(WO) — Ovintiv Inc. announced a definitive agreement to acquire Calgary-based NuVista Energy Ltd. in a cash-and-stock transaction valued at approximately $2.7 billion (C$3.8 billion), marking a major expansion of its oil-weighted position in Canada’s Montney formation. The deal, unanimously approved by both companies’ boards, is expected to close by the end of the first quarter of 2026.
Under the agreement, Ovintiv will acquire all outstanding NuVista shares it does not already own for C$18.00 per share, split evenly between cash and Ovintiv common stock. The transaction includes NuVista’s 140,000 net acres in the Alberta Montney—roughly 70% undeveloped—and average production of 100,000 boed, including 25,000 bpd of oil and condensate.
The acquisition adds roughly 930 net 10,000-foot equivalent well locations, of which 620 are classified as premium return opportunities. Ovintiv said the deal will be immediately accretive across all key metrics, boosting free cash flow per share by about 10% and generating estimated annual synergies of $100 million through capital efficiencies, cost savings and streamlined operations.
“This transaction boosts our free cash flow per share by acquiring top-decile rate-of-return assets in the heart of the Montney oil window,” said Ovintiv President and CEO Brendan McCracken. “NuVista’s assets are a perfect fit with our existing acreage, offering high-quality resource, secured processing capacity, and market access diversification.”
Ovintiv plans to fund the cash portion through a mix of existing liquidity and new borrowing, while temporarily pausing its share buyback program. The company also announced plans to divest its Anadarko Basin assets beginning in early 2026, with proceeds earmarked for accelerated debt reduction. Ovintiv expects to reduce its net debt below $4 billion by year-end 2026, enabling increased shareholder returns.
Once complete, the deal will expand Ovintiv’s Montney position to over 510,000 net acres, with expected 2026 oil and condensate output of roughly 85,000 bpd from the play. The acquisition continues a trend of North American shale consolidation as producers seek to scale up high-margin, infrastructure-rich positions in leading basins.
