Denver-based Ovintiv Inc., an oil and gas producer active in the Permian and Western Canada’s Montney formation, and NuVista Energy Ltd., a Calgary-based gas focused producer in the Alberta Montney, jointly announced on November 4 that they have agreed to a transaction in which Ovintiv will acquire NuVista for a stock and cash consideration of C$3.8 billion (US$2.7 billion) which includes the assumption of NuVista’s debt. Prior to the announcement of this transaction, Ovintiv was an owner of 9.6% of the outstanding shares of NuVista. This transaction is the latest deal in which consolidation of gas producers in the Alberta portion of the Montney formation has been gaining momentum.
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Till There Was You – Ovintiv Ramps Up Montney Exposure with Acquisition of NuVista Energy
Ovintiv, one of Western Canada’s largest natural gas and condensate producers, has upped its Montney position with a takeover of rival NuVista Energy, continuing the recent consolidation trend.
- Blog
It’s So Hard to Say Goodbye to Yesterday – Upstream M&A Followed by Debt-Reducing Divestitures
It’s been a busy few years for big-money M&A in the oil and gas industry. Now, having acquired their targeted assets — often running up debt in the process — several E&Ps have been selling off non-core holdings and, with those deals, zeroing in on the shale basins they see as the keys to their success.
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Closer to the Heart – Shell’s ARC Resources Deal Affirms Focus on Low-Carbon LNG, Liquids Growth
Shell’s plan to acquire Western Canadian E&P ARC Resources Ltd. affirms the global energy giant’s new strategic focus, enhances the prospects for Phase 2 of LNG Canada, and supports the view that the Montney Shale may be replacing the Permian as the epicenter of oil and gas M&A.
