Ovintiv to Acquire Montney Oil Producer Logan Energy for $890 Million in All-Cash Deal

Ovintiv Inc. has agreed to acquire Logan Energy Corp., a Montney oil producer listed on the TSX Venture Exchange, in an all-cash transaction valued at approximately $890 million (C$1.26 billion), including the assumption of net debt. Logan shareholders will receive C$1.40 per share in cash, and the deal also includes a spin-out of a new growth-oriented company called Logan Oil Corp.

The acquisition adds roughly 266,000 net acres, about 200,000 of which are considered core and 80% undeveloped, in the oil-rich window of Alberta's Montney formation. Current production from the acquired assets stands at approximately 20,000 barrels of oil equivalent per day, comprising around 7,000 barrels per day of oil and condensate, 70 million cubic feet per day of natural gas and 1,000 barrels per day of other natural gas liquids. The deal is also expected to add approximately 420 total net 10,000-foot equivalent oil well locations, with capital cost savings estimated at more than $2 million per well due to proximity to Ovintiv's existing Montney operations.

Ovintiv said its shareholder returns plan remains unchanged, with the company still targeting 2026 shareholder returns of at least 60% of non-GAAP free cash flow. The assets, which include two new oil batteries and additional natural gas processing capacity, are located adjacent to Ovintiv's current Montney footprint, giving the company added operational scale and oil growth optionality in one of Canada's most active resource plays.