Oil and gas producer Ovintiv said on Monday it would acquire Canadian producer Logan Energy in an all-cash deal valuing the company at about $890 million, including debt.
Here are more details:
* Ovintiv would pay C$1.40 ($0.9986) per share for Logan
* The deal would add about 266,000 net acres in the oil-rich Montney region and roughly 20,000 barrels of oil equivalent per day of production
* Ovintiv said the acquisition would add about 420 net drilling locations, including 220 premium-return wells
* The deal would also help generate annual cost synergies of roughly $60 million
* The deal is expected to close early in the first quarter of 2027
* The assets include two oil batteries and stakes in two gas-processing facilities, which Ovintiv said should support margins and future production growth
* As part of the deal, Logan will spin off its newly formed subsidiary, Logan Oil Corp, to its shareholders
* Logan shareholders will also receive shares in spun-out Logan Oil Corp, initially valued at about C$0.08 per Logan share, and warrants, bringing total consideration to about C$1.48 per share
* In 2024, Ovintiv agreed to buy Paramount Resources’ Montney assets for $2.38 billion while selling its Utah Uinta operations to FourPoint Resources for $2 billion
(Reporting by Pranav Mathur in Bengaluru; Editing by Maju Samuel)