Ovintiv Completes Portfolio Transformation with Agreement to Acquire NuVista Energy Ltd. and Planned Divestiture of Anadarko Assets

Executive Summary

• Ovintiv entered a definitive agreement to acquire all outstanding shares of NuVista Energy Ltd. for an aggregate consideration of ~ US$2.7 billion (C$3.8 billion), funded 50% cash and 50% Ovintiv common stock at an implied price of C$17.80 per share.
• The transaction adds roughly 140,000 net acres and ~100 kboe/d (≈85 Mbbls/d oil & condensate) to Ovintiv’s core Montney position, increasing pro‑forma Montney production to ~400 MBOE/d and total acreage to ~510 k net acres.
• Expected annual synergies are ≈US$100 million; the deal is projected to be immediately and long‑term accretive across all key financial metrics, including a ~10% uplift in non‑GAAP free cash flow.
• Ovintiv will commence a divestiture of its Anadarko assets in Q1 2026, using proceeds to accelerate debt reduction and bring non‑GAAP net debt below the $4 billion target by year‑end 2026, enabling higher share buybacks.

Key Details

• Consideration:
• Total ≈ US$2.7 bn (C$3.8 bn) = C$17.80 per NuVista share.
• Structure: 50% cash, 50% Ovintiv common stock.

• Includes assumption of NuVista net debt ~US$215 m (C$300 m) and 18.5 m NuVista shares previously purchased by Ovintiv.

• Asset Additions:

• ≈140 k net acres (≈70% undeveloped) in Alberta Montney.
• ≈930 net 10,000‑ft equivalent well locations added; ~620 “premium return” wells (>35% IRR at $55/bbl WTI & $2.75/MMBtu gas) and ~310 upside locations.

• Pro‑forma 2026 Montney production: 85 Mbbls/d oil & condensate, 1,750 MMcf/d natural gas → total ≈400 MBOE/d.

• Financial Impact:

• Immediate accretion to non‑GAAP free cash flow per share (~10% uplift).
• Annual cost synergies ≈US$100 m (≈US$1 m per well).

• Leverage neutral at closing; non‑GAAP net debt expected < $4 bn by end‑2026.

• Funding:

• Cash portion financed via cash on hand, existing credit facility borrowings, and/or proceeds from a term loan.

• Share buyback program paused for two quarters to preserve cash for the acquisition; dividend unchanged.

• Anadarko Divestiture:

• Process to start Q1 2026; proceeds earmarked for accelerated debt reduction.

• Closing Timeline & Approvals:

• Board approvals obtained from both companies.

• Expected closing by end of Q1 2026, subject to customary shareholder, court and regulatory consents.

• Advisors:

• Financial: Morgan Stanley & Co., J.P. Morgan Securities.
• Strategic: Veriten.

• Legal: Blake, Cassels & Graydon LLP; Paul, Weiss, Rifkind, Wharton & Garrison LLP; Gibson, Dunn & Crutcher LLP.

• Conference Call: November 5 2025, 8:00 a.m. MT (10:00 a.m. ET).

Notable Quotes

“This transaction boosts our free cash flow per share by acquiring top‑decile rate of return assets in the heart of the Montney oil window at an attractive price,” – Brendan McCracken, President & CEO, Ovintiv.