#Canada #Calgary #Ovintiv #Transaction #NuVista Energy

NuVista Energy and Ovintiv: A New Era Unfolds

NuVista Energy Ltd. and Ovintiv Inc. have reached a pivotal milestone in their notable business journey. On January 23, 2026, during a special meeting held for NuVista shareholders, an impressive 99% of voters endorsed the proposed transaction that merges the two companies. This remarkable consensus showcases the shareholders’ confidence in the future of the combined entity.

Details of the Transaction

The transaction involves not only NuVista and Ovintiv but also their respective shareholders. Following the voter’s affirmation, the Court of King’s Bench of Alberta granted the necessary Final Order, marking a critical step towards conclusion. The deal's finalization is anticipated shortly after approval under the Investment Canada Act is secured, which is a standard procedure for transactions of this magnitude.

As part of the transaction, NuVista shareholders had the opportunity to choose their preferred form of consideration. The options included:

• - Cash Consideration: C$18.00 for each NuVista share.
• - Share Consideration: 0.344 shares of Ovintiv per NuVista share.
• - A Combination of both cash and shares based on certain criteria.

The deadline for making these elections was set for January 21, 2026, and preliminary results are quite revealing. NuVista shareholders who opted for a full cash payment will receive their entire consideration in cash, effectively eliminating the risks associated with share value fluctuations.

Conversely, those choosing share consideration will receive about 58% of their payment in shares, with the balance provided as cash. Shareholders who did not submit an election were assigned a default mixed option, receiving approximately 71% cash and 29% shares.

Implications for Stakeholders

The overwhelming support from shareholders not only reflects their trust in the management's strategic vision but also underscores the anticipated synergies between NuVista and Ovintiv post-merger. This confluence of operations is expected to enhance efficiency, drive innovation, and lead to an enhanced market position in the energy sector.

This merger is anticipated to propel both companies into new competitive landscapes, enabling them to leverage their resources more effectively. The integration of their operations should also yield substantial cost savings and improved profitability over time.

Management teams from both companies are optimistic about the merger, predicting that it will bring a wealth of opportunities for growth, improved capital efficiency, and an expanded asset base capable of delivering superior returns.

Conclusion

In conclusion, the merger between NuVista Energy and Ovintiv marks a significant development in the energy sector, poised to create a powerhouse capable of navigating energy challenges more adeptly. As they move forward, the organizations stress the importance of efficiency and performance enhancement, assuring stakeholders that their interests remain a priority. With the final approvals now in place, the focus turns to achieving seamless integration to maximize value for all involved.

This transformative venture encapsulates the spirit of collaboration and growth within the industry and sets the stage for future endeavors that promise greater market agility and success.