Ovintiv said on Tuesday it would buy the rest of NuVista Energy in a cash-and-stock deal valued at $2.7 billion, including debt, strengthening the shale producer’s presence in Canada’s Montney basin.
Last year, the North American company had acquired oil assets from Canadian firm Paramount Resources in the Montney shale for $2.38 billion in cash.
“This acquisition, combined with the inventory additions from our bolt-on acquisition work in the Permian is putting our investors into top tier resource at very attractive full-cycle returns,” said CEO Brendan McCracken.
The company also said it planned to launch a divestiture process for its Anadarko asset, which it expects to complete by the end of 2026. The proceeds are expected to reduce debt.
Ovintiv, which already owns 9.6% of NuVista, said it would pay C$18.00 per share and the total consideration will be made up of 50% cash and 50% Ovintiv common stock. The offer represents a 5.6% premium to NuVista’s closing price on Tuesday.
The deal is expected to add 140,000 net acres and 100,000 barrels of oil equivalent per day, located directly adjacent to Ovintiv’s current operations in the core of Canada’s key shale play.
The company has paused its share buyback program for two quarters to help fund a portion of the deal, expected to close by the end of 2026.
Ovintiv shares rose 1.2% to $37.75 after the bell.
(Reporting by Vallari Srivastava in Bengaluru; Editing by Tasim Zahid)