Ovintiv announces $890 million Logan Energy acquisition

• Ovintiv agreed to acquire Logan Energy in an all-cash transaction valued at approximately $890 million, including expected closing net debt, with shareholders receiving C$1.40 per share.
• The acquisition is expected to add approximately 266,000 net acres, production of 20,000 barrels of oil equivalent per day and 420 net drilling locations, alongside projected annual cost synergies of $60 million.
• Ovintiv expects the transaction to close early in the first quarter of 2027 and projects approximately 5% accretion to non-GAAP cash flow per share and 3% to non-GAAP free cash flow per share in 2027.

Ovintiv (NYSE:OVV) agreed to acquire Logan Energy in an all-cash transaction valued at approximately $890 million, including expected closing net debt, as the energy producer seeks to expand its Canadian asset portfolio.

Under the agreement, Logan shareholders will receive C$1.40 per share, representing total consideration of approximately C$1.26 billion, with Ovintiv planning to fund the acquisition using available cash and borrowings.

The acquisition is expected to add approximately 266,000 net acres and current production of about 20,000 barrels of oil equivalent per day, alongside approximately 420 net drilling locations normalized to 10,000-foot equivalent wells.

Ovintiv projects annual cost synergies of approximately $60 million and expects the transaction to increase non-GAAP cash flow per share by roughly 5% and non-GAAP free cash flow per share by 3% in 2027.

The company expects the acquisition to close early in the first quarter of 2027, subject to approvals from Logan shareholders, the court and relevant regulatory authorities.

Ovintiv anticipates maintaining net debt below $4 billion following completion of the acquisition and said its existing shareholder-return targets will remain unchanged.

The proposed transaction follows Ovintiv's February 2026 acquisition of NuVista Energy, which expanded its Montney position, and its subsequent efforts to strengthen its North American drilling inventory.