Ovintiv Inc. agreed to buy Logan Energy Corp. in a transaction Ovintiv values at about $890 million in U.S. dollars, including expected net debt, adding production and acreage in Canada’s Montney region. The company announced a cash payment of C$1.40 per Logan share and put the stated transaction value at C$1.26 billion.
The proposed purchase would bring about 266,000 net acres and current output of roughly 20,000 barrels of oil equivalent per day into Ovintiv’s portfolio, according to the announcement. The company also cited approximately 420 net oil well locations on a 10,000-foot-equivalent basis. About 60,000 net acres with exposure to the Duvernay shale are also included. The figures describe separate parts of the proposed asset package: production and drilling locations in the Montney, along with acreage associated with the Duvernay.
Ovintiv forecasts annual cost savings of about $60 million and says the deal would increase non-GAAP cash flow per share by about 5% in 2027. Those figures are company forecasts. To fund the purchase, Ovintiv expects to use cash on hand, credit facility borrowings and commercial paper.
The transaction also sets aside selected Logan properties outside the Montney and Duvernay areas. Logan shareholders are due to receive shares in newly formed Logan Oil Corp., which will hold those assets. The boards of both companies approved the transaction, Ovintiv said.
A Form 8-K filed with the U.S. Securities and Exchange Commission on Oct. 26 identifies the agreement under Item 1.01. The filing index also lists a Regulation FD disclosure under Item 7.01, financial statements and exhibits under Item 9.01, and Exhibits 2.1 and 99.1. Ovintiv’s announcement provides the transaction terms and operating estimates.
The companies are targeting a closing in early in the first quarter of 2027. Completion remains subject to shareholder, court and regulatory approvals, along with other conditions.
