Ovintiv set to divest Anadarko assets for $3bn

Core Viewpoint - Ovintiv has signed a definitive agreement to divest its Anadarko assets in Oklahoma for $3 billion in cash, transferring approximately 360,000 net acres, which constitutes nearly all of the company's holdings in that region [1] Group 1: Transaction Details - The transaction is expected to conclude early in Q2 2026, with an effective date of January 1, 2026 [2] - Current production figures indicate around 90,000 barrels of oil equivalent per day, including nearly 27,000 barrels of oil and condensate, 240 million cubic feet of natural gas, and 23,000 barrels of natural gas liquids [2] - Ovintiv has engaged Wells Fargo as its financial adviser and Kirkland & Ellis as its legal adviser for this transaction [3] Group 2: Strategic Implications - The divestment is part of Ovintiv's strategy to focus its portfolio, meet debt targets, and enhance shareholder returns [3] - The company has built a significant inventory position in the Permian and Montney plays, which positions it for superior returns in the long term [4] - The acquired portfolio from the recent acquisition is expected to contribute around 100,000 barrels of oil equivalent per day of average production in 2026 [5] Group 3: Recent Acquisitions - Earlier in the month, Ovintiv completed a $2.7 billion acquisition of NuVista Energy, expanding its position in Alberta's Montney play by adding around 140,000 net acres and approximately 930 net drilling locations [4] - In November 2024, Ovintiv entered into a definitive agreement to purchase Montney assets from Paramount Resources for around $2.37 billion, which aims to bolster its presence in the Montney area [6] - The recent acquisition closed last month and is expected to bring in approximately 70,000 barrels of oil equivalent per day and 109,000 net acres, with 80% of the land remaining undeveloped [6]