Ovintiv Inc. has agreed to acquire Canadian oil and gas producer Logan Energy Corp. in an all-cash transaction valued at approximately USD 890 million, excluding assumed net debt, to expand its position in the Montney shale region of Alberta, Canada.

The acquisition is expected to strengthen Ovintiv's oil production portfolio, increase its drilling inventory, and generate annual cost synergies of approximately USD 60 million.

Ovintiv Agrees to USD 890 Million Logan Acquisition

Announced on October 26, 2026, the definitive agreement values the transaction at approximately USD 890 million, including Logan's expected net debt at closing. Ovintiv will acquire all outstanding shares of Logan for USD 1.00 per share in cash.

The transaction is expected to close early in the first quarter of 2027, subject to shareholder, court, and regulatory approvals and other customary closing conditions.

Acquisition to Expand Montney Oil and Gas Operations

The acquisition is expected to add approximately 266,000 net acres to Ovintiv's portfolio, including around 200,000 core acres, approximately 80% of which are undeveloped. The acquired assets are located in the oil-rich portion of the Montney formation, close to Ovintiv's existing operations.

The assets currently produce approximately 20,000 barrels of oil equivalent per day, comprising around 7,000 barrels per day of oil and condensate, 70 million cubic feet per day of natural gas, and 1,000 barrels per day of other natural gas liquids.

The transaction is also expected to increase Ovintiv's core Montney land position to approximately 720,000 net acres. In addition, the acquired portfolio includes approximately 60,000 net acres with exposure to Alberta's Duvernay shale formation.

Drilling Inventory and Infrastructure to Support Growth

The acquisition is expected to add approximately 420 net oil well locations based on 10,000-foot equivalent wells. These include around 220 premium-return locations and 200 additional upside locations in the Simonette and Pouce Coupe areas.

Ovintiv estimates that the premium-return locations can generate internal rates of return exceeding 35% under specified assumptions of USD 55 per barrel for West Texas Intermediate crude oil and USD 2.75 per million British thermal units for NYMEX natural gas.

The acquired assets also include two oil batteries in Simonette with a combined capacity of 24,000 barrels per day. The first facility began operations in the third quarter of 2026, while the second is expected to enter service by the end of the first quarter of 2027.

Logan also holds a 50% interest in a natural gas processing facility in Simonette with a total capacity of 90 million cubic feet per day, as well as a 65% interest in a facility in Pouce Coupe with a total capacity of 57 million cubic feet per day. Ovintiv expects the additional infrastructure ownership to improve operating margins and provide flexibility for future oil production growth.

Ovintiv Targets USD 60 Million in Annual Synergies

Ovintiv expects the transaction to generate approximately USD 60 million in annual cost synergies, primarily through capital efficiencies, lower production costs, and reduced overhead expenses. The company estimates that capital savings could exceed USD 2 million per well across the acquired assets.

The acquisition is expected to be accretive across key financial measures, including approximately 5% growth in non-GAAP cash flow per share and 3% growth in non-GAAP free cash flow per share in 2027.

Ovintiv plans to fund the transaction through a combination of cash on hand, borrowings under its credit facility, and its commercial paper program. Following the expected closing in early 2027, the company anticipates net debt will remain below USD 4 billion.

The acquisition will not change Ovintiv's shareholder-return targets. The company continues to target returning at least 60% of its 2026 non-GAAP free cash flow through share repurchases and regular dividends.

Logan Oil Assets to Be Separated From the Transaction

As part of the arrangement, Logan will spin out Logan Oil Corp., a newly formed wholly owned subsidiary, to its existing shareholders before the acquisition is completed. The new company will hold selected assets outside the Montney and Duvernay fairways.

The separation will allow Ovintiv to acquire Logan's targeted Montney-focused assets while the selected properties are distributed separately to Logan shareholders.

Ovintiv President and Chief Executive Officer Brendan McCracken said the acquisition would add high-margin oil and condensate production, infrastructure, and drilling opportunities while allowing the company to use its existing operational capabilities to capture synergies.

The transaction remains subject to the required approvals and closing conditions. Once completed, it is expected to expand Ovintiv's Canadian operations and strengthen its inventory of potential oil development locations.

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