Ovintiv agrees to acquire Montney oil producer Logan Energy for C$1.26 billion

Ovintiv and Logan Energy Corp. have signed a definitive agreement under which Ovintiv will acquire all outstanding Logan shares in an all-cash deal valuing Logan at about $890 million (C$1.26 billion), including expected net debt at closing. The purchase is expected to add about 420 net 10,000-foot equivalent oil well locations and about 266,000 net acres in the Montney oil window.

Current production from the acquired assets is about 20 MBOE/d. The assets include two new oil batteries and interests in two natural gas processing facilities. Ovintiv expects annual cost synergies of about $60 million and a roughly 5% accretion to 2027 Non-GAAP Cash Flow per Share. Logan Oil Corp., a newly formed subsidiary holding assets outside the Montney and Duvernay, will be spun out to Logan shareholders.

The deal is funded from cash on hand, credit facility borrowings and commercial paper. Both boards have unanimously approved it, and closing is expected early in the first quarter of 2027, subject to Logan shareholder, court and regulatory approvals. RBC Capital Markets is exclusive financial adviser to Ovintiv, with Blake, Cassels & Graydon and Paul, Weiss, Rifkind, Wharton & Garrison as legal advisers.