Ovintiv Announces Closing of Montney Asset Acquisition

Core Viewpoint - Ovintiv Inc. has successfully completed the acquisition of Montney assets from Paramount Resources Ltd., enhancing its production capacity and strategic positioning in the North American oil and gas sector [1][2][3]. Acquisition Details - The acquisition adds approximately 70 thousand barrels of oil equivalent per day (MBOE/d) of production, 900 net 10,000 foot equivalent well locations, and around 109,000 net acres of land [2]. - The purchase price for the acquisition was valued at $2.377 billion (C$3.325 billion), with the final closing price adjusted to approximately $2.307 billion (C$3.325 billion) due to currency fluctuations [3]. Strategic Impact - The new Montney asset is considered one of the highest quality undeveloped acreage positions in North America, extending Ovintiv's premium Montney oil and condensate inventory life to approximately 15 years [3]. - The transaction is expected to be accretive both immediately and long-term across all key financial metrics, with an anticipated increase in Non-GAAP Free Cash Flow of approximately $300 million for 2025 at current commodity strip pricing [3]. Future Guidance - The company plans to issue its full year and first quarter 2025 guidance alongside the release of its fourth quarter and full year 2024 results on February 26, 2025 [4].