#United States #Denver #Alberta #Ovintiv #NuVista

Ovintiv Completes Acquisition of NuVista Energy

Ovintiv Inc. has recently announced the successful closure of its acquisition of all common shares from NuVista Energy Ltd. in a significant deal worth $2.7 billion. The acquisition aligns with Ovintiv's strategy to enhance its operational capabilities within the natural gas and oil sector, specifically in the lucrative Alberta Montney region. This move is poised to incorporate approximately 930 additional net 10,000-foot equivalent well locations into Ovintiv's portfolio, as well as nearly 140,000 net acres, predominantly undeveloped, further solidifying the company's presence in this resource-rich area.

Overview of the Acquisition

The acquisition, finalized on February 3, 2026, adds substantial assets to Ovintiv's existing operations. The expected production level from the newly acquired assets is estimated to average around 100 MBOE/d in 2026, translating into approximately 25 thousand barrels of oil and condensate per day. What makes this transaction particularly advantageous for Ovintiv is the fact that the assets are in close proximity to its current operations, facilitating easier integration and optimization of existing resources and infrastructure.

Brendan McCracken, President and CEO of Ovintiv, expressed enthusiasm about this acquisition, emphasizing, "These top decile rate of return assets in the heart of the Montney oil window are an exceptional fit with our existing acreage and infrastructure." The integration of these assets is expected to streamline Ovintiv’s portfolio considerably, contributing to projected cost savings of about $100 million annually, which includes roughly $1 million savings per well—an achievement that aligns with Ovintiv’s ongoing efforts to enhance operational efficiency.

What This Means for Shareholders

As part of the acquisition process, NuVista shareholders were given the option to exchange their shares for cash, equity, or a combination of both. The resulting participation was significant, with over 99% of the votes cast in favor of the acquisition, reflecting strong support from NuVista’s shareholders. With approximately 64% of NuVista shareholders participating in the vote, the dynamics of this deal confirm a robust interest in the potential growth and synergies that the acquisition promises.

NuVista shareholders had various options for compensation during this transaction: they could choose to receive CAD $18.00 in cash per share, 0.344 shares of Ovintiv stock, or a mixture of cash and stock. However, shareholders who did not make an election prior to the deadline were treated as having opted for a 50% cash and 50% share distribution, ensuring a smooth transition for all parties involved.

Future Outlook

Looking ahead, Ovintiv is set to issue its guidance for the full year and first quarter of 2026 along with its financial results for the fourth quarter of 2025 on February 23, 2026. This will likely provide further insight into the expected benefits realized from the acquisition and how it positions the company to meet its operational and financial targets moving forward.

The delisting of NuVista shares from the Toronto Stock Exchange is anticipated to follow shortly after the completion of this acquisition, marking the end of an era for the companies involved. Through this acquisition, Ovintiv aims to not only enhance its inventory of valuable oil and gas assets but also to continue optimizing its portfolio by potentially offloading less strategic assets, like its holdings in the Anadarko region.

In conclusion, this acquisition represents a pivotal moment for Ovintiv Inc., as they leverage new assets and opportunities within the North American oil plays. The strategic expansion into Alberta’s Montney region not only complements Ovintiv's current operations but also ensures they remain at the forefront of the industry as they work towards meeting and exceeding shareholder expectations.