Ovintiv Inc is looking to sell its Eagle Ford acreage in south-central Texas, several people familiar with the matter said on Friday, the latest debt-laden oil and gas producer to put assets on the block to raise cash during this year’s coronavirus-fueled oil slump.
Ovintiv, formerly known as Encana, moved its headquarters from Canada to Denver, Colorado, in January in the hopes of getting access to more capital. The crash in oil prices this year has made investors turn their backs on the shale industry and pushed companies to look at asset sales and mergers for survival.
The company’s Eagle Ford position, which it bought in 2014 from Freeport-McMoRan Inc for $3.1 billion, could help it pay off some of the $7.14 billion in long-term debt it had as of the end of September.
The divestiture plan is at an early stage, the sources said, requesting anonymity while discussing a confidential process.
Ovintiv could not be immediately reached for comment.