Ovintiv Inc.
Ovintiv Announces Acquisition of Montney Assets and Divestiture of Uinta Basin Assets
Summary
On November 13, 2024, Ovintiv Inc. entered into a definitive agreement to acquire upstream oil and gas assets from Paramount Resources Ltd. for CAD$3.325 billion, expanding its Montney oil and condensate inventory and extending its inventory life. Simultaneously, Ovintiv agreed to divest its Uinta Basin assets to FourPoint Resources, LLC for CAD$2.0 billion, exiting the Uinta Basin. Both transactions are expected to close by the end of Q1 2025 and are subject to customary closing conditions and adjustments. The acquisition will be funded through a combination of cash on hand, proceeds from the divestiture, and borrowings under the Company's credit facility. Ovintiv has temporarily paused its share buyback program until the borrowed funds are recovered. The combined transactions are expected to be immediately accretive, increase 2025 Non-GAAP Free Cash Flow by approximately $300 million, and generate annual cost synergies of approximately $125 million.
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About Ovintiv Inc.
Ovintiv Inc. is a prominent North American energy production company that primarily focuses on the exploration, development, and production of oil, natural gas, and natural gas liquids. With a strong emphasis on sustainable growth and operational excellence, Ovintiv leverages advanced technology and innovative practices to enhance resource recovery and efficiency. The company's significant operations are distributed across prolific basins in the United States and Canada, including the Permian Basin, Montney, Anadarko, and Bakken regions, which are renowned for their rich hydrocarbon deposits. Ovintiv plays a crucial role in the energy sector by contributing to energy security and economic growth. The company is committed to reducing its environmental footprint through initiatives such as emissions reduction and water management strategies, aligning with broader industry trends towards sustainability. Through its dynamic approach to energy production, Ovintiv Inc. continues to be a significant player in the global energy markets, influencing energy supply dynamics and supporting technological advancements in resource extraction.
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