November 4, 2025 — Denver, CO / Calgary, AB — Ovintiv Inc. (NYSE/TSX: OVV) has announced a major portfolio transformation, signing a definitive agreement to acquire NuVista Energy Ltd. (TSX: NVA) for approximately US $2.7 billion (C$3.8 billion) in a cash-and-stock transaction. The deal expands Ovintiv’s footprint in the oil-rich Alberta Montney, adding scale, infrastructure, and premium drilling inventory that directly complements its existing operations.
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At the same time, Ovintiv plans to divest its Anadarko Basin assets in 2026, reinforcing a strategic shift toward high-return, oil-weighted growth anchored in North America’s most prolific basins — the Montney and the Permian.
Transformational Deal: Scale, Inventory, and Infrastructure in the Montney
Under the agreement, Ovintiv will acquire all outstanding NuVista shares at a blended price of C$17.80 per share, consisting of 50% cash and 50% Ovintiv common stock. NuVista shareholders (excluding Ovintiv’s existing 9.6% stake) will hold approximately 10.6% of the combined company once the transaction closes, expected by Q1 2026 pending shareholder and court approvals.
The acquisition adds ~140,000 net acres (about 70% undeveloped) in the Alberta Montney oil window, along with ~100,000 BOE/d of production (25 Mbbl/d oil and condensate). Importantly, Ovintiv gains access to ~600 MMcf/d of long-term processing capacity and ~250 MMcf/d of firm gas transport to markets beyond AECO — providing crucial price diversification and room for condensate growth.
With this acquisition, Ovintiv’s total Montney position grows to ~510,000 net acres, with pro forma 2026 production of approximately 400 MBOE/d, including 85 Mbbl/d of oil and condensate.
Synergies and Financial Strength
The deal is expected to be immediately accretive to all key financial metrics, including Non-GAAP Free Cash Flow, Cash Flow per Share, and Return on Capital Employed. Ovintiv forecasts annual synergies of ~$100 million, driven by:
- Per-well cost savings of roughly $1 million through standardized facility design and faster cycle times.
- Operational overlap in the Montney, reducing overhead and logistics costs.
- Capital efficiencies from shared infrastructure and drilling programs.
The company also highlighted Free Cash Flow accretion of ~10%, maintaining a leverage-neutral balance sheet at closing. Ovintiv’s Non-GAAP Net Debt stood at $5.187 billion as of September 30, 2025, and the company expects to be below $4 billion by year-end 2026.
To fund the cash portion of the acquisition, Ovintiv will pause share buybacks for two quarters, but its base dividend remains unchanged.
Anadarko Divestiture: Focused Growth and Debt Reduction
As part of its broader portfolio strategy, Ovintiv plans to launch the sale of its Anadarko assets in Q1 2026, with proceeds earmarked for accelerated debt reduction. Once the debt target is achieved, the company intends to revise its capital framework to increase shareholder returns through buybacks and variable distributions.
This divestiture marks the final step in Ovintiv’s multi-year transformation, shifting away from legacy natural gas positions to a balanced, oil-focused resource mix in two world-class shale plays:
- Montney (Canada): Oil-weighted, infrastructure-rich, and growth-ready.
- Permian Basin (U.S.): Ovintiv’s cornerstone asset for efficiency and margin strength.
CEO Commentary
“This transaction boosts 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,”
said Brendan McCracken, President and CEO of Ovintiv.
“The NuVista assets were identified through an in-depth technical and commercial analysis of North America’s highest-value undeveloped oil resources. This acquisition, combined with our bolt-on work in the Permian, positions Ovintiv with one of the strongest, longest-duration premium-return inventories in the industry.”
Pro Forma Snapshot: 2026 Montney Outlook
| Metric | Ovintiv Standalone | NuVista | Combined |
|---|---|---|---|
| Core Acreage (k net acres) | 370 | 140 | 510 |
| Oil + C5+ (Mbbl/d) | 60 | 25 | 85 |
| Natural Gas (MMcf/d) | 1,350 | 400 | 1,750 |
| Total Production (MBOE/d) | 300 | 100 | 400 |
Ovintiv expects to operate six rigs in the combined Montney position in 2026, five rigs in the Permian, and one in the Anadarko until divestiture.
Total expected 2026 output: 715 MBOE/d (230 Mbbl/d oil and condensate) with capital investment below $2.5 billion.
Advisors and Next Steps
Ovintiv’s advisors on the deal include:
- Financial: Morgan Stanley & Co. LLC and J.P. Morgan Securities LLC
- Strategic: Veriten
- Legal: Blake, Cassels & Graydon LLP; Paul, Weiss, Rifkind, Wharton & Garrison LLP; Gibson, Dunn & Crutcher LLP
The acquisition — unanimously approved by both Boards — is set to close in the first quarter of 2026, marking a decisive moment in Ovintiv’s evolution from a diversified North American producer to a high-margin, oil-weighted leader in the Montney and Permian.
OilGasLeads Insight
This acquisition underscores a clear industry trend: operators are consolidating around scale and premium-return rock, while shedding legacy gas-weighted assets. For Ovintiv, the NuVista deal strengthens its Montney position into one of North America’s most competitive oil-growth platforms — an area that’s increasingly attracting U.S. capital due to favorable infrastructure, liquids yields, and well economics.
As Anadarko exits the portfolio, Ovintiv’s focus on high-return oil and condensate growth, balanced with disciplined capital allocation, puts it squarely in the driver’s seat for 2026–2030 free cash flow leadership among North American independents.
