Ovintiv to buy assets from trio of companies for about $4.275 billion in cash and stock
Ovintiv Inc. (OVV) said Monday it has agreed to acquire all leaeshold and related assets of Black Swan Oil & Gas, PetroLegacy Energy and Piedra Resources in a cash-and-stock deal valued at about $4.275 billion. The three companies are portfolio companies of funds managed by EnCap Investments L.P. The deal will add about 1,050 net 10,000 foot well locations to Ovintiv's Permian inventory and approximately 65,000 net acres in the core of the Midland Basin. The sellers will receive about 32.6 million Ovintiv shares and $3.125 billion of cash. Ovintiv is also planning to sell all of its Bakken assets located in the Willison Basin of North Dakota to Grayson Mill Bakken LLC, for about $825 million in cash. Grayson Mill is also a portfolio company of funds managed by EnCap. Ovintiv also said its board has approved a 20% hike in its quarterly dividend to 30 cents a share. It is now expecting 2023 total production of 520 to 545 MBOE/d, up from earlier guidance of 500 to 525. The stock rose 5.4% premarket but is down 35% in the last 12 months, while the S&P 500 has fallen 10%.
-Ciara Linnane
This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
04-03-23 0709ET
Copyright (c) 2023 Dow Jones & Company, Inc.-
What History Tells Us About the Fed’s Next Move
-
What’s Happening In the Markets This Week
-
Alphabet’s New Dividend: What Investors Need to Know
-
Going Into Earnings, Is Palantir Stock a Buy, a Sell, or Fairly Valued?
-
Going Into Earnings, Is Eli Lilly Stock a Buy, a Sell, or Fairly Valued?
-
What’s the Difference Between the CPI and PCE Indexes?
-
5 Stocks to Buy That We Still Like After They’ve Run Up
-
Markets Brief: Stocks Are Starting to Look Cheap Again
-
AbbVie Earnings: Next-Generation Immunology Drugs Help Offset Humira Biosimilar Pressure
-
Exxon Earnings: Ignore Earnings Shortfall as Long-Term Growth and Improvement on Track
-
American Airlines Earnings: We See Costs Overshadowing Market Share This Year
-
Snap Earnings: Advertising Growth and Snapchat+ Drive Monetization
-
STMicro Earnings: We Still See an Attractive Margin of Safety Despite a Poor First-Half Forecast
-
Alphabet Shares Surge on Strong Earnings, Dividend Surprise
-
Microsoft Earnings: Firm Beats Forecasts on Strong AI and Cloud Demand
-
PG&E Earnings: Near-Term Regulatory Certainty Supports Industry-Leading Earnings Growth