Ovintiv has signed a definitive agreement to divest nearly all of its Anadarko Basin assets in Oklahoma for $3 billion in cash, marking a decisive portfolio shift toward its highest-return core areas. The sale includes approximately 360,000 net acres and ~90,000 boe/d of production, with an effective date of January 1, 2026 and expected close in early Q2 2026.
Deal snapshot
- Production (Feb 2026):
- ~27,000 bbl/d oil & condensate
- 240 MMcf/d natural gas
- ~23,000 bbl/d NGLs
- Advisers: Wells Fargo (financial), Kirkland & Ellis (legal)
- Use of proceeds: debt reduction + enhanced shareholder returns
- Guidance: updated full-year and Q1 2026 outlook and shareholder return framework to follow
Why this matters
This transaction accelerates Ovintiv’s transition away from capital-intensive, lower-priority assets and sharpens its focus on what management calls “the two most valuable plays in North America”: the Permian Basin and the Montney. CEO Brendan McCracken emphasized that the move strengthens the balance sheet while unlocking higher and more durable returns.
Montney scale just increased
The Anadarko exit follows Ovintiv’s recently closed $2.7 billion acquisition of NuVista Energy, which materially expands its liquids-weighted Montney position:
- ~140,000 net acres added
- ~930 net drilling locations
- ~100,000 boe/d of expected average production in 2026
Because the NuVista assets are contiguous with Ovintiv’s existing footprint, integration risk is low and upside is high — leveraging existing processing capacity and downstream takeaway with meaningful spare capacity.
Bottom line
Ovintiv is executing a classic high-grading strategy: monetizing mature inventory to fund scale, efficiency, and shareholder returns in fewer, higher-quality basins. With Anadarko off the books and Montney + Permian firmly in focus, the company is positioning itself for simpler operations, stronger free cash flow, and a more predictable return profile heading into 2026 and beyond.
