Ovintiv is set to acquire NuVista Energy for $2.7 billion, boosting its production by 100,000 barrels of oil equivalent. This move will provide Ovintiv with a strategic foothold in Canada’s Montney shale play, enhancing its downstream capacity and processing infrastructure.

Last year, Ovintiv purchased assets in the Montney shale from Paramount Resources for $2.4 billion, adding over 100,000 barrels of oil equivalent to its daily production. Analysts predicted an M&A wave in Canada, with deals likely focusing on non-oil sands assets like the Duvernay Shale and Williston Basin.

Ovintiv expanded its holdings in the Permian by acquiring untapped oil and gas assets from EnCap Investments for $4.3 billion in 2023. The company reported daily production of 630,000 barrels of oil equivalent in the third quarter, with plans to average 610,000 barrels daily for the full year.

During the third quarter, Ovintiv generated $812 million in cash flow from operations, with $351 million in free cash flow. Shareholder returns reached $235 million, and the company reduced its debt by $126 million to $5.187 billion.

Source: Irina Slav for Oilprice.com

Read more at Yahoo Finance: Ovintiv Makes Second Montney Acquisition in a Year