Ovintiv Agrees to Acquire Canada's Logan Energy for About $890 Million

Ovintiv said on Monday, October 26, that it had agreed to buy Canadian oil and gas producer Logan Energy for approximately US$890 million, or C$1.26 billion, including expected net debt at closing. The agreed cash payment is C$1.40 per Logan share.

The proposed acquisition would add about 266,000 net acres in the Montney oil and gas region of western Canada. The acquired properties currently produce around 20,000 barrels of oil equivalent per day, a unit that converts gas output into an energy-equivalent oil volume rather than an identical sale price.

Ovintiv estimates the purchase would add approximately 420 potential drilling locations, including 220 that it regards as premium-return prospects. It also includes two oil-handling facilities and interests in two natural gas processing plants. Management forecasts annual savings of around US$60 million, although these are projections rather than realised results.

The companies said the transaction would be funded through available cash and borrowing. Logan shareholders are also expected to receive shares in a new spin-off, Logan Oil Corp., holding selected assets excluded from Ovintiv's purchase. The boards have approved the agreement, but completion is subject to shareholder, court and regulatory approvals. Closing is expected early in the first quarter of 2027.

Ovintiv's forecast of higher cash flow per share after the deal is conditional on operational performance and commodity prices. The companies have announced an agreement, not a completed acquisition.