Ovintiv completes $2.7B NuVista takeover, strengthens Alberta Montney position

Ovintiv has closed its acquisition of NuVista Energy in a transaction valued at about $2.7 billion, bringing a large contiguous package of Montney assets into its portfolio. The purchase adds substantial undeveloped acreage and nearly a thousand net equivalent well locations immediately adjacent to Ovintiv’s existing operations, improving logistical and processing connectivity. Management projects the acquired properties will contribute on the order of 100 MBOE per day in 2026, with roughly a quarter of that volume in liquid hydrocarbons, and expects meaningful per-well and program-level cost reductions. Executed as a cash-and-stock offer, the deal included election mechanics and caps on aggregate cash and share consideration, and received decisive shareholder support at the vote. For Ovintiv the rationale is both operational and financial: the acquisition deepens inventory in a prime oil window, promises roughly $100 million of recurring cost synergies, and is intended to help meet stated debt targets when combined with planned asset sales. The structure preserves access to downstream processing and midstream capacity, a practical advantage for near-term production growth and for realising the targeted efficiencies. Risks remain conventional for a transaction of this size: integration execution, commodity price volatility, and the company’s ability to realize forecasted per-well savings at scale. The NuVista shares are expected to be removed from the TSX, while Ovintiv shares issued in the deal are listed on the NYSE and have conditional TSX approval under an interlisted issuer exemption. Ovintiv said it will incorporate the acquisition into its upcoming guidance when it reports fourth quarter and full year results in late February 2026, signalling investors should expect updated production, capital, and balance sheet metrics then. Strategically, the move concentrates the company into two major North American oil plays and tightens its operating footprint, which can reduce unit costs and improve capital allocation flexibility. However, the benefits will hinge on timely integration, stable midstream access, and execution of complementary asset dispositions. In short, the transaction materially repositions Ovintiv’s Montney exposure and creates a clearer path to near-term production gains and structural cost improvements, while leaving typical M&A execution risks on the table.