Non-GAAP Net Debt target of $4 billion by year-end 2026. More information about the transaction is available in the full press release.

This transaction represents a significant consolidation in the Canadian energy sector and demonstrates continued confidence in the long-term viability of the Montney formation. The deal's structure, combining cash and stock consideration, provides flexibility while allowing NuVista shareholders to participate in the combined company's future growth. The acquisition positions Ovintiv as a stronger competitor in the North American energy landscape with enhanced scale, improved financial metrics, and substantial undeveloped inventory for future growth.

The strategic importance of this acquisition extends beyond immediate financial metrics. By consolidating positions in the Montney formation, Ovintiv gains operational efficiencies and economies of scale that could improve overall profitability in a competitive energy market. The transaction also reflects ongoing industry trends toward consolidation as companies seek to optimize portfolios and strengthen their positions in core operating areas. Additional company information can be found on the Ovintiv website.