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. in a cash‑and‑stock transaction valued at ~ $2.7 billion (C$3.8 billion).
• The deal adds roughly 140,000 net acres and 100 MBOE/d (≈ 85 Mbbls/d oil & condensate) to Ovintiv’s core Montney position, together with ~ 930 net 10,000‑ft well locations and significant processing capacity.
• Expected annual synergies are ~$100 million; the transaction is projected to be immediately and long‑term accretive across key financial metrics, including a ~10% increase in Non‑GAAP Free Cash Flow per share.

Key Details

• Consideration: Approx. C$17.80 per NuVista share (50% cash, 50% Ovintiv common stock). Total equity value ≈ $2.7 bn; includes $215 m of NuVista net debt and 18.5 m NuVista shares previously purchased by Ovintiv.
• Ownership Post‑Close: NuVista shareholders (excluding Ovintiv) will own ~10.6% of the pro‑forma company; Ovintiv will retain its existing 9.6% stake.
• Asset Additions:
• Net acreage: +140,000 acres (≈ 70% undeveloped).
• Production (2026 full year): +100 MBOE/d (≈ 25 Mbbls/d oil & condensate).
• Well locations: +930 net 10,000‑ft equivalents (≈ 620 premium return wells, ≈ 310 upside wells).
• Processing & Transportation: Access to ~600 MMcf/d raw inlet processing capacity and ~250 MMcf/d firm transport outside the AECO market; expected to reduce AECO exposure from ~30% to ~25% of Montney gas volumes.
• Synergies & Cost Savings: ~$100 m annual cost synergies (capital, production, overhead); per‑well cost savings ≈ $1 m.
• Financial Impact: Immediate and long‑term accretion to Return on Capital Employed, Non‑GAAP Cash Flow per Share, and Non‑GAAP Free Cash Flow per Share; projected 10% increase in Non‑GAAP Free Cash Flow per share.
• Debt & Capital Allocation: Transaction is leverage‑neutral at closing. As of Sep 30 2025, Non‑GAAP Net Debt = $5.187 bn. Proceeds from the planned Anadarko divestiture (to begin Q1 2026) will be used for accelerated debt reduction, targeting a net‑debt ceiling ≤ $4.0 bn by year‑end 2026 and enabling higher share buybacks thereafter.
• Financing: Cash portion funded via cash on hand, existing credit facilities, and/or term‑loan proceeds; Ovintiv temporarily paused its share‑buyback program for two quarters to support the acquisition.
• Closing Timeline & Approvals: Board approvals obtained; expected closing by end of Q1 2026, subject to NuVista shareholder, court, and customary 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.

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.

All boilerplate, forward‑looking disclaimer language and contact information have been omitted for brevity.