Ovintiv to buy Logan Energy for $890 million, expanding Montney oil position
Ovintiv to buy Logan Energy for $890 million, expanding Montney oil position Oct 26 (Reuters) - Oil and gas producer Ovintiv OVV.N said on Monday it would acquire Canadian producer Logan Energy LGN.V in an all-cash deal valuing the company at about $890 million, including debt.
Here are more details:
Ovintiv would pay C$1.40 ($0.9986) per share for Logan
The deal would add about 266,000 net acres in the oil-rich Montney region and roughly 20,000 barrels of oil equivalent per day of production
Ovintiv said the acquisition would add about 420 net drilling locations, including 220 premium-return wells
The deal would also help generate annual cost synergies of roughly $60 million
The deal is expected to close early in the first quarter of 2027
The assets include two oil batteries and stakes in two gas-processing facilities, which Ovintiv said should support margins and future production growth
As part of the deal, Logan will spin off its newly formed subsidiary, Logan Oil Corp, to its shareholders
Logan shareholders will also receive shares in spun-out Logan Oil Corp, initially valued at about C$0.08 per Logan share, and warrants, bringing total consideration to about C$1.48 per share
In 2024, Ovintiv agreed to buy Paramount Resources' Montney assets for $2.38 billion while selling its Utah Uinta operations to FourPoint Resources for $2 billion
($1 = 1.4020 Canadian dollars)
(Reporting by Pranav Mathur in Bengaluru; Editing by Maju Samuel)