Ovintiv Announces Closing of NuVista Energy Acquisition

Executive Summary

• Ovintiv completed its cash‑and‑stock acquisition of NuVista Energy Ltd., valued at approximately $2.7 billion.
• The deal adds roughly 930 net 10,000‑ft equivalent well locations and ~140,000 net acres (≈70% undeveloped) in the Montney formation, targeting ~100 MBOE/d production in 2026.
• Expected annual cost synergies are about $100 million, including ≈$1 million per‑well savings; the transaction is supported by >99% of votes cast.

Key Details

• Transaction Value: ~$2.7 billion (cash and Ovintiv common stock).
• Consideration Options for NuVista Shareholders:
• $18.00 CAD cash per share, or
• 0.344 Ovintiv shares per NuVista share, or a combination subject to caps of $1.57 billion CAD in cash and 30.1 million Ovintiv shares.
• Final Election Results:
• All‑cash electors receive 100% cash.
• All‑share electors receive ~58% share / 42% cash.
• Mixed or default electors receive ~71% cash / 29% share.
• Asset Impact:
• Adds ≈930 net 10,000‑ft equivalent well locations.
• Adds ≈140,000 net acres (≈70% undeveloped) in core Alberta Montney.
• Expected 2026 production from acquired assets: ~100 MBOE/d (≈25 k bbl/d oil & condensate).
• Synergies: Projected $100 million annual cost savings; ≈$1 million per‑well reduction, aligning with current Montney well costs.
• Strategic Fit: Assets are adjacent to existing Ovintiv operations, providing access to processing and downstream capacity.
• Future Guidance: Ovintiv will issue full‑year and Q1 2026 guidance with its Q4 2025 results on February 23, 2026.
• Shareholder Vote: >99% approval; ~64% participation rate among NuVista shareholders.
• Delisting: NuVista shares expected to be delisted from the TSX within a few trading days post‑closing.

Notable Quotes

“These top decile rate of return assets in the heart of the Montney oil window are an exceptional fit with our existing acreage and infrastructure,” – Brendan McCracken, President & CEO, Ovintiv.
“We expect to generate cost synergies of approximately $100 million annually… The combination of this transaction with the planned divestiture of our Anadarko assets will streamline and high‑grade our portfolio…” – Brendan McCracken.