• Sign up for the Daily Digest E-mail
  • Facebook
  • Twitter
  • LinkedIn

BOE Report

Sign up
  • Home
  • BOE Intel
  • Headlines
    • Latest Headlines
    • Featured Companies
    • Columns
    • Discussions
  • Well Activity
    • Well Licences
    • Well Activity Map
  • Property Listings
  • Land Sales
  • M&A Activity
    • M&A Database
    • AER Transfers
  • Markets
  • Rig Counts/Data
    • CAOEC Rig Count
    • Baker Hughes Rig Count
    • USA Rig Count
    • Data
      • Canada Oil Market Data
      • Canada NG Market Data
      • USA Market Data
      • Data Downloads
  • Jobs

Ovintiv nears south Texas asset sale for over $800 million

March 12, 202111:00 AM Reuters0 Comments

Ovintiv Inc is in advanced talks with a privately-owned energy investment firm to sell its holding in a south Texas shale basin for more than $800 million, sources familiar with the matter said on Friday.

The sale of its Eagle Ford acreage would mark a milestone for Denver-based Ovintiv, which is on a multi-year debt reduction plan it outlined in February. The plan includes generating about $1 billion from divesting assets.

Ovintiv’s shares have gained over 90% so far this year, amid a broad rally in oil producers aided by rising U.S. crude prices.

The prospective buyer is Pontem Energy Capital, which is run by Felix Energy founder Skye Callantine, Jeff Bartlett, and Cameron Brown, the sources said.

While there is no guarantee that the deal will go through, it could be announced as early as next week, according to one of the sources.

The sources spoke on the condition of anonymity as the information is not public yet. Ovintiv declined to comment, while Pontem did not immediately respond to a request for comment.

The Eagle Ford position, which was bought in 2014 for about $3.1 billion from Freeport-McMoRan Inc, attracted multiple private equity bidders, the sources said.

Pontem’s bid was well above rivals, according to two of the sources.

The Eagle Ford asset sale, which Reuters first reported was underway in November, would be the latest step Ovintiv has taken to cut down debt and gain investor confidence.

While many U.S. shale producers have generated below-par returns in recent years, Ovintiv also drew shareholder ire for its acquisition of Newfield Exploration, which left it with nearly $7 billion in debt, and high executive pay.

Ovintiv was targeted by activist investor Kimmeridge Energy Management last year, which led to a proxy fight and the company agreeing earlier this month to add one of the investor’s nominees to its board.

In February, Ovintiv introduced changes including aligning management pay with climate change targets and came up with a revised plan to cut its debt by around 35% to $4.5 billion, while also selling its Duvernay assets in Alberta 29dk2902l

Ovintiv

Follow BOE Report
  • Facebook
  • Twitter
  • LinkedIn

Sign up for the BOE Report Daily Digest E-mail

Successfully subscribed

Latest Headlines
  • US buys 3 million barrels for oil stockpile, announces plan for 3 milllion more
  • US drillers cut oil and gas rigs for sixth week in a row – Baker Hughes
  • US burns more natgas as wind power drops, Canadian wildfires cloud solar
  • Canadian Rig Count Summary – Another week of increased activity
  • Keyera Provides Update on Alberta Wildfire Disruptions

Return to Home
Alberta GasMonthly Avg.
CAD/GJ
Market Data by TradingView

    Report Error







    Note: The page you are currently on will be sent with your report. If this report is about a different page, please specify.

    About
    • About BOEReport.com
    • In the News
    • Terms of Use
    • Privacy Policy
    • Editorial Policy
    Resources
    • App
    • Widgets
    • Notifications
    • Daily Digest E-mail
    Get In Touch
    • Advertise
    • Post a Job
    • Contribute
    • Contact
    • Report Error
    Featured In
    • CamTrader
    • Rigger Talk
    Data Partner
    BOE Network
    © 2023 Stack Technologies Ltd.