Ovintiv sells Anadarko assets to Ovintiv for $3 billion

Ovintiv announced?on Tuesday that it had agreed to sell Anadarko?assets?in Oklahoma to an unnamed buyer for $3 Billion, as?the?company sharpens its?focus?on higher-margin?plays?in?the Permian basin and Canada's Montney.

In extended trading, shares of the company increased by nearly 2%.

The company's plan to sell the Anadarko assets was announced in November.

This sale is a result of North American producers concentrating capital into core, higher return?basins and shedding non-core asset to strengthen their balance sheets in the face of commodity price volatility.

Ovintiv's Montney expansion has been?aggressive in recent years.

In November, the company agreed to purchase the remaining NuVista stake?in an all-cash-and-stock transaction valued at $2.7billion, including debt. This added?about 140,000 acres net?and approximately 100,000 barrels per day of oil equivalent adjacent to their existing operations.

Paramount Resources also sold Montney assets to the company for $2.38 Billion in cash by 2024.

Ovintiv announced on Tuesday that it has one of the largest premium inventory positions in North America's?Permian & Montney basins, which the company views as two of the most valuable plays.

Brendan McCracken, CEO, said: "This transaction represents a significant milestone by focusing our current portfolio, delivering our debt target and?unlocking greater returns to our shareholders."

The sale comprises approximately 360,000 net acres and represents a substantial portion of?Ovintiv’s land in the Anadarko.

The average daily production of?the assets in February was about 90,000 barrels equivalent to oil.

The deal should close in 2026, 'early second quarter.

The company stated that it would provide an updated 2026 outlook as well as a revised shareholder returns framework when it releases its fourth-quarter results, on February 23. Reporting by Arunima Kumra and Sumit Sha in Bengaluru, Editing by Alan Barona

(source: Reuters)