Ovintiv to buy Logan Energy for US$890M, expanding Montney oil position

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Oil and gas producer Ovintiv said on Monday it would acquire Canadian producer Logan Energy in an all-cash deal valuing the company at about US$890 million, including debt.

Here are more details:

• Ovintiv would pay C$1.40 ($0.9986) per share for Logan
• The deal would add about 266,000 net acres in the oil-rich Montney region and roughly 20,000 barrels of oil equivalent per day of production
• Ovintiv said the acquisition would add about 420 net drilling locations, including 220 premium-return wells
• The deal would also help generate annual cost synergies of roughly $60 million
• The deal is expected to close early in the first quarter of 2027
• The assets include two oil batteries and stakes in two gas-processing facilities, which Ovintiv said should support margins and future production growth
• As part of the deal, Logan will spin off its newly formed subsidiary, Logan Oil Corp, to its shareholders
• Logan shareholders will also receive shares in spun-out Logan Oil Corp, initially valued at about C$0.08 per Logan share, and warrants, bringing total consideration to about C$1.48 per share
• In 2024, Ovintiv agreed to buy Paramount Resources’ Montney assets for $2.38 billion while selling its Utah Uinta operations to FourPoint Resources for $2 billion

(Reporting by Pranav Mathur in Bengaluru; Editing by Maju Samuel)

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