(WO) — Ovintiv Inc. introduced a definitive settlement to amass Calgary-based NuVista Power Ltd. in a cash-and-stock transaction valued at roughly $2.7 billion (C$3.8 billion), marking a significant enlargement of its oil-weighted place in Canada’s Montney formation. The deal, unanimously authorized by each corporations’ boards, is predicted to shut by the top of the primary quarter of 2026.
Beneath the settlement, Ovintiv will purchase all excellent NuVista shares it doesn’t already personal for C$18.00 per share, break up evenly between money and Ovintiv widespread inventory. The transaction contains NuVista’s 140,000 web acres within the Alberta Montney—roughly 70% undeveloped—and common manufacturing of 100,000 boed, together with 25,000 bpd of oil and condensate.
The acquisition provides roughly 930 web 10,000-foot equal properly places, of which 620 are categorized as premium return alternatives. Ovintiv stated the deal will probably be instantly accretive throughout all key metrics, boosting free money circulation per share by about 10% and producing estimated annual synergies of $100 million via capital efficiencies, value financial savings and streamlined operations.
“This transaction boosts our free money circulation per share by buying top-decile rate-of-return belongings within the coronary heart of the Montney oil window,” stated Ovintiv President and CEO Brendan McCracken. “NuVista’s belongings are an ideal match with our present acreage, providing high-quality useful resource, secured processing capability, and market entry diversification.”
Ovintiv plans to fund the money portion via a mixture of present liquidity and new borrowing, whereas quickly pausing its share buyback program. The corporate additionally introduced plans to divest its Anadarko Basin belongings starting in early 2026, with proceeds earmarked for accelerated debt discount. Ovintiv expects to cut back its web debt beneath $4 billion by year-end 2026, enabling elevated shareholder returns.
As soon as full, the deal will increase Ovintiv’s Montney place to over 510,000 web acres, with anticipated 2026 oil and condensate output of roughly 85,000 bpd from the play. The acquisition continues a pattern of North American shale consolidation as producers search to scale up high-margin, infrastructure-rich positions in main basins.
