Ovintiv agrees to buy Logan for 890 million US dollars to expand in Montney
Ovintiv has agreed to acquire Logan Energy in a cash transaction valued at about US$890 million, including assumed debt. The purchase would add production, drilling locations and processing infrastructure in Canada's Montney formation. Logan plans to separate other assets into Logan Oil before completion. Shareholder, court and regulatory approvals remain outstanding, with closing expected in the first quarter of 2027.
Economics & Markets··Midday
Logan's Montney assets would pass to Ovintiv
Oil and gas producer Ovintiv has agreed to acquire Logan Energy in an all-cash transaction valued at approximately US$890 million, or C$1.26 billion, including assumed net debt. Logan shareholders would receive C$1.40 per share in cash. Before completion, Logan plans to separate other assets into Logan Oil, leaving that business outside Ovintiv's purchase.[1], [2]
The acquisition would bring about 20,000 barrels of oil equivalent a day of production and 266,000 net acres in the Montney formation in Alberta, Canada. Approximately 200,000 acres form a core area, about 80 percent of which is undeveloped. Ovintiv says the assets are close to its existing Montney operations.[1]
Drilling locations come with processing capacity
Ovintiv identifies roughly 420 net well locations on a 10,000-foot-equivalent basis at Simonette and Pouce Coupe, two operating areas in Alberta. It classes around 220 as premium-return locations and another 200 as additional opportunities. The assets produce approximately 7,000 barrels a day of oil and condensate, 70 million cubic feet a day of gas and 1,000 barrels a day of other natural-gas liquids.[1]
The deal also includes two new Simonette oil-gathering facilities with combined capacity of 24,000 barrels a day. The first entered service in the third quarter; the second is expected by the end of the first quarter of 2027. Interests in gas-processing facilities comprise 50 percent of a Simonette plant with capacity of 90 million cubic feet a day and 65 percent of a Pouce Coupe plant with capacity of 57 million cubic feet a day.[1]
Approvals precede a planned 2027 completion
Closing is expected in the first quarter of 2027, subject to shareholder, court and regulatory approvals. Ovintiv estimates annual savings of about $60 million across capital spending, operating costs and overhead, and around 5 percent accretion to 2027 cash flow per share. These remain company projections. Its core Montney acreage would reach approximately 720,000 net acres. The Sawn Lake project, Clearwater assets and some undeveloped Alberta lands would remain in the separated Logan Oil business.[1]
