Ovintiv Inc., Denver, Co., aims to scale its Alberta Montney position and increase oil and condensate production through a cash and stock deal valued at $2.7-billion (C$3.8-billion) to acquire NuVista Energy Ltd., Calgary.
The deal adds about 140,000 net acres—roughly 70% undeveloped—and 930 net 10,000-ft equivalent drilling locations in the core of the oil-rich Alberta Montney, adjacent to Ovintiv’s existing operations, the company said in a release Nov. 4.
The acquisition increases Ovintiv’s Montney position to about 510,000 net acres and lifts pro forma 2026 Montney oil and condensate production to about 85,000 b/d. The company expects roughly $100 million in annual synergies through capital, operating, and overhead savings, including about $1 million per well in cost reductions due to streamlined designs and faster cycle times.
NuVista brings about 600 MMcfd of long-term raw inlet processing capacity and 250 MMcfd of firm transport to markets outside AECO, supporting more than 5% annual Montney oil and condensate growth potential over the next several years.
Guidance, potential Anadarko basin sale
To help offset the cost of the deal, Ovintiv plans to divest its Anadarko basin assets by year-end 2026. Sale of the 102,000-boe/d assets should attract “similar proceed levels” to the NuVista deal, likely nullifying the impact, TD Cowen analysts said in an investor note Nov. 4.
Full-year 2026 output from the NuVista properties is expected to average 100,000 boe/d (25,000 b/d of oil and condensate). Ovintiv plans to run six rigs and 1-2 frac crews across its expanded Montney acreage in 2026, alongside five rigs in the Permian and one in the Anadarko.
Companywide, 2026 oil and condensate volumes are forecast at 230,000 b/d and total production at 715,000 boe/d—before the impact of any divestitures—with capital investment under $2.5 billion.
For this year’s third quarter, Ovintiv averaged total production volumes of 630,000 boe/d, including 212,000 b/d of oil and condensate, 98,000 b/d of other NGLs (C2 to C4), and 1,925 MMcfd of natural gas. Of that, Montney production averaged 318,000 boe/d (26% liquids).
Companywide, full year 2025 production volumes have been increased at the midpoint of guidance and are now expected to average 610,000-620,000 boe/d, with full year 2025 expected capital investment of $2.125-2.175 billion.
