Business · Companies · 16 mins ago
Ovintiv to buy Logan Energy in deal valued at about US$890 million
Ovintiv plans to acquire Canadian producer Logan Energy in an all-cash deal valued at about US$890 million, including debt.
Ovintiv would pay C$1.40 per Logan share, while Logan shareholders would also receive shares and warrants connected to a spin-off.
The deal would add about 266,000 net acres in the Montney region, an oil-rich area of Canada.
The assets produce roughly 20,000 barrels of oil equivalent per day and include about 420 drilling locations, 220 of them described as premium-return wells.
Ovintiv expects about $60 million in annual cost savings from the deal.
It also gains oil and gas-processing facilities that it says can support margins and future production growth.
The acquisition is expected to close early in 2027, subject to the deal proceeding as planned.
Ovintiv said it would acquire Canadian producer Logan Energy in an all-cash deal valuing the company at about US$890 million, including debt.
The deal would add about 266,000 net acres and roughly 20,000 barrels of oil equivalent per day of production in the Montney region.
Ovintiv said the acquisition would add about 420 net drilling locations, including 220 premium-return wells, and generate roughly $60 million in annual cost synergies.
Logan shareholders would receive C$1.40 per share, plus shares in spun-off Logan Oil Corp. and warrants, bringing total consideration to about C$1.48 per share.
The deal is expected to close early in the first quarter of 2027.
- Who
- Ovintiv and Logan Energy.
- What
- Ovintiv plans to acquire Logan in an all-cash deal valued at about US$890 million, including debt.
- When
- Announced on October 26, 2026. The deal is expected to close early in the first quarter of 2027.
- Where
- The assets are in the Montney region of Canada.
- Why
- The acquisition would expand Ovintiv’s Montney position and add production, drilling locations and expected cost synergies.
This story does not have two clearly opposing sides.
Ovintiv agreed to buy Paramount Resources’ Montney assets for $2.38 billion and sell its Utah Uinta operations to FourPoint Resources for US$2 billion.
Ovintiv announced its planned acquisition of Logan Energy.
The Logan acquisition is expected to close.
- Deal value
- About US$890 million, including debt
- Offer price
- C$1.40 per Logan share
- Montney acreage
- About 266,000 net acres
- Production
- Roughly 20,000 barrels of oil equivalent per day
- Expected annual cost synergies
- Roughly $60 million
- Expected closing
- Early in the first quarter of 2027