US-based Ovintiv has agreed to acquire Canadian exploration and production company Logan Energy in a deal worth around C$1.26bn ($890m), including assumed net debt.
Logan has assets in the Montney formation across the Canadian provinces of Alberta and British Columbia, as well as assets in the Kaybob Duvernay oil play. Ovintiv operates in the US Permian Basin and the Montney region.
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As per the terms of the deal, Logan shareholders will receive C$1.40 in cash plus a spin-out of Logan Oil, a new entity holding certain assets outside the Montney and Duvernay fairways.
Logan is currently listed on the TSX Venture Exchange (TSXV).
According to the parties, Logan Oil will acquire additional assets through separate transactions. Logan intends to seek a TSX Venture Exchange listing for the new company.
Ovintiv is listed both on the New York Stock Exchange (NYSE) and the Toronto Stock Exchange (TSX).
The boards of both Ovintiv and Logan have approved the deal.
Funding for the transaction is set to come from cash on hand, credit facilities, and commercial paper programme.
The proposed acquisition is expected to close in Q1 2027, pending shareholder, court, and regulatory approvals.
Through the deal, Ovintiv is set to add about 266,000 net acres primarily in the oil-rich Montney region, of which 200,000 acres are considered core and 80% are undeveloped.
The company will also gain approximately 20,000 barrels of oil equivalent per day (boepd) in production, including 7,000 barrels per day (bpd) of oil and condensate, 70 million cubic feet per day (mcf/d) of natural gas, and 1,000bpd of other natural gas liquids.
Furthermore, the deal includes around 420 net 10,000-foot equivalent oil well locations, made up of approximately 220 sites classified as premium return opportunities and about 200 additional potential sites.
Ovintiv’s land position in the Montney will increase to about 720,000 net acres post-closing.
The acquisition also includes two recently built oil batteries in Simonette and partial interests in two natural gas processing facilities.
Ovintiv expects the acquisition to generate annual cost synergies of about $60m, primarily through capital, overhead, and production cost reductions.
Following completion of the deal, Ovintiv anticipates its net debt will remain below $4bn.
RBC Capital Markets is serving as the adviser to Ovintiv on the transaction, with legal counsel provided by Blake, Cassels & Graydon and Paul, Weiss, Rifkind, Wharton & Garrison.
In February this year, Ovintiv signed a definitive agreement to sell its Anadarko assets in Oklahoma, US, for $3bn in cash to an unnamed buyer. The transaction, which closed in April 2026, transferred about 360,000 net acres, representing nearly all of its regional holdings.
