Oil and gas producer Ovintiv announced on Monday that it has reached an agreement to acquire Canadian energy company Logan Energy in an all-cash deal valued at approximately $890 million, which includes debt. Under the terms of the agreement, Ovintiv will pay C$1.40, equivalent to about $0.9986, per share for Logan.
The transaction is designed to significantly expand Ovintiv’s footprint in the oil-rich Montney region. The acquisition will add approximately 266,000 net acres to the company’s holdings and incorporate roughly 20,000 barrels of oil equivalent per day of production.
In addition to the current production volume, Ovintiv stated that the purchase will secure about 420 net drilling locations, which includes 220 premium-return wells. The company also projects that the integration of these assets will generate annual cost synergies of roughly $60 million.
The acquired assets feature vital infrastructure, including two oil batteries and stakes in two gas-processing facilities. According to the company, these facilities are expected to support operating margins and facilitate future production growth in the area.
As part of the corporate restructuring tied to the transaction, Logan will spin off its newly formed subsidiary, Logan Oil Corp, to its existing shareholders. Logan shareholders will receive shares in the newly spun-out entity, initially valued at about C$0.08 per Logan share, along with warrants. This brings the total consideration of the deal to approximately C$1.48 per share.
The acquisition is subject to customary closing conditions and is expected to be finalized early in the first quarter of 2027.
This move follows previous portfolio adjustments by Ovintiv in the region. In 2024, the company agreed to acquire Paramount Resources’ Montney assets for $2.38 billion while simultaneously selling its Utah Uinta operations to FourPoint Resources for $2 billion.
