Ovintiv to buy Logan Energy in $890M deal, boosting Montney acreage
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Ovintiv (OVV) said Monday it agreed to acquire Logan Energy (LOECF) for C$1.40/share in cash, valuing the deal at ~$890M including debt, expanding the U.S. energy company's position in Canada's oil-rich Montney formation.
Ovintiv (OVV) said the acquisition will add 420 total net 10K-ft equivalent oil well locations, and 266K net acres in the Montney oil window, boosting its core land position in the Montney to ~720K net acres; current production from the acquired assets totals ~20K boe/day via 7K bbl/day of oil and condensate, 70 Mcf/day of natural gas, and 1K bbl/day of other natural gas liquids.
The company said its targeted shareholder returns remain unchanged with at least 60% of 2026 non-GAAP free cash flow expected to be returned to shareholders via share buybacks and regular dividend payments; beyond 2026, the target range remains unchanged at 50% to 100%.
The acquisition is expected to increase Ovintiv's (OVV) non-GAAP cash flow per share by 5% and free cash flow per share by 3% in 2027, with further benefits over the long term.
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