Ovintiv to buy Logan Energy for $890 million, expanding Montney oil position
OVV•Ovintiv will acquire Logan Energy in an all-cash deal valuing the company at about $890 million, including debt. The deal adds about 266,000 net acres and production of roughly 20,000 barrels of oil equivalent per day, and is expected to close early in the first quarter of 2027.
1. Deal terms
Ovintiv said it would pay C$1.40 per Logan share. Logan shareholders will also receive shares in spun-out Logan Oil Corp, initially valued at about C$0.08 per Logan share, and warrants, bringing total consideration to about C$1.48 per share.
2. Montney assets
The acquisition would add about 266,000 net acres in the Montney region, roughly 20,000 barrels of oil equivalent per day of production and about 420 net drilling locations, including 220 premium-return wells. Ovintiv said the deal would generate annual cost synergies of roughly $60 million. The assets include two oil batteries and stakes in two gas-processing facilities.
3. Logan spin-off
Logan will spin off its newly formed subsidiary, Logan Oil Corp, to shareholders as part of the deal. Ovintiv said the acquisition is expected to close early in the first quarter of 2027.
