Ovintiv gains after Montney asset buy, Uinta Basin exit

Paramount Resources (Pre-Merger)

14/11/2024 16:46

** U.S. oil and gas producer Ovintiv's  OVV.N  shares rise 4.3%
to $43.99
** Company to buy oil assets in Canada's Montney shale from
Paramount Resources  POU.TO  for $2.38 bln in cash
    ** New assets to add 70,000 barrels of oil equivalent per
day of production and nearly double Ovintiv's existing
production in the shale
    ** "The assets come at a low entry cost, have the potential
to grow oil production," Siebert Williams Shank analysts say
    ** Ovintiv to also sell its Uinta Basin assets in Utah to
FourPoint Resources for $2 bln
    ** OVV to fund Montney deal with cash proceeds from Uinta
sale, cash on hand and borrowings under its credit facility or
temporary financing
    ** Ovintiv also pauses its share buyback plan

(Reporting by Sourasis Bose in Bengaluru)
((Sourasis.bose@thomsonreuters.com))