Ovintiv Inc. announced a plan of arrangement to acquire NuVista Energy Ltd. for an estimated $2.7 billion, a transaction that will add roughly 930 Montney drilling locations and 140,000 net acres to Ovintiv’s portfolio. The deal will be executed through a combination of $18.00 in cash and 0.344 Ovintiv shares per NuVista share, with the offer split evenly between cash and stock.
The acquisition aligns with Ovintiv’s strategy of building a deep inventory moat in the Permian and Montney basins. By adding high‑quality Montney assets, Ovintiv will extend its oil inventory runway to 15‑20 years and strengthen its position in North America’s most productive oil plays. Management highlighted that the NuVista assets are a “perfect fit” with Ovintiv’s existing acreage, offering secured processing capacity and market‑access diversification.
Ovintiv’s board has approved the terms and a special meeting of NuVista shareholders is scheduled for January 23, 2026. The transaction is expected to close in the first quarter of 2026, pending regulatory and shareholder approval. The deal is projected to generate annual synergies of about $100 million, driven by cost efficiencies and operational integration of the Montney assets.
The acquisition supports Ovintiv’s debt‑reduction plan, which targets net debt below $4 billion by the end of 2026. The company has already begun divesting its Anadarko Basin assets to free up capital, and the NuVista purchase is part of a broader portfolio‑optimization strategy that balances growth with financial discipline.
Management emphasized the strategic fit and financial upside. President and CEO Brendan McCracken said the transaction “boosts our free cash flow per share by acquiring top‑decile rate‑of‑return assets in the heart of the Montney oil window.” CFO Corey Code noted that the deal will help Ovintiv “meet or exceed our debt target” while expanding inventory duration in the Permian and Montney.
Analysts have responded positively to the announcement. Following the disclosure, several firms raised their price targets for Ovintiv, citing the acquisition’s accretive nature and the company’s disciplined debt‑reduction trajectory. The market reaction reflects confidence in Ovintiv’s ability to integrate the NuVista assets and deliver the projected synergies.
The transaction also signals a broader trend of consolidation in North America’s energy sector, as companies seek scale in premium basins with established infrastructure. Ovintiv’s return to its Canadian operational roots through this deal underscores the company’s commitment to long‑term value creation in the region.
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