Ovintiv Completes $2.3B Montney Asset Acquisition in Alberta

Core Insights - Ovintiv Inc. has successfully completed the acquisition of Montney Assets from Paramount Resources Ltd. for $2.3 billion, enhancing its position as a leading operator in the region [1][2] Group 1: Acquisition Details - The acquisition will add approximately 70,000 barrels of oil equivalent per day to Ovintiv's production, along with 900 high-quality well locations and 109,000 net acres of strategically located land [2] - The newly acquired assets are considered some of the highest-quality undeveloped assets in North America, extending the company's Montney oil and condensate inventory life to about 15 years [3] Group 2: Financial Impact - The deal was initially valued at$2.377 billion in November 2024, but the final valuation at closing was $2.307 billion due to foreign exchange rate fluctuations, resulting in realized losses of approximately$97 million [4] - The acquisition is projected to increase non-GAAP free cash flow by $300 million for 2025 based on current commodity strip pricing [4] Group 3: Future Guidance - Ovintiv plans to release its full-year and first-quarter 2025 guidance along with its fourth-quarter and full-year 2024 results on February 26, 2025, providing further insights for investors and stakeholders [5] Group 4: Company Overview - Ovintiv is an independent energy producer engaged in the exploration and production of oil and natural gas across diverse assets in the United States and Canada, currently holding a Zacks Rank 2 (Buy) [6]