Ovintiv Inc. (NYSE: OVV) (TSX: OVV) has announced a definitive agreement to acquire all outstanding shares of NuVista Energy Ltd. (TSX: NVA) in a cash-and-stock transaction valued at approximately $2.7 billion (C$3.8 billion), including C$300 million in net debt and Ovintiv’s existing 9.6% ownership in NuVista. The deal, priced at an average of about C$17.80 per NuVista share, will add roughly 140,000 net acres—70% undeveloped—and 100 thousand barrels of oil equivalent per day (MBOE/d) in Alberta’s oil-rich Montney formation. This strategic move significantly expands Ovintiv’s footprint in the Montney, one of North America’s premier resource plays.
The acquisition is expected to contribute approximately 930 total net well locations to Ovintiv’s inventory, along with $100 million in annual synergies. Ovintiv projects immediate Non-GAAP Free Cash Flow accretion of about 10%, driven by the high-quality assets and operational efficiencies. President and CEO Brendan McCracken highlighted that the deal delivers “top decile rate of return assets in the heart of the Montney oil window at an attractive price,” citing NuVista’s strong well performance, strategic infrastructure, and gas diversification as key benefits. The transaction underscores Ovintiv’s commitment to bolstering its core holdings in the Montney, which is known for its rich oil and liquids potential.
Ovintiv plans to fund the cash portion through existing liquidity and a term loan, temporarily pausing share buybacks for two quarters while maintaining its base dividend. The company also announced plans to divest its 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. This disciplined financial approach aims to strengthen Ovintiv’s balance sheet while integrating the new assets.
The acquisition of NuVista aligns with Ovintiv’s strategy to focus on high-return, low-cost assets in the Montney, a region where the company already has a strong presence. NuVista’s assets are contiguous with Ovintiv’s existing holdings, providing operational synergies and enhanced drilling opportunities. The deal also positions Ovintiv to benefit from the Montney’s favorable economics, including access to multiple commodity streams such as oil, natural gas liquids, and natural gas.
For more details on the transaction, the full press release is available at https://ibn.fm/BdKGc. Ovintiv is a leading North American energy producer with a multi-basin portfolio, and more information can be found on the company’s website at https://www.ovintiv.com/.
