Ovintiv Inc. closed the previously announced acquisition of core Midland Basin assets on June 12, adding approximately 1,050 net 10,000 ft well locations and 65,000 net acres — mostly undeveloped land adjacent to the company’s Permian Basin operations.
Ovintiv Inc. closed the previously announced acquisition of core Midland Basin assets on June 12, adding approximately 1,050 net 10,000 ft well locations and 65,000 net acres — mostly undeveloped land adjacent to the company’s Permian Basin operations.
The $4.275 billion cash-and-stock transaction includes almost all the leasehold interest and related assets of EnCap Investments LP portfolio companies Black Swan Oil and Gas, PetroLegacy Energy and Piedra Resources.
RELATED: Ovintiv Offering Senior Notes to Fund $4.2B Permian Deals
Ovintiv also closed its previously announced all-cash sale of its Bakken portfolio in the Williston Basin to EnCap portfolio company Grayson Mill Bakken LLC for $825 million.
Both transactions will enhance capital efficiency by 15% and increase cash returns per share by more than 25%, the company said.
As part of the transaction, Ovintiv will issue approximately 31.8 million shares of its common stock, down from the 32.6 million shares estimated in the initial announcement of the transaction.
Ovintiv will also be added to the S&P 400 Index effective prior to market open on June 20.
Ovintiv expects to have a total company oil and condensate production of more than 200,000 bbl/d and a total capital investment of $2.1 billion to $2.5 billion in 2024.
Recommended Reading
Plains All American Prices First M&A Bond of Year
2025-01-13 - U.S. integrated midstream infrastructure company Plains All American Pipeline on Jan. 13 priced a $1 billion investment-grade bond offering, the year's first to finance an acquisition.
EnLink Investors Vote in Favor of ONEOK Buyout
2025-01-30 - Holders of EnLink units voted in favor of ONEOK’s $4.3 billion acquisition of the stock, ONEOK announced Jan. 30.
Phillips 66’s NGL Focus, Midstream Acquisitions Pay Off in 2024
2025-02-04 - Phillips 66 reported record volumes for 2024 as it advances a wellhead-to-market strategy within its midstream business.
Not Sweating DeepSeek: Exxon, Chevron Plow Ahead on Data Center Power
2025-02-02 - The launch of the energy-efficient DeepSeek chatbot roiled tech and power markets in late January. But supermajors Exxon Mobil and Chevron continue to field intense demand for data-center power supply, driven by AI technology customers.
Buying Time: Continuation Funds Easing Private Equity Exits
2025-01-31 - An emerging option to extend portfolio company deadlines is gaining momentum, eclipsing go-public strategies or M&A.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.