Ovintiv agrees $890 million Logan acquisition to expand its Montney position

Ovintiv ($OVV) agreed to acquire Logan Energy for C$1.40 a share in cash, valuing the transaction at approximately US$890 million, including expected net debt at completion. The assets would add roughly 266,000 net acres and current production of 20,000 barrels of oil equivalent a day in the Montney. Logan shareholders would also receive shares in a separate company holding selected assets outside the Montney and Duvernay areas.

Ovintiv expects about US$60 million of annual cost savings and a 5% increase in non-GAAP cash flow per share in 2027. It plans to use cash and borrowings to fund the purchase, adding nearby drilling inventory and processing infrastructure. Completion is expected early in the first quarter of 2027, subject to Logan shareholder, court and regulatory approvals. Projected savings and financial benefits have not yet been achieved.

Sources:

• PR Newswire