Ovintiv to buy Canada’s Logan Energy in Montney expansion

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Photo by Mario Tama/Getty ImagesOvintiv Inc. agreed to acquire Canadian oil and gas producer Logan Energy Corp. in an all-cash transaction valued at about $1.26 billion, including net debt, expanding the company’s position in the oil-rich Montney formation.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountDenver-based Ovintiv will pay $1.40 a share for Logan, and the acquisition is expected to add about 266,000 net acres and approximately 20 thousand barrels of oil equivalent per day, the company said in a statement. The transaction is expected to close early in the first quarter of 2027.This advertisement has not loaded yet, but your article continues below.The purchase boosts Ovintiv’s Montney operations, building on the company’s US$2.3 billion acquisition of assets from Paramount Resources Ltd. completed in early 2025. That deal coincided with Ovintiv selling its assets in Utah’s Uinta Basin, as the company focused its operations on two core basins in western Canada and the Permian of West Texas and southeast New Mexico.Breaking business news, incisive views, must-reads and market signals. Weekdays by 9 a.m.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Posthaste will soon be in your inbox.We encountered an issue signing you up. Please try againMonday’s announcement comes amid a pickup in Canadian energy dealmaking, with companies betting on Prime Minister Mark Carney’s favorable stance toward the country’s fossil fuels industry. In a turnabout from his predecessor Justin Trudeau, he’s vowed to speed permits for major projects as part of his vision for making Canada an energy superpower. Canada has the world’s third-largest proven oil reserves, behind only Venezuela and Saudi Arabia.Shell Plc recently put Canada at the heart of its growth plans with its US$13.6 billion takeover of Montney giant ARC Resources Ltd. The deal is partly meant to secure gas for LNG Canada, the country’s first such export terminal in which Shell holds a 40 per cent stake. LNG Canada’s partners recently approved a second phase expansion that will double the plant’s capacity. It’s part of a string of west coast export projects that are pushing to create a new outlet for Canadian gas, which for decades was sold mostly to the U.S. at a discount.For Ovintiv, the deal with Logan will add about 420 net drilling locations, including 220 that Ovintiv classifies as “premium return” wells, and is expected to generate about US$60 million of annual cost savings, it said.As part of the transaction, Logan said it will spin out Logan Oil Corp., containing assets not being acquired by Ovintiv, including certain undeveloped lands in northwest Alberta. Logan values the spinout shares at about $0.08 per existing share.This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.