Ovintiv Announces Agreement to Acquire Logan Energy for C$1.40 Per Share

Ovintiv Inc. announced on October 26, 2026, that it has entered into a definitive agreement to acquire Logan Energy Corp. in an all-cash transaction. Under the terms of the arrangement, Ovintiv Canada, a wholly-owned subsidiary, will acquire all outstanding common shares of Logan for C$1.40 per share. The total consideration is valued at approximately $890 million (C$1.26 billion), which includes the assumption of Logan's net debt at closing.

The transaction is expected to add approximately 266,000 net acres to Ovintiv’s portfolio, with 200,000 acres classified as core and 80% of that acreage currently undeveloped. The assets are located in the Montney oil window, specifically in the Simonette and Pouce Coupe areas, and are expected to contribute approximately 20,000 barrels of oil equivalent per day (MBOE/d) of production. This includes roughly 7,000 barrels per day of oil and condensate, 70 million cubic feet per day of natural gas, and 1,000 barrels per day of natural gas liquids.

Ovintiv expects the acquisition to be immediately accretive across key financial metrics, projecting a 5% increase in Non-GAAP Cash Flow per Share and a 3% increase in Non-GAAP Free Cash Flow per Share in 2027. The company anticipates annual cost synergies of approximately $60 million, primarily through capital savings, production cost reductions, and overhead cuts. The deal also includes ownership of two new oil batteries with a combined capacity of 24,000 barrels per day and interests in two natural gas processing facilities.

The transaction has been unanimously approved by the boards of directors of both companies and is expected to close early in the first quarter of 2027. Closing is subject to the receipt of Logan shareholder, court, and regulatory approvals, as well as the satisfaction of customary closing conditions. Ovintiv plans to fund the acquisition through a combination of its cash on hand, borrowings under its credit facility, and its commercial paper program. Following the closing, Ovintiv expects its net debt to be below $4 billion.