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 strategic acquisition represents a significant consolidation in the Canadian energy sector and substantially expands Ovintiv's footprint in the oil-rich Montney formation of Alberta.

The transaction, priced at an average of about C$17.80 per NuVista share, will add approximately 140,000 net acres to Ovintiv's portfolio, with 70% of these acres remaining undeveloped. This acquisition also brings 100 thousand barrels of oil equivalent per day in production capacity and approximately 930 total net well locations. The deal is expected to generate $100 million in annual synergies and deliver immediate Non-GAAP Free Cash Flow accretion of about 10%.

President and CEO Brendan McCracken characterized the acquisition as delivering 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 operations. The acquisition strengthens Ovintiv's position in one of North America's most productive energy basins while enhancing operational efficiency through combined assets.

Ovintiv plans to fund the cash portion of the transaction through existing liquidity and a term loan, with the company temporarily pausing share buybacks for two quarters while maintaining its base dividend. The strategic move comes alongside plans to divest Anadarko Basin assets in 2026, using proceeds to accelerate debt reduction toward a Non-GAAP Net Debt target of $4 billion by year-end 2026. More information about the company's strategy and operations is available at https://www.ovintiv.com/.

The acquisition represents a significant consolidation in the North American energy sector, potentially setting the stage for further industry mergers as companies seek scale and operational efficiency. The expanded Montney position provides Ovintiv with substantial development runway and enhances its ability to compete in global energy markets. The transaction's immediate financial benefits, including free cash flow accretion and operational synergies, demonstrate the strategic value of combining complementary assets in core producing regions.

For investors and industry observers, this transaction highlights the ongoing consolidation trend in the energy sector and the premium placed on high-quality assets in proven formations like the Montney. The deal structure, combining cash and stock while maintaining dividend payments, reflects a balanced approach to growth and shareholder returns. The full details of the acquisition and corporate strategy are outlined in the official announcement available at https://ibn.fm/BdKGc.