![Ovintiv Completes $4.2B Midland Basin Deal, Bakken Exit](/sites/default/files/styles/hart_news_article_image_640/public/image/2023/06/ovintiv.jpg?itok=WVVqDWRq)
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
Crackin’ It at Kraken: Inside the Bakken’s Ramped-up Private E&P
2024-07-24 - Kayne Anderson-backed Kraken Resources is producing more than 80,000 boe/d today and has a new Fitch Ratings credit score to take to the M&A bank.
CNOOC Encounters High Yield Well in Beibu Gulf
2024-07-23 - CNOOC’s well was tested to produce over 1,000 cu. m/d of oil equivalent, making it the first well of such productivity in the Wushi Sag area.
Permian Basin Coalition Highlights Philanthropic Investments
2024-07-23 - Since 2019, the Permian Strategic Partnership has doubled its membership and used philanthropic investments to generate more than $1.5 billion in community support and collaborative investment.
E&P Highlights: July 22, 2024
2024-07-22 - Here's a roundup of the latest E&P headlines, with LLOG acquiring 41 blocks in the Gulf of Mexico and Saipem securing $500 million in contracts from Saudi Aramco.
Comet Ridge Awarded Mahalo Far East Extension for 6-year Term
2024-07-22 - Comet Ridge was awarded 100% ownership and operator of Australia’s Mahalo Far East Extension for an initial term of 6 years.